Investment process

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Use of solar energy

Solar energy is used for obtaining the following:

  • thermal energy through solar collectors;
  • electric power through photovoltaic installations.

 

Solar (thermal) collectors:

  • designation - thermal collectors transform solar energy into heat, for obtaining hot water for household use and heating.
  • installation - solar collectors are installed on the walls and roofs of buildings and are not considered protrusions so they are placed without obtaining any permits: Article 113 of Ordinance No. 5 on zoning rules and regulations.

 

Photovoltaic installations:

  • designation - the photovoltaic modules serve for transformation of solar radiation into electric power.
  • installation - the photovoltaic modules may be installed both on the walls and roofs of buildings and may also be built as independent sites. In the former case the modules are not considered protrusions of the buildings and are installed without any permits being required: Article 113 of Ordinance No. 5 on zoning rules and regulations. In the latter case the installation is treated as a construction to which the stages in the investment process apply.

 

Theoretical potential of solar energy in Bulgaria

 

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Parties involved in the investment process

The parties involved in the investment process are the following entities:

  • the Assignor,
  • the Developer,
  • the Designer,
  • the Consultant,
  • the individual exercising technical control on the Structural Part,
  • the Site Manager,
  • the supplier of machines, facilities and technological equipment.

 

The Assignor is the owner of the real property, a person having obtained the right to construction in another person’s property, or having obtained the right to construction in another person’s property by virtue of a special law. The Assignor or a person authorized thereby shall provide everything necessary for starting the construction: Article 161, paragraph 1 of the Zoning Act (promulgated, State Gazette, No. 1 dd. 2.01.2001, effective as of 31.03.2001, amended, No. 41 dd. 24.04.2001, No. 111 dd. 28.12.2001, No. 43 dd. 26.04.2002, amended and supplemented, No. 20 dd. 4.03.2003, No. 65 dd. 22.07.2003, No. 107 dd. 9.12.2003, amended, No. 36 dd. 30.04.2004, amended and supplemented, No. 65 dd. 27.07.2004)


The Designer is an individual or a legal entity including individuals having the required designing capacity: Article 162, paragraph 1 of the Zoning Act.


The Developer is an individual or a legal entity including individuals having the required technical capacity that, pursuant to a written agreement with the Assignor, implements the construction in accordance with the issued construction papers: Article 163, paragraph 1 of the Zoning Act.


The Developer may assign the implementation of separate parts of the construction and installation works or of parts (stages) of the construction to a subcontractor: Article 163, paragraph 4 of the Zoning Act.


The Site Manager is a civil engineer or a civil engineering technician who manages the construction works: Article 163а, paragraph 1 of the Zoning Act.


If the construction is implemented by the Assignor, the latter shall ensure a Site Manager. In such case the Site Manager shall be liable for observing the requirements of Article 163, paragraph 2: Article 163а, paragraph 2 of the Zoning Act.


The Assignor may assign the delivery and installation of the technological and installation equipment of the site to a supplier. The supplier shall be liable for performance of the delivery and installation in good quality and on time, and also for the related acceptance tests: Article 165 of the Zoning Act.


The Consultant, pursuant to a written agreement with the Assignor:

  • makes evaluation of the compliance of investment projects and/or exercises construction supervision;
  • may perform pre-investment research, preparation of the designing process and coordination of the construction process until the commissioning of the site: Article 166, Article 167 of the Zoning Act.

 

The obligations of the parties involved in the investment process are regulated in Article 161, Article 162, Article 163, Article 165, Article 166, Article 167, and Article 168 of the Zoning Act.

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Stages in the investment process

  • Investment designing.
  • Permits and licenses.
  • Construction and installation.
  • Completion of construction. Use permit.

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Investment designing

Investment project

The Investor shall determine and assign the designing phases and the project parts depending on the type and specifics of the site. The project parts shall be assigned in compliance with the requirements to the mandatory minimum scope under Article 144, paragraph 1, sub-paragraph 3 of the Zoning Act: Article 4 of Ordinance No. 4 dd. 21 May 2001 on the scope and contents of investment projects (issued by the Minister of Regional Development and Public Works, promulgated, State Gazette, No. 51 dd. 5.06.2001, effective as of 5.06.2001)

 

Procurement of starting data, documents and making designing assignment:

  • designation of a land plot for construction of the solar installation:

