The state privatisation agency signed yesterday the contract for selling out the full stake in the coal-fired power plant in Bobov Dol to local consortium Energia MK, comprising six mining companies, a note on the website of the agency reads. Energia MK, controlled by local businessman Hristo Kovachki, won the bidding in June in competition against another local entity with indirectly related ownership at the minimum auction price of BGN 100mn (EUR 51.1mn). As 10% of the price will be paid in compensatory notes issued for compensation of nationalised assets (traded at 40% of their face value) the state will receive BGN 90mn from the deal while the actual cost of Energia MK will drop to BGN 94mn. Energia MK vows to invest EUR 35mn over a 5-year period and should meet environment standards set by the line ministry by end-2011. Energia MK must buy locally extracted coal of at least 1.75mn tons per year in 2009-2011 and should sign contracts for purchase of coal with the local mining companies. The privatisation deal must be approved by the state antitrust commission. It, however, may be appealed by the Greek state-owned energy company PPC before the line EU authorities. PPC won the first privatisation tender for the power plant in the spring of 2005 offering EUR 71mn for the full stake but failed to reach understanding with local authorities and the state privatisation agency discontinued negotiations with the Greeks and called a new tender.