Economy and Energy Minister Dragomir Stoynev has insisted that the South Stream gas pipeline project will give a boost to the Bulgarian economy.

At a meeting with Serbian Minister of Energy, Development and Environmental Protection Zorana Mihaylovic in Sofia, Stoynev noted that current government was working to overcome the delays inherited from the center-right GERB government, which had declared the South Stream gas pipeline a project of national importance to no effect.

Stoynev, as cited by the BGNES news agency, assured that Bulgaria would not take steps until the financing scheme for the pipeline project was clear, adding that the matter would be coordinated with the European Commission.

"To me and  to the government this is a huge infrastructure and investment project worth EUR 3.3 B, which will create many jobs, influence trade and services in Bulgaria, while the Bulgarian State Railways (BDZ) company will have concrete orders," he explained.

Bulgaria's Economy and Energy Minister pointed out that the country would not take any concrete steps for the implementation of the gas pipeline project unless it was certain of their beneficial impact, adding that an interest rate of 8% on the loan was an unprofitable proposal.

Mihaylovic noted that Serbia backed both the South Stream gas and the Nis-Dimitrovgrad pipeline projects.

"Serbia currently receives gas supplies from one place only and it is essential for us to secure at least one more route," she emphasized.

The two ministers also discussed energy cooperation, gas diversification, and the construction of the Bulgaria-Serbia gas grid interconnection.

Stoynev informed his Serbian counterpart about Bulgaria's progress in the construction of gas links with Greece and Romania, stressing that state-owned company Bulgargaz had signed an agreement with the Shah Deniz consortium on receiving around 1 billion cubic meters of gas in a bid to achieve gas supply diversification.

He added that the first part of the Bulgaria-Serbia gas grid interconnection would be financed under the ongoing operational program Competitiveness, while the second part of the pipe would be funded with EU resources allocated under the program for the 2014-2020 period.

Stoynev said that he had agreed with Mihaylovic that the implementation of the gas grid interconnection project proceeded according to plan and that it was to be wrapped up by 2017.

He informed that Serbia was more optimistic about the gas link and believed that it could be ready by end-2016.

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