Regional Development Minister Valentin Tserovski and representatives of the Ministry of Finance, the EBRD and the water companies in Plovdiv and Bourgas signed a Protocol on Cooperation.

Regional Development Minister Valentin Tserovski and representatives of the Ministry of Finance, of the European Bank for Reconstruction and Development (EBRD), and the water companies of Plovdiv and Bourgas signed a protocol for cooperation. Apart from Tserovski, the document was signed by Deputy Finance Minister Kiril Ananiev, EBRD Director for Bulgaria John Shommel-Dow, and the directors of the water companies in Plovdiv and in Bourgas - Nikolay Somlev and Georgi Tsanev. This is the first time water companies will be extended credits that have not been guaranteed by the state, Regional Development Minister Valentin Tserovski said. It has been provided for the EBRD to extend loans totaling up to 60 million euros to six water companies, including those in Plovdiv and Bourgas. The signatories to the protocol undertake to cooperate actively in attracting funds under ISPA, Tserovski added. He specified that the choice of the two water companies was made jointly with the EBRD after an in-depth analysis. Apart from the purely financial indicators, the choice of the two water companies was also determined by their considerable prospects in future concessioning. The next step will be to give 49% of these water companies to interested municipalities and then to invite a tender for their concessioning, Tserovski said. The purpose of the project is to rehabilitate and extend the existing infrastructure and bring it in line with European standards, EBRD Director for Bulgaria John Shommel-Dow said. He stressed that the signing of the protocol is part of the EBRD’s new strategy for Bulgaria. Similar credits will be extended to other water companies as well, provided the two pilot ones in Plovdiv and Bourgas prove successful. The loan will help improve infrastructure and streamline the structure of the water companies, Deputy Finance Minister Kiril Ananiev said. According to him, this would make it possible to attract other investment in the sector. Photo: Regional Development Minister Valentin Tserovski and EBRD Director for Bulgaria John Shommel-Dow (left), and Deputy Finance Minister Kiril Ananiev (right) sign the Protocol for Cooperation. PR and International Activities Directorate