The hydropower complex near the western town of Svoge will sell carbon credits to EBRD stemming from estimated reduction of greenhouse gas emissions in the amount of 336,462 tonnes of CO2. The latest market price of carbon credits (based on the Point Carbon’s over-the-counter methodology – www.pointcarbon.com) values the same quantity of carbon emissions at about EUR 7mn. The total financing commitment of EBRD in the project is expected to reach EUR 49mn, reads the Bank’s concept review scheduled for a final board approval on Oct 9. The purchase of carbon credits will be carried out through Netherlands Emissions Reduction Cooperation Fund managed by EBRD. The power complex, located on the Iskar River, some 40 kilometres north of the capital Sofia, features nine hydropower plants with total capacity of 25.7MW. The project will be carried out by a consortium of Petrolvilla Bulgaria, owned by Italy’s Petrolvilla&Bortolotti and holding 90% of the share capital, and the municipality of Svoge with the remaining 10% stake. The consortium has earmarked EUR 73mn for construction and commissioning of the power plants, the last of which is expected to launch operations in 2011. EBRD has contracted three other similar projects in the country through the said Fund.