ENERGO-PRO and Irrigation Systems EAD jointly seek a solution to the problem of the growing debt of the company

Irrigation Systems EAD accumulates debts while preventing the Danube from flooding the area of the town of Silistra

Today, August 9, a meeting was held between the manager of ENERGO-PRO Varna EOOD Mr. Stefan Abadzhiev and the Executive Director of Irrigation Systems EAD, Eng. Georgi Stoev. The reason that brought the two parties together at a meeting was the rising debt of the company for consumed electricity. Overdue obligations exceed BGN 646 thousand, and with current payments very soon their debt will exceed BGN 756 thousand.

Eng. Stoev explained that, as the name of the company suggests, its main activity is to take care of irrigation of agricultural areas, but traditionally the state imposes on the company the responsibility of protecting the Danube regions from flooding. Irrigation Systems EAD regularly repay their obligations for electricity from irrigation related activities, but face serious difficulties in paying their bills arising from drainage activities. Due to the high levels of the Danube River, in the Lower Danube region (mainly the Danube municipalities of Silistra and Tutrakan) the pumps operate in a constant active mode to drain the low-lying coastal areas.

“The problem is very complex and both sides approached it very responsibly and with the clear awareness that in our decisions we must take into account the public interest.”, said Stefan Abadzhiev, Manager of ENERGO-PRO Varna EOOD. “Our company is in a financial situation, which forces it to actively collect the debts of its customers. After the last decision of the State Commission for Energy and Water Regulation, the possibilities of our company to credit large customers who, for one reason or another, delay the due payments for electricity, are practically nil. First of all, we must ensure our ability to settle with the National Electric Company and our other suppliers in order to be able to supply electricity to our customers and maintain the electricity distribution network for which we are responsible. On the other hand, Irrigation Systems EAD performs a socially significant function and we are working to reach a solution so that we are not forced to resort to the final measure — shutdown of the power supply.”

At the beginning of July, the problem of accumulated electricity liabilities of Irrigation Systems EAD was discussed at a joint meeting between Prof. Dimitar Grekov, Minister of Agriculture and Food and Mr. Stefan Abadzhiev. On it, the manager of ENERGO-PRO Varna EOOD informed the Ministry of Agriculture and Food in detail about the dynamics of debt accumulation of Irrigation Systems EAD in connection with carrying out the “drainage” activity in the Lower Danube region.

At the working meeting held today, in a very constructive spirit, Mr. Abadzhiev and Eng. Stoev discussed various options and schemes for repayment of the old debt and covering the new obligations, so as not to lead to the shutdown of pumping stations critical for the drainage process. Both sides pointed out that the situation is particularly worrying due to the fact that at the moment there is not enough funding provided on an annual basis for the “drainage” activity, which is of enormous social importance and represents a serious financial burden for Irrigation Systems EAD. Since the funds would have to be provided by the state budget, the company has no clarity on exactly when this will happen, but expects funding to be received in late August or early September.

“The role of the state in this case is crucial and therefore today we will address a letter to the Minister of Agriculture and Food, Prof. Dimitar Grekov, with a proposal for the convening of a tripartite meeting, at which together we seek and find a solution to the problem in the interest of the residents of the municipality of Silistra and our whole society. We understand the serious protective function of Irrigation Systems EAD and are fully ready to discuss possible solutions”, assured Mr. Stefan Abadzhiev.