Finances, Water Management, and Connectivity Dominate Day Two of Annual Meeting of Local Authorities

Metodi Yordanov, Danail Voykov, Mihaela Dimitrova, Mila Edreva

Snapshot from the forum (BTA Photo/Mihaela Dimitrova)

Albena, on the Black Sea,

13.10.2025 19:28

(BTA)

On its second day, the Annual Meeting of Local Authorities, organized by the National Association of Municipalities in the Republic of Bulgaria (NAMRB), brought together here on Monday mayors, ministers, MPs, and European officials to discuss the key financial, environmental, and infrastructure challenges facing Bulgarian municipalities ahead of the 2026 budget cycle.

A central theme of the forum was the need for better financial discipline and preparedness for upcoming reforms. Finance Minister Temenuzhka Petkova warned that only about 73 municipalities are currently ready to implement the “polluter pays” principle for calculating household waste fees — a long-delayed EU requirement. She reminded that an infringement procedure against Bulgaria is already under way and urged local governments to improve tax and fee collection, as overdue payments total around BGN 1 billion nationwide. Petkova also said that the 2026 state budget must keep the deficit below 3% of GDP to preserve financial stability.

Municipalities were encouraged to make fuller use of funds under Annex 3 of the state budget for 2025, which supports local projects in infrastructure, roads, and public services. About BGN 460 million has already been disbursed, with another BGN 290 million to follow.

Regional Development Minister Ivan Ivanov announced that in 2026 the Municipal Investment Programme may be used to finance projects for rehabilitating local water supply networks, particularly in settlements with identified problems. “This could be an extremely effective mechanism, especially for small municipalities,” Ivanov said. Since January 2024, 2,984 applications for funding have been submitted to his ministry, leading to 2,260 signed agreements. Transfers to municipalities under the programme now exceed BGN 951 million.

Water scarcity and outdated infrastructure were highlighted as growing concerns. Mladen Shishkov, Chair of the Parliamentary Committee on Environment and Water, said that around 160,000 people — 2.5% of Bulgaria’s population — are currently affected by water shortages, though recent rains have reduced the number from 310,000 earlier in the year. He warned that about 80% of the water network is obsolete, with most pipelines still made of asbestos cement and steel.

Environment Minister Petar Dimitrov confirmed that the application of the “polluter pays” principle would be postponed, citing unpreparedness among local administrations.

The government also reported progress in concession management. Deputy Prime Minister Grozdan Karadjov said there are 1,182 active concessions in Bulgaria, nearly half of them municipal. He called concessions “an opportunity, not a threat,” highlighting examples such as the revival of a century-old school in Gorna Malina through a public-private partnership.

In the area of transport and connectivity, Bulgaria will receive over EUR 2 billion from the EU’s Social Climate Fund, Agriculture Minister Georgi Tahov said at the forum. The funds will be available for municipal projects that promote sustainable mobility — including electric vehicles, charging stations, and improved access for vulnerable groups. Data from 116 municipalities are being used to shape the national plan.

Yordanka Chobanova, Head of the European Commission Representation in Sofia, identified connectivity as a top European priority. EU representatives noted that infrastructure links — both digital and physical — are now viewed as key to regional development and competitiveness, aligning with EU policy for 2026 +.

The number of colour-coded recycling bins needs to be increased, collection intervals improved, and citizens must be provided with full coverage of infrastructure for separate waste collection, Silvia Georgieva, Executive Director of NAMRB, said during a discussion panel on waste management reform. She noted that, under the current Waste Management Act, systems for separate waste collection apply only to settlements with populations over 5,000 people. “We propose lowering that threshold to 1,000 people,” she said.

Overall, the Albena meeting underscored the shared goals of sound financial management, sustainable infrastructure, and closer cooperation between national and local authorities.

/MY/