THE project to build a second bridge over the Danube river will be financed by the European Investment Bank (EIB) and construction is ready to commence amid some mutual accusations between Bulgaria and Romania of delaying the schedule.
Transport and Communications Minister Nikolai Vassilev and Finance Minister Milen Velchev signed a loan agreement with EIB for the bridge on June 1. The 20 million euro loan will be added to another 50 million euro, provided by EIB for the project earlier. The loan has a maturity of 25 years with a 20-year grace period, and will be disbursed in four tranches.
The Danube Bridge 2 will link Bulgaria and Romania at the towns of Vidin and Calafat. Vassilev said that the construction works will begin in the second half of 2005 and are expected to be completed in 2008. Concluding this loan agreement will also fulfil conditions to obtain approval of another 70 million euro grant, under the ISPA programme, for which Bulgaria has applied for from the European Commission, Vassilev said.
Apart from EIB and ISPA, the project will also be funded by the French Development Agency, the German Credit Institution for Reconstruction and the Bulgarian national budget. About four million leva will be provided from the national budget to design the bridge and about 58 million euro for construction works.
The bidding for construction of the first 37 km section of the bridge is scheduled for June 5. So far 30 sets of bidding documents have been purchased.
The financing approvals have occurred in a background of tit for tat accusations between Bulgaria and Romania. In a letter to the Stability Pact for South-Eastern Europe special coordinator, Erhard Busek, the Romanian government accused the Pact and Bulgaria of delaying the bridge's construction. This information was released on June 4 by the Stability Pact Coordinator for Bulgaria Milen Keremedchiev at a news conference.
Busek had forwarded Keremedchiev the letter on the previous day. According to the document, the design of infrastructure in Romania can only begin after the final form of the bridge is received, including dimensions, hight and a view on how it will actually step on the Romanian bank, as well as a complete assessment of its environmental impact.
The opinion of the Romanian government is that it should wait for Bulgaria to complete the works on its territory for Romania to be able to continue. This is an odd position, as we thought construction was in progress on both sides, Keremedchiev said.
According to Keremedchiev, nationalisation of land on both Bulgarian and Romanian territory is the main problem before launching the construction. If the partial nationalisation of the lands where the foundations are to be built is accelerated, the construction works could begin at the end of this year or in the first quarter of next year, making completion possible by 2008.
Keremedchiev also highlighted another threat to the projects because he had received a letter from the EIB, stating that it may reconsider its financial commitment and funding could be lost if actual construction works do not begin by the end of this year.
He expressed the opinion that the bridge would not be viable if appropriate infrastructure through Romanian territory to the border with Hungary is not quickly constructed. The same is valid for Bulgarian territory to the border with Greece.
According to Keremedchiev, the bridge could be the scene of quite a lot of traffic after 2007, since Bulgaria and Romania could become full EU members. Its natural to expect a lot of traffic, since many would seek passage through EU member countries reducing transit waits on border crossings.
- Business Staff
Transport and Communications Minister Nikolai Vassilev and Finance Minister Milen Velchev signed a loan agreement with EIB for the bridge on June 1. The 20 million euro loan will be added to another 50 million euro, provided by EIB for the project earlier. The loan has a maturity of 25 years with a 20-year grace period, and will be disbursed in four tranches.
The Danube Bridge 2 will link Bulgaria and Romania at the towns of Vidin and Calafat. Vassilev said that the construction works will begin in the second half of 2005 and are expected to be completed in 2008. Concluding this loan agreement will also fulfil conditions to obtain approval of another 70 million euro grant, under the ISPA programme, for which Bulgaria has applied for from the European Commission, Vassilev said.
Apart from EIB and ISPA, the project will also be funded by the French Development Agency, the German Credit Institution for Reconstruction and the Bulgarian national budget. About four million leva will be provided from the national budget to design the bridge and about 58 million euro for construction works.
The bidding for construction of the first 37 km section of the bridge is scheduled for June 5. So far 30 sets of bidding documents have been purchased.
The financing approvals have occurred in a background of tit for tat accusations between Bulgaria and Romania. In a letter to the Stability Pact for South-Eastern Europe special coordinator, Erhard Busek, the Romanian government accused the Pact and Bulgaria of delaying the bridge's construction. This information was released on June 4 by the Stability Pact Coordinator for Bulgaria Milen Keremedchiev at a news conference.
Busek had forwarded Keremedchiev the letter on the previous day. According to the document, the design of infrastructure in Romania can only begin after the final form of the bridge is received, including dimensions, hight and a view on how it will actually step on the Romanian bank, as well as a complete assessment of its environmental impact.
The opinion of the Romanian government is that it should wait for Bulgaria to complete the works on its territory for Romania to be able to continue. This is an odd position, as we thought construction was in progress on both sides, Keremedchiev said.
According to Keremedchiev, nationalisation of land on both Bulgarian and Romanian territory is the main problem before launching the construction. If the partial nationalisation of the lands where the foundations are to be built is accelerated, the construction works could begin at the end of this year or in the first quarter of next year, making completion possible by 2008.
Keremedchiev also highlighted another threat to the projects because he had received a letter from the EIB, stating that it may reconsider its financial commitment and funding could be lost if actual construction works do not begin by the end of this year.
He expressed the opinion that the bridge would not be viable if appropriate infrastructure through Romanian territory to the border with Hungary is not quickly constructed. The same is valid for Bulgarian territory to the border with Greece.
According to Keremedchiev, the bridge could be the scene of quite a lot of traffic after 2007, since Bulgaria and Romania could become full EU members. Its natural to expect a lot of traffic, since many would seek passage through EU member countries reducing transit waits on border crossings.
- Business Staff