Defining the title to the site designated for the construction according to the pre-investment research.The title belongs to the state, to municipalities, to cooperative societies, to other legal entities or to citizens: Article 2, paragraph 1 of the Property Act (promulgated, Izvestia, No. 92 dd. 16.11.1951, effective as of 17.12.1951, amended and supplemented, No. 12 dd. 11.02.1958, amended, No. 90 dd. 8.11.1960, State Gazette, No. 99 dd. 20.12.1963, amended, No. 26 dd. 30.03.1973, amended and supplemented, No. 27 dd. 3.04.1973, amended, No. 54 dd. 12.07.1974, effective as of 1.10.1974, amended and supplemented, No. 87 dd. 8.11.1974, effective as of 1.12.1974, amended, No. 55 dd. 14.07.1978, No. 36 dd. 8.05.1979, No. 19 dd. 8.03.1985, amended and supplemented, No. 14 dd. 19.02.1988, No. 91 dd. 2.12.1988, No. 38 dd. 19.05.1989, No. 31 dd. 17.04.1990, amended, No. 77 dd. 17.09.1991, amended and supplemented, No. 33 dd. 19.04.1996, effective as of 1.06.1996, amended, No. 100 dd. 31.10.1997, No. 90 dd. 15.10.1999, amended and supplemented, No. 34 dd. 25.04.2000, effective as of 1.01.2001, amended, No. 59 dd. 21.07.2000, effective as of 21.07.2000).


Foreigners or foreign legal entities may not acquire title to land in Bulgaria: Article 29, paragraph 1 of the Property Act. The prohibition under paragraph 1 is not applicable to inheriting by law: Article 29, paragraph 2 of the Property Act. Foreigners or foreign legal entities may acquire title to buildings and limited property rights to real properties in Bulgaria, unless otherwise provided by the law: Article 29, paragraph 3 of the Property Act.


Farmlands may be property of citizens, of the state, of municipalities and of legal entities: Article 3 paragraph 1 of the Ownership and Use of Farmland Act (promulgated, State Gazette, No. 35 dd. 24.04.1996, amended and supplemented, No. 14 dd. 18.02.2000, supplemented, No. 26 dd. 29.03.2000, amended and supplemented, No. 28 dd. 23.03.2001, effective as of 23.03.2001, supplemented, No. 112 dd. 23.12.2003, effective as of 1.01.2004).


Foreign countries or foreign legal entities may not own title to farmland: Article 3, paragraph 3 of the Ownership and Use of Farmland Act.


Foreign citizens may acquire farmland only through inheritance by law. They are under the obligation to transfer it, within three years from becoming aware of the inheritance, to the persons under paragraph 1 of Article 3 of the Ownership and Use of Farmland Act: Article 3, paragraph 4 of the same law.


Foreign legal entities and foreign citizens may acquire the right to use farmland or other limited property rights to land under the terms and procedures set by the law: Article 3, paragraph 5 of the Ownership and Use of Farmland Act.


The owner shall be free to choose the way of using the farmland according to its designation. When using the land the owner is under obligation not to damage the soil and to observe the sanitary, hygiene, fire-safety and environment-protection regulations: Article 4, paragraph 1 of the Ownership and Use of Farmland Act.


Farmland may be used for construction of buildings and facilities related to the use thereof, under the terms and procedures set by the Zoning Act: Article 4, paragraph 2 of the Ownership and Use of Farmland Act.


The title to forests and lands from the forest stock belongs to individuals and legal entities, to the state and municipalities, and may not be owned by foreign countries, foreign citizens or foreign legal entities: Article 6 , Article 10, paragraph 2 of the Forestry Act (promulgated, State Gazette, No. 125 dd. 29.12.1997, amended and supplemented, No. 79 dd. 10.07.1998, No. 133 dd. 11.11.1998, amended, No. 26 dd. 23.03.1999, effective as of 23.03.1999, amended and supplemented, No. 29 dd. 7.04.2000, No. 78 dd. 26.09.2000, amended, No. 77 dd. 9.08.2002, amended, No. 79 dd. 16.08.2002, No. 99 dd. 22.10.2002, amended and supplemented, No. 16 dd. 18.02.2003, No. 107 dd. 9.12.2003).


All forests and lands from the forest stock which are not owned by individuals or legal entities or by the municipalities are property of the state: Article 7, paragraph 1 of the Forestry Act.


Forests being exclusive state property are the following:

  • forests within protected areas defined as exclusive state property by the Protected Areas Act;
  • island in border rivers;
  • forests in tightly controlled areas of water and water collecting facilities, of seed-producing nurseries, of geographic crops and dendraria: Article 7, paragraph 2 of the Forestry Act.


Public state property is the following:

  • forests and lands of the state forest stock consigned for management to agencies in regard to fulfillment of their duties or in relation to this country’s defense and security, or for conducting health, educational or humanitarian activities;
  • forests and lands of the state forest stock owned by the state within the protected areas within the meaning of the Protected Areas Act;
  • forests and lands of the state forest stock included in cultural and historical protected areas under the Monuments of Culture and Museums Act the designation of which has been set by a detailed development plan;
  • forests within the areas of the 200-meter strip along the state borders of Bulgaria except islands in border rivers, including the 200-meter strip along the bank of the Danube River;
  • protected forest belts;
  • forests protecting engineering and technical facilities: Article 7, paragraph 3 of the Forestry Act.


