Bulgarian Socialist MP Warns of Concentration in Construction Sector

Business | August 25, 2013, Sunday // 12:33|  views

Socialist MP Dimcho Mihalevski. Photo by BGNES

Some 2/3 of public procurement in the field of construction goes to 8 construction firms, revealed Bulgarian Socialist Party MP Dimcho Mihalevski.

In an interview for the Bulgarian National Radio Sunday, Mihalevski warned of concentration in the sector, saying smaller companies are having an increasingly hard time.

"In the first half of 2013, some 66.1% of the total worth of public procurement contracts have gone to 8 companies," said the socialist MP.

"In contrast, some 4000 small firms have accumulated 30.1% of the deals," added he.

According to Mihalevski, who is also vice-chair of the ruling Socialist Party and a former Regional Development Minister, this concentration in the end harms both the private sector and the state.

As another topic of analysis in the sector, he pointed out the slowing down of public investment in construction, saying that the state has yearly some BGN 5 B planned to be invested in construction, with only around BGN 3.3 B actually realized.

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Tags: construction, concentration, Dimcho Mihalevski, Bulgarian Socialist Party


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