Project number:


Business sector:

Property and tourism

Notice type:


Environmental category:


Approval date:

25 Jan 2005



PSD disclosed:

26 Oct 2004

Project Description

The proposed project involves financing of the completion of Hermitage Grand Hotel (the Project), a five-star development in Golden Sands on the Bulgarian Black Sea coast, fully owned by Sigma Capital Hospitality, Leisure and Tourism Holding Company S.A (“the Sponsor”). The aim is to support the Sponsor achieve its goal of becoming the largest player in the hotels/hospitality market on the Bulgarian Black See coast.

Transition Impact

The main transition impact of the proposed project will derive from provision of modern international standard hotel infrastructure and increased competition.
The proposed project will
  • address one of the key transition challenges in the sector by significantly contributing to fulfilling the long-term unmet demand for international standard tourism hotels on the Bulgarian Black Sea coast. 
  • facilitate further competition in the Bulgarian leisure hotel market, which suffers from the lack of supply of the quality hotel accommodation
Additional transition impact may derive from backward and forward linkages to local support businesses catering to the needs of the hotel, improved transparency and corporate governance, and transfer of management skills, which will bring extensive training to the local workforce and improve general service level in Bulgaria. The proposed project is also expected to promote economic growth in the area.

The Client

Sunny Travel Ltd. (the Borrower) – a special purpose company set up to develop, construct and operate the Hermitage Grand Hotel near Varna. Sunny Travel Ltd. is a fully-owned Bulgarian subsidiary of the Sponsor, with the main activity of investing in hotels/hospitality assets on the Bulgarian Black See Coast.

EBRD Finance

Senior loan of €20.0 million comprising an A-loan of €10.0 million and a B-loan of €10.0 million.

Project Cost

€30 million.

Environmental Impact

Screened B1. 
Environmental issues which will need to be addressed include site specific issues (soil and groundwater contamination, natural hazards, disturbance to natural habitats and species as well as the landscape); permitting and public consultation issues; environmental and worker health and safety issues during the construction; safety of construction materials; and environmental, health and safety issues during the operation of the hotel (traffic impacts, waste water and solid waste management and recycling, hygiene and food safety, and life and fire safety issues).
The Company will be required to comply with applicable domestic and EU environmental, health and safety standards. They will be required to submit a report on environmental, health and safety issues to the EBRD annually.

Technical Cooperation


Company Contact

Vesselin Danev, Director
George Veltchev, Director
Sigma Capital Investments S.A.,
Representative Office in Bulgaria:
13 Slavianska Street,
1000 Sofia
Tel: +359 2 915 59 60
Fax: +359 2 915 59 70

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

Share this page: