Taxation and VAT Compliance: Maritza East 2 – Power Plant rehabilitation and construction project

Maritza East 2 Power Plant is the biggest steam-power plant in Bulgaria which is part of Maritza East power plant complex situated in the south-east of the country.

In order to comply with the European Union’s ecological standards and to optimize the production capacity of the installations, in the beginning of 2005 Maritza East 2 Power Plant initiated two significant projects for rehabilitation of desulphurization installations of boiler flue gas systems of Units 1, 2, 3 and 4 and construction of desulphurization systems of Unit 5 and 6. The main objective of the two projects is to reduce to minimum levels of emission of outgoing noxious gas and concentration of powder in the atmosphere through installation of innovative technologies and modern equipment.

Since the Spring of 2007 three Japanese companies Mitsui and Co, Ltd. – Japan, Toshiba Corporation- Japan and Ishikawajima Harima Heavy Industries Co. Ltd (IHI Japan) are involved in Maritza East 2 Power Pant as main contractors engaged with the rehabilitation and construction projects.

The companies’ activities in the country are related to supply of new equipment for the power plant’s units renovation and supervision of the reconstruction and rehabilitation works on Maritza East 2 Power Plant site.

Delchev and Partners team provides full tax compliance services and acts as tax advisor on all issues that arise on a day-to-day basis regarding the business operations of the foreign entities. We also act as tax representative of the three Japanese companies before the Bulgarian tax authorities for the purposes of their operational activities and transactions executed as main contractors of Maritza East 2 Power Plant.