Bulgaria Drops 8 Projects from Recovery Plan Worth Over 1 Billion Leva

The Bulgarian government has announced the removal of 8 projects from the Recovery and Resilience Plan (RRP), totaling over 1 billion leva (half a billion euros). This decision was disclosed during a briefing by Deputy Prime Minister Tomislav Donchev and Finance Minister Temenuzhka Petkova at the Council of Ministers.

Petkova explained that the delay in implementing the RRP is now undeniable, with less than 18 months remaining until the plan's deadline. She stressed the importance of maintaining public financial stability and avoiding funding these projects from the state budget, which could negatively impact the 2026 national budget. Any expenses that would affect the budget would also influence the deficit for 2026, which is significant in light of the European Commission's and the European Central Bank's convergence reports for Bulgaria's eurozone membership.

Donchev outlined that eight projects, worth 1 billion and 20 million leva, could not be completed by August 2026. However, he mentioned that alternatives for financing a large portion of these investments were being explored. He also pointed out that 22 other projects are at risk, with a total value nearing 2 billion leva.

The Deputy Prime Minister noted that these projects will be given a few more weeks to show progress. If there is visible mobilization and a chance for completion by next August, they will remain in the plan; otherwise, they will also be dropped. The progress of these projects will be monitored closely, with daily updates. Notably, no investment processes have been initiated for the 8 discarded projects, and half of them haven't even reached the stage of public procurement procedures.

Furthermore, Donchev emphasized that in recent discussions with the European Commission, there was agreement on the reforms related to the second payment under the RRP. He clarified that even if all the investments are not completed, Bulgaria could still receive more funds than it can invest in the limited time remaining if the country successfully implements the necessary reforms.