ITALY’S ENEL POWER URGES FOR WITHDRAWAL OF CEYLAN

Business | April 20, 2002, Saturday // 00:00

Italy’s Enel Power has urged the withdrawal of Ceylan Holding from the Gorna Arda project to be able to carry further the construction of the Gorna Arda Hydropower in Southern Bulgaria. Two months ago Enel and Bulgaria’s state National Electricity Transmission company (NEC) signed a financial memorandum for a feasibility study of the Gorna Arda project. The study will be finished by May and till then Bulgaria should solve the problem with Ceylan’s withdrawal from the joint venture. “If Ceylan declines to withdraw, we’ll launch legal action against the company under the Trade Act,” Bulgaria’s Deputy Prime Minister and Regional Development Minister said, quoted by Dnevnik Daily. The government has asked Turkey’s Ceylan Holding to sell its shares in the joint venture with Bulgaria’s state National Electricity Transmission company (NEC) at eight percent above their face value to overcome a deadlock in the construction of a major hydropower project in South Bulgaria, Paskalev explained. Ceylan Holding was said to have offered a price that was unacceptable for the Bulgarian side at the shareholders meeting of the Gorna Arda Hydropower Company. The Turkish company controls 30,9 percent stake in the joint venture set up in 1998, the remaining 69,1 percent is owned by NEC.
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