For the public procurement for “Spatial planning, investment design, procurement of the necessary materials and equipment, construction and commissioning of construction site: "Expansion of Chiren UGS capacity - Wells” by decision of 30.12.2022, the participant DZZD CHIREN DRILLING 2022, ranked first, was selected as a contractor, and the same came into force as of 10.01.2023.
Following entry into force of the decision, DZZD CHIREN DRILLING 2022 notified Bulgartransgaz EAD of the company refusal to conclude a contract for award of the public procurement within the meaning of Art. 112, para. 2, item 1 of the Public Procurement Act, due to objective impossibility of performing the activities of the procurement subject-matter within the period specified in the draft contract, by setting out in detail the relevant reasons leading to that impossibility.
Considering the strategic significance of the project for improving the energy security in the country and the region, ensuring the continuity and security of gas supplies and increasing competition and liquidity in the natural gas market, on 22.03.2023 a reasoned decision was issued according to Art. 112, para. 3 in connection with Art. 112, para. 2, item 1 of the PPA, by which the decision of 30.12.2022 was amended in the part for appointment of a contractor and the second ranked participant, DZZD EXALO DRILLING CHIREN, was designated as a contractor of the public procurement.
More information about the participants in the procedure and the decision on appointment of a new contractor for the public procurement is available in the public procurement file in CAIS EOP at https://app.eop.bg/today/219854.
Regarding the public procurement for Investment design, supply of the necessary materials and equipment, construction and commissioning of construction site: "Gas pipeline connecting Chiren UGS with Bulgartransgaz EAD existing gas transmission network in the area of Butan village”, on 22.03.2023 a decision was issued according to Art. 22, para. 1, item 6 of the PPA, in connection with Art. 22, para. 5 of the PPA and Art. 106, para. 6 of the PPA, by which the participant ranked first, DZZD STROYGAZSYSTEM was designated as a contractor. The decision on Contractor's selection was published in CAIS EOP on 22.03.2023.
Six participants submitted tenders for participation in the procedure, five of which decrypted their tenders via the CAIS EOP.
As a result of tenders' verification for compliance with the requirements of the contracting authority laid down in the documentation for participation in the public procurement, as well as of compliance of the participants with the requirements to the personal situation and the selection criteria, DZZD STROYGAZSYSTEM, DZZD CHIREN KS and DZZD INFRA EXPERT-VEMAK were admitted to tenders' evaluation and opening of price offers.
The selection of the contractor was carried out by applying the indicators of the methodology for a complex offer, set out in the tender documentation, as the appointed contractor has offered the most economically advantageous offer according to the pre-selected award criterion "optimal correlation quality/price,", according to indicators related to the deadline for implementation, the organization envisaged by the participants for the implementation of the activities of the subject of the contract and the proposed price.
More information on the participants in the procedure and the Decision on selection of a contractor is available in the public file of the procurement at CAIS EOP at https://app.eop.bg/today/228441.
There is a growing need for additional natural gas storage capacity in Bulgaria and the region.
The increasing importance of the Chiren UGS capacity expansion is also driven by the suspension of supplies from the Russian Federation to various European countries. Supplying the required natural gas volumes for the country from alternative sources, including LNG, has increased the need for expansion of the gas storage facility in order to increase the reserves and secure the energy gas sector.
Equally important is the positive effect of Chiren UGS expansion on trade. The availability of sufficient gas storage, withdrawal and injection capacity is key to the successful entry into the market of alternative natural gas sources, including LNG. The expansion of Chiren LNG will provide additional flexibility, increase market integration and promote competition.
In view of the above, the award of the procedure is essential to improving the energy security of the country and the region, ensuring the continuous and secure natural gas supply and increasing the competition and liquidity in the natural gas market in the country and the region.