French Armaris, picked to deliver two corvettes to the Bulgarian navy, has named Varna-based shipyard Bulyard as a partner in the project, said the French ambassador to Bulgaria. The French company is also reportedly interested in the privatisation of Shiprepair yard Flotski Arsenal, a unit of state-owned defence company Terem. The French diplomat said that first of the corvette will be built in France while the second vessel is planned to be commissioned to the Bulgarian shipyard. The cost of the two corvettes is seen at around EUR 700m, a resource that is expected to be allocated from the 2008 budget surplus.