All other forests and lands of the state forest stock are private state property: Article 7, paragraph 4 of the Forestry Act.
Municipal properties are forests and lands of the forest stock the title to which has been restored to the municipalities, and also those acquired under the procedures of the Municipal Property Act: Article 8, paragraph 1 of the Property Act.


Forests which are public municipal property are the following:

  • forests and lands of the state forest stock consigned for management to agencies in regard to fulfillment of their duties or in relation to this country’s defense and security, or for conducting health, educational or humanitarian activities;
  • forests and lands of the state forest stock within protected areas within the meaning of the Protected Areas Act which are municipal property;
  • forests and lands of the municipal forest stock included in cultural and historical protected areas under the Monuments of Culture and Museums Act;
  • forests protecting engineering and technical facilities: Article 8, paragraph 2 of the Forestry Act.


Private properties are forests and lands of the forest stock the title to which has been restored to individuals or legal entities, and also those acquired through legal transactions, by statute of limitation or by other acquisition methods and which are not state or municipal property: Article 9 of the Property Act.


Foreign countries, foreign citizens or foreign legal entities may not have title to forests and lands of the forest stock: Article 10, paragraph 2 of the Forestry Act.


Foreign citizens may acquire forests and lands of the forest stock only upon inheritance by law. They are under the obligation to transfer them, within three years from becoming aware of the inheritance, to the persons under Article 6 of the Property Act: Article 10, paragraph 3 of the same law.

 

  • acquisition of title to or use of the lands intended for construction of the solar installation.

The development and possible building up of separate landed properties or groups of properties in the lands outside the borders of towns and villages shall be determined if provided for in a general development plan under Article 105 of the Zoning Act, if any, and if a detailed development plan has been approved under Article 109 or Article 111 of the Zoning Act: Article 45, paragraph 1 of Ordinance No. 7 dd. 22.12.2003 on the rules and regulations for development of the individual types of areas and development zones issued by the Minister of Regional Development and Public Works (promulgated, State Gazette, No. 3 dd. 13.01.2004, effective as of 13.01.2004).


Pursuant to Article 45, paragraph 1 of Ordinance No. 7 dd. 22.12.2003 on the rules and regulations for development of the individual types of areas and development zones issued by the Minister of Regional Development and Public Works, the following may be built in the lands  outside the borders of towns and villages:

  • agricultural sites;
  • forestry sites;
  • industrial and storage sites;
  • transport sites and facilities;
  • sites and facilities of the technical infrastructure;
  • recreational and tourist sites;
  • sports sites and facilities;
  • commercial and servicing sites;
  • health sites;
  • special-purpose sites;
  • historical and memorial sites.


Regarding agricultural areas for construction of sites under Article 45, paragraphs 3 and 4 of Ordinance No. 7 dd. 22.12.2003 on the rules and regulations for development of the individual types of areas and development zones issued by the Minister of Regional Development and Public Works, it is necessary to change the designation of the farmland for non-farming purposes under the procedures of the Farmland Protection Act pursuant to a provision of the development plan. Only sites the functions of which are consistent with the designation of the properties may be built without changing the designation of the farmland: Article 46, paragraph 1 of Ordinance No. 7 dd. 22.12.2003 on the rules and regulations for development of the individual types of areas and development zones.


Changing the designation of farmland from the state land stock or from the municipal land stock for the needs of a legal entity or an individual shall be performed after the relevant person acquires title to the land by purchase thereof or by exchange for the person’s own land: Article 29 of the Farmland Protection Act (promulgated, State Gazette, No. 35 dd. 24.04.1996, amended and supplemented, No. 14 dd. 18.02.2000, supplemented, No. 26 dd. 29.03.2000, amended and supplemented, No. 28 dd. 23.03.2001, effective as of 23.03.2001, supplemented, No. 112 dd. 23.12.2003, effective as of 1.01.2004).


Changing the designation of farmlands to non-farming activities shall be permitted depending on the production properties of the land and the purposes of the change by the following authorities:

  • commissions with the Farming and Forestry District Departments, where the area requested is not larger than 50,000 sq.m. and the land is within the land belonging to the towns or villages within the territory of the relevant district;
  • the Farmland Commission in all other cases: Article 17 paragraph 1 of the Farmland Protection Act.

 

Farmland owners shall file a request to the Mayor of the municipality for inclusion of the farmland into the construction boundaries of the towns or villages and for changing its designation: Article 20а of the Farmland Protection Act.


Regarding each site proposed to be built or expanded on farmland, the necessary site or route shall be determined by a detailed development plan draft and a positive resolution in respect of the environment impact assessment issued under the procedures of the Environment Protection Act: Article 21, paragraph 1 of the Farmland Protection Act.


The necessary auxiliary and additional sites, communications, land plots for temporary use and other things related to the construction of the site shall be determined along with the main site or route.
If the case involves first- to sixth-category lands, at least two sites or routes shall be determined for the site, save for lands offered for extraction of natural resources.


