03.08.2023
Prime Minister Acad. Nikolai Denkov assigned to the controlling and investigating authorities that are arms of the central government to examine what caused the many crises that the caretaker governments left after. “If violations are found, the prosecution authorities will be approached,” the Prime Minister said at a news conference today.
Problems have been identified in many ministries. These problems were caused or ignored over the past year mostly and lead to serious losses of funds or to a risk of such losses. An example is the approximately BGN 200 million loss from the Just Transition Fund (JTF) due to delays with the Territorial Plans for the Coal-Mining Regions. Bulgaria must submit the plans for Stara Zagora, Pernik and Kyustendil by the end of the year to avoid the loss of most of the European Just Transition Funding that amounts to over BGN 1.6 billion or makes up 69% of all remaining JTF disbursements. No progress was made in that area over the past year.
The contract of access to gas terminals as concluded with the Turkish company BOTAŞ is likewise telling. The caretaker government did not negotiate sufficient safeguard clauses and Bulgaria does not get access to the Turkish gas pipelines while BOTAŞ enjoys the full freedom of access to the Bulgarian gas market and gas pipelines and will even have the opportunity to supply gas to end customers and thus oust Bulgargaz altogether. The Bulgarian government-owned company will have to pay billions of leva during the 13-year long contract even if it fails to negotiate deliveries of liquefied natural gas. The price has not been set in a transparent manner and as of now, it appears unprofitable, especially given the fact that Bulgargaz is not entitled to receive any penalty payments.
Upon the assumption of duty, the regular government found a practically frozen project for air ambulance emergency service: the Bulgaria Heli Med Service EAD was in a winding-up procedure; a rental contract for two manned helicopters was not signed and that cost the government a monthly sum of BGN 1 million payable for the service be it provided or not; the State Aviation Operator was burdened with the duty of air ambulance service that was transferred to it despite the absence of competence.
The Prime Minister mentioned many specific crises left by the caretaker government in the energy, transport, economy, finance and regional development sectors. Among them are the BGN 4 billion in public procurement procedures for road ongoing repair and maintenance; the risk of losing the Plovdiv International Fair shares; the proposed 2023 budget with a deficit of 6.4% of the GDP where no revenues of over BGN 3 billion are planned.
The government works hard to resolve all crises that faced it, the Prime Minister assured.
A budget with a 3% deficit has already been approved; social payments have been continued and increased; the tax burden has not been touched. What is more, in the last 60 days the new administrations of the National Revenue Agency and of the Customs Agency managed to collect what exceeds by BGN 2 billion the government’s spending. “We found a fiscal deficit of BGN 1.2 billion. Currently the surplus is BGN 500 million. This shows that in fact, the money was always there; the problem was to collect the taxes, Finance Minister Assen Vassilev stressed.
The Territorial Plans for the Coal-Mining Regions are being drawn up. Negotiations are underway to rewrite the contract with BOTAŞ so that the two parties are on a par, Energy Minister Rumen Radev explained.
“The good news for the emergency service in Bulgaria is that we have unblocked the process,” said Georgi Gvozdeykov, Minister of Transport and Communications. The winding-up procedure for the air ambulance emergency service has been suspended; the six landing sites for the location and maintenance of the helicopters have been selected to be in Sofia, Plovdiv, Sliven, Turgovishte, Dolna Mitropolia and Montana. “The bases have been selected with a view that each helicopter will be able to help a vehicle in the nearest base, if needed. This will ensure the effective operation of the system throughout the country,” Minister Gvozdeykov added.
The previous public procurement procedures for awarding road ongoing repair and maintenance contracts have been cancelled. “Tomorrow we reopen the process with offers based on the criterion of the lowest price,” said Andrey Tsekov, Minister of Regional Development and Public Works.
A lawsuit has been filed and a request has been lodged to suspend the registration of the transfer of the Plovdiv International Fair shares from Varna Municipality to Puldin Tourinvest. “We have found two different approaches to protect the national interest,” said Bogdan Bogdanov, Minister of Economy and Industry and assured that the capital shares of the state are protected. He added that a definite program for the operation of the Plovdiv International Fair in the future is to be drawn up.
