Bulgaria to Set Up State-Owned Construction Enterprise

Business | April 7, 2014, Monday // 18:03|  views

Bulgarian Investment Planning Minister Ivan Danov, photo by BGNES

Bulgarian Investment Planning Minister Ivan Danov rejected accusations of lack of transparency, stressing that the ministry was created only recently.

In a Monday interview for the Bulgarian National Radio (BNR), Danov explained the conclusions of the Access to Information NGO that the Investment Planning Ministry was the least transparent ministry in the current government with the fact that the entity had been set up only recently and its budget had been allocated at a later stage, which was why it was not specified on its website.

He suggested that the Investment Planning Ministry was already functioning normally and it was coordinating activities with municipalities.

"We are working to create a legal framework for social housing," Danov declared, adding that Bulgaria was studying the experience of other countries as regards the management and distribution of this type of housing and its function on the real estate market.

Bulgaria's Investment Planning Minister made clear that by the end of the summer the authorities had to be ready with a stance on the matter, an action plan, and sources of funding.

Danov announced that a state-owned company had been included in the structure of the Investment Planning Ministry ten days ago, adding that the aim was to create a state-controlled construction enterprise which would help construction companies win tenders overseas.

He explained that the enterprise would have managerial functions allowing the signing of contracts abroad, most notably in Middle East countries.

Danov noted that small and medium-sized construction companies had difficulties securing the substantial bank guarantees required in large-scale tenders.

"When the company includes state participation, no such guarantee is required. This company will sign the main contracts, while the other companies will function as subcontractors, without their independence or financial interests being violated," Danov assured.

Danov also said that the Investment Planning Ministry was also working on cadastral maps.

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Tags: Ivan Danov, Investment Planning, social housing, Access to Information, construction industry


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