site.btaEnergy Efficiency Improved in 1,970 Buildings under National Programme by End-September 2024

By the end of September 2024, energy efficiency was improved in 1,970 buildings, or 98% of the buildings with signed targeted financing contracts, according to a performance audit of the Energy Efficiency of Multi-Family Residential Buildings National Programme, published by the Bulgarian National Audit Office (BNAO) on Friday. A total of 1,958 renovated buildings, comprising over 131,700 dwellings, have been put into operation, the audit shows.

The audit covered only the Ministry of Regional Development and Public Works, which coordinates the Programme. According to the findings, 2,022 targeted financing contracts were signed under the Programme, representing 38% of the 5,333 applications submitted. Projects were implemented in 152 populated areas across 143 municipalities, with the involvement of 1,800 external contractors. The Ministry received 153 complaints regarding poor-quality construction work.

The Programme’s total financial resource amounts to BGN 2 billion. For 52 buildings with signed financing contracts but no allocated funding, the Ministry initiated a new procedure, and in 2024, agreements were signed to transfer BGN 91.4 million to the respective municipalities. As a result, 2,018 of the 2,022 contracted buildings will be renovated, while four buildings will not undergo renovation due to structural issues.

Of the 2,022 contracts signed under the Programme, 1,725 were concluded in 2015, 296 in 2016, and one in 2017. As of September 30, 2024, the total renovated residential area amounted to 11.3 million square metres.

Regions with the highest interest and activity in terms of submitted funding requests include Haskovo, Burgas, Blagoevgrad, Plovdiv, Stara Zagora, Pazardzhik, Sofia Region, Gabrovo, and others. By the same date, 99% of the total financial resource, BGN 1.973 billion, had been absorbed.

The total amount of penalties imposed due to breaches of contract by external contractors throughout the Programme’s duration stood at BGN 821,600, with the highest penalties recorded in Pleven and Stara Zagora.

The Ministry has provided guidance and additional instructions to mayors and regional governors to ensure more effective coordination and proper application of regulatory requirements. Given the Ministry’s lack of experience in managing programmes of this scale, certain shortcomings were identified, some of which have been addressed, while others remain unresolved. Recommendations have been issued to Regional Development and Public Works Minister Ivan Ivanov.

The Audit Office also highlighted the absence of an integrated information system covering the entire process, including documentation and progress tracking. This has resulted in insufficient accuracy, timeliness, and completeness of data, affecting informed decision-making and the ability to monitor implementation.