Category Archives: Events

THE FIRST PILLAR PENSION REDUCTION RATIO IS UNFAIR AND RESTRICTIVE TO THE ECONOMY

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The coefficient of reduction of the pension from the first pillar in our country born after 01-01-1960 is unfair and restrictive for our economy. In his current calculation he damages the pensioners by 10% and impedes the development of the capital market in Bulgaria. All the participants in the international conference “Multi-pillar pension systems in Europe – benefits and future”, organized by Bulgarian Association of Supplementary Pension Security Companies, came together.

“Poor demographic conditions – an aging population and emigration in recent years are among the prerequisites for a serious deficit in the first pillar of our pension system. According to the NSSI and the Ministry of Finance, currently in Bulgaria the ratio of the employed in the private sector to that of the employed in the budget sector and pensioners is 1.9 people to 2.6 people. By this indicator our country is at the bottom of the ranking not only in the EU. A solution to the problem that creates this disadvantage for the pension system can be sought in the development of the capital pillar. We need to work for better regulation of the second pillar (capital) pension payment phase and develop measures to encourage and attract more social security contributions to it”, said Vasil Velev, a Chairman of Bulgarian Industrial Capital Association.

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He added that in the countries with the best pension systems, pension funds own and manage assets worth over 60% of the GDP of the respective country, while in our country this percentage is only 12 percent. In addition, the ratio between the financing of capital market projects and bank lending is twice as unfavorable in the EU than in the US, with Bulgaria at the bottom of the EU ranking.

Former Governor of the National Social Security Institute, Prof. Jordan Hristoskov, urgently needs to take steps to change the Bulgarian pension system. These include the immediate cancellation of the possibility of transferring funds from the second to the first pillar, increasing the contributions in the second pillar from 5% to 10%, even with the cost of reducing the contributions in the first pillar or income tax.

Hristina Mitreva cited the frequently changing labor and pension legislation and the lack of public awareness of pension schemes as obstacles to the development and achievement of the necessary confidence in the pension system in Bulgaria.

According to the participants in the international forum, the three-pillar model is extremely successful and enables various forms of interaction to provide decent and secure pensions. However, they were adamant that the three pillars should not be opposed, but considered as complementary parts of a whole.

The conference also discussed the development of pension policy at national and European level, the benefits of the multi-pillar pension system, which was identified as an alternative at the moment, and the need to significantly increase savings in supplementary pension insurance. The Minister of Labor and Social Policy Biser Petkov, the chairman of the Labor, Social and Demographic Policy Commission Hasan Ademov, the chairman of the National Social Security Institute Ivaylo Ivanov, the chairman of the FSC Boyko Atanasov, the chairman of Pensions Europe Yanvil Bouma, representatives of pension insurance companies took part in the event and the EU, employers’ organizations, trade unions and non-governmental organizations.

BICA alarmed for urgent measures to address staff shortages in the European Union

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“Finding the right human resources is the most serious challenge facing employers in Europe, which has a serious negative impact on the economy and society. Europe loses € 0.8 an hour because of a mismatch in labor market demand for employers’ skills”, said in a statement Dr Milena Angelova, Secretary General of BICA, at the Tripartite Meeting of the European Social Partners in Brussels yesterday.

She participated in the meeting as acting chair of the European Center for Public Service Undertakings. Before the President of the Council of the European Union and the Prime Minister of Romania, Ms Dancila, the President of the Council of the European Union Mr Tusk, EU President Mr Juncker, Commissioners-in-Office and Presidents of the European social partners, she urged urgent measures to tackle Europe’s workforce shortages by targeting young people with education and qualifications in the sciences, mathematics, engineering, digital technology and making vocational education and training the most preferred but a choice.

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Another focus of her speech was the need to promote the competitiveness of the economy as a prerequisite for maintaining the extremely expensive European social model. “Although Europe’s population is only 7% of the world and GDP is 22%, the 28 member states of Europe account for over 40% of social spending in the world,” she said. In this context, it called for urgent decisions on the Multiannual Financial Framework for 2021-2027 and for investments in infrastructure and competences sought in the labor market to promote productivity.

