Over BGN 1 billion has been secured for two lots from Ruse to Veliko Tarnovo

Over BGN 1 billion in EU funds will be used to co-finance two sections of the Ruse-Veliko Tarnovo motorway. These are the lots between Ruse and Byala, as well as the Byala bypass, which have been approved for funding under the Transport Connectivity Program 2021-2027. This is clear from a press release from the Ministry of Transport.

The total investment for the two sections is close to BGN 2 billion, with over BGN 1 billion coming from the EU's European Regional Development Fund," the press release states.

It adds that the motorway is part of the main TEN-T network and the European transport corridor Baltic Sea – Black Sea – Aegean Sea. The new route will increase traffic capacity and safety, reduce travel time, and improve connectivity in Northern Bulgaria.

However, it is unclear whether this amount will be sufficient for the infrastructure project. We would like to remind you that last year, the former regional minister announced that the funds allocated for the financing of the motorway were not sufficient to complete the entire route and that additional funds would be needed. According to her, the estimates of the Road Infrastructure Agency show that the financial assistance applied for under the Transport Connectivity Program will not be sufficient, and therefore the necessary funds are also included in the 2025-2027 budget forecast.

The two lots of the motorway had long been included in the programme in question, but the funding has now been officially approved. In addition, BGN 300 million was earmarked for the project in the 2024 budget.

Construction of the motorway between Ruse and Veliko Tarnovo began in the spring of last year. It is divided into three lots and will have a total length of 132 km. The first is Ruse-Byala, the second is the Byala bypass, and the third is between Byala and Veliko Tarnovo. Initially, work began on 7.9 kilometers of the lot on the Byala bypass.

The public tender for the first two lots was launched back in 2020, but contractors were not selected until 2022. The total indicative value of the contract was over BGN 987.2 million excluding VAT, but when the companies' price offers were opened, it became clear that they significantly exceeded this amount. Although the two selected consortia submitted the lowest bids, the engineering of the motorway exceeded BGN 1.5 billion, i.e. each kilometer will cost around BGN 20 million.

It was precisely these high prices that caused controversy during the Petkov cabinet. At the time, Regional Minister Grozdan Karadzhov was accused by former Prime Minister Kiril Petkov of mishandling the opening of the price offers. Petkov requested an investigation by the State Financial Inspection Agency (ADFI), which, however, subsequently found no irregularities in the tender.

At the beginning of the year, it became clear that the project would most likely become significantly more expensive, as loess soils were discovered during the construction of the Byala bypass.

The tender for the last lot – between Byala and Veliko Tarnovo – was criticized because, according to the estimated value of almost BGN 3 billion, each kilometer of the section would cost BGN 50 million. We would like to remind you that in 2022, the expected price per kilometer was more than 50% lower. Nevertheless, the chairman of the API was quick to “reassure” Bulgarians that a kilometer of the future Struma route through Kresna will exceed this record, most likely reaching BGN 120 million.

It recently became clear that the largest construction companies in Bulgaria are participating in the tender for the construction of the 60-kilometer motorway section. All candidate builders are united in consortia, some of which include foreign participants from Romania, Turkey, and Italy.

Translated with DeepL.