The European Investment Bank (EIB) has released a 43.5 million euro loan to Sofia Municipality, with which the administration will be entrusted with the construction of several key infrastructure projects in the city, at a total cost of 88.1 million euro, Stroitelstvo Gradut has reported on October 19 2009.

In particular, the funds will be used for the construction and rehabilitation of existing key interchanges across the city, notably the two interchange facilities of Akademik Geshov Boulevard with G. Sofiiski Street, and Bulgaria Boulevard, Maria Luisa Boulevard and Slivnitsa Boulevard, Andrei Saharov and Andrei Lyapchev boulevards, and Stoyan Michailovski and Aleya Yavorov boulevards, amongst others. The projects vary in degrees of complexity and scale, thus are allocated different time schedules, ranging from eight to 18 months for completion.

Final details surrounding the contract itself are expected to be ratified and completed by the end of October, according to Sofia mayor Minko Gerdjikov.

The municipality has published a public procurement document announcing for the different public tenders associated with five of the projects, while the other undertakings were already assigned with their corresponding construction companies; Balkanstroi Ltd were entrusted with the task to complete both projects along the Akademik Ivan Geshov Boulevard, whereas Glav Bulgar Stroi (GBS) were assigned the Aleya Yavorov project, and Trace Group were allocated the Andrei Lyapchev Boulevard job.

The total cost of the projects was estimated at 70 million euro, but with the inclusion of Luvov Most's rehabilitation, the final cost increased to 88.1 million euro. Sofia Municipality has vowed to come up with 44.6 million from its own coffers. Meanwhile, the conditions surrounding the loan itself dictate that the municipality will have to pay the credit back to the EIB in full in the space of 25 years.

Source: Property Wise Bulgaria