BICA has been alarming for years about the growing problem of human resources shortage and has been working systematically to bring the admission system in Bulgaria in line with the demand on the labor market, as well as to increase the attractiveness of professions with a key to competitiveness of the Bulgarian economy.

President of the European Council Mr Tusk stressed that investment is key to overcoming the slowdown in economic growth in Europe. The President of BUSINESSEUROPE, Mr Pierre Gathaz, drew the attention of the Romanian Presidency to the many problems in implementing the directive on seasonal workers and called for their timely resolution. Mr Valdis Dombrovskis, Vice-President of the European Commission, was also present at the Tripartite Meeting of the European Social Partners.

BICA CALLS FOR THE WITHDRAWAL OF THE CONCEPT OF THE PERSONAL ACCOUNTS OF PHYSICAL AND LEGAL PERSONS

Bonova-Knizhka

The Bulgarian Industrial Capital Association (BICA) insists on the withdrawal of the Concept of Personal Accounts of Individuals and Legal Entities held by Central Depository AD. The implementation of the concept will affect nearly 3 million Bulgarians – owners of shares acquired during the privatization. According to the employers’ organization, which is the main expression of the interests of the issuers, the concept proposed for public discussion is in striking contradiction both with the Constitution of the Republic of Bulgaria and the guaranteed property rights and with the Treaty on the Functioning of the European Union.

The prepared concept envisages the introduction of a mandatory transfer of the shares of Registry A to the Central Depository in Register B to investment intermediaries. Thus, each shareholder will be forced to transfer to investment intermediaries within a period of one year. If during this year the owner of the shares does not transfer them voluntarily, they will be transferred without his will to a specially created investment fund against shares in the fund. Upon the expiration of a new term and in the absence of action by the unit-holders, their shares will be nationalized and deposited into the Silver Fund.

Currently, the holders of shares do not pay fees to the Central Depository. Undertakings pay the Central Depository to maintain Register A. By transferring the shares to an investment intermediary these payments will be at the expense of the shareholders. In short – their shareholders are offered either by their free Registry and willingly to transfer their shares to an investment intermediary and to pay in the future all due fees and to lose their shares in this way in the long run, or to take nothing and to lose the shares in the short term.

There is no act of European or Bulgarian law, nor practice that would imply and even less to impose such an innovation as the proposed concept.

BICA recalls that the presented concept is not considered for the first time. A previous one has already been rejected by the predecessor of the Capital Markets Development Council, and a working group set up by the Ministry of Finance has not reached any outcome following objections by the Ministry of Justice, Bulgarian Industrial Capital Association, the Association of Bulgarian Investor Relations Directors.

According to the employers’ organization, the effect of the proposed seizure decision, based on the lack of interest of the owners of “dormant” shares, is not different from the confiscation of a bank deposit in which there is no movement, or of an unmanaged vehicle or of immovable property, which is not used.

BICA shares the understanding that there are problems with the inheritance of the shares, the management of the shares of the emigrated Bulgarians and of the Bulgarians who live in areas without any licensed investment intermediary. But not nationalization is the solution to these problems. With the proposed Concept for personal accounts of individuals and corporate entities kept by Central Depository AD in Registry A, no problem is solved. On the contrary, there will be new problems for nearly three million shareholders and hundreds of businesses, which will particularly negatively affect the investment climate and the image of Bulgaria around the world. According to BIC, if the authors of the concept really want active management of the “dormant” shares, it is far more meaningful to provide measures and opportunities for remote management of these small bundles of shares, reduce or even eliminate the management, transfer and mostly for inheritance. In view of the above, the only right solution is for the draft concept to be withdrawn by the importers.

