Dobrudja gas distribution

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The government of Bulgaria awarded a 35 year build, own and transfer (BOT) license to Black Sea Technology Company AD (BSTC) for the construction of a gas distribution network in the Dobrudja area. The Dobrudja region included 18 municipalities, the largest being Dobrich and Shumen. The BOT was awarded to allow consumers in the Dobrudja area to switch to gas for heating and industrial power. BSTC planned to eventually distribute gas to some 300 industrial companies, 500 public institutions and 56,000 households in the area. The BOT contract was awarded following a competitive process. Two bids were received: one from BSTC and another from Technoterm Engineering. BSTC was awarded the contract on February 25th, 2004. As of Dec. 31, 2007, BSTC was 99.75% owned by Italy’s AMGA Azienda Multiservizi SpA. BSTC pledged to invest some US$58 million over ten years in the area to set up a gas distribution network. Commercial bank Bulbank was expected to provide some funding for the investments, and to service the subscription of end-gas consumers. In 2004 BSTC invested some $3.8 million in building a 44 km gas distribution grid in the Dobrodja area. Alternative spellings: Dobrudga, Dobrudzha, Dobrogea.