Bulgaria Swallows 35% of Lyulin Highway Budget Increase

Business | March 25, 2010, Thursday // 15:33|  views

Bulgaria's Regional Development Minister, Rosen Plevneliev, is willing to contribute additional state funding in the amount of EUR 47 M to the delayed Lyulin Highway construction project. Photo by BGNES

Bulgaria has agreed to pay EUR 185 M or a 35% more for the Lyulin highway, Regional Minister, Rosen Plevneliev informs.

The amount would be listed in an agreement between the State and the Turkish consortium Mapa Cengiz, building the highway, which is to connect the capital Sofia with the western city of Pernik.

Plevneliev said he still hopes the value of the project can go slightly down after further negotiations. The agreement has already been sent to Brussels with expectations the European Commission would consider the expenditures necessary.

Mapa Cengiz had originally won the competitive tender with a bid of EUR 138 M. Later cost estimates jumped to EUR 210 M, with the consortium asking for an additional EUR 73 M in funding.

On March 17, Plevneliev announced that he is prepared to reluctantly "accept" a EUR 41 M (30%) increase in construction costs of the Lyulin Highway.

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Tags: Lyulin highway, Mapa Cengiz, Regional Development Minister, Rosen Plevneliev, EU funding


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