Bulgarian Parliament gave its approval to negotiations between European Investment Bank (EIB) and the cabinet on changes in the Trakia highway financial contract.
The contract was signed in 2000 and is worth 100 million euro. The total value of the project was 240 million euro, Council of Ministers said as quoted by Bulgarian National radio.
The project includes the construction of two Trakia highway sections with total length of 74km. So far 52.3 km of the sections have been constructed and the remaining 21.7km are expected to be ready by the end of 2007.
Contract deadline was December 31 2005 but the government failed to fulfill it due to delay of construction works. The bank will not fund the current construction works and the final part of the highway Chirpan-Stara Zagora because of the delay.
The new loan payment will cover the costs on the current construction works and will fund the construction of the final highway part.
EIB has already agreed to change the financial contract concerning the terms of payments it will provide. The deadline for fund utilisation is March 30, 2007.
The contract was signed in 2000 and is worth 100 million euro. The total value of the project was 240 million euro, Council of Ministers said as quoted by Bulgarian National radio.
The project includes the construction of two Trakia highway sections with total length of 74km. So far 52.3 km of the sections have been constructed and the remaining 21.7km are expected to be ready by the end of 2007.
Contract deadline was December 31 2005 but the government failed to fulfill it due to delay of construction works. The bank will not fund the current construction works and the final part of the highway Chirpan-Stara Zagora because of the delay.
The new loan payment will cover the costs on the current construction works and will fund the construction of the final highway part.
EIB has already agreed to change the financial contract concerning the terms of payments it will provide. The deadline for fund utilisation is March 30, 2007.
