Ministry of Transport, Information Technology and Communications

On 4 October 2013, the Ministry of Transport, Information Technology and Communications (MTITC) has received an official letter from the European Commission regarding the draft of Gabrovo bypass (which includes the design of a tunnel under the Shipka Peek ) and the modernization of the western arc of the Sofia ring road (SRR). Both projects were sent to the European Commission respectively on 26 and 30 September for final approval. The letter received by MTITC sais that the two projects will not be considered by the Commission until the issue with the over contracted funds under priority axis 1 of the Operational Programme "Transport " (for railway projects) through a loan from the EIB under a loan agreement, is resolved. The letter does not mention that the European support is being withdrawn and EC experts state that the projects can be re-submitted for review after the issue with the over contracted funds for railway projects is solved. In other words, the Commission deferred their review and does not imply withdrawal of EU support.

The problem with over contracted funds under Priority Axis 1 of the OP "Transport" dates back to 2011. It could have been resolved in three ways: funding from the national budget, borrowing, or leverage other projects. Following the analysis made, the issue was solved by Decision № 519 of the Council of Ministers on 08.29.2013, which gives the Minister of Finance, together with the Minister of Transport, Information Technology and Communications mandate to negotiate the terms of the agreement with the EIB, within which funds can be provided for the implementation of the railway projects. Due to the importance of the full implementation of the Operational Programme "Transport", the Ministry of Transport, Information Technology and Communications has fully accelerated the process and on September 30 sent a formal request to the Ministry of Finance requesting the use of EIB funds. As presented by the media, the funds for railway projects were among the topics discussed at the meeting between the Prime Minister, Plamen Oresharski and EIB Vice President, Mihai Tanasescu. This is a further evidence of the commitment of the government to the issue at the highest level.

As soon as an agreement is reached with the EIB, both projects - the construction of the detour at the town Gabrovo (including the design of a tunnel under Shipka peak) and the western arc of the Sofia Ring Road, will be sent to the Commission for review. Any delay in their examination does not threaten the implementation of the Operational Programme "Transport", because at this point the programme has negotiated European grants and has already repaid more than half of the available financial resources to the beneficiaries (about 1 billion euros).