OPINION OF BICA ON THE DRAFT ORDINANCE ON THE ORDER AND THE CONDITIONS FOR THE REGISTRATION OF THE PERSONS ACTING IN ECONOMIC ACTIVITIES RELATED TO OIL AND PRODUCTS OF LIGHT ORIGIN (URBANIDISNPNP)

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TO
Mr Emil Karanikolov,
MINISTER OF ECONOMY

 

Subject: Draft Ordinance on the terms and conditions for keeping a register of the persons conducting economic activities related to oil and petroleum products (URBRDDIDNPNP)

Dear Mr. Karanikolov,

Bulgarian Industrial Capital Association (BICA) has the following

OPINION:

On the draft Ordinance on the terms and conditions for keeping a register of persons engaged in economic activities related to petroleum and petroleum products (UNDP):

Procedural – the reference to an exceptional case within the meaning of Art. 26, para. 4 of the LPA for the public deliberation for us is unjustified and for unconvinced reasons as even if the 30-day period does not hinder the project to be adopted in due time, given the entry into force of the law from 28.01.2019. Given the controversial nature of a number of norms and their impact on the fuel business, we think it would be appropriate to postpone the entry into force of the Law on the Administrative Regulation of Economic Activities Related to Oil and Petroleum Products (ZARISNNPNP). The same applies to the draft regulation under discussion.

We use the occasion to reiterate the principle that we follow in principle to support all measures aimed at curbing the gray economy, which is among the declared basic goals of the law. In our view, however, the achievement of such a goal is incompatible with the restriction of real competition, which is seriously disturbed by many operators in the industry.

After a thorough analysis of the draft Ordinance, we find:

1. The project reproduces the norms of the Law on the Administrative Regulation of Economic Activities Related to Oil and Petroleum Products, with obvious observance of its manifest contradictions with Art. 19 of the Constitution of the Republic of Bulgaria with regard to the free economic initiative, creation and guarantee of equal legal conditions for economic activity, prevention of abuse of monopoly, unfair competition, consumer protection, investment and economic activity;
2. As correctly noted on page 2 of the Report of the Interdepartmental Working Group established by Order No. РД-16-1053 / 11.09.2018 of the Minister of Economy (for drafting a draft Ordinance, which sets the terms and conditions for keeping a register of persons engaged in economic activities related to petroleum and petroleum products) “The draft Ordinance does not introduce texts of European legislation”. However, the fact that this project violates the norms of Community acts such as:

  1. Directive 2006/123 / EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market (Preamble (52) – Simplification of administrative procedures and formalities, Preamble (69) Where requirements are discriminatory or objective justified by imperative reasons of public interest or where they are disproportionate, they must be removed or amended, “Preamble (99)” The insurance or guarantee should be adequate to the nature and extent of the risk “, Preamble (110) For Member States and it should be impossible to circumvent the rules laid down in this Directive, including the provision on the freedom to provide services, by carrying out inspections, inspections or investigations which are discriminatory or disproportionate. “Article 5 Simplification of procedures Article 10 Conditions for granting authorization, Article 14 Prohibited requirements, paragraph 7, etc.).
  2. Directive (EU) 2015/1535 of the European Parliament and of the Council of 9 September 2015 laying down a procedure for the provision of information in the field of technical regulations and rules on Information Society services (Preamble (2)) – the prohibition of quantitative restrictions the movement of goods and measures having the same effect is one of the fundamental principles of the Union “, Preamble (7)” The aim of the internal market is to create an environment conducive to the competitiveness of enterprises “).
    and above all
  3. The Small Business Act, proclaiming the European Competitiveness Principle – “Think about the little ones first”.
    A major flaw in the draft of the URBRDDIDNPNP is that no legal delegation exists for many of the prescribed norms. Such is provided in the IRISPNPN, Art. 4, para. 4 in relation to Art. 16, para. 1. The Delegation shall require the Minister of Economy to issue an ordinance defining only the terms and conditions for keeping a register of persons engaged in economic activities related to oil and petroleum products. This is not the decision in the draft Ordinance:
    In Art. 14, para. 1 (4) introduces a requirement for the submission of property documents certifying the existence of real or bond rights for the activities under Art. 2, para. 1, item 1-6 of the Law;
  4. In Art. 16, para. 1, item 4 and Art. 17, para. 1, item 6 a requirement for submission of explanatory notes by the respective applicant is introduced;
  5. In Art. 19, para. 1, item 4 and in Art. 21, para. 1, item 1 introduces a requirement for submission of a document of ownership;
  6. In Art. 35, para. 1 deposit in cash shall be provided for a period of not less than one year and six months from the date of submission of the application to the termination of the registration or the replacement of the bank deposit with a bank guarantee. In Art. 10, para. 3 of the Law, the time limit is limited to one year and six months from the submission of the application, without any additional restriction.

