The caretaker cabinet has started the resumption of the suspended payments under the Regional Development OP. Already requests for BGN 188 million/EUR 90 million/ have been received. Periodic payments will be made also under the other suspended EU program, Environment OP, if projects qualify. This statement came from Deputy PM and Regional Development Minister Ekaterina Zaharieva after her first meeting with the National Association of Municipalities and the Chamber of Builders in Bulgaria. The funds will come mainly from the public investment program "Growth and development of the regions" with a budget of BGN 500 million /EUR 250 ml/. "This means that the government is restructuring reserves and budget so that at the end of the year it may not lose resources to the tune of over BGN 3 billion / EUR 1.5 bln/," she said. According to her, this is one of the main tasks of the caretaker government. The goal is to minimize losses until the recovery of delayed or stopped payments of funds by the EC and to give "a breath of fresh air" to the municipalities and the construction industry.

"I want to especially thank the Bulgarian municipalities and builders who were the real heroes in recent months when these programs were stopped. Much has been delayed and has to be done in the short term. The aim is to restore the disturbed rhythm of construction works. Especially stopping the Environment OP is very unpleasant for everyone living in the respective villages. People there see the excavated streets on which no construction takes place and direct their absolutely reasonable dissatisfaction to the municipalities and the state. This adds to distrust in institutions. I can guarantee that we will all be available to restore confidence, dialogue, security and predictability in these projects."

The resumed funding will twice less than requested by the companies, but a good start for a dialogue with the government, which lacked during the last year. Moreover, the decline in the industry is over 50% compared to the period before the 2009 crisis in the country, said for Radio Bulgaria the head of the Construction Chamber, Svetoslav Glossov: 

"At this stage this satisfies us as it is a sign of a revival of the problem of payment, including construction, and that during the most active season. Everyone wants everything to be paid at once, but the state of public finances does not allow it. But the commencement of payment of blocked money and the promise by the Finance Ministry to conduct it rhythmically now satisfies us. Problems can always occur, but we have to be optimistic and trust our statesmen. Behind every great project there are several dozens of subcontractors and suppliers in the chain. The problem affects 60-70 thousand people working only on operational programs. The boom in housing of 5 to 6 years ago will not come back, but if we recover 50-60% of the losses now it will be fine."

Bulgarian municipalities still do not know the reasons for the sanctions imposed by Brussels under two European programs, but the recovery of payments is a good signal, told Radio Bulgaria the head of the Association of Municipalities Ginka Chavdarova:   

"The most important signal is that the state takes the responsibility despite suspended payments from Brussels. Anyway, it is clear now that they willbe recovered later. It is important that formost at-risk projects where contractors have reported and done the work long ago, but do not have their own money to finish it funds be provided in advance by the end of the project, which will be refunded upon resuming the program by the Commission. Here we have been expecting this positive signal for already 4-5 months. It is equally positive also for sub-contractors, municipalities, and especially for citizens. Because they cannot get to their homes or kindergartens in the excavated streets. It's not about some huge resources, but rather about coordination and timely response so money can be transferred to contractors so that they could finish the projects. If we violate the terms and do not finish in time, then we will have to repay the full amount back to the Commission. That's what nobody says, and it is a huge risk under the Environment OP for more than 120 municipalities with over 80% of the country's population. Here are all the cities with water projects and landfills around them - things that ensure health and safety, but most of all reduce the risk of subsequent criminal proceedings against Bulgaria in the field of ecology and waste disposal."

English: Rossitsa Petcova