The key marine terminal Burgas West is no longer a state-owned one. Last week, the Ministry of Transport and Communications announced the name of the concessionaire and this is only candidate who showed interest in the facility. This is the Navigation Maritime Bulgare – Port Burgas, 100% owned Navigation Maritime Bulgare, which was privatized in 2008 by the German-Bulgarian consortium KG Maritime Shipping. A representative of the association from the Bulgarian side is businessman Cyril Domuschiev.
According to experts, there is every chance that port Burgas West may have attracted the interest of more and more famous foreign companies. Representatives of the Ministry of Ivailo Moscovski confirmed that several companies have purchased and even some of them are based outside the European Union. But there is no explanation of why they ultimately decided not to participate. The official documentation for the procedure showed it clear that one of the potential candidates asked the deadline for bids to be extended, but the Transport Ministry declined to respect satisfy this request.
What strikes here is a not very logical parallel. The people of Moscovski have refused extension for Burgas – West, while for a far less important terminal as in Tutrakan the officials have already extended deadlines for application twice. The last extension was granted at the beginning of last week and documents can be submitted by February 16, whereas the first date was set for the beginning of the year.
As for the requirements for Burgas – West, they were high from the outset. Participants had to prove they have had revenue for the past three years of at least 750 million lev (total) and book value of their assets also had to be at least as much as that.
Against this background, the requirements for future operating results are ridiculous. The concessionaire must invest at least 20 million lev in port throughout the 35-year concession period and the first 9.5 million lev of them will have to be invested in the first seven years.
The BANKER
