Bulgaria energy sector prone to corruption, says report ALL - 2007/5/16
Bulgaria's energy sector is singled out as having one of the highest public procurement corruption risks in a report released by the local Center for the Study of Democracy (CSD).
The corruption environment in the sector thrives because of the absence of adequate oversight during and after the public procurement procedures.
In 2004-2006, national power grid operator NEK, the Maritsa Iztok mining company, nuclear power plant Kozloduy and thermal power plant Maritsa Iztok 2 handed out procurement contracts worth a combined 8.5 bln levs.
Only 21% of the contacts were awarded after a procedure pursuant to the Public Procurement Act.
Over 50% were negotiated directly with the supplier and only 0.7% of the contracts were executed on the commodity exchange despite the fact that they involved traded commodities.
The CSD experts recommend a rethink of the contracting of advisory services in the energy sector.
According to the report, this market is cornered by 5 companies: Frontier, Risk Engineering, Parsons Bulgaria, Atomenergoremont and Minstroy Holding.(Dnevnik)