THE European Bank for Reconstruction and Development (EBRD) has so far invested more than a billion euro in Bulgaria and appreciates the country's progress.

This assessment was made at a meeting on November 21 between Prime Minister Sergei Stanishev and visiting EBRD director for Southern and Eastern Europe and the Caucasus, Olivier Descamps.

Descamps said the bank viewed in highly positive terms Bulgaria's progress in reforms and in its economy,  and that proof of the EBRD's trust in this country could be found in the size of its investment here - 1.1 billion euro.

In the past three years, the bank doubled its investments in Bulgaria, which were channeled mainly to the energy sector, banking, municipal projects, processing of farm produce, tourism, industrial production and small and medium-sized enterprises.

In addition to its own investment, EBRD has assisted in the inflow of about four billion euro in the form of co-investment.

By the end of November, the EBRD board of directors is expected to discuss the draft strategy for Bulgaria in 2005-2007. Main priorities will be the development of the private sector, municipal and transport infrastructure and energy.

For the beginning of 2006, EBRD plans to organise a regional seminar in Sofia on the implementation of projects with production and export orientation and projects aimed at improving economic competitiveness.

Descamps said that EBRD was planning to become a shareholder in two Bulgarian electricity distribution companies (EDC) owned by Austria's EVN and Germany's E.ON. The transactions will be completed by the end of 2005 or the beginning of 2006.

The privatisation contracts for the power distributors allow the bank to acquire up to 12 per cent of the share capital in them.

EVN bought a 67 per cent stake in the companies, based in Stara Zagora and Plovdiv, both in Southern Bulgaria, while EON acquired the utilities in Varna, on the Black Sea, and Gorna Oryahovitsa, in Northern Bulgaria.

The acquisition of the equity stakes in the power distributors is one of several projects that EBRD will implement in Bulgaria.