EU funds and the government's anti-crisis package of measures are a lifeline for construction under the global crisis, said Deputy Prime Minister Meglena Plougchieva. Plougchieva, who is in charge of EU funds management, was addressing Tuesday a conference on infrastructure projects in Bulgaria.

Plougchieva was referring to the operational programs "Transport", "Environment" and "Regional Development". She recalled that the government's anti-crisis program amounts to 5,600 million leva and it will primarily support the construction sector.

Bulgarian Construction Chamber Chairman Simeon Peshov said that public investment would keep construction afloat. He said that if all procurement procedures under the operational programs were announced and contracted by June, construction would not collapse and could keep at last year's levels. Otherwise, after August, construction would fold, Bulgaria's economy would plunge and GDP would fall by 2,5-3 per cent, Peshov forecast.

He demanded that the National Road Infrastructure Agency (NRIA) announce procurement procedures for priority projects as early as April and May, "to give construction companies hope". Peshov called on the European Commission to release blocked funds which would finance the construction of the Trakia and Strouma motorways and water sector projects, stressing that Bulgaria needs these finds now and not post the elections.

Peshov said that Bulgaria has administrative capacity for absorbing EU funds and that businesses could assist municipalities which are experiencing problems with administrative capacity. Peshov said that NRIA has been clear of corruption for the past year and a half. In this respect, Peshov called for checks at NRIA to stop and for NRIA officials to be left to do their job. Peshov also requested that the contraction of non-EU member states be reviewed, because they are for known for dumping prices as they are directly or indirectly subsidized by their states.

Karsten Rasmussen, Deputy Head of Bulgaria's unit with the DG Regional Policy, said that the EC has no political agenda for checks in Bulgaria. He said that in all EU countries, bodies like NRIA are monitored, stressing that it is in Bulgaria's long-term interests. On the participation of non-EU countries in public procurement procedures, Rasmussen said that the Turkish company, constructing the Lyulin motorway, had followed the free market economy principles. He added that similar cases exist in other EU countries and that the EC has to find a technical solution. The problem was that the Turkish company had not submitted a viable and well-scheduled plan for the construction, thus creating setbacks. Rasmussen said that it had been unnecessary to hire a Turkish construction company given the many Bulgarian companies.

Plougchieva said that the EC is impartial and deservedly strict towards Bulgaria, adding that it is in Bulgaria's best interest to observe the EU rules so that a maximum benefit is achieved.

NRIA Executive Director Yanko Yankov said that among NRIA's priority projects are the Hemus, Cherno more and Rila motorways and the Shipka and Petrohan tunnels, which are going to be implemented through public-private partnerships. He said that EU funds for the national road infrastructure add up to 1,400 million euro.

Rasmussen said that Bulgaria has to prepare more sound projects by 2013, when the next financing campaign starts. Existing projects could be redrawn and submitted after 2013, when EU funds would be nearly 4,000 million euro. Rasmussen said that Bulgaria was off to a late start with the preparation of projects for the 2007-2013 phase and that it would have to make up for the delay.

Source: BTA