Investing in Bulgaria
Catching up with news headlines after I've been away can be a chore, so it's possible to miss events. The big story seemed to be the symposium held at the Royal Camp at Seeh al Rasiyat, Samail, to discuss the need to improve agricultural productivity. Sigh. We've been there before, improvements in agricultural productivity that is. But maybe more of that in another posting.
I also noted that senior ministerial and trade delegations from both Bulgaria and Turkey had visited Muscat last week.
Write-ups in both the Omani and regional English-speaking press really said very little beyond the usual bland statements that the countries would invest in each other and promote tourism. In the case of Turkey, the Oman Observer of 5th February said that Oman was hoping to learn from Turkey's experience in managing free trade zones, food processing and fishing. Turkey was reported to be keen to initiate projects that could benefit from the industry being created at Sohar.
As for the visit of Roumen Ocharov, Bulgarian Minister of Economy and Energy, we learnt little more than that Oman and Bulgaria had signed an agreement for encouraging and protecting joint investment. Ahmed bin Abdulnabi Macki, Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council, who signed on behalf of the Oman government told the Oman News Agency (ONA) that 'the agreement would provide a legal framework that would achieve mutual benefits for both sides, and encourage the growth of joint investments in public and private sectors.' Oman Observer, 4th February.
The Bulgarian media has been more explicit without giving precise details - which of course may not have been decided yet. The Sofia News Agency reported on 4th February that "Oman Oil has said it was ready to invest in a EUR 700 M trans-Balkan oil pipeline that would carry Urals and Caspian crude from Bulgaria's Bourgas to the Greek port of Alexandroupolis [and is] has expressed interest in investing in a EUR 4 B nuclear power plant in Bulgaria."
That's right. A nuclear power plant.
Another Bulgarian website said that 'Oman wants to participate in the construction of NPP Belene.'
Bulgaria gets 40% of its power supply from nuclear power units at Kozloduy, near the Romanian border. Almost 12% of the electricity has been exported to Greece, Turkey, Serbia and Macedonia. Bulgaria was vital in supplying power for the Athens Olympic games.
But two units have had to close at Kozloduy at the insistence of the EU, as a pre-condition for Bulgaria becoming a EU member. This means that there will no longer be spare capacity of electrical power for export.
Work began on a second site for nuclear reactors at Belene in 1987, but was abandoned in 1991 due to lack of funds. This is the site in which Oman Oil is alleged to be interested in investing. The new units are scheduled to come online in 2013 with input from Russia, France, Germany, with possible partners from Italy and the Czech Republic. Japan is training key Bulgarian personnel.
The new units at Belene will satisfy stringent western European safety standards and therefore be more acceptable to the EU.
There is another question in my mind. Did that agreement signed between Oman and Bulgaria also mention technology transfer? Given recent announcements that the Gulf states intended to hold talks with the International Atomic Energy Agency (IAEA) in order to outline plans for a joint programme for the use of nuclear technology for peaceful purposes, is this particular investment coincidental or part of a move to acquire nuclear technology?
The only Gulf newspaper in which I have read about Oman's interest in developing Bulgaria's nuclear industry is the Gulf Daily News of Bahrain.
Bulgaria is a party to the Nuclear Non-Proliferation Treaty (NPT) as a non-nuclear weapons state.
I also noted that senior ministerial and trade delegations from both Bulgaria and Turkey had visited Muscat last week.
Write-ups in both the Omani and regional English-speaking press really said very little beyond the usual bland statements that the countries would invest in each other and promote tourism. In the case of Turkey, the Oman Observer of 5th February said that Oman was hoping to learn from Turkey's experience in managing free trade zones, food processing and fishing. Turkey was reported to be keen to initiate projects that could benefit from the industry being created at Sohar.
As for the visit of Roumen Ocharov, Bulgarian Minister of Economy and Energy, we learnt little more than that Oman and Bulgaria had signed an agreement for encouraging and protecting joint investment. Ahmed bin Abdulnabi Macki, Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council, who signed on behalf of the Oman government told the Oman News Agency (ONA) that 'the agreement would provide a legal framework that would achieve mutual benefits for both sides, and encourage the growth of joint investments in public and private sectors.' Oman Observer, 4th February.
The Bulgarian media has been more explicit without giving precise details - which of course may not have been decided yet. The Sofia News Agency reported on 4th February that "Oman Oil has said it was ready to invest in a EUR 700 M trans-Balkan oil pipeline that would carry Urals and Caspian crude from Bulgaria's Bourgas to the Greek port of Alexandroupolis [and is] has expressed interest in investing in a EUR 4 B nuclear power plant in Bulgaria."
That's right. A nuclear power plant.
Another Bulgarian website said that 'Oman wants to participate in the construction of NPP Belene.'
Bulgaria gets 40% of its power supply from nuclear power units at Kozloduy, near the Romanian border. Almost 12% of the electricity has been exported to Greece, Turkey, Serbia and Macedonia. Bulgaria was vital in supplying power for the Athens Olympic games.
But two units have had to close at Kozloduy at the insistence of the EU, as a pre-condition for Bulgaria becoming a EU member. This means that there will no longer be spare capacity of electrical power for export.
Work began on a second site for nuclear reactors at Belene in 1987, but was abandoned in 1991 due to lack of funds. This is the site in which Oman Oil is alleged to be interested in investing. The new units are scheduled to come online in 2013 with input from Russia, France, Germany, with possible partners from Italy and the Czech Republic. Japan is training key Bulgarian personnel.
The new units at Belene will satisfy stringent western European safety standards and therefore be more acceptable to the EU.
There is another question in my mind. Did that agreement signed between Oman and Bulgaria also mention technology transfer? Given recent announcements that the Gulf states intended to hold talks with the International Atomic Energy Agency (IAEA) in order to outline plans for a joint programme for the use of nuclear technology for peaceful purposes, is this particular investment coincidental or part of a move to acquire nuclear technology?
The only Gulf newspaper in which I have read about Oman's interest in developing Bulgaria's nuclear industry is the Gulf Daily News of Bahrain.
Bulgaria is a party to the Nuclear Non-Proliferation Treaty (NPT) as a non-nuclear weapons state.