The Investor of the investment proposal shall inform the competent authorities and the population concerned at the earliest stage of the Investor’s investment intention by announcing it in writing and shall ensure the preparation of an assignment for the scope of the environment impact assessment.


The Investor shall conduct consultations with the competent authorities for taking a decision regarding the environment impact assessment with other specialized agencies and the public concerned in respect of the following:

  • the specifics of the proposed construction, activities and technologies, development level of the project solution and its relation to any existing or other planned constructions, activities or technologies;
  • the characteristics of the existing environment and all its components;
  • the significance of the presumable impacts;
  • the assignment for the scope and content of the environment impact assessment;
  • the limits of the research in relation to the environment impact assessment;
  • the alternatives for investment proposals;
  • the public concerned: interests and opinions;
  • the sources of information;
  • the methodologies for forecasts and environment impact assessment;
  • measures for minimizing the presumable negative impacts on the environment: Article 95 of the Environment Protection Act

 

The Investor of the proposal under Article 81, paragraph 1, sub-paragraph 2 shall furnish the competent decision-making authority with a report on the environment impact assessment containing the following:

  • annotation of the investment proposal regarding the construction, activities and technologies;
  • location alternatives (with maps and coordinates of the characteristic points in the system of coordinates approved for Bulgaria) and/or alternatives of the technologies proposed by the Assignor and the reasons for the choice made considering the environment impact, including a "zero alternative";
  • description and analysis of the environment components and factors under Articles 4 and 5 and of the material and cultural heritage which will be affected mostly by the investment proposal, and also their interaction;
  • description, analysis and assessment of the presumable significant impacts on the population and the environment as a result of the following:
    •  the implementation of the investment proposal;
    •  the use of the natural resources;
    •  the emissions of dangerous substances during normal operation and in extraordinary situations, the waste generation and creation of discomfort;
  • information about the methods used for forecasting and making the environment impact assessment;
  • description of the measures planned to prevent, minimize or, where possible, stop the significant detrimental impacts on the environment, and a plan for the implementation of those measures;
  • statements and opinions of the public concerned, of the decision-making authorities competent for adopting a resolution regarding the environment impact assessment, and of other specialized agencies and countries concerned in trans-border context, as a result of the consultations conducted;
  • conclusion by the experts, where such conclusion is provided in accordance with the requirements of Article 83, paragraph 3;
  • non-technical summary;
  • description of the difficulties (technical reasons, deficiency or lack of data) in the collection of information  for drafting the report on the environment impact assessment;
  • other information required at the discretion of the competent authority.

 

The costs of the environment impact assessment shall be covered by the Investor of the proposal under Article 81, paragraph 1, sub-paragraph 2.


The Investor of the proposal under Article 81, paragraph 1, sub-paragraph 2 shall provide the information required for making the environment impact assessment and any additional information related to the investment proposal: Article 96, paragraph 1, paragraph 2, paragraph 3 of the Environment Protection Act.


Constructions in forests and lands of the forest stock, outside those specified in Article 81, paragraph 1 of the Forestry Act, shall be permitted after changing the designation of the forests and lands of the forest stock: Article 81, paragraph 6 of the Forestry Act.
Forests and lands of the forest stock are excluded when changing their designation to sites for construction of power plants, dams and other hydro-technical or electrotechnical facilities, extraction of natural resources or other operations, according to the provision of Article 14, paragraph 1 of the Forestry Act.


For the purpose of building of sites under the provision mentioned above and also for the purpose of creating new or extending the borders of existing individual regulated landed properties outside the urban areas (cities, towns, villages and settlement formations), the owner or the interested person shall file a request to the Head of the National Forestry Department for preliminary coordination of the exclusion of forests and lands of the forest stock: Article 146, paragraph 1 of the Forestry Act.


For the purpose of exclusion of forests and lands of the forest stock and inclusion thereof into the construction borders of urban areas (cities, towns, villages and settlement formations), the Mayor of the municipality shall make a request to the Head of the National Forestry Department for preliminary coordination: Article 146, paragraph 2 of the Forestry Act.


For the purpose of preliminary coordination for the exclusion of forests and lands of the forest stock, an assignment shall be submitted prepared in accordance with the provisions of the Zoning Act. The Head of the National Forestry Department shall pronounce his/her motivated opinion within one month from filing the request: Article 146, paragraph 3 of the Forestry Act.


Application for the exclusion of forests and lands of the forest stock shall be filed by the owner or the interested person addressed to the Head of the National Forestry Department in the presence of effective detailed development plan for the landed property or a plot plan for the defined route: Article 14c, paragraph 1 of the Forestry Act.

 

  • Designing visa

The Assignor or a person authorized thereby may request a designing visa. The visa shall be issued by the chief architect of the municipality within 14 from filing the application: Article 140, paragraph 1 of the Zoning Act.

