Cabinet Plans Amendments To Concession, State Properties Laws

The cabinet will propose amendments to the legislation regulating concession contracts, state properties and coastline control in order to promote public-private partnership, Prime Minister Sergei Stanishev said at a news conference after a meeting of the Council for Coordination, Control and Implementation of Infrastructure Projects of National Importance. The news conference was attended by Finance Minister Plamen Oresharski, Economy and Energy Minister Peter Dimitrov, Transport Minister Peter Moutafchiev, Regional Development and Public Works Minister Assen Gagaouzov, and Environment and Water Minister Djevdet Chakurov.

The planned changes will allow longer concession periods, which are currently limited to 35 years, and rents of state-owned land.

"A total of 3.43 billion euro has been provided, which is 30 per cent of the value of planned infrastructure projects. I am certain that this year there will be considerable additional funding as a result of work under EU operational programmes," Prime Minister Sergei Stanishev said

A recent government report has found big delays in implementation of infrastructure projects in the fields of transport, energy and environment protection, among which the construction of Lyulin and Maritsa highways, the second bridge on the Danube, seven water-purification stations, six household wastes depots, modernisation of the railroad between Plovdiv and Svilengrad, modernisation and installation of sulphur purification facilities, and construction of power plant in Maritsa East coal mine complex. The report blames the delays on the slow procedures for the expropriation of private land, the poor quality of the feasibility studies and the lax control over the tender procedures.

According to the Prime Minister, 188 projects of total indicative value of over 11,000 million euro were being implemented in 2007. Most of these projects were launched around or before 2005. Forty-eight projects were completed and went into operation in the period under review. This constitutes 25 per cent of the total amount of measures included in the operational plan.

"The main purpose of our meeting was to step up work on all projects," Stanishev said. "What we encounter every day, in addition to legal barriers and procedures which often delay the implementation of national infrastructure projects, is the insufficient administrative capacity and the unsatisfactory quality of the projects."

Ministers have received guidelines for more expeditious work to implement projects under the ISPA programme, so that the programme will be implemented to the highest possible degree by 2010. "We stand a chance of utilising a very large share of the funding without losing money for Bulgaria," Stanishev said. Some 83 per cent of the money allocated in 2007 has been used efficiently, which is quite an achievement, he said. Speaking to the press after the forum, Economy Minister Dimitrov said that they had also discussed a project for building a gas pipeline between Haskovo in Southeastern Bulgaria and Komotini in Greece. He explained that the pipeline will be a branch of an existing gas conduit between Turkey and Greece, and Greece is supportive of the idea. Bulgaria will have to find its own supplier of the gas that will use the new pipeline, and it will probably be Azerbaijan and Iran. The Economy Minister commented that the project will diversify gas supplies to Bulgaria. The report blames the delays on the slow procedures for the expropriation of private land, the poor quality of the feasibility studies and the lax control over the tender procedures.

A total of 51 projects have applied for funding under the Regional Development operative programme so far, the regional development and public works ministry said. A total of 27 projects were submitted by the Southwestern planning region, including 22 projects by the Republican Road Infrastructure Fund. The projects envisage the rehabilitation and construction of roads in 22 municipalities throughout the country.

A total of 51 projects have applied for funding under the Regional Development operative programme so far, the regional development and public works ministry said. A total of 27 projects were submitted by the Southwestern planning region, including 22 projects by the Republican Road Infrastructure Fund. The projects envisage the rehabilitation and construction of roads in 22 municipalities throughout the country.