The stated (non-exhaustive) material defects justify our position against the draft Ordinance on the Terms and Conditions for keeping a register of the persons conducting economic activities related to oil and petroleum products (URBRDSDNPNP).

PRESS-ANNOUNCEMENT ON THE ELECTRICITY MARKET PROBLEMS

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In the course of our actions as a responsible nationally representative employers’ organization on the issues we have signaled in the electricity market, we welcome the efforts to normalize tradable volumes and pricing of the platforms of Bulgarian Independent Energy Exchange EAD. We expect results for both the “day ahead” and the “bilateral contracts” segment – with particular attention being paid to this market from the perspective of industrial consumers.

We are confident that the adequate supply, as well as the responsible and committed behavior of the trading participants, will allow us to achieve reasonable balanced price levels.

Analyzing the volumes in the last week, we are convinced that there are still significant opportunities regarding the volumes offered for bilateral trade – both in TPP Maritsa East 2 AD and Kozloduy NPP covering the problematic winter period for the first quarter 2019, without affecting the volumes offered by those companies in the “day ahead” segment.

BICA WELCOMES ABOUT 400 GUESTS FOR ITS 22 BIRTHDAY

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The Bulgarian Industrial Capital Association (BICA) welcomed more than 400 guests at the official celebration of its 22nd birthday. Among them were representatives of the executive and legislative branches, business, branch, trade union and non-governmental organizations, diplomats and others.

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“During these little more than two decades, the Bulgarian Industrial Capital Association became not only the voice of the Bulgarian business but it has become a real advocate for the interests of small and large enterprises, public organizations and companies providing services of general interest. I can boldly say that we will continue to participate actively in the process of creating and updating the legal framework in the country and good administrative practices, “said BICA Managing Board Chairman Vasil Velev.

BICA pointed out the priorities for 2019. For the Association one of the main problems faced by the Bulgarian economy – the lack of a skilled labor force for key sectors, the implementation of a reform in the financing of higher education and the inclusion of more business representatives in the definition of plan-adopts for secondary education. The struggle with the gray economy, which has become a trademark of BICA, will also be among the priorities of the most representative employers’ organization in Bulgaria.

BICA GAVE THE FIFTH ANNUAL AWARDS “BUSINESS TO THE RULES”

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18The Bulgarian Industrial Capital Association (BICA) presented the fifth annual “Business to the rules” awards. The winners in the categories were selected by a special jury of over 100 prominent people by secret ballot. The awards were distributed at a ceremony in Sofia Hotel Balkan and guests were Prime Minister of Bulgaria Boyko Borisov, Deputy Prime Minister Valeri Simeonov, Finance Minister Vladislav Goranov, important government officials, Sofia Municipality, businesses, NGOs and social partners.

The National Council for Tripartite Cooperation took the prize in the category of “Normative act or administrative practice that leads to curbing the gray economy and improving the business environment”. The award was given to actively contribute to the drafting of the changes to the Labor Migration and Labor Mobility Act, which led to the facilitation of the legal hiring of third-country nationals and the communication of the positions of all stakeholders. Nominated in the category were the Ministry of Finance and the Energy Commission at the 44th National Assembly of the Republic of Bulgaria.

The Association of Organizations of the Bulgarian Employers won the distinction of “Person or organization that contributed to the limitation and prevention of the informal economy through an active position”. AOBE, which managed to combine employers’ positions on a record number of issues, received a nomination for the overall activity of an organization in the past year in the field of curbing and preventing the informal economy. The Active Users Association, the Bulgarian Association of Private Schools and the Chief Councilor of the Vivacom Managing Board Dr. Janet Zaharieva were the other nominees for the prize in the category.

For her “Read the Label” column, Biljana Gavasova won the Journalist or Media Prize, who contributed to changing public attitudes towards intolerance to an informal economy. The bTV journalist struggled to compete with the economic department of Sega newspaper, Europe television and the reporters of “Lords of the Air” Boris Vaklinov, Vladi Vassilev and Dimitar Varbanov.

