Bobov Dol Power Plant

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In January 2009, local company Energia MK [Bulgaria] completed its payment to the Bulgarian Privatization Agency (PA) for 100% of the state-owned Bobov Dol Power Plant, a 630MW lignite-fired thermal power plant in southwestern Bulgaria. The plant comprised three 210MW generating units. The plant was sold by way of a competitive bidding process. On March 13, 2008, the PA launched the tender for 100% (251,400 shares) of the Bobov Dol Power Plant, setting a minimum bid price of BGN100 million (US$74.6 million). Five companies purchased documentation to take part in the tender: Energia MK [Bulgaria]; Minna Kompaniya [Bulgaria]; Damco Energy [Greece]; SENCAP, a joint venture of state-owned power utility PPRC [Greece], investment fund Contour Global [United States] and the EBRD; and Electrabel [Belgium]. However, in April 2008, only two companies prequalified to take part in the final bidding: Energia MK [Bulgaria] and Minna Kompaniya [Bulgaria]. The deadline for final bids was June 26, 2008. Minna Kompaniya was disqualified from the final auction because it reportedly failed to make the required deposit payment. Energia MK was selected as the winner of the auction, bidding BGN100 million (US$74.6 million). In September 2008, the PA signed the privatization contract with Energia MK. The contract stipulated a purchase price of BGN100 million (US$74.6 million) and an investment obligation on the part of Energia MK of EUR 35 million (US$51.5 million). In addition, the buyer was to keep Bobov Dol’s payroll unchanged for three years and buy 1.85 million tonnes of coal yearly from the adjacent coal mines. The buyer must also bring the plant in line with European Union environmental standards before operating the plant at full capacity (630MW). At the time of the divestiture, the plant was operating at 420MW. Energy MK CEO was sentenced to prison for tax evasion. Follow up for 2012 update with the status.