Bulgaria to present a financial model for the Burgas - Alexandroupolis project

Bulgaria will present in October its scheme for funding the project for the Burgas - Alexandroupolis oil pipeline, stated yesterday the Spokesman of the Russian company Transneft Igor Demina, quoted by the online edition oilru.com. It is expected that the meeting of shareholders of the Trans Balkan Pipeline (TBP) project company will be held at that time in Amsterdam, Netherlands.

On September 8, at a session of shareholders from Russia and Bulgaria, Transneft proposed to take on the full funding of the pipeline. The funds will be remitted from the profits from the transported oil. The facility will connect the Bulgarian port of Burgas with the Greek Alexandroupolis tube section and it will be 282-km long. The Russian company also offered that transit fees to be paid to the countries through whose territory the pipeline passes be dropped. Bulgaria expects a total of $35 mln annually from such fees.

The proposal for project funding by the Russian company Transneft was discussed in Moscow at a workshop attended by representatives of the project's shareholders from Russia and Bulgaria. According to the data of the President of the Russian Gas Society, Valery Yazev, Bulgaria has not been involved in the financing of the pipeline's construction, while Russia has already spent $12 mln and Greece - $20 mln.