RESULTS OF PHASE 3 OF THE ECONOMIC TEST AND SUCCESSFUL COMPLETION OF THE OPEN SEASON PROCEDURE

Bulgartransgaz EAD launched on 21 December 2018 the binding Phase 3 of the Open Season procedure for the „Project for the development and expansion of the gas transmission system“.

Four candidates in the procedure have been registered within the registration window by 11 January 2019.

Three of them submitted binding offers for participation in Phase 1 of the economic test within the 15 January – 16 January 2019 deadline. Three of them submitted binding tenders for participation in Phase 2 of the economic test within the 22 January – 23 January 2019 deadline.

As a result of the two phases in line with the procedural Binding Rules, approved by the Energy and Water Regulatory Commission, Bulgartransgaz EAD changed the parameters to achieve a positive result of the economic test in Phase 3.

The offered capacity has therefore been reduced to the level of the nominations of candidates in the previous phase, with 20-year duration of the bookings. The reservation prices have been updated with a view to preserving the financial parameters of the procedure, approved by EWRC.

Binding offers for participation in Phase 3 of the economic test within the 29 January - 30 January 2019 deadline have been submitted by three candidates.

We therefore inform the interested parties that Phase 3 of the economic test has been positive. The binding nominations submitted by users total to 100% of the capacity announced within the Phase 3 on the Bulgarian-Turkish border and 100% of the capacity announced on the Bulgarian-Serbian border.

Following the positive result of the economic test, Bulgartransgaz EAD took the final investment decision for the realization of the “Project for development and expansion of the gas transmission system” and will accordingly enter into binding capacity contracts with the candidates who submitted binding offers.

The estimated investment costs of the project amount to BGN 2 767 115 441 (two billion seven hundred and sixty seven million one hundred and fifteen thousand four hundred and forty-one), excluding VAT.