The construction of the intersystem gas connection Bulgaria-Serbia (IBS) has started

President Rumen Radev will participate in the launch of specialized construction activities for the construction of the intersystem gas connection Bulgaria-Serbia (IBS) on Bulgarian territory. The President of the Republic of Serbia, Aleksandar Vucic, will also participate in the event. Among the participants in the ceremony will be the Ministers of Energy of the two countries, Rosen Hristov and Dubravka Jedovic, as well as the executive director of Bulgartransgaz, Vladimir Malinov.

The IBS gas pipeline has a total length of about 170 km. from Novi Iskar, Republic of Bulgaria to Nis, Republic of Serbia, of which about 62 km. on Bulgarian territory. After its construction, the gas connection will have a capacity of up to 1.8 billion cubic meters of gas per year with the possibility of reverse flow. The gas interconnection is a project of common interest for the European Union, funded by the Connecting Europe Facility.

Earlier, Bulgartransgaz concluded an agreement for a state-guaranteed loan with the Dutch ING Bank N.V., through ING Bank N.V. – Sofia branch for financing the interonector. The funds for the construction of the IBS must be provided through grant funding from the Operational Program "Innovation and Competitiveness 2014-2020", the Connecting Europe Facility (CEF), long-term loan financing secured by a state guarantee and equity capital of Bulgartransgaz EAD.

The proposed loan with state guarantee for the project is up to 49,071,661 euros. It became possible after a government decision. The absorption period is until December 31 of this year, and the repayment period is 5 years from the expiration of the one-year grace period.