Bulgarian Municipalities Received BGN 39 M from Concessions in 2011

Bulgarian municipalities' concession revenues for 2011 amounted to close to BGN 39 M, according to Traicho Traikov, Minister of Economy, Energy and Tourism.

In a Thursday statement during the official cheques award ceremony, Traikov said that the biggest sums would be transferred to five municipalities within the next few days.

The list of top performers includes Chelopech (Chelopech Mining), which will receive BGN 2.4 M, Radnevo and Galabovo (Maritsa Iztok Mines), which will get BGN 2.3 M and BGN 1.7 M, respectively, Panagyurishte (Asarel – Medet), which will  add BGN 1.9 M  to its budget and Etropole (Ellatzite-Med AD), which will get BGN 1.7 M.

In the beginning of July 2011, amendments to the Mineral Resources Act entered into force increasing the share of concession revenue transferred to the municipal budget from 30% to 50%.

Traikov explained that Bulgaria's total concession receipts for 2011 came in at BGN 63.2 M.

"If we had signed a contract with Chevron, the sum would have been much bigger," Traikov pointed out, referring to the withdrawn shale gas exploration permit of the US energy giant.

He added that Bulgaria had awarded around 100 concession contracts and over 150 exploration permits since the establishment of the single body for managing mineral resources.

Traikov emphasized that concessionaires had made a commitment to invest some BGN 175 M and the anticipated concession revenues were over BGN 6 M per year.

He noted that 130 out of a total of 256 Bulgarian municipalities were already receiving concession revenues from the extraction companies located on their territory.