Minister Papazov: The Japanese loan for the construction of container terminals in Varna and Burgas is irretrievably lost
12.07.2013
The possibilities of using borrowed funds from the Japanese Bank for International Cooperation for the construction of container terminals in Varna and Burgas are irretrievably lost. This was stated by the Minister of Transport, Information Technology and Communications, Danail Papazov, during today's Parliamentary Control. According to him, the decision by the previous government to terminate the agreement for the loan was unprecedented in the history of the Japanese state aid.
"The implementation of the project was to achieve a higher load of cargo for the railway transport, more than those lost by Kremikovtsi" said Minister Papazov. "The lack of container terminals has led to a serious diversion from the domestic and transit containers flow through the competing ports in Constanta and Thessaloniki" Danail Papazov added. According to him, the project would also be an additional incentive for the construction sector in Bulgaria, where 90% of the work would be carried out by local contractors and local materials.
The "Establishment and development of new container terminals at Varna and Burgas ports" project included the construction and equipment of two new container terminals in Varna and Burgas ports, with a total of 600 thousand square meters of both terminals and a capacity to process up to 900 000 TEU per year, as well as rehabilitation of Varna East.
"The Loan Agreement is terminated by the reallocation of funds made by category and by exchange of notes on the proposed text of the Japanese International Cooperation Agency, which shall be designed to avoid scandal and keep the ratings of Bulgaria," said Minister Papazov. He added that the Ministry of Transport, Information Technology and Communications will develop an analysis of the need for the construction of container terminals, taking into account the enforced concessions, but the only available sources of funding for the construction of container terminals are new borrowing or allocating public-private partnership. |