Minister Radev: PFIA will check the order for the expansion of the gas storage "Chiren"

Energy / Bulgaria
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Resigned Minister of Energy Rumen Radev said that at the moment the Public Financial Inspection Agency has been referred by the Ministry of Finance to carry out an inspection and control under the Law on Public Procurement for the legality of the public procurement carried out by Bulgartransgaz EAD and for the implementation of the contract concluded in connection with the project for the expansion of the "Chiren" gas storage facility. This signal has also already been sent by the Ministry of Energy, said Minister Radev during the parliamentary control in response to a question by MP Borislav Gutsanov ("BSP for Bulgaria") about the underground gas storage "Chiren" as a strategic object of national importance in energy.

According to the words of Borislav Gutsanov, quoted by BTA, at the moment there is a "semi-dark" process of expanding the gas storage facility, it is not known how the total amount of investments was determined, whether "Bulgartransgaz" EAD invested in conducting a preliminary marketing study and that by an independent firm to determine the total amount of investment for the expansion, whether it has carried out a preliminary financial analysis to evaluate the investment project.

Rumen Radev recalled that at the moment the implementation of the project of "Bulgartransgaz" for the expansion of "Chiren" is underway, as the gas transmission operator has conducted an open procedure for the selection of a contractor for structural planning, development of an investment project, delivery of the necessary materials and equipment, construction and commissioning at all stages of the project, according to the Law on Public Procurement.

In connection with the signals received by the Ministry of Energy, containing allegations of possible illegal actions by "Bulgartransgaz", which would have a negative impact and lead to the compromising of the Chiren expansion project, Rumen Radev explained that the Ministry of Energy does not have the legal competence to carry out checks on the legality and correctness of the procedures conducted under the Law on Public Procurement, including this procedure of "Bulgartransgaz". He noted that subsequent external control over the implementation of the law, including control over the implementation of public procurement contracts and non-framework agreements, is carried out by the bodies of the State Financial Inspection Agency, and therefore the signal is addressed to it.

Regarding the doubts of a possible risk of future technical and economic problems in the operation of the gas storage, as a result of the contractor's proposed change of drilling activities, Radev said that this requires a categorically detailed study and analysis. He also said that the Ministry of Energy has prepared a report to the Prime Minister and has initiated an inspection by an interdepartmental working group with his order, which will include representatives of the Ministries of Energy, Environment and Water, Regional Development and public works, and the economy and industry, the Executive Agency for the Environment, the University of Mining and Geology and the Bulgarian Chamber of Mining and Geology. External specialists, with expertise in mining-geological surveys, can also be brought in to provide a competent expert assessment.

Rumen Radev also said that the Anti-Corruption Commission has been referred to the allegations of corrupt practices in the project.

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