Political Support for AES Project Uncertain.

31.07.2003 Source: Pari

The deadline for buy-out of its partner's minority stake of 12% in Maritza-Iztok I Power project, imposed on US AES by the Energy Ministry expires today. According to AES's Sofia office, however, no agreement has been signed yet. The removal of the Mauritius-registered offshore company from the project is a condition for granting a letter of political support to the investor, energy Minister Milko Kovachev said a week ago. Financial institutions, extending credit lines for the replacement of the facilities at Maritza-Iztok thermal power plant require this letter. The project is estimated at EUR 1 Bln. The condition for removal of 3C from the project was required by Italy's Enel, which AES wanted to attract as a partner. The Energy Ministry accepted the idea and used it as an argument to delay the letter of political support.