 

Designing assignment

The starting data and documents of the designing assignment according to Article 12 of Ordinance No. 4 on the scope and contents of investment projects shall be as follows:

  • map (visa) for designing under Article 140 of the Zoning Act;
  • geologic, seismologic and geotechnical description, hydrogeological and hydrological description of the area (if designing hydrotechnical sites), and also data about the specific conditions of the construction such as earthquake securing, etc.;
  • opinions and data from the relevant operating companies regarding connecting the internal networks and the site installations to the technical infrastructure networks regarding:
    •  the water supply source and description of the main and auxiliary installations, the place of wastewater discharge specifying the category of the water intake, the need of building water-treatment facilities, etc.;
    •  the electricity supply source and the need of building transformer units;
    •  the source of heat supply;
    •  the gas supply source and the need of building gas-distribution points;
    •  the location of the road junction of the site to the relevant road form the national or municipal road network;
    •  the connections to other networks of the technical infrastructure, if that is imposed by the specifics of the site;
  • the geodesic, map, plan and cadastre basis, including geodesic networks, respectively starting points and benchmarks which are necessary for the designing and the construction;
  • the support plan of the immovable monuments of culture and excerpt from the archeological cadastre (special map), if any;
  • the preliminary (pre-investment) and/or volume and spatial research on the site, if such studies have been developed;
  • other starting data and documents as required by regulatory or administrative documents.

 

The starting data and documents shall be attached to the designing assignment (the designing agreement).
The designing assignment, according to Article 13, paragraph 2 of Ordinance No. 4 on the scope and contents of investment projects, shall include the following:

  • main technical, economical, technological, functional, planning and compositional requirements to the site;
  • main functional and compositional parameters of the site.

The designing assignment for the initial phase shall serve as assignment of each following phase together with the design from the preceding phase: Article 14 of Ordinance No. 4 on the scope and contents of investment projects.

 

Designing

  • Conceptual design - the conceptual design shall be made in accordance with the map (visa) for designing and the designing assignment (the designing agreement). If no designing assignment has been made, the conceptual design shall serve as assignment for the next designing phase.

 

The scope and contents of the conceptual design should be sufficient for its use:

  • as basis for preparation of the following designing phase;
  • for choice of and architectural and spatial solution, construction and structural solution, installation and technological solutions, safety systems, etc., if such solutions are required by the designing assignment (the designing agreement);
  • for the purposes of coordination: under the terms and procedures of Article 141 of the Zoning Act. (Article 15, paragraph 1: Article 15 of Ordinance No. 4 on the scope and contents of investment projects).

 

The conceptual design shall be developed according to Article 15 ? 18 and shall cover the following parts:

  • architectural part - to be developed according to Article 27 ? 31 of Ordinance No. 4 on the scope and contents of investment projects;
  • structural part - to be developed according to Article 45 ? 48 of Ordinance No. 4 on the scope and contents of investment projects;
  • installations and networks of the technical infrastructure - to be developed according to Article 58 ? 62 of Ordinance No. 4 on the scope and contents of investment projects;
  • park and urban development - to be developed according to Article 93 ? 96 of Ordinance No. 4 on the scope and contents of investment projects;
  • geodesic part - to be developed according to Article 103 ? 106 of Ordinance No. 4 on the scope and contents of investment projects;
  • technological part - to be developed according to Article 112 ? 115 of Ordinance No. 4 on the scope and contents of investment projects.

 

  • Technical design - the technical design shall be developed in accordance with Article 19721 of Ordinance No. 4 on the scope and contents of investment projects and shall cover the following parts:
    •  architectural part - to be developed according to Article 32 ? 35 of Ordinance No. 4 on the scope and contents of investment projects;
    •  structural part - to be developed according to Article 49 ? 53 of Ordinance No. 4 on the scope and contents of investment projects;
    •  electrotechnical part - to be developed according to Article 63 ? 70 of Ordinance No. 4 on the scope and contents of investment projects;
    •  water supply and sewerage - to be developed according to Article 71 ? 75 of Ordinance No. 4 on the scope and contents of investment projects;
    •  heat supply, heating, ventilation and air-conditioning - to be developed according to Article 85 ? 88 of Ordinance No. 4 on the scope and contents of investment projects;
    • heat technology efficiency - to be developed according to Article 89 ? 92 of Ordinance No. 4 on the scope and contents of investment projects;
    •  park and urban development - to be developed according to Article 98 ? 101 of Ordinance No. 4 on the scope and contents of investment projects;
    •  geodesic part - to be developed according to Article 111 of Ordinance No. 4 on the scope and contents of investment projects;
    •  technological part - to be developed according to Article 116 ? 119 of Ordinance No. 4 on the scope and contents of investment projects.

