Lilyana Pavlova: The construction sector may rely on 12 billion BGN till 2022 under the Ministry of Regional Development and Public Works

The construction sector in the state may rely on 12 billion BGN until 2022 under the Ministry of Regional Development and Public Works and it is important to implement the projects. That stated the Minister of Regional Development and Public Works Lilyana Pavlova during the forum “Construction in 2016. Perspectives and Challenges. Opportunities in the 2014-2020 programming period”. She commented that although over 80% of the investments in public infrastructure are currently  made through European funds, it is also important to have such under public-private partnership.
 
The Regional Minister explained to the participants that the indicated sum includs several sources.

3 billion BGN will be invested in infrastructure development in large and medium-sized towns through Operational Programme „Regions in growth” 2014-2020 which has already started. The Call for submission of project proposals by the 39 large municipalities, which were beneficiaries as well as intermediate bodies under Priority Axis 1, had been announced, reminded the Minister. She clarified that this is an attempt to give the municipalities the opportunity and confidence to define their projects by themselves.
 
28 small towns could now apply with projects for implementation of energy efficiency measures, added Minister Pavlova. Smaller roads are in the scope of the Programme, as the Road Infrastructure Agency had to be ready to apply for funding by November 2015, she said.
 
The Minister of Regional Development and Public Works stressed that reforms in three key areas would be supported through the funds from OPRG 2014-2020. She explained that investments would be made in reconstruction and equipment of professional schools, which will provide the necessary personnel for the business. In addition,  investments in higher education would continue. Pavlova reminded that 163 million levs have been allocated to support the health care reform. They would be used for rehabilitation of emergency centers and hospitals as well as purchase ambulances.
 
The third important reform that would be supported is the process of deinstitutionalization, declared the Minister. She highlighted that investments would continue to provide adequate infrastructure for children with disabilities or those without parents. As a new element for 2014-2020 period she determined the funds that would be provided to ensure adequate living conditions for the elderly.
 
The support for tourist attractions would continue with 100 million BGN grant financing supplemented by financial engineering, said Pavlova.
 
 A total of 920 million BGN are the funds under the Cross-border and Transnational Cooperation Programmes, which even though not being a large amount, also give opportunities to develop the construction sector in the border regions, commented the Minister.
 
She explained that the Ministry of Regional Development and Public Works participats in a total of 12 Programmes - as a Managing Authority for the Cross-Border Cooperation Programmes with the Republic of Serbia, the Former Yugoslav Republic of Macedonia and the Republic of Turkey, whose application guidelines have already been announced, and is a partner in the others.
 
Minister Pavlova announced that the Ministry have considered significant investments, amounting to 250 million BGN, to implement the reform in the water-supply sector during the current and the following year. She reminded the requirement for Bulgaria for this period – the construction would be eligible only if there is only one operator, a prepared feasibility study and one application form in each of the 28 regions, equivalent to 28 water areas.
 
50% of the regions are ready and they have put in place the reform, informed the Minister and added that 15 of them are to define the projects and the necessary investments. The tender procedure for the contractors of feasibility studies could be completed by the end of the year, after that the studies could be conducted, so the successful implementation of the program would be able to start in 2018, said the Minister. She reminded that investments in the construction of dams were going on, as the completion of the dam Plovdivtsi and treatment plants for drinking water to it has already started.  By the end of the year a contractor for the dam Luda Yana and the corresponding treatment station would be selected, said Pavlova and added that a rehabilitation of the dam Studena is also considered.
 
We hope to increase the funds for the energy efficiency program, so that they can reach up to 2 billion BGN, declared Pavlova and added that the funds that are made available up to the moment are just the first step. The Regional Minister announced that construction and energy audits are ready as well as contractors are being selected for significant part of the approved for participation in the program approximately 1500 buildings. “I expect 2016 to be a peak year in implementing the program”, said she.
 
The funds for road infrastructure in the new programming period are amounting to 1.2 billion BGN under Operational Programme "Transport and transport infrastructure" 2014-2020 and that is almost half less than the previous period, commented the Minister, adding it would be, therefore, relied on budgetary funds for the important priority projects.
 
She reminded that Development of Road Infrastructure Strategy until 2022 has already been adopted and according to it the maximum amount of  funds necessary for  roads of all classes  is 12 billion BGN.
 
Minister Pavlova determined as priority the completion of Struma LOT 3 highway and the reserve projects under Operational Programme "Transport and transport infrastructure". After that the focus will be on the completion of Hemus highway and the construction of the roads Sofia - Kalotina, Sofia - Vidin, Rousse - Tarnovo and the tunnel under Shipka peak. “Our priority is to bring the ring highway of the state to an end, and then to put a focus on the vertical links”, summarized she. According to her, the goal is to reinvest a larger resource in the development of roads through more revenues.