March 8 (SeeNews) - Bulgaria's government said on Wednesday that it approved the transfer of PSI's concession agreement for the Vinarovo limestone deposit near Stara Zagora to its legal successor, Trace BG, in keeping with existing legislation and upon the latter's request.
A proposal to amend some of the terms of the existing concession agreement, namely expanding the scope of the bank guarantee for each year of the concession term, will be made to the new concession-holder, the cabinet said in a press release following a regular weekly meeting.
Under the contract, signed with PSI in 2005, the required bank guarantee covered 10% of the concessionaire's financial obligations. The objective of the proposed amendments is for a 100% bank guarantee on all obligations, not just financial, that the concession-holder will have under the contract. Once the scope of the bank guarantee is broadened, the reclamation contributions of the concessionaire will also be financially backed by it, the cabinet added.
PSI and Trace BG are both units of construction contractor Trace Group Hold [BUL:T57].
The cabinet's decision authorises the energy minister within one month to sign an additional agreement for extending and amending the concession contract with Trace BG.