 

  • Detailed design - the detailed design shall be developed in accordance with Article 22 ? 26 of Ordinance No. 4 on the scope and contents of investment projects concerning the following parts:
    •  architectural part - to be developed according to Article 36 ? 40 of Ordinance No. 4 on the scope and contents of investment projects.
    •  structural part - to be developed according to Article 54 ? 57 of Ordinance No. 4 on the scope and contents of investment projects.
    •  electrotechnical part - to be developed according to Article 63 ? 70 of Ordinance No. 4 on the scope and contents of investment projects.
    •  water supply and sewerage - to be developed according to Article 76 ? 79 of Ordinance No. 4 on the scope and contents of investment projects;
    •  heat supply, heating, ventilation and air-conditioning - to be developed according to Article 85 ? 88 of Ordinance No. 4 on the scope and contents of investment projects;
    •  heat technology efficiency - to be developed according to Article 89 ? 92 of Ordinance No. 4 on the scope and contents of investment projects;
    •  park and urban development - to be developed according to Article 98 ? 101 of Ordinance No. 4 on the scope and contents of investment projects;
    •  geodesic part - to be developed according to Article 111 of Ordinance No. 4 on the scope and contents of investment projects;
    •  technological part - to be developed according to Article 120 ? 123 of Ordinance No. 4 on the scope and contents of investment projects.


The designing of sites should also comply with the requirements of Article 124, Article 128, Article 130, Article 132, Article 134 and Article 150 of Ordinance No. 4 on the scope and contents of investment projects.

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Permits and licenses

Written application for research of the terms and conditions for accession

For the purpose of accession of a new photovoltaic installation to the electric network, the person building the installation should file a written application for research of the accession terms and manner: Article 49, sub-paragraph 1 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks. The accession research shall be performed after the issuance of the designing visa if its issuance is mandatory according to the provisions of the Zoning Act.


According to Article 50 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks, the written application regarding installations having capacity equal to or smaller than 5 MW shall be filed with the distribution company in respect of the installation’s location, and the written application regarding installations having capacity over 5 MW shall be filed with the regional division of the transmission company in respect of the installation’s location. The research shall be paid according to the service price list of the relevant transmission or distribution company.


The application shall include data and shall have attached thereto documents as per Article 51, paragraph 1 and paragraph 2 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks.


The transmission company or the relevant distribution company shall prepare and propose a preliminary accession agreement regarding the photovoltaic installation of the person having filed the application for research of the accession terms and conditions, within 30 days in respect of a distribution company and within 90 days in respect of a transmission company, as from the date of filing the research request: Article 56, paragraph 1 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks.


The preliminary accession agreement shall be concluded before the preparation of the investment project: Article 2, paragraph 2 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks.

 

Construction permits

Investment projects in respect of which construction permits are issued shall be coordinated and approved after a written application by the Assignor and after submission of documents according to Article 144, paragraph 1 of the Zoning Act. Technical or detailed investment designs shall be coordinated and approved by the chief architect of the municipality (region): Article 145, paragraph 1 of the Zoning Act. If, within one year after the approval of the investment projects, the Assignor fails to apply for a construction permit, the project shall lose its legal effect: Article 145, paragraph 4 of the Zoning Act.


According to Article 148, paragraph 4 of the Zoning Act, a construction permit shall be issued to the Assignor based on approved technical or detailed investment design. A construction permit may be issued based on an approved conceptual design under the provisions of Article 142, paragraph 2 of the Zoning Act. A construction permit may also be issued simultaneously with the approval of the investment project, if that is requested in the application.


The construction permit shall be issued by the chief architect of the municipality or by the chief architect of the region by resolution of the municipal council in respect of towns having regional division: Article 148, paragraph 2 of the Zoning Act.


The construction permit shall be issued within 7 days from filing the written application provided there is an approved investment project: Article 148, paragraph 4 of the Zoning Act.


The construction permit shall lose its legal effect if no construction commences for a period of 3 years from its issuance or if the shell and core condition is not completed for a period of 5 years from its issuance: Article 153, paragraph 2 of the Zoning Act.


The issuance of a construction permit may take place simultaneously with the approval of the parts of a complex investment initiative project authorized, by competence, by the Mayor of the municipality, the District Governor or the Minister of Regional Development and Public Works respectively, pursuant to the motivated request of the Assignor. Separate fees shall be collected for approval of the parts of the complex investment initiative project and for the issuance of a construction permit increased by 30 per cent as compared to the fees due: Article 150, paragraph 4 of the Zoning Act. The effective period of the complex investment initiative project, according to Article 150, paragraph 5 of the Zoning Act, shall be 2 years from the issuance of the last deed (the construction permit).

 

Accession agreement

The accession agreement shall be concluded after the approval of the investment project and the issuance of the construction permit: Article 2, paragraph 3 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks.


