An article in reputed U.S. publication Congressional Quarterly exposing alleged mobster affiliations in the past of Sofia mayor Boiko Borisov's has caused quite a media and political stir in Bulgaria.

The article, entitled 'Bush's Bulgarian partner in the terror war has mob history, investigators say', elicited a stormy reaction from the Bulgarian political elite and Borisov himself.

The Sofia mayor dismissed it as a '100% lie'. The article is 'unabashedly anti-Bulgarian, it is not evidence-based and is offensive towards Bulgaria,' president Georgi Parvanov said in a press release. That response was echoed by interior minister Rumen Petkov while other politicians interpreted the article as an attack on the policy agenda of the Republican party and president George Bush.

'The most powerful politician in Bulgaria, Washington's newest ally in the global war on terror, is a close associate of known mobsters and linked to almost 30 unsolved murders in the Black Sea republic, according to a confidential risk-analysis investigation of the country commissioned by a private bank,' said the article.

'The U.S. partnership with Boiko Borisov, 48, a popular former interior minister [editor's note: Borisov was not a minister but a chief secretary of the interior ministry] actually now poised to capture Bulgaria's presidency, is the latest example of the political trade-offs involved in the Bush administration's global war on terrorism, which has put the Pentagon, CIA and FBI in bed with some of the world's most corrupt and thuggish leaders.'

The author of the article, CQ national security editor Jeff Stein, said it was based on a confidential report ordered by a Swiss bank to gauge the political risk in Bulgaria.

The report was provided to Stein on condition that the name of the bank and the people on the investigation team remain undisclosed.

The report was handed over 18 months ago, a period just after the 2005 parliamentary elections when Borisov vacated his position as an interior ministry chief secretary.

Bulgarian deputy ambassador to the U.S. Hristo Gudjev confirmed for the Bulgarian National Radio that Stein had attempted to connect Borisov via the embassy a month a ago to pose some questions to him.

The American embassy in Bulgaria came out with e press release saying that CQ is an independent publication and that its content does not reflect the official position of the U.S. government.(Dnevnik)

The transacting of land properties has been confounded by a set of circumstances since the beginning of the year, Dnevnik learned from Bulgarian real estate agencies.

One of the reasons for the market standstill the nation's Black Sea and mountain resorts is the lack of clarity on the designation of protected sites under the Natura 2000 program. The investors thus have no visibility on whether or not they will be able to develop the land plots they are acquiring.

Another factor is Sofia's new masterplan which tweaks the construction rules for some locations in the capital.

Many locations in Sofia already had detailed zoning plans but these have now been superseded by the new masterplan and will have to be aligned accordingly. Investors that have bought land properties in the capital may now be forced to develop the site on a completely different scale.

The situation is further complicated by changes to the Land Use and Ownership Act which obliges the owners of leased arable land to offer their property for sale first to the lessee and then to a third party.

The law requires that the owners of arable land produce a waiver from the lessee if they want to sell the property to a third party. However, there is no timeframe within which the lessee has to comply and this oversight allows the farmers to procrastinate in a bid to bring down land prices.(Dnevnik)

National railway carrier BDZ plans to raise money for the reconstruction of its fleet of passenger and cargo cars with the placement of 2 bond issues in 2007, said executive director Oleg Petkov.

The first debt issuance, worth 40 mln levs, has already been approved by the BDZ management is awaiting a nod from the transport ministry.

The proceeds from the bond will be invested in the repair of 1,200 of BDZ's 11,000 cargo cars.

The major industrial clients of the carrier will generate business that will require a fleet capacity of 8,550 cars in 2007 but BDZ has only 7,000 cars manufactured over the last 25 years.

The company is looking for an opportunity to swap 500 railcars for the repair of as many.

The second bond, worth 170-200 mln levs, will raise cash for further railcar repairs and for the settlement of a 50 mln lev debt to national power grid operator NEK.

BDZ is considering a second option for the payment of the NEK debt. The carrier has offered the utility title over 3 real estate properties. NEK is interested in the deal but has asked BDZ to furnish proof of title.(Dnevnik)

The city of Gotse Delchev, Southern Bulgaria, has decided to hire U.S. company Job Performance Systems to advise the development of the local military airport, said city mayor Vladimir Moskov.

The airport is located 2 km outside of Gotse Delchev and at a 35 min drive from ski resort Bansko.

The consultant will research the opportunities for the development of the airport under a public-private partnership and the potential investor interest.

Moskov said the possibility of building new airports in Bansko or nearby Razlog has been ruled out due to the lack of suitable locations and the adverse wind patterns.

Talks are underway with the defence ministry to transform the Gotse Delchev airport into a civilian facility that will service low cost carriers.

A number of companies have shown interest towards the airport. The interested parties include an Israeli company; Bertram Rollman, the German owner of local textile company Pirin Tex; Greek businessman Viron Pliakas, who owns a company developing a residential complex in Gotse Delchev; and Yulen, the company that operates the Bansko skiing facilities under a concession agreement.(Dnevnik)

Oil company Lukoil has filed a 90 mln lev claim against fuel retailer Petrol, alleging recurring breaches of the fuel distribution agreement between the two partners.

Lukoil contends that, over the past 4 years, Petrol deliberately delayed payments due under the concession agreement between the two companies.

Petrol has lodged a countersuit also alleging delayed payments on Lukoil's part.

The fuel retailer, the nation's biggest, said it notified in writing Lukoil Bulgaria on February 13 that it should settle an outstanding payment of 84 mln levs within the ensuing 20 business days. A failure to comply would result in litigation, said Petrol.

Lukoil has denied the existence of any Petrol claims against them.

The first signs of friction between the two companies appeared in early 2005 when Lukoil discontinued fuel supplies for Petrol over outstanding payments totalling 35 mln levs.

Under the existing agreement, Petrol retails liquified fuels produced by Lukoil and the two companies split the profits after Petrol has deducted costs.(Dnevnik)