Nominations for the awards were made through a broad public consultation among members of the Bulgarian Industrial Capital Association, all social partners, members of the Public Council for Limiting and Prevention of the Informal Economy, composed of representatives of a number of state institutions and the media.

The competition aims to highlight and reward leading institutions and individuals with an active position and contribution to curbing gray practices. Thus, for another consecutive year, BICA promotes active action in the fight against the informal economy and promotes the constructive role of business in society in improving the socio-economic environment.

For the past year, the composite index “Business to the rules”, by which BICA measures the light bulk of the Bulgarian economy, has risen to a record 3.07 points to 74.78. The association reported a clear trend of accelerating the shrinking dynamics of the “gray” economy over the past three years, dropping to 25% in 2017.

BICA developed innovative instrumentary to increase to increase the attractiveness of keywords professions for bulgarian economy

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“There is a devaluation of higher education – a large quantity, low quality and inconsistency of a plan – accepting needs,” said Vasil Velev, chairman of the Bulgarian Industrial Capital Association (BICA), which developed tools to increase the attractiveness of important for Bulgarian professions. As part of it, BICA prepared a strategy and plan with specific measures and pilot models to enhance the attractiveness of professions in the Mechanical and Metal Processing, Electrical and Electronics, Transport and Spedition and Beauty and Health Medicine and Services sectors, , a module for promoting mobility, and a model for objective assessment of labor productivity. “The problem with human resources is very acute and comes first in business surveys as barriers to investment, growth in sales and a staple of economic growth as a whole, hence of living standards,” Mr. Velev stressed. The aim of the developed instruments is to solve one of the main problems on the labor market – the lack of skilled persons for key areas of the Bulgarian economy such as machine building, electronics and electrical engineering, healthcare, etc. This became clear today after a working meeting between representatives of AICB, the European Commission, the Ministry of Labor and Social Policy, the Employment Agency, the National Agency for Vocational Education and Training and representatives of industry employers’ and trade union federations from the four pilot sectors.

The toolkit was developed under project BG05M9OP001-1.011 – 0002 “Achieving sustainable and quality employment by improving the attractiveness of professions with low labor market supply in key sectors for the development of the Bulgarian economy”. More than 80 experts took part in its development.

The main measure to solve the problems of the labor market were the active inclusion of employers in the improvement of the quality of education at secondary vocational schools and higher education institutions. Representatives of the business believe that by annually updating curricula, improving the structure of the plan-adopting, increasing the practical applicability of the education system, and providing scholarships, they will be able to create and develop a lasting interest in the majors of the economy.

Among the factors which influence the attractiveness of professions and motivation were flexible working hours, proximity to work, pay, vocational trainings, topicality of the profession, working conditions, stability and security of employment, social prestige of the profession, etc. In order to improve the attractiveness of the deficit professions, state institutions, employers and trade unions will have to develop practical tools and measures as soon as possible.

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“The link between business and education for us is very important. However, targeting children to vocational education should not only be a task for employers’ organizations but for our society as a whole. We must break our thinking and appreciate the work, as each profession has its place and meaning for the country’s economic development. We hope that the Ministry of Education and Science will support the proposed mirror project in the field of education, which will implement the measures outlined in the other target groups – students and their families, “said Milena Angelova, the Project leader.

The Chairwoman of the National Agency for Vocational Education and Training Emiliana Dimitrova has expressed her readiness to consider the possibility of incorporating some of the models and measures for enhancing the attractiveness of the professions in the State Educational Standards as well as their use in their future work.

“The project has a very broad partner base and this is its strongest side. One of the main European objectives is to make vocational education the first choice for children. Among the problems we have to deal with is the high percentage of Roma children who drop out of the education system – 67%, and then about ¼ of the Roma drop out of the labor market. The role of the European Social Fund is extremely important for the realization of precisely such projects, which are of great importance for the improvement of the social and economic situation in Bulgaria, “said European Commissioner Dora Krumova.

