Bulgaria's Privatisation Agency will select in the next couple of weeks a consultant for the privatisation of the Bobov Dol, Rousse and Varna thermal power plants (TPPs), the sell-off regulator said on Tuesday. ABN Amro Bank N.V., Credit Suisse First Boston (Europe) Limited, Lazard Freres Banqe, Citigroup Global Markets Limited and Dresdner Kleinwort Wasserstein Limited are pursuing the advisory contract and are currently making their presentations. The task of the adviser will be to conduct a market study and evaluate each of the plants. The trifecta of TPP sell-offs is shaping up as a financial gusher that could be eclipsed only by the ongoing privatisation of Bulgaria's seven electricity distribution tentatively priced at over 700 mln euro. The long-term assets of the three plants, which generate 20% of Bulgaria's overall energy output, stood at 500 mln levs in 2003. The Varna and Rousse TPPs have 20-year electricity production licence while that of the Bobov Dol plant has a 10-year term of validity. TPP Varna runs primarily on Russian and Ukrainian coal while TPP Bobov Dol uses local coal. The new owner of the Varna TPP will have to opt for a new type of coal to meet relevant EU standards for the emission of nitric and sulphuric oxides, said Georgi Bosev from consultancy firm Totema. Bobov Dol will need 70 mln euro by 2007 to meet the requirements of the EU directive on the limitation of emissions of certain pollutants into the air from large combustion plants; the compliance cost for TPP Varna is seen at 70-105 mln euro while the necessary investment for TPP Rousse is estimated at 72 mln euro by 2016. After Bulgaria's energy market is opened to competition in 2007, the new owners of the plants will be able to export some of the output. Russia's RAO EES and Gazprom and Czech firm CEZ have indicated interest in the Varna TPP. CEZ is also eyeing one of the three packages of equity in Bulgaria's electricity distribution companies and has said that it would buy a local power plant if its bid is successful. The Bobov Dol plant posted the best revenue performance among the three TPPs in 2003, netting 142.9 mln levs, while the Rousse plant did the worst with 49 mln levs. Source: Dnevnik