site.btaPublic Works Minister Says State Paid Advances for Road Construction without Approved Projects

The State paid advances for road construction without having approved projects for the roads in question, Minister of Regional Development and Public Works Ivan Shishkov said in a bTV interview here on Tuesday.

Shishkov presented during a briefing on Wednesday information about contracts signed for major repairs on the Hemus Motorway, the Vidin-Botevgrad road, and the maintenance of Bulgaria's national road network.

The Minister described the period from 2019 to 2020 as "the period when the noose around the State's neck was tightened". At that time, the State decided to develop infrastructure projects, but in reality it developed certain companies, he said. According to the Minister, the State began commissioning the construction of motorway sections without completed design work.

Shishkov said that the purpose of the state-owned Avtomagistrali company was not to build all of Bulgaria's infrastructure projects through it, thereby circumventing public procurement procedures. The company does not have the capacity to build motorways, but it does have the capacity to carry out road repairs, he said.

The Minister noted that contracts for the construction of lots 1 to 6 of the Hemus Motorway were signed at the end of 2018. Within a single day, a proposal was made and an order was amended, allowing for significantly larger advance payments. "That one day cost us more than BGN 1 billion [around EUR 500,000,000]," Shishkov said.

He said that when the funds were allocated and the contracts and their annexes were signed, there were no approved projects or project documentation, and no readiness for construction to begin, except for lots 1, 2 and 3.

Shishkov expressed hope that the prosecution service would finally complete the case concerning Hemus Motorway's lot 5, launched in 2021, so that it could be established where the money went. He said it was not clear whether the funds had reached the companies. The Minister also recalled the illegal construction on lot 4 before the relevant property had been expropriated. "There is something specific about every lot of Hemus Motorway, and it is never good," he said.

According to Shishkov, when advance payments began for lots 7, 8 and 9, there were not only no projects, but the route itself also had to be changed. Money is being handed out casually, he said, adding that the funds were of no use to anyone: the companies had received advances but were unable to complete the construction, while the State was unwilling to pay the higher construction costs resulting from the sharp increase in prices.

Lots up to lot 6 already have projects and construction permits, but construction has not begun, Shishkov said. According to him, the same model was being applied to the road between Montana and Vidin in northwest Bulgaria.

Shishkov said the authorities were seeking to prevent the depreciation of the funds already advanced for construction. They are currently holding talks with the companies that have signed contracts in an effort to get them to begin actual construction, he said. The Minister pledged that the quality of the work and compliance with deadlines will be closely monitored.