The American embassy in Sofia announced Wednesday a deal to re-fit a Bulgarian military base, one of four due to be used in anti-terror exercises in autumn 2008.

The Novo Selo camp in eastern Bulgaria will undergo a 6.5 million dollars (4.2 million euros) refurbishment by the German-based company Field Camp Services (FCS).

The Pentagon has also set aside some 60 million dollars for the construction of a permanent base at Novo Selo.

Two air bases and a depot for various stocks also come under the partnership deal originally signed between Washington and Bulgaria in April 2006.