Governance framework for state-owned enterprises

There are over 200 state-owned enterprises (SOEs) in Bulgaria, spread across many important sectors such as energy, transport, water and health, whose performance has been a longe-standing source of concern.

To this end, Bulgaria is implementing a reform aimed at improving their governance.

As a first step in the reform, the Public Enterprises and Control Agency developed  a Policy on State Participation in Public Enterprises, which was subsequently adopted by the Council of Minister. The Policy contains the justification and the the objectives for the participation of the state in SOEs, as well as the role of the state in the management of SOEs and in the implementation of the policy.

The Council of Ministers adopted Annual Summary Analytical Reports on the activities of SOEs for 2020 and 2021.These reports review the results of the activity of state-owned enterprises, including statutory ones, as well as analyse the performance of SOEs by sector and the individual performance of all SOEs categorised as “large” in accordance with the Law on Public Enterprises. The summary reports shall also assess state-owned enterprises’ compliance with applicable corporate governance and disclosure standards.

The reform foresees that the management board positions of all large SOEs, shall be filled following a competitive procedure.

The implementation of the reform has been completed.

Additional links:

• https://www.appk.government.bg/bg/54
• https://www.appk.government.bg/bg/55