The Bulgarian Industrial Capital Association has set as its main priority the coping with the shortage of qualified personnel. So far, BIC has made a number of proposals to the Ministry of Education and Science for a complete reform of the way of financing higher education and reform in the preparation of plan-adopters in secondary vocational education, introducing into the legal framework a methodology for creating a list of specialties from professions, for which there is an expected shortage, etc.

SOCIAL PARTNERS WITH A LETTER TO THE PRIME MINISTER ON BULGARIA’S APPLICATION FOR ERM II

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MR BOYKO BORISOV
PRIME MINISTER OF BULGARIA

MR DIMITUR RADEV
GOVERNOR OF THE BULGARIAN NATIONAL BANK

COPY:

MR VLADISLAV GORANOV
MINISTER OF FINANCE

Subject : Take the necessary steps for applying for accession of Bulgaria into the ERM – II / ERM II /

 

Dear Mr. Borisov,
DEAR MR Radev,

Conducted numerous public debates in connection with the Bulgarian presidency of the European Council reaffirmed the need to immediately initiate all necessary procedures for accession of Bulgaria to the ERM II, and accelerate all preparatory steps for subsequent accession to the Eurozone.

As you informed on these issues nationally represented employers and trade unions have expressed their categorical common positions, incl. in November 2014, in the accepted opinion of the Economic and Social Council of December 2017 and other self-declarations.

In a letter to you on 14.06.2018, the social partners proposed holding an emergency meeting on repeatedly stated commitments to quickly join the ERM II. The busy schedule of the Bulgarian presidency of the European Council clearly hampered the timely holding of this meeting and full discussion in our proposed format.

Insofar as these matters are highly attractive both for our members and for the whole society, the institutions of legislative and executive power, banking and actions in key areas of responsibilities exercised policies, hereby reiterate strong support of all social partners in the face of nationally representative organizations of workers and employers in Bulgaria, a Bulgarian official presentation of the candidacy to join the ERM II, immediately after etc. Key Bulgarian presidency of the European Council in the first week of. July 2018

In this regard, we express again the expectations of the social partners to take all necessary steps immediately within the responsibilities and powers of the Government and National Bank, and requested preliminary positions.

 

BULGARIAN INDUSTRIAL CAPITAL ASSOCIATION

BULGARIAN INDUSTRIAL ASSOCIATION

BULGARIAN CHAMBER OF COMMERCE AND INDUSTRY

CONFEDERATION OF EMPLOYERS AND INDUSTRIALISTS IN BULGARIA

THE CONFEDERATION OF LABOUR PODKREPA

CONFEDERATION OF INDEPENDENT SYNDICATES IN BULGARIA

 

AOBE position on the resumption of the project “Belene”

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REPRESENTATIVES TO NATIONAL

44-TO NATIONAL ASSEMBLY

OF THE REPUBLIC OF BULGARIA

Dear Ladies and Gentlemen,

In recent days, public opinion in Bulgaria is very excited by the proposal for a “reset” of NPP “Belene”. On June 7, 2018 pending the National Assembly to take a very responsible decision on the return of this project on the agenda of the Bulgarian energy sector and under what conditions to do this or, respectively – to continue the moratorium.

Association of Bulgarian Employers (AOBE) has repeatedly expressed its position is regarding the development and implementation of new energy projects – this is acceptable under the explicit condition to be entirely on market principles, without commitments for guaranteed quantities and the discounted prices.

Petkov announced that the project “Belene” will be performed at “market conditions” but as such it made public so far only two requirements:

no state guarantees for the project;

no long-term contracts for the purchase of electricity produced.

Not openly stated publicly express prohibition on:

preferential pricing;

possible additional payment of price differences and / or written;

corporate guarantees from state-owned companies in the energy sector, for example, Bulgarian Energy Holding, National Electric Company, Kozloduy NPP.

In fact, the above requirements hardly exhaust the possible non-market ways of defrauding taxpayers – corporate and individuals. Therefore, relying on the goodwill of both the legislative and the executive, we insist on a clear and unambiguous statement that will be traversed all possibilities “Innovation” and implementing schemes for non-market revenue.

