The investor which is to build a tourist resort in Bulgaria's Karadere area has shed light on its financing.

In an open letter to the media, Madara Europe disclosed information on financial sources that would be used for the project, after accusations it does not have the necessary funds at its disposal.

Madara Europe said "wealthy British families and international banks" are among its usual investors. It denied claims that offshore entities are behind the company.

Assuring it had already submitted documents to be added to Bulgaria's Trade Register, it can firmly state its owner is Rainbow Malta Holdings LTD, which on its behalf is possessed by Rainbow Group Services LTD, based on Britain's Virgin Islands.

Private persons owning the latter company were also revealed. Madara Europe is represented in Bulgaria by Scott James Perkins and Lyudmil Vladimirov Gachev, the latter being an independent financial expert who was worked for a number of Bulgarian banks.

A general assembly of Rainbow Malta Holdings LTD's shareholders is reported to be scheduled for this week. At the assembly, a decision is to be taken that Madara Bulgarian Properties Fund acquires 50% of Rainbow Malta Holdings LTD and thus enter Karadere Project.

The company is explicit htat the capital held by the fund meets construction needs of Black Sea Gardens Resort, as tourist facilities in Karadere are to be named.

The capital has been raised through London's Stock Exchange. Among shareholders of Bulgarian Properties Fund are "a number of celebrities," among which Eddie Jordan, the founder of a Formula One constructor.

The company says it would not take any state aids and subsidies and expects only administrative and institutional support in return. It has vowed to build the whole infrastructure involving its Karadere resort project.

Madara Europe asserts it will not engage in any construction activity prior to having received a positive assessment of environmental impact. It also proposes the establishment of a Green Board overseeing the Karadere project.

Earlier on Tuesday, Bulgaria's Environment Minister Iskra Mihaylova asserted that the Karadere Project will not be approved by her institution, as it involves two pieces of land already protected under the Natura 2000 program.

Mihaylova said that a memorandum between the government and investors does not automatically suppose a positive ecological assessment. Bulgarian legislation, however, has loopholes that allow for the project to be kicked off without an assessment of its environmental impact.

Mihaylova stated she would propose legal amendments to nullify a project that has been launched but has no approval due to risks for the environment.

On Wednesday last week, Bulgaria's government approved construction works in the Karadere area on the Black Sea coast. The cabinet backed a memorandum with Madara Europe, which plans to invest over BGN 100 M in three hotels and three public service areas in the area. Its project is to create 500 jobs in the municipality.

Governmental support for it, however, came before an ecological assessment of the project's environmental impact had been conducted.

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