site.btaContinue the Change Calls on Health Ministry to Provide Realistic Cost Estimate for Construction of National Children’s Hospital

In a position released on Sunday, Continue the Change (CC) called on the Ministry of Health to provide a realistic cost estimate for the construction of a national children’s hospital.

Noting that this hospital is a national priority, CC said that its construction must be carried out under full public and community oversight.

CC recalled that in 2022, during the tenure of then-Health Minister Asena Serbezova, international consultants were brought in to ensure a comprehensive, rather than “piecemeal,” approach. That same year, the state budget prepared by then-Finance Minister Assen Vassilev envisaged BGN 100 million for the initial phase of the hospital.

The latest proposal by Health Minister Silvi Kirilov estimates the total cost at EUR 458,737,650.27 including VAT, the position says. 

The Health Ministry claims this estimate is based on the consultants’ recommendations and reflects the “average European” prices for similar projects in EU Member States and Switzerland. Those prices are significantly higher than construction costs in Bulgaria, CC adds. The position says that the estimate lacks proper adaptation to conditions in Bulgaria, which is a compulsory step before budgeting can begin.

CC further notes that beyond the issue with the “average European” construction costs, the estimate includes an additional 30% markup for unforeseen expenses and a 19% markup labeled as a budget for the contractor's implementation.

As a result, the budget for construction alone - excluding equipment - amounts to EUR 253.6 million excluding VAT (EUR 304 million including VAT). By comparison, a letter sent to the parliamentary Committee on Health in March by members of the Public Council cited expert estimates placing construction costs between EUR 70 and 90 million.