After approval of the investment project, the Assignor of the photovoltaic installation shall file with the transmission company or the relevant distribution company a written application for execution of an accession agreement, attaching thereto the respective documents according to Article 57, paragraph 1 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks. The transmission company or the relevant distribution company shall coordinate the submitted parts of the detailed designs, shall draft the agreement and shall send a written notice to the Assignor for the execution of the agreement within 60 days from filing the application for conclusion of an accession agreement: Article 57, paragraph 2 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks.


After the execution of the accession agreement, the transmission company or the relevant distribution company shall draft and coordinate the detailed designs for construction of the accession facilities at its expense: Article 60, paragraph 1 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks. The transmission company or the relevant distribution company shall build the accession facilities within the contractual periods and stages at its expense and shall ensure their commissioning under the procedures of the Zoning Act, according to Article 60, paragraph 4 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks.


For the accession of the photovoltaic installation to the electric network the Assignor shall pay the transmission company or the relevant distribution company an accession price according to the Ordinance on regulation of electric power prices, in the manner and within the periods set in the accession agreement: Article 61, paragraph 2 of the Ordinance on accession of producers and consumers of electric power to the electricity transmission and distribution networks.

 

License by the State Energy Regulatory Commission

For the production of electric power by photovoltaic installation with a total installed electric capacity over 5 МW, the producer should have a license as per Article 39, paragraph 1, sub-paragraph 1of the Energy Act.


The license issuance procedure shall be opened by virtue of a written application to the State Energy Regulatory Commission: Article 2, sub-paragraph 1а of the Ordinance on licensing energy-related activities. The application forms are published in the bulletin issued by the Commission and on its website. They may also be obtained at the administrative office of the State Energy Regulatory Commission: Article 3, paragraph 1 of the Ordinance on licensing energy-related activities. According to Article 3, paragraph 2 of the Ordinance on licensing energy-related activities; the application with the required documents shall be filed with the registry office of the Commission or shall be sent by registered mail.


If the license is issued before the energy site is built, it shall include the site’s construction terms and conditions, as well as the term for starting the licensed operations (Article 39, paragraph 3 of the Energy Act, Article 19, paragraph 1 of the Ordinance on licensing energy-related activities).


The application for license issuance shall contain starting data and shall have attached thereto the documents according to Article 19, paragraph 2 and paragraph 4 of the Ordinance on licensing energy-related activities. The application, together with the required documents, shall be filed with the registry office of the Commission or shall be sent by registered mail. A document evidencing payment of the fee for considering the application shall be attached to the documents.


The Commission shall take a resolution in respect of the application in a closed-door meeting: Article 8, paragraph 4 of the Ordinance on licensing energy-related activities.


The Commission shall set a license term from 1 to 35 years depending on the time resource of the assets to be used for the licensed operations and on the financial status of the applicant: Article 11, paragraph 2 of the Ordinance on licensing energy-related activities. The term for construction of the energy site shall not be included in the license term.


Upon commissioning of the energy site, the person obtaining a license shall submit to the State Energy Regulatory Commission documents according to Article 22, paragraph 1 of the Ordinance on licensing energy-related activities. Within one month after the submission of those documents, the Commission shall issue a resolution authorizing the beginning of the licensed operations: Article 22, paragraph 2, sub-paragraph 1 of the Ordinance on licensing energy-related activities. The Commission shall notify the licensee in writing of its resolution within 3 days as of its issuance.


According to Article 22, paragraph 4 of the Ordinance on licensing energy-related activities, at the licensee’s request, the procedure regarding issuance of authorization for starting the licensed operations may be performed after the execution of a certificate of findings establishing the fitness for acceptance of the construction: Form 15 as per Ordinance No. 3 of 2003 on drafting deeds and certificates during construction.

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Cnstruction and installation

Building up is the placement and construction of buildings, structures, networks and facilities in landed properties: Article 12, paragraph 1 of the Zoning Act.

 

Agreements among the parties involved in the construction.

The relations among the parties involved in the construction shall be settled by written agreements: Article 160, paragraph 2 of the Zoning Act.


The Assignor shall conclude agreements with the following persons:

  • a designer: Article 162, paragraph 2 of the Zoning Act;
  • a developer: Article 163, paragraph 1 of the Zoning Act; 
  • a consultant: Article 166, paragraph 1 of the Zoning Act.

 

Opening the construction site and determining the construction line and level

Opening the construction site and determining the construction line and level: to be performed by the person performing construction supervision in respect of the site, or by the Minister of Defense, the Minister of Interior respectively or by persons authorized thereby regarding special sites related to the state defense and security: Article 157, paragraph 1 of the Zoning Act.


A certificate shall be executed for opening the construction site and determining the construction line and level specifying the regulation and leveling benchmarks. The certificate shall include the measures for ensuring safe and healthy work conditions, traffic safety and protection of the neighboring buildings, of the existing buildings, networks and facilities in the property which are to be preserved during and after the construction, as well as the large-size ligneous vegetation which is not subject to removal: Article 157, paragraph 4 of the Zoning Act.


