Government Working on National Strategy Integrating Social Infrastructure

Bulgaria's Government is working on a National Strategy for Integrated Development of Infrastructure which will include social infrastructure: health care, education and IT, Prime Minister Sergei Stanishev said here Monday, presenting the National Strategy and the Action Plan for the 2006-2015 period to foreign diplomats and journalists. Under the strategy, an estimated 5,200 million euro will be invested in infrastructure projects between 2006 and 2009, of which some 4,000 million euro in transport and 1,150 million euro in environmental protection, 50 million euro in the energy sector, and some 12 million euro in veterinary medicine and irrigation systems. Some 8,000 million euro are planned for infrastructure projects in the 2007-2015 period, of which 6 million euro in transport, 2,400 million euro in environmental protection, and 33 million euro in veterinary medicine and irrigation systems. Real-sector projects, including infrastructure, energy, civil airports and irrigation systems, are to absorb some 7,200 million euro between 2007 and 20.015, of which 5,300 million until 2009. Public-private partnership project financing for 2006-2015 is envisaged at 3,600 million euro for road infrastructure, 2,4 million for civil airports, 2,4 million for terminal, 19 million for agriculture, and 3,700 million for the water and sewerage sector. The PM singled out rail transport as an important infrastructure sector. Priorities include modernization of the Vidin-Sofia and Sofia-Plovdiv-Bourgas railways and the doubling of the Plovdiv-Svilengrad and Svilengrad-Turkish border railways, for which financing will be sought from the EU ISPA Programme, the Structural Funds, the national budget and loans from international financial institutions. Road network modernization is another government priority. Between 80 and 90 km of motorways will be added this year to the currently operative 350 km, Stanishev said. The Bourgas-Karnobat sector of the Trakia Motorway in late September, and another 2 km of the 600 million euro Strouma Motorway are due for completion before the end of the year. Public-private partnership will be sought for the Strouma, Hemus and Cherno More motorways. Talks are already underway with the European Investment Bank (EIB) on a possible feasility study and consideration of concession award rules. A similar partnership will be sought for the ports and airports as well, Stanishev said. Energy efficiency, along with Bulgaria's full integration into the European Energy Market and in the emerging Euro-Mediterranean markets, figure among the key government priorities. Other energy priorities include construction of the Belene Nuclear Power Plant and 300 MW capacities at the Maritza East coal-fired power plant. The PM said that Bulgaria is resolved to keep its position as an electricity exporter to neighbouring countries, which is important for the regionwide energy balance. Stanishev said that Bulgaria intends to honour its commitment under the EU Accession Treaty in connection with Kozloduy Units 3 and 4. Of the gas projects, the Prime Minister singled out the Nabucco Gas Pipeline Project for transport of natural gas from the Middle East, Caucasus and Central Asia to Central and Western Europe as a priority for both Bulgaria and Europe. The Doupnitsa-Dimitrovgrad-Nis gas pipeline was also mentioned among the top projects. Bulgaria is lagging behind in household gas supply, the PM said, noting that this will be among the important tasks of his Government. About 15 per cent of all Bulgarian municipalities have actual gas supply, compared to some 80 per cent in the EU, Stanishev noted. The environmental protection priorities include building wastewater treatment plants, sewerage systems and improvement of the water supply system in Bulgaria's tourist sites. Implementation of projects under the National Strategy will be financed by budget resources and with the expected support of the EIB, the European Bank for Reconstruction and Development (EBRD), the World Bank and the Council of Europe Development Bank (CEB). Cooperation will also be sought through public-private partnership, Finance Minister Plamen Oresharski told the participants in the meeting. His Ministry expects up to 500 million euro from the EIB annually over the next three years. After 2009, financing from the EIB will reach 700 million euro. Bulgaria's financial relationships with the EIB will be regulated by a memorandum which is expected to be signed this autumn. In certain years, Bulgaria will count on EBRD financing of up to 150 million euro, as much as the amount expected annually from the World Bank over the next three years. Bulgaria can receive between 50 and 70 million euro annually from the CEB for social projects. The Government counts on attracting up to 2,000 million euro for motorway construction, between 130 and 140 million euro for ports and airports, 18 million euro for construction of railway stations and 25 million euro for building intermodal terminals through public-private partnership. On the average, the economy is expected to grow by up to 5.5 per cent annually until 2015, the Finance Minister said.q