site.btaUPDATED Deputy PM Vassilev Briefs Parliament on Recovery and Resilience Plan

Bulgarian Deputy Prime Minister and Finance Minister Assen Vassilev on Friday briefed Parliament on the progress of the National Recovery and Resilience Plan (NRRP). Work on the projects can start as soon as the European Commission grants technical approval to the NRRP, which is expected by March 15, he explained.

"If Bulgaria had adopted the previous version of the NRRP, we would now have a steam-gas power plant project at a time when natural gas is in short supply or exorbitantly priced," Vassilev said. 

There are no plans to decommission 1,600 MW of generating capacities, but the 40 per cent cut of carbon emissions remains a target. "Coal-fired power plants will operate for a shorter period of time, but this is not a problem because the summer peak load is 5,000-4,500 MW, whereas we will need those plants for the 7,500-8,000 MW peak in winter. Bulgaria does not want to give up its energy independence. That is why we did not agree to close down the coal-fired plants and switch them to gas. This would have put us at a major disadvantage of getting natural gas from a source where a war is being waged," the Finance Minister said.

Building 6,000 MW battery photovoltaic capacities that are included in the NRRP and geothermal energy prospecting will be market-based and will be controlled by the European Bank for Reconstruction and Development, Vassilev specified.

Bulgaria has sufficient estimated reserves of warm and hot water. If it cannot be harnessed to power production, it can be used to heat housing and hothouses, which will cut costs of natural gas and electricity, the Deputy PM said, adding that he expects the first financing under the NRRP this summer.

Approached by reporters, Vassilev denied that truckloads of wheat are not allowed to leave the country, as companies have complained. "The entire export is being thoroughly checked so as to be sure that all procedures have been complied with," the Finance Minister pointed out. He said that Bulgaria has sufficient grain stocks at this point but the international market situation is "extremely critical" and "we must be sure that absolutely all rules are observed before the grain crossed the border." 

60/40 job retention scheme should end after June 30

Also, he believes that the 60/40 job retention scheme (where employers pay 40 per cent of the staff costs and the government 60 per cent) should be phased out by June 30 unless there are new COVID waves. “As you know, even now the [COVID] rate of infection is quite lower [than the peak levels] and there are no dramatic restrictions for the hospitality industry. By April, May or June there will likely be no restrictions at all, if the pandemic metrics continues to improve. The 60/40 scheme did its job not only for the tourist business but for all businesses,” Vassilev said as he took questions from MPs in Parliament.