BSTDB Provides EURO 20 Million Loan for a Power Plant in Bulgaria
Press Release | 11-Mar-2003
The Black Sea Trade and Development Bank (BSTDB) extended a €20 million loan to help rehabilitate and improve the environmental performance of the lignite-fired 840 MW power plant Maritza East III, near the southern city of Stara Zagora. The plant is majority privately owned.
BSTDB's loan is for a term of 15 years. Additional financing for this important project is provided by the European Bank for Reconstruction and Development (EBRD) and a group of international commercial banks, including Société Générale, Crédit Agricole Indosuez, Banca Mediocredito (UniCredito group) and Bank Austria Creditanstalt, as well as four leading local banks: Biochim, Bulbank, SG Expressbank, and United Bulgarian Bank.
The financing provides support to the Bulgarian power plant to cover its developmental needs, in particular for the facility to be in full compliance with Bulgarian and E U environmental standards. The Project meets Bulgaria's requirements for reliable capacity replacement rather than additional capacity and will contribute to improve the efficiency of the Bulgarian energy sector. The Maritza East III project fulfills BSTDB's mandate for contributing to the regional cooperation in the Black Sea region as it creates the potential for future electricity sales from Bulgaria to neighboring countries, which are experiencing a high level of growth in electricity demand.
Says Mr. Mustafa Gürtin, President of BSTDB: "This is BSTDB's largest operation to date. It comes after the signing of the Galata gas project in Bulgaria last December and two major loans extended to SNP Petrom and Rompetrol in Romania in 2002. Our support of the first private power project in Bulgaria confirms BSTDB's increasing role in providing long term financing to the energy sector in the Black Sea region".
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. With an authorized capital of SDR1 billion (USD1.38 billion), BSTDB supports economic development and cooperation in the Black Sea region by providing financing, guarantees, and equity for projects in public and private sectors in its member countries. Since the commencement of operations in 1999, BSTDB's Board of Directors has approved more than 50 operations totaling more than 450 million US dollars.