Bulgaria begins construction of the Balkan Stream gas pipeline with Russian participation, Bulgarian Prime Minister Boyko Borisov reported after talks with the Minister of Industry and Trade of Russia, Denis Manturov.

According to the minister, a state company from Saudi Arabia became the executor of the project. 90% of pipes for the Balkan Stream have already been delivered to Bulgaria from Russia. Funding has been secured, 308 km of the gas pipeline will be built before the end of January 2020, Borisov said.

«After the failure of the South Stream, the Balkans are now given a new chance to implement a project to build a global gas pipeline,» the Bulgarian Prime Minister emphasized.

The Italo-Saudi consortium Arcad won the tender for the construction of a gas pipeline to Serbia through the territory of Bulgaria. The contract was signed on September 18, after a series of trials.

Arcad was ready to build the gas pipeline for € 1.29 billion in 250 days, or € 1.1 billion in 615 days. 

The forecast of investment costs is about € 1.4 billion. The funds will be invested in the construction of additional infrastructure in accordance with plans for the development of new gas flows in the region. The bulk of the funds will be spent on the construction of a 484 km gas pipeline with Serbia, two compressor stations and an 11.5 km gas pipeline from the Bulgarian-Turkish border to the Stranja compressor station. 

The annual profit of Bulgartransgaz with the successful implementation of the project will be about € 180 million.