|Title:||Development of Long Range Financial Projections for the Power Sector in Bulgaria|
|Dates:||October, 1999 - December, 1999|
Bulgaria's endowment of commercial energy resources is limited. Reserves of oil and gas are estimated at about 3 million tonnes of oil equivalent, representing less than 3 months of the country's petroleum consumption.
Hydro power is also limited as most of Bulgaria's rivers are very small, except for the Danube.
National Electricity Company (NEK) is the state power company with sole responsibility for distributing electricity, producing about 89% of the electricity and 11% of the heat consumed in Bulgaria in 1998. The balance is provided by industrial producers and district heating plants. Significant investment in the power sector was needed if Bulgaria was to meet the demands of its industry and population for electricity and heating.
In 1999, Corporate Solutions was awarded a contract by the EBRD to develop a long term financial projection for NEK as a basis for evaluating the feasibility of investing in the power sector. The forecast covered a period of 15 years and included a detailed plan of sales, production, income and expenditure. The forecast was based on detailed calculations of financial and economic assumptions taking into account GDP growth and price elasticity.
The output of the model included an Income Statement, Balance Sheet, Cash Flow Statement and Investment plan.