site.btaTransport Minister Karadjov Proposes Public-Private Partnerships to Unlock Bulgaria’s Stalled Infrastructure Projects

Deputy Prime Minister and Minister of Transport and Communications Grozdan Karadjov has called for a new approach to infrastructure development in Bulgaria, citing the country’s limited public funds. In a statement posted on Facebook, Karadjov proposed expanding the use of public-private partnerships (PPPs) as a viable solution for realizing long-delayed infrastructure projects.

"In times when the State lacks the funds for major infrastructure investments, we must look for alternative means of financing to make Bulgaria's long-dreamed projects a reality," Karadjov wrote.

He pointed to numerous examples of long-standing infrastructure goals—dams to address water shortages, new highways, and railway lines—that have remained unfulfilled for decades. "If we keep waiting, generations will pass before we see results," he warned.

Karadjov highlighted that PPPs are legally regulated under the Concessions Act and are fundamentally different from traditional concessions on mineral waters, beaches, or natural resources. He emphasized that all infrastructure developed under PPPs remains State-owned and benefits the Bulgarian people.

According to the Minister, the procedures for large projects under this model are “extremely transparent” and will include comprehensive economic, legal, social, and environmental assessments. Institutions such as the World Bank, the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB) will act as consultants and support the concessionaire selection process.

Among the projects most in need of investment, Karadjov listed the long-delayed Black Sea Motorway, a proposed motorway corridor from North Macedonia's border through Dupnitsa and Samokov (Southwest Bulgaria) to the Trakia Motorway, and several crucial tunnel connections in the Central Balkan and Sofia regions. He noted that the idea for the Petrohan tunnel dates back to 1974 but has lacked funding for 50 years.

Karadjov argued that private funds exist for such projects, even if they offer low returns. "Some private investors are not only chasing high and fast profits. A portion of their capital is intentionally allocated to low-risk infrastructure ventures that promise steady long-term revenue from traffic and freight flows."

He expressed confidence that PPPs could reignite Bulgaria’s economic engine, allowing the state to achieve its infrastructure goals without relying solely on public funds. "The concessionaire’s profit depends on how efficiently they operate and maintain the public asset. They’ll achieve state objectives using their own means—without boards of bureaucrats wasting capital on inflated budgets," he added.

Karadjov cited successful examples of concessions at Sofia, Varna, and Burgas airports, the port of Burgas, and several Danube ports. These projects cost the State nothing, he said, but generate annual revenue from concession fees while also upgrading public infrastructure that remains under state ownership from the moment it is built.