Without providing justification, “Bulgartransgaz” EAD has decided not to seek damages and contract-stipulated compensation of some BGN 26 mln. from the private consortium behind the failed expansion of the Chiren Underground Gas Storage, a project of strategic significance for both Bulgaria and the European Union.
This is the latest in a string of scandals involving the ill-fated project, currently under investigation by the European Public Prosecutor’s Office (EPPO). The proceedings were initiated following a tip-off alleging serious violations of public procurement legislation committed while “Bulgartransgaz” EAD, the state-owned company behind the expansion project, was headed by Vladimir Malinov, Minister of Energy in the caretaker government. The reported violations could have caused financial damages worth almost BGN 400 mln. to the public (including European) budget.