600 Regional Devt Projects in Bulgaria Face Suspension

Bulgarian Regional Development Minister Lilyana Pavlova has warned that around 600 contracts under the Regional Development Operational Program may be terminated. Photo by BGNES

Bulgarian Regional Development Minister Lilyana Pavlova has warned that around 600 contracts under the Regional Development Operational Program may be terminated.

Speaking Monday at the Eighth Annual Meeting of the Bulgarian Local Authorities in Plovdiv, she made clear that the Ministry of Regional Development and Public Works would start organizing meetings with municipalities with such high-risk projects to prepare a real evaluation for their implementation.

"The money can be redirected to other projects if the municipalities are prepared to set them in motion instantly," Pavlova said, as cited by mediapool.

She explained that 95% of the projects would be negotiated by end-2013.

Pavlova reported that a total of BGN 1 B out of BGN 3 B had been absorbed since the launch of the program, with some BGN 1 B left to absorb in 2013.

Pavlova reminded that all projects under the Regional Development Operational Program were analyzed according to the "traffic lights principle", specifying that 600 projects had been classified as "red light", or worrisome.

She said that there were a number of reasons for the delays, including delays of tender procedures.

"An estimated 80-90% of the public procurement deals are appealed, which is a high percentage, given that nine months have to pass after that," the Regional Development Minister noted.

Pavlova said that the most high-risk projects were projects for municipal hospitals.

She informed that some BGN 140 M had been granted for repairs at hospitals and for supplies of new modern equipment, the contracts had been approved in 2011, with only one out of 31 applying municipalities having held a tender.

Pavlova added that there were delays with a sum of over BGN 100M earmarked for activities for deinstitutionalization and for new social services for at-risk children, children with disabilities, and children without parental care.

She further noted that a sum of over BGN 200 M earmarked for tourist attractions was also being delayed, as well as a total of BGN 400 M allocated to urban comfort.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!