The implementation of eight infrastructure projects will start in 2007 with government loans and guarantees exceeding 800 million euros, the government information service said.

The Economic Policy Council will suggest to the government to start implementing two more projects with government loans in 2007. A government guarantee will be issued for one project.

On July 27, the Council of Ministers, acting on a proposal by the Economic Policy Council, decided that government loans of 380 million euros should be used to modernize 440 km of second- and third-class national roads, rehabilitate and electrify the Plovdiv-Svilengrad railway, and improve municipal infrastructure, among other projects.

The Council members approved on Monday a proposal that a Fund for the Local Government Bodies in Bulgaria be set up. To finance this project, a government guarantee will be issued in 2007. The money - 40 million euros - will come from the EBRD and other commercial banks. The special fund will provide the financing required for the municipalities to prepare projects, put up co-financing, and provide the necessary cash flows during project implementation until resources become available from EU funds, the government information service said.

Transit Roads V and Social Investment and Employment Promotion are the projects which will begin to be implemented with government loans of 395 million euros in 2007. The European Investment Bank will provide 380 million euros for road rehabilitation, and the World Bank will make available 15 million euros for the Social Investment project. DD.