Sofia Waste Plant Opens Severe Tender Battle

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For plant that needs to process thousands of tonnes of household waste in Sofia, the press has been speaking for so long that a large part of society now considers the facility almost ready. And how else it could be – personally Prime Minister Boyko Borisov, accompanied as always by a bunch of journalists had already made several turnings of the first sod. Separately Mayor Yordanka Fandakova every month or two boasts of the project’s progress. Another celebratory event may be expected just before the parliamentary elections next year.

However, in practice it was as late as last week that saw the opening of the bids of the new candidates in the competition to select a company to design and build the plant for waste treatment. The previous procedure, which selected German-Bulgarian consortium Hut-Stanilov was aborted late last year at insistence from Brussels. Now the project has been changed as requested by European experts and the Central Heating Company – Sofia is already included in it, since its power plants will burn the blocks of processed garbage. It is the technology for processing waste that has been the reason for the European Commission to refuse to grant its consent for the construction of the facility. EC doubted its effectiveness and wanted to prepare a thorough analysis of whether residues from the processing of waste (RDF) was suitable for heating fuel for the capital, and whether the whole system would meet the environmental requirements.

This present competition attracted 11 companies (by three more than last time), and yet at the opening of bids, due to deficiencies in documentation, Czech CKD Praga Diz was disqualified. All major Bulgarian companies, however, play part in foreign consortia meeting the minimum turnover requirement of BGN250 million for the yearS 2008, 2009 and 2010. Also with the help of partners they manage to cover the criteria for experience in the design, construction and commissioning of at least one plant for mechanical biological treatment of household waste with a capacityof over 200,000 tonnes per year, which includes the production of RDF, as in Bulgaria has not so far been built.

For example, previous winner, Stanilov, has replaced as partners the Germany’s Heilit with the Italian association Daneco. Associated with businessman Vasil Bozhkov PST Holding participates in consortium Sadinata 2012 with German Hochtief and Spanish Macias Recycling. At the first auction Hochtief took part in cooperation with the Greek Helektor and then remained second. Now Helektor compete in the procedure with a subsidiary of Aktor group. GBS construction company of Simeon Peshov is to take part in the competition together with the Italian Eureka, while Nikolai Mikhailov’s holding, Trace Group, has teamed up with Turkish Mut, while the Construction and Development Holding of Georgi Georgiev is in a consortium with Spanish BCM.

Geotechmin is now in partnership with French Vaucher under the name MVT Sofia 2012. The company of the alledgedly the richest Bulgarian Tsolo Vutov, in partnership with the Italian Unieco already won the tender for construction of a landfill for non-hazardous waste pertaining to the plant in the Sadinata area. This happened after a long legal saga, as the union offered a bid of nearly BGN25.2 million, while the candidate with the lowest price bid (BGN22 million) – Construction and Development Holding was disqualified and appealed the procedure.

Another major player in the race is Energo Holding, which has partnered with the German GBMT Sofia. The largest equity share in the Bulgarian company (33%) is held, through Millennia 77 company, former energy minister Milko Kovachev, the former head of NPP Kozloduy, Yordan Kostadinov, and Petar Manchev, son of energy boss and owner of Risk Engineering Bogomil Manchev. Other 32% in Energoremont holding are held by Bulgarian Energy JSC of Nikolay Zlatev and Nikolay Raychev.

Against the background of the listed companies the last Bulgarian participant is quite devoid of glamour. This is Mixed Constructions of Plamen Hristov and Stamen Ivanov. They have teamed up with the German Egersman which under the name Egersman amp; Co. (in cooperation with Diana Commerce – 1 and Engineering 2000) participated in the tender for the installation of a waste composting plant. Offers for this tender were submitted by other four companies – the uinion BTA – Efasek – Umvelt Electronics and Eco Tank; consortium Valmex Attsvanger; and Han Bogrov 2011 and Arge Bogrov associations but at the opening of the bids only two of them was greenlighted to continue competitions: the last one and Egersman amp; Co. The proposal of Arge Bogrov, which unites Monolith Sofia AD and Innovation Technic – Austria, was for BGN45,728,964. The bid of Egersman amp; Co was for BGN46,592,435 Levs. But although bids were opened in early February the municipality has still not officially chosen the winner.

In the race for the construction of the waste treatment plant three Spanish companies take place – Eleknor, Sorayn and Stadler united in in a consortium called Eleknor.

According to Deputy Mayor Maria Boyadzhijska, who is also chairman of the evaluation committee, the construction contractor is expected to be apointed on October 1. Several months later, the company will have to entered into a contract for the project. To design and build facilities as well as equip them with the necessary machinery, the winner of the race will be able to count on nearly BGN200 million provided by EC Environment Operational Program and a loan from the European Investment Bank. The period of performance is 31 months, but actual construction will have to last only 19 months since the rest of the period is to be used only for removing possible defects.

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