Financial and business news from Bulgaria

Bulgartransgaz applies for co-financing for Bulgaria-Serbia gas connection

Directorate General “European Funds for Competitiveness”, Managing Body of Operational Programme “Innovation and Competitiveness” 2014-2020 invited Bulgartransgaz EAD to submit a project proposal under a procedure by directly providing a grant to a specific beneficiary: BG16RFOP002-4.003 “Technical assistance for the completion of the preparatory activities necessary for the start of the construction of the Bulgaria-Serbia interconnector” under Priority Axis 4 “Eliminating obstacles in the field of security of gas supply”, Investment priority 4.1. “Improving energy efficiency and security of supply by developing smart energy transmission systems” at OPIC 2014-2020. This was reported by Bulgartransgaz.
The invitation allows Bulgartransgaz EAD to apply for co-financing of preparatory activities for updating the detailed plan for the project, for developing an investment project, for carrying out archaeological research, acquisition of real rights, etc.

As a result of the implementation of the preparatory activities, the design stage of the interconnector gas connection between Bulgaria and Serbia will be completed and the necessary building permits will be issued.

The funds under the invitation amount to BGN 11,734 980 and are provided by the European Union through the European Regional Development Fund and National Cofinancing.

The Bulgaria-Serbia Interconnector (IBS) is of particular importance for ensuring the security of energy supply for both Bulgaria and the region and the EU. The interconnector has the status of a 'project of common interest' for the EU and is included in all lists of projects of common European interest drawn up to date. IBS is also an important part of the realization of the concept of Gas Hub “Balkan”.

The gas pipeline from Novi Iskar in Bulgaria to Nis in Serbia has a planned length of 170 km, 62 km. of which on Bulgarian territory. After its construction, the gas connection will have a throughput capacity of 1.8 billion m3/years and will have the possibility of reversible flow.

In May 2018, the energy ministers of the Republic of Bulgaria and the Republic of Serbia signed a joint declaration on the construction of the gas interconnector. Bulgartransgaz EAD is designated as project organizer and future operator of the interconnector on Bulgarian territory. A joint commitment has been made by both parties to build and commissioning the pipeline by May 2022.