Investment banks, consortia and international consultancy firms are eligible candidates for consultants on Sofia heating utility sell-off, Sofia municipal secretary, Rosen Zhelyaskov, said. On October 2, 2006, the working group on the Sofia heating utility sell-off will approve the selection procedure of an adviser on the heating utility's sell-off, which should be given green light afterwards by the Sofia municipal council and the economy and energy ministry. The municipality is majority owner of the Sofia heating utility and the state controls 42 pct in the utility. The selection procedure should be completed within two-three months.

Eligible banks should be among top 15 banks in six different rankings for sell-off deals and mergers in the period 2003 to 2005. Eligible candidates should have implemented three key energy projects in Europe over the last ten years, to have sealed successful deals in the energy sector and to be familiar with the Bulgarian legislation. Consultancy companies should certify annual turnover of 10 mln euro ($12.7 mln). Zhelyaskov said the municipality wanted to run a transparent and clear selection procedure in line with the requirements of the World Bank and the European Bank for Reconstruction and Development (EBRD), which are creditors of the utility.

The selected consultant should draft a sell-off scheme for the Sofia heating utility. The municipality and the state are considering two different sell-off scenarios. The state wants to slate 100 pct in the heating utility at once. The municipality proposes separating heating transmission and production and slating for sale the heating transmission.

Shareholders in the heating utility shared the opinion that the utility's debts to gas major Bulgargas should be restructured first. The utility's outstanding debts to the gas monopoly Bulgargas are worth 70 mln euro ($89.2 mln).