Vladimir Malinov: There are no violations in the public procurement for the drilling fund (the Chiren gas storage facility)

There have been no violations in the expansion of the Chiren gas storage facility, two of the components of the entire project are in operation, and all grants provided by the EC are available in the accounts of Bulgartransgaz. This was stated by the executive director of the gas transmission company Vladimir Malinov. He was also categorical in his readiness to cooperate with the European Prosecutor's Office, which has launched an investigation into the public procurement. The executive director of Bulgartransgaz also provided factual data that explain the reason for his failure to appear at the request of the European Prosecutor's Office. Vladimir Malinov was also categorical, both that no one exerted political pressure on him regarding the expansion of the gas storage facility, and in his readiness to implement this project.

There were no violations committed during the public procurement for the drilling fund. Even fewer crimes. All actions taken by the relevant persons of Bulgartransgaz regarding the opening, implementation of the procurement, subsequently related to the termination of the contract, the suspension of its implementation, its final termination were taken in due order, in accordance with the internal rules of the company, the company's charter and Bulgarian legislation after approval by the bodies of Bulgartransgaz, respectively the Management Board, the Supervisory Board, and upon conclusion of the contract and after notification of the Minister of Energy, the Council of Ministers and their approval, said Vladimir Malinov.

He reminded that this public procurement was also inspected by the Bulgarian State Agency for the Protection of Natural Gas. "Their report is public on their website and no violations have been found. I strongly emphasize that no funds have been spent on the drilling fund, much less European ones. The contract was terminated by Bulgartransgaz in October 2024, with the contractor refunding not only the advance payment but all payments received to date under the contract. These funds have been refunded in full and these financial funds are currently in Bulgartransgaz's accounts, and are available at this time. The advance payment itself, which was made under the contract, was not made with the funds provided free of charge by the EC, but with funds provided under a loan that Bulgartransgaz received from BEH," he explained.

The Executive Director also provided details on the implementation of the project and its current status at the moment. “Two of the three components of the project are ready and have been put into operation,” he said, recalling an earlier announcement by the company about the commissioning of an adjacent gas pipeline on November 22, 2024 DNSK.

"Last week, on March 25, all above-ground facilities - the compressor station, the metering station, all accompanying facilities were put into operation after a state acceptance commission and a decision for use issued by the DNSK. All this allows, even during the current injection season, which begins on May 1, the storage capacity of the gas storage facility to be expanded by 100 million cubic meters - or from 550, it is already 650 million cubic meters with the corresponding production and injection capacities. The public procurement for the drilling is underway, as this is the necessary step in order to be able to increase the capacity of the gas storage facility.

Last week, on March 21, the proposals were postponed, we have proposals from 3 consortia, which include not only Bulgarian legal entities, but also legal entities of European origin and companies from the USA. The very fact that they expressed interest and are participating in the public procurement shows the trust in Bulgartransgaz and the approach to the expansion and implementation of the project," he explained Malinov.

 In support of his words, he also pointed to the signing of an amendment to the grant agreement with the European Commission. "The European Commission, through its relevant competent authority, namely the Executive Agency for Climate, Infrastructure and Environment, adopted and signed with me on March 13 this year an amendment to the grant agreement, which provides grant resources without reduction. Nearly 78 million euros in grant funding for the implementation of the project has been retained, with the deadline for its implementation being extended and these funds to be accordingly utilized by the end of 2027. During the process of this additional coordination with the EC, we have provided all additional information – the stages of the expansion of the gas storage facility and the new public procurement. Which for me means that we have support from the EC for the implementation of this project and support for the approach of Bulgartransgaz.

I say again – all funds provided by the EC are available in the accounts of Bulgartransgaz, of which the Executive Agency has been informed. They are at the disposal of the independent transmission operator. It is for this reason that I am doubtful or bewildered by the fact that on the one hand the EC continues its unreserved support, without reducing the financial resources, with an extension of the project implementation period by signing an additional agreement with me, and on the other hand, an inspection by a Bulgarian delegated prosecutor continues.

In conclusion, I want to clearly and categorically state – I will complete the project for the expansion of the gas storage facility in Chiren. Regardless and despite all "my well-wishers" and opponents of the project, I deeply believe that this project will leave Bulgaria on the gas map of Europe and the world, for which I have fought all these years when I have managed the company.

In this regard and in response to a question, Vladimir Malinov was categorical that he intends to continue.

He explained that he has been working in the company since 2010, and since 2018 he has been the executive director, and that "for 9 and a half months I had the privilege of being the Bulgarian Minister of Energy. During this period of time I have encountered many difficulties, many attacks, but what I have contributed to Bulgartransgaz no one can take away from me. That is precisely why I am categorical that I will continue. Because I believe that this resistance to its implementation mobilizes me even more. Just as there has been resistance to the implementation of many projects," he said, emphasizing that the implementation of the Chiren expansion project will make it key for the region.

Vladimir Malinov, in response to a question, clarified that this is not a failed public procurement, but a terminated contract for its implementation. He reminded that at the time of its termination he was not the executive director. "The contract for the public procurement was terminated by mutual consent. After due notification by the contractor, which is the consortium. I am not familiar with the details," he said.

The deadline for the work of the commission on the new public procurement, set by the relevant competent persons in the company, is April 11. "I believe that it must be respected," explained Malinov.

The executive director of the transmission operator was also categorical that he had not been put under any political pressure regarding the project. "I want to emphasize strongly that during these years, in which I was also a minister, executive director and member of the Board of Directors of Bulgartransgaz, I have not been put under any pressure in connection with the implementation of the project by any political leader or political force. I have not been put under any pressure either," he said. In addition, he explained that he had the opportunity to work with all political forces, including during his time as Acting Minister of Energy. At the same time, he made it clear that he was opposed to many projects in the energy sector, rewinding the tape a little from the beginning of the implementation of the LNG terminal project in Alexandroupolis to the moment of signing the agreement.

"Things have happened that put the diversification of Bulgarian energy on an irreversible basis," said Vladimir Malinov. He reminded that during his term as Energy Minister, the diversification of fuel for Unit 5 of the Kozloduy NPP was actually implemented. The contract with Westinghouse for Unit 6 was signed. "During my time, the contract was signed that all politicians, or the majority of them, who support Euro-Atlantic values ​​- for the implementation of Units 7 and 8 of the Kozloduy NPP - a key step that makes the process irreversible." "At the moment, right at the moment when the above-ground facilities of Cheren are being installed, we are increasing the capacity, the public procurement for drilling is underway. In just a few weeks, we will also begin construction of the Vertical Gas Corridor, and my "well-wishers" are putting me in a capacity that you cite. I think you can answer for yourself who does not want this to happen. I am not a person who will throw accusations, but I can also categorically ask the questions that arise," said Malinov.

In response to a question whether he feels like a victim of political attack and whether he has political support to remain in this position, the CEO of the transmission operator stated that "Bulgartransgaz is an independent gas operator. I am not appointed here by political figures. According to current European legislation, the members of the Management Board are elected by the Supervisory Board and are subject to approval by the Energy Regulatory Commission." The regulator, in turn, motivated his decision.