Miziya gas distribution

active

The government of Bulgaria awarded a 35 year BROT-type license to Black Sea Technology Company AD (BSTC) for the construction of a gas distribution network in the Miziya area. The Miziya region was located in northern Bulgaria, centered around the town of Pleven. In 2004 the city of Pleven had some 130,000 inhabitants. The license was awarded to allow consumers in the Dobrudja area to switch to gas for heating and industrial power. BSTC hoped to eventually sell gas to some 37,000 households, 300 industrial complexes and 600 utility companies in the area. The license was awarded following a competitive process. Three bidders submitted offers: BSTC, Technoterm Engineering, and Pleven Gas (wholly owned by Bulgarian Overgas). BSTC was awarded the contract in February 2004. As of Dec. 31, 2007, BSTC was 99.75% owned by Italy’s AMGA Azienda Multiservizi SpA. BSTC pledged to invest some US$46.5 million over ten years to set up a 235 km gas distribution network in the Miziya area. In March 2004 local bank Bulbank, owned by Italian Unicredito, declared it would extend a US$26.4 million (22 million euro) credit to BSTC to help finance the project. In September 2004 BSTC started work on a 14 km portion of the gas distribution network in Pleven.