Business: Metal and pipe prices jack up Trans-Balkan pipeline cost

27/06/2008

The Trans-Balkan pipeline will cost 50% more than initially expected. Also in business: an IMF team concluded an overview of Turkey, and Bosnia and Herzegovina and Germany's KfW agreed to reconstruct the Rama hydropower plant.

The Burgas-Alexandroupolis oil pipeline will cost more than expected. [Getty Images]

The Burgas-Alexandroupolis oil pipeline will cost between 1.5 billion and 1.55 billion euros -- 50% more than initially expected, Trans-Balkan Oil Pipeline, the Russian operator of the project, said on Thursday (June 26th). The primary reason is the rising cost of metal and pipe. Bulgaria and Greece, each of which has a 24.5% stake in the project, have delayed the process of expropriating land for the pipeline.

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An IMF team concluded an overview of Turkey's performance in the last two standby agreements, the Anatolian agency reported on Wednesday (June 25th). According to the IMF report, Turkey's performance is positive in both standby agreements regarding the length, commitment and efficient use of financial assistance.

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Croatia's state-owned oil and gas company, INA, began explorations at the Moghan-2 field in Iran. The project, conducted jointly with the National Iranian Oil Company, has an estimated value of $142m and is expected to last between four and five years. INA and its local partner must carry out exploration over a period of 25 years.

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Bosnia and Herzegovina (BiH) and Germany's KfW signed an agreement Monday (June 23rd) worth 17m euros for reconstruction of the Rama hydropower plant. The upgrade aims to extend the life of the power plant by 20 years and to increase its power capacity.

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The Greek lottery system supplier, Intralot, announced on Tuesday (June 26th) it had obtained a gaming licence in Tasmania that will enable its expansion in Australia. The company issued a statement saying it will shortly start operating a range of lottery games through a large network of selling points in Tasmania.

(Various sources – 20/06/08-27/06/08)