[Intl-tobacco] bulgarian tobacco privatization planned

[Robert Weissman]

October 24, 2000

Dow Jones Newswires
Bulgarian PM: Privatization Rules Change For Transparency
Dow Jones Newswires

SOFIA -- Bulgaria's government is planning to amend privatization
regulations in a bid to increase transparency and "regain (the public's)

trust in the process," Prime Minister Ivan Kostov said Monday.

Kostov briefed reporters about a new privatization strategy the
government
drafted for the forthcoming sales of key public utilities including
state-owned telecommunications, water, sewage and electric companies, as

well as the state railways and tobacco monopoly Bulgartabac.

Bulgaria's privatization has been marred by complaints of lack of
transparency and allegations of corruption.

The new strategy calls for unified rules for negotiations with potential

buyers to replace the current different procedures used by the
privatization
agency, different ministries and municipal authorities.

The government will handle the largest privatization deals, which will
need
parliamentary approval, Kostov said.

He added that each of the five biggest parliamentary parties will have
up to
three representatives in the privatization agency, so that they share
the
responsibility for the key sales.

The privatization agency is presently in charge of sales of assets worth

more than 75 million leva ($32.6 million), while smaller assets are sold
by
the ministries and local government.

-By David McFegan, Dow Jones Newswires; 361-267-0623;
david.mcfegan@dowjones.com