Bulgaria vote winner wants temporary freeze on energy
* GERB tells outgoing cabinet to wait on energy projects
* Wants temporary freeze on Belene, South Stream, gas deals
By Tsvetelia Ilieva
SOFIA, July 10 (Reuters) - Bulgaria's prime minister-designate Boiko Borisov called on the outgoing government on Friday to halt talks on major energy projects like the South Stream gas pipeline until his new cabinet takes over.
Borisov said he was concerned the Socialist-led cabinet was making financial commitments that could worsen the budget situation in the European Union member state, hit by the global economic crisis and falling revenues.
"We are receiving worrying signals for acts in state-owned companies, which are not taking into account the financial and economic crisis and the interests of the country as a whole," he wrote in a letter to Economy and Energy Minister Petar Dimitrov.
The centre-right GERB party won by a landslide July 5 general election and its straight-talking leader Borisov is expected to head a new government by the end of the month.
The letter said talks on all major energy projects will be renewed once the new government takes office and reviews them.
The economy ministry declined comment and said it will issue a statement later on Friday.
Borisov urged Dimitrov to temporarily suspend talks on Bulgaria's participation in the Russian-backed South Stream project due to bypass transit country Ukraine and deliver gas to south-eastern Europe under the Black Sea.
SOUTH STREAM VS NABUCCO?
The Gazprom-led (GAZP.MM) 10 billion euro project is seen by many analysts as a rival to European Union-backed Nabucco pipeline, aimed to reduce Europe's energy dependence on Russia.
Bulgaria has signed a broader agreement with Russia over South Stream but is yet to overcome some disagreements about the route and the ownership of the new pipeline on its territory.
Earlier this week, Borisov said his party supported the Nabucco project and welcomed the planned signing of an intergovernmental agreement between the countries involved, including Bulgaria, in Ankara on July 13.
GERB also demanded a freeze in talks on building of a new, 4 billion euro nuclear power plant at the Danube river town of Belene. German utility RWE (RWEG.DE) has 49 percent in Belene.
Sofia, which owns a 51-percent stake in the project, has contracted Russia's Atomstroiexport to build two 2,000 megawatt units, but has not secured the financing.
A senior GERB official, expected to be Bulgaria's next economy minister, told Reuters on Monday that the new government will review the majority stake in the plant. [ID:nL6318784]
The outgoing government has started talks with Moscow on a 3.8 billion euro Russian loan and has said it was ready to provide state guarantees for the Belene credit. Borisov also asked for talks over new gas delivery contracts with Gazprom to stop until he takes over.
He called on Dimitrov to stop the signing of any new contracts by state-owned energy companies and halt preparations for a 100 million euro ($139.4 million) bond by the Bulgarian Energy Holding.
Bulgaria has been hit hard by the global downturn and analysts expect the emerging economy to contract about 5-7 percent this year as foreign investors flee and exports drop.
The centre-right party has already said that one of its first moves will be to significantly curb public spending to prevent a financial crisis. Some of its experts have said huge infrastructure projects should be postponed. (Editing by Philippa Fletcher)
