The city of Varna will receive state compensation for losing land which is needed for the
construction of new port facilities, Prime Minister Sergei Stanishev said after a meeting with mayor Kiril Yordanov on Wednesday. The project will contribute to the development not only of Varna but that of the whole country, the PM said.

He explained that Japan, which is providing the loans for the port project, has requested that all construction take place on public state property. This will mean that the municipality will lose part of its land.

The century-old port badly needs modernization and experts have figured out that building a new port is more feasible than upgrading the existing facilities. A container terminal is to be built as part of the new port.

What is now the Port of Varna East will turn into a theme park.

The Prime Minister also said Wednesday that the privatization of Navigation Maritime Bulgare (NMB) will take place while the company can still be offered for a lucrative sum. He reminded
listeners of the sale of the Bulgarian Telecommunications Company (BTC) in 2004, whose price dropped significantly before it was sold (65 per cent of BTC was privatized in 2004 for 230 million euro, only to be re-sold in 2007 to AIG for 1,660 million).

The strategy for the de-nationalization of NMB has long been discussed, and the Bulgarian state has a list of requirements guaranteeing that the future buyer ensures the development and prosperity of the company. Despite many potential buyers of NMB coming forward, none has fulfilled these requirements, Stanishev said.