In reply to the statements by BSP Member of Parliament Milko Bagdasarov, published in some national and regional media, Hydro Energy Company Gorna Arda would like to make the following clarifications:

The Gorna Arda project is still in a preparatory phase, which aims at modernizing and optimizing the initial project, devised more than 30 years ago. Throughout this time the development of hydro energy, the changes in the requirements for environmental protection and the idea of utilizing greater share of renewable energy have undergone significant progress. Hence, the two shareholders in HEC Gorna Arda are working seriously for the project’s improvement in order to live up to the modern society requirements and to present an environmentally friendly project that brings benefits to the local communities and is expedient regarding the cost of energy to be produced.

Neither EVN AG, nor the National Electric Company has received any signal from a third-party investor that might be willing to join the project. Therefore, we are not aware of and, consequently, cannot confirm the information about Chinese investors, willing to engage with the project. Futhermore, none of the two shareholders is currently considering the possibility to draw back or sell its stake, or part of it, to a third party.

The statements that the shareholder EVN AG has difficulties to finance the project are completely unfounded. The company’s financial reports are publicly available. These indicate that EVN AG does not have problems to finance any of its projects.

In conclusion we would like to express our firm standpoint that a large-scale project like Gorna Arda, expected eagerly by the people in the region, should not become subject to speculative statements.