Bulgaria, Bulgartransgaz seeks 49 million euros loan for gas interconnection with Serbia

, SEE Energy News

Bulgarian natural gas transmission system operator Bulgartransgaz launched a tender for the procurement of a loan worth 49 million euros that will be used to finance the project for the construction of gas interconnection with Serbia.

According to tender documentation, the loan should have maturity of six years, including a one- year grace period, with interest and principal payments to be made on a monthly basis. The interest rate is envisaged to be the sum of one- month EURIBOR plus a proposed margin covering all fees and commissions. The deadline for the submission of offers is 9 December.

bidders commercial banks, international financial organizations operating in Bulgaria on the basis of ratified intergovernmental agreements and treaties as well as government funds. The loan will be guaranteed by the state, which will be able to issue guarantees under new loan agreements signed by Bulgartransgaz for a total amount of up to 382 million euros, under applicable EU state aid regulations.

Serbia has started the construction of its section of the interconnection in February and expects to complete the works in September 2023. The pipeline with annual capacity of 1.8 billion cubic meters should enable the country to import natural gas from the Caspian region and LNG terminals in the Mediterranean.