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Bulgaria to resurrect Gorna Arda hydro power project

28.3.2008
The Bulgarian and Turkish governments will resume the construction of the Gorna Arda hydro power complex and the Tundja dam lake in a bid to stop the flooding suffered by the city of Edrine every time the river of the same name overflows.

These were two of the issues on the agenda of the visit to Bulgaria of Turkish prime minister Recep Tayyip Erdoğan.

Mahmud Ceylan, boss of Turkish holding company Ceylan which was initially involved in the Gorna Arda project, is part of the business delegation accompanying the Turkish head of government.

Sources told Dnevnik that the Bulgarian ruling coalition had decided to revive the Gorna Arda project after it spent seven years on the shelf as far back as two months ago during an incumbent get-together in Hisar.

Bulgaria needs the hydro complex because it will provide an alternative energy source and will help the country deliver on commitments to the EU to increase to 11% the share of domestic power generated from wind, solar energy, water and biomass through 2011, said Bulgarian economy minister Petar Dimitrov, declining to give further details about the project.

Bulgarian national power grid operator NEK recently said its plan for the development of domestic power generation capacity calls for the completion of the 156MW Gorna Arda complex by 2014.

One of the options for the completion of the project is to leave in charge the Hydro Energy Company Gorna Arda (HEK Gorna Arda) which is currently co-owned by Ceylan.

Talks are underway with the Turkish side to secure the pullout of the Turkish company from the HEK Gorna Arda, said MPs from the parliamentary energy policy committee.

It transpired in late 2007 that Ceylan had fled with the International Court of Arbitration in Paris a 75 mln euro claim against NEK, arguing that the Bulgarian grid operator failed to sufficiently engage in the project.

The Turkish company is also contesting the revocation of the 35-year concession contract granted to HEK Gorna Arda and seeks to be awarded damages stemming from the talks held by NEK with a potential strategic investor which happened to be Italy's Enel.

The arbitration procedure in Paris is currently in progress.

Source: http://news.dnevnik.bg/
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