NGE Notes: Bulgaria - No Funding for South Stream

Bulgaria has found no plausible source of funding for it participation in the South Stream gas pipeline project.

"In order to avoid another scandal like the one with the cancelled NPP Belene Project, we should first find the money and then sign the contract," said Bulgaria's Minister of Economy, Delyan Dobrev as reported by Darik Radio.

The Bulgarian government is to sign a contract for the pipeline’s construction by November 15th, 2012.

Minister Dobrev said South Stream would cost Bulgaria 300 million levs ($200 million), with up to seventy percent of the construction costs to be secured with loans.

It has been reported the Gazprom may have to step in to finance the Bulgarian portion, against the payment of future transit fees.