The European Bank for Reconstruction & Development board of directors has approved a EUR 30 million loan to Citygas Bulgaria to finance the development of a gas distribution network in the south of the Bulgaria.

Majority owned by the Italian gas distribution and supply utility Gruppo Societa' Gas Rimini Spa, Citygas Bulgaria is the holder of a 35 year renewable concession to develop and operate the gas distribution network in Trakia region and the municipality of Karzhali, with a population of approximately 900,000.

The EBRD loan will finance the construction of 833 kilometers of the gas distribution network and associated infrastructure in 27 municipalities in the Trakia region and in the municipality of Kardzhali by 2012.

The project is part of Citygas Bulgaria's investment program, which aims to provide gas connection to 1,000 industrial, 1,500 commercial and 96,000 domestic users by 2017. The Bank’s investment will contribute to the gasification of Bulgaria, providing a more reliable, less polluting, and efficient source of energy to households, commercial and industrial users and supporting economic development in the region.

Mr Riccardo Puliti EBRD Director for Energy said that "We are pleased to support Gas Rimini and its subsidiary Citygas Bulgaria in implementing this important project, which will bring significant benefits to people and businesses in the region."

It may be noted that, since the beginning of the EBRD operations in Bulgaria, the Bank has committed EUR 2 billion in more than 120 projects in key sectors of the country’s economy, mobilizing additional investment worth more than EUR 7 billion.

(Sourced from www.novinite.com)