January 3 (SeeNews) - Bulgaria's government said on Wednesday it has approved a draft memorandum of understanding (MoU) with veterinary drugs producer Biovet [BUL:53B] to support the implementation of its investment project worth 293.4 million levs ($180.3 million/150 million euro).
The project envisages the construction of a plant for human medicinal substances and fodder additives, the government said in a statement after a regular meeting.
The plant, which will be located in the town of Peshtera, in southwestern Bulgaria, is expected to start operations in March 2020. Over 90% of its output will be exported.
The planned investment will create 100 new jobs.
Under the MoU, Biovet will receive state support in relation to the deadlines and the provision of administrative services, as well as in obtaining limited ownership rights.
In September, the European Investment Bank (EIB) said it is considering providing to Biovet a 100 million euro ($118.9 million) loan for a project to expand its production capacity.
Biovet is majority owned by Bulgarian pharmaceutical company Huvepharma.
Biovet has three production plants - in Peshtera, Botevgrad, and Razgrad.
(1 euro = 1.95583 levs)