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of the Republic of Bulgaria
Parliament Passes Amendments to the Concessions Act Allowing for 35 Years Duration
18 July 2008

On its sitting, dated 18 July 2008, NA adopted amendments in the Concessions Act providing for granting concessions with duration of up to 35 years. The final term will be fixed after taking into consideration the financial and economic indices and the technical and/or technological characteristics of the concession target and/or the management service provided in the public interest.

The duration determined with the concession agreement could be extended to up to 35 years, after the conditions precised with the decision, granting the concession, have been satisfied.

The initiative for starting the preparations for a concession can come from the subjects bearing interest in the latter. At present this initiative belongs to the Minister in charge of the management of the concession target, the head of the second level spending unit manager and the one who executes the ownership powers of the state in a commercial enterprise which is public property.

The changes allow for the concession to be granted to a newly created commercial entity in which the shares are owned jointly by the concessioner and the state or the municipality, the public legal entity and/ or a commercial enterprise owned by the state or the municipality.

The already started procedures for granting concessions shall be finalized in conformity with the law in force before the amendments.

The changes to the Concessions Act entail amendments to the Black Sea Coastline Act. The longest concession for beaches remains 10 years.

Beaches that are currently managed by municipalities will be transferred under the administration of the Minister of Regional Development and Public Works who will have the authority to grant their concessions and sign the lease agreements.

Fifty percent of the concession payment will go to the municipal budget where the beach is located.

On today’s sitting Luchezar Toshev took oath of office as Member of Parliament from the parliamentary group of the United Democratic Forces, replacing Philip Dimitrov.
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