MRDPW signed 442 agreements with 115 municipalities for the implementation of municipal infrastructure projects in the country

Mayors declared readiness to start construction activities, pleased to start work in March and not in December

Industry / Bulgaria
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442 agreements with 115 municipalities for the design, construction, major repair and reconstruction of municipal facilities have been signed by the outgoing Minister of Regional Development and Public Works Andrey Tsekov. They have a total value of BGN 971 million and will be implemented and paid in tranches until the end of 2026. The mayors of municipalities have signed over 200 of the agreements, and the rest will be concluded in the following days.

 To date, local administrations have submitted a total of 1,159 applications for financing projects defined as priority in Annex No. 3 to the Law on the State Budget of the Republic of Bulgaria for 2024. The MRDPW  team has processed about 900 projects as eligible for financing and 583 of them with a total value of more than BGN 1.13 billion are without comments.

Another 141 agreements are expected to be signed next week, which are fully completed, and for those in which gaps have been identified, communication is being conducted with the local authorities to eliminate the inaccuracies.

"It's good that every year this kind of money goes into the municipalities to stop the making of rags, and this changes the way people live," said Minister Andrey Tsekov, who today personally met with the mayors of the municipalities of Svishtov, Bansko, Lukovit , Medkovets, Sandanski, Lom, Haskovo, Slivnitsa, Kostinbrod, Georgi Damyanovo and Slivnitsa to hand over the agreements and comment on the implementation of the large-scale program.

In front of the mayors, the regional minister explained the funding mechanism and drew attention to the fact that the ministry has not yet received requests for payments under the concluded agreements.

The minister drew attention to the fact that after concluding the agreements, the municipalities can apply for up to 20% advance payment, and then the financing will be according to the physical implementation of the site. "Actually, we will pay 90% of the estimated amounts, taking into account 50% physical implementation, and the last payment of 10% will be on acceptance of the object. In this way, the municipalities will be able to work calmly without worrying about financing," the minister pointed out.

Most of the mayors informed Minister Tsekov that they have already selected contractors for the construction and assembly works and can start the realization of the objects soon.

"The goal is to implement the activities on them faster," he emphasized and added that those municipalities that implement the activities planned for this year will be able to apply for the program next year as well. Tsekov specified that it is very important that the projects be implemented by the end of 2026.

"It's good that you already have public procurement. After concluding the contracts, you can submit an application for an advance payment," Minister Tsekov said. And he added that with probably around 1,300 construction sites expected under the Investment Program for municipal projects, ongoing housing construction and renovation, road and water infrastructure programs, it may turn out that there will be no free construction companies.

Mayors confirmed that for some of the orders only one candidate appeared for the implementation of construction and assembly activities and it is very likely that there will be a shortage of builders. They hailed the municipal projects program and described it as one of the best in recent years because the state is significantly increasing investment in key infrastructure. In addition, for the first time it started with the beginning of the construction season, and not as in previous years - in the fall and winter, when work is much more difficult.

Minister Tsekov noted that the activities, which will be implemented with funding from the Investment Program for Municipal Projects, will improve the living conditions of people in places and help attract more investors. "We are talking about projects that citizens have been waiting for years, mainly streets, water pipes, improvement of settlements," the regional minister also said. His words were confirmed by the representatives of the local government. The mayor of the municipality of Lukovit noted that the volleyball hall is among the important sites for his fellow citizens, who currently have to travel to neighboring cities to practice. With the financing for the municipality of Lom, the long-standing problem with the provision of drinking water is solved. The mayor of Bansko informed that the central Pirin street, which has been a longtime dream of the local government, will be renovated. With the repair of the remaining streets, the resort will acquire a better appearance. In the municipality of Sandanski, key streets are also to be repaired, which will improve the living environment and the tourist image of the city.

In the following days, the MRDPW will continue the ongoing review of the received municipal proposals. The agency will also regularly update the reference for prepared and signed agreements.

The Ministry of Finance assured that in the budget for 2024, sufficient funds are provided for the payment of the municipal projects. The funds transferred so far to the account of MRDPW will be sufficient to pay the advance payments of 20% for the projects approved so far. After that, funds from the budget will be transferred in tranches on a monthly basis, as provided in the program for municipal projects.

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