Bulgaria Gets Back Frozen Aid under PHARE

Brussels decision to unblock PHARE aid comes after it released earlier in the year EUR 115 M of ISPA road funds and authorized payments of EUR 109.6 M (USD 160 M) blocked under the SAPARD agricultural aid program. File photo

The European Commission has unblocked part of hundreds of millions of euros in EU funding for Bulgaria under PHARE program, which were suspended last year for the country's failure to adequately tackle corruption.

This emerges from a letter from the European Commission Enlargement Directorate to Bulgaria's Finance Minister Simeon Djankov.

Bulgaria has been allowed to fund, through its own budget for the time being, projects under PHARE pre-accession program, concluded by July 2008, when the European Commission barred two agencies from handling PHARE money.

The unblocked funds, worth EUR 340 M, must be used by the end of the year.

The EUR 340 M of contracted but unpaid aid were shelved after the Commission revoked the accreditation of the Central Finance and Contracts Unit of Bulgaria's Finance Ministry and the Executive Agency of the Ministry of Regional Development and Public Works in July 2008.

In an unprecedented move, the European Union's executive arm upheld in November the same year a suspension of EUR 220 M under PHARE programme, designed to help Bulgaria prepare for its January 2007 accession to the bloc by funding infrastructure projects, and helping to strengthen institutions and the rule of law.

Brussels decision to unblock PHARE aid comes after it released earlier in the year EUR 115 M of ISPA road funds and authorized payments of EUR 109.6 M blocked under the SAPARD agricultural program.

The news follows last week's special report by the EU commission, which said most EU funds are still on hold in Bulgaria due to weak financial supervision and scant follow-up on irregularities.

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