Bulgartransgaz EAD announces another open public procurement in accordance with the Public Procurement Act linked with the expansion of the underground gas storage facility Chiren. The project is key to the improvement of the energy security and increase in the competition and natural gas market liquidity in the country and the region.

The public procurement for the “Spatial planning, investment design, procurement of the necessary materials and equipment, construction and commissioning of the construction site: „Expansion of Chiren UGS capacity - wells“ includes the activities of design, construction and commissioning of underground facilities - ten new exploitation and three observation wells, as well as new gatherings that connect each exploitation well to the new compressor station. The construction of the facilities will create the technical possibility for the gradual expansion of Chiren storage facility as it will increase its operational safety and boost its capacity.

The expected value of the public procurement totals to BGN 133 694 000 (one hundred and thirty-three million and six hundred and ninety-four thousand), VAT excluded.

A deferred payment has been envisaged of a 24-month period concerning part of the activities linked with the Contract implementation, where the relevant cost increase percentage in connection thereto is limited to 3% for each 12-month period and must be offered by the participants in the procedure.

The most economically advantageous offer will be determined based on the selected "best value for money" award criterion according to indicators, including the organisation for implementation of activities provided for by the participants, pricing parameters and cost increase percentage associated with the deferred payment.

The financing of activities within the scope of the procurement will be carried out with Bulgartransgaz EAD’s own funds and a grant aid following the signing of a Grant Agreement under the Connecting Europe Facility.

As of 2013, the expansion of Chiren UGS capacity has a status of a „project of common interest“ and is part of all lists of PCIs of the European Union drafted in accordance with Regulation (ЕU) No.347/2013. The PCI is a priority project within the Three Seas Initiative as well.

The project is included in the Energy Strategy of the Republic of Bulgaria and is an integral part of the infrastructure contributing to the concept of gas distribution centre in the country, together with the infrastructure modernization projects of Bulgartransgaz EAD, the liquefied gas terminal near Alexandroupolis and the interconnectors with Serbia and Greece.

The deadline for submission of offers for participation in the open procedure is by 23:59 on 4 May 2022.

The documentation on participation has been published in CAIS EOP at https://app.eop.bg/today/196187