Start of construction: the construction start as per the issued construction permit shall be considered the day of executing the certificate for opening the construction site and determining the construction line and level, or if such certificate is not required, the date of certification of the construction register: Article 157, paragraph 1 of the Zoning Act.

 

Designing and construction insurance

The Designer, the Consultant, the Developer and the person performing construction supervision shall make third-party liability insurance regarding any damages caused to other parties involved in the construction and/or third parties resulting from wrongful actions or omissions during or in relation to the fulfillment of their duties: Article 171, paragraph 1 of the Zoning Act.


The terms and procedures for the mandatory insurance of the persons under paragraph 1, including the insurance coverage, the excepted risks, the minimum insurance amounts and premiums, shall be determined by ordinance of the Council of Ministers: Article 171, paragraph 2 of the Zoning Act.

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Completion of construction.Use permit

Executive designs

After the actual completion of the construction, the executive documentation shall be prepared recording any immaterial deviations from the coordinated designs by the contractor or by a person nominated by the Assignor: Article 175, paragraph 1 of the Zoning Act.


The executive documentation shall contain a full set of drawings regarding the construction and installation works actually performed. It shall be certified by the Assignor, the Developer, the person performing designer supervision, by the individual performing technical control on the structural part, and by the person performing the construction supervision. The delivery thereof shall be certified by affixing the seal of the relevant administration on all graphical and text materials. The executive documentation shall be integral part of the issued construction papers: Article 175, paragraph 2 of the Zoning Act.


After completion of the construction, the Assignor, the Designer, the Developer and the person performing construction supervision shall execute a certificate of findings evidencing that the construction has been implemented in accordance with the approved investment designs, the certified executive documentation, the requirements to constructions under Article 169, paragraphs 1 and 2 of the Zoning Act, and the provisions of the agreement concluded. That certificate shall have attached thereto the certificates of the successful single tests of the machines and facilities. That certificate shall also evidence handover of the construction by the Developer to the Assignor: Article 176, paragraph 1 of the Zoning Act.

 

Establishing the fitness for acceptance of the solar installation

The construction completion in respect of constructions on sites having production or any other specific purpose, depending on the agreement, shall be evidenced in addition by conducting successful acceptance tests: Article 176 paragraph 2 of the Zoning Act. If the construction is performed by several developers, each developer should perform the tests for their part of the construction after the completion of its implementation: Article 176, paragraph 3 of the Zoning Act. In the cases where the tests are not successful, the construction shall not be considered completed and the Assignor shall have the rights under Article 265 of the Obligations and Contracts Act: Article 176, paragraph 4 of the Zoning Act.


After completion of the construction and finishing the acceptance tests, where necessary, the Assignor shall register with the authority issuing the construction permit the commissioning of the site by submitting the final report under Article 168, paragraph 6 of the Zoning Act, the agreements with the operating companies for accession to the networks of the technical infrastructure, and a document issued by the Cadastre Agency evidencing fulfillment of the requirement under Article 175, paragraph 5 of the Zoning Act: Article 177, paragraph 1 of the Zoning Act.

 

Accession to the electric network

The accession of the solar plant to the electric network shall be performed in stages, according to Article 63?68 of Ordinance No. 6 dd. 9.06.2004 on accession of producers and consumers of electric power to the electricity transmission and distribution networks issued by the Minister of Energy and Energy Resources, (promulgated, State Gazette, No. 74 dd. 24.08.2004).


The Assignor’s obligations in the accession process are set forth in Article 48? Article 81 of the Accession Ordinance mentioned above.

 

Commissioning

After completion of the construction and finishing the acceptance tests, where necessary, the Assignor shall register with the authority issuing the construction permit the commissioning of the site by submitting the final report under Article 168, paragraph 6, the agreements with the operating companies for accession to the networks of the technical infrastructure, and a document issued by the Cadastre Agency evidencing fulfillment of the requirement under Article 175, paragraph 5: Article 177, paragraph 1 of the Zoning Act.
Constructions of the first, second and third category shall be commissioned based on a use permit issued by the bodies of the National Construction Control Department, under the terms and procedures set forth in Ordinance issued by the Minister of Regional Development and Public Works: Article 177, paragraph 2 of the Zoning Act.


Within 7 days from filing the application, the authority issuing the construction permit shall, after checking the completeness of the documents, register the commissioning of the construction and shall issue a commissioning certificate: Article 177, paragraph 3 of the Zoning Act.


If a technological period of time is required for checking achievement of the project parameters in operational conditions, the Assignor may register trial commissioning of the construction: Article 177, paragraph 4 of the Zoning Act.


Connection of the internal installations and systems of the construction to the common networks and facilities of the technical infrastructure shall be performed pursuant to agreements with the relevant operating companies: Article 177, paragraph 5 of the Zoning Act.

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