Transparency, marketability, economic consistency – these are basic principles that can ensure long-term sustainability of a project. Considering these principles, the investments made to date and the scale of the project “Belene”, a successful scenario for implementation may include the following steps:

State retrieve a public company existing tangible and intangible assets, including engineering, licensing rights, playground, performed works, and all received or intended to be received equipment, which Bulgaria is the legal owner;

Make a prospectus for public offering of shares of this public company on the stock exchange in volume, securing raising sufficient capital to implement the investment program – so in the most transparent manner and the market will be assessed the economic solvency of the project;

The public company, which after the capital increase involving relevant investors – strategic, institutional, and perhaps smaller ones (if the business audience really believes that the project is profitable) completes the construction site NPP “Belene” and is likely be necessary commitment and debt;

As an investor and operator of the plant “Belene” public company realized electricity produced energy market – from the first to the last megawatt of market prices.

What we think is realistic scheme that could implement the project “Belene” NPP – led by economic logic and pragmatism – without ideological, geopolitical interpretations pathetic phraseology and seeking political gain. At the same time, taking into account the stated official intentions to launch a procedure for selecting a strategic investor, we believe that the preconditions for negotiations with potential candidates should include as basic requirements – ensuring transparency, implementation of the project on market principles and other applicable conditions, some of which are listed above.

We believe that we need a public discussion involving all stakeholders, not disseminate false information – about the price of electricity produced by NPP “Belene”, the volume of future electricity demand, the lack of alternatives.

By arguing that such was the price of electricity produced by NPP “Kozloduy” in the public media space boldly comment on prices generated by the future nuclear power plant “Belene” power ranging between 25 and 50 euros per megawatt hour. Thesis, which we define as inconsistent and inadequate information available – in comparison, the project Hinkley Point C, Britain declared price of 92.50 pounds per megawatt hour, a contract for 35 years. In 2019 Belarus is expected to start operating new nuclear power plant, the prices of which range from 110 euros per megawatt hour. The project Akkuyu, Turkey assumes a price of 124 US dollars per megawatt hour, and estimates for the project of expansion with two new blocks Paksi, Hungary are in the upper range of 80-110 euros per megawatt hour.

The National Statistics Institute systematically develop and publish energy balances, including Overall energy balance, primary energy consumption, energy intensity of the economy. Their analysis shows unequivocally improve energy efficiency – for comparison, 0,470 tonnes of oil equivalent per 1000 euro GDP in 2012., The same indicator for 2016 is 0.423. The same conclusion can we do for electricity intensity – while in 2012 GDP for 1000 euros have been invested over 820 kwh in 2016, the electricity is 765 kwh. However, net electricity consumption in the country (taking into account net production and physical import deducting losses in the grid the need to regulate the electricity system and physical exports) in recent years is sustainable in the range of 31-32 TWh (data of ESO KEVR and NEC), at 3-4 percent economic growth annually. Naturally, there is considerable untapped potential for improvement in this regard.

There are alternatives – both in the field of energy, and in terms of energy consumption and energy efficiency. Examples – new generations renewables already generate electricity with significantly lower prices compared to the recent past, the growing consumption of natural gas will inevitably replace part of the consumed current electricity (trend among household subscribers), develop intelligent networking solutions that optimize bidirectional elektrosvarzanost , is a significant technological progress and possible solutions for efficient storage of electricity and balanced electricity, the voltage at optimal.

In realization of the project “Belene” should be eliminated all the risks associated with the dominant ‘ours’ understanding of quality control and performance, the product of corruption and political interference environment, including purely technical matters. With additional guarantees for the effective implementation of norms for procurement of high public importance and spending significant funds for high quality performance, an objective assessment of the technology of reactors and risk management at the highest achievable level acceptable to our society, our European partners and neighbors.

Last but not least, the vote on the resolution on the moratorium of the National Assembly should proceed in parallel with the discussion of the strategy for sustainable energy development until 2030, the drafting of which was entrusted to the Ministry of Energy.

KIND REGARDS,

 

BULGARIAN INDUSTRIAL CAPITAL ASSOCIATION

BULGARIAN INDUSTRIAL ASSOCIATION

BULGARIAN CHAMBERS OF COMMERCE AND INDUSTRIAL

CONFEDERATION OF EMPLOYERS AND INDUSTRIALISTS IN BULGARIA

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