Bulgaria: Infrastructure Upgrade

BULGARIA: INFRASTRUCTURE UPGRADE

The Bulgarian Government has embarked on an ambitious infrastructure upgrade programme (appr. Eur 7 billion) to fund the currently prioritised infrastructure projects for the 2014 – 2020 period. Half of this amount will be secured through European Union programmes. Additional funds will be sourced from the national budget, government loans, PPP schemes, etc.

 Road sector – of priority status are the Struma Highway section in the Kresna Gorge and the Hemus highway from Sofia to Veliko Tarnovo. Other flagged projects are the highways from Sofia to Kalotina, Varna to Bourgas, as well as the high-speed roads Vidin – Botevgrad, Rousse – Veliko Tarnovo and Veliko – Tarnovo – Makaza. Foreign investors have expressed interest to be involved in PPP projects and the government considers introduction of a GPS-based toll charging system for those.

 Integrated public transport systems are currently under implementation in 5 major Bulgarian cities (Sofia, Plovdiv, Varna, Bourgas, Pleven) and several more will be included in the next programme period (2014 – 2020). The long discussed Shipka Tunnel (connecting North with South Bulgaria) will be partially financed with EU money too. Among the requirements are intelligent traffic management and electronic charging systems.

 Priority railway projects after 2014 include the Dragoman – Sofia – Septemvri, Vidin – Sofia and Sofia – Pernik – Radomir lines as well as the completion of the Sofia – Bourgas rehabilitation project. Additionally, the National Railway Infrastructure Company (NRIC) is preparing a portfolio of investments to be included under the next “Operational Programme Transport” with main focus on the North-South European Corridor IV between Vidin (Romanian border) and Kulata (Greek border). In parallel to infrastructure development NRIC plans to invest in maintenance equipment aimed at preserving its network assets and ensuring the sustainability of infrastructure investments.

 The Sofia Metro currently operates two main lines and is used by over 300,000 passengers daily. A third diameter is planned for construction between 2015 - 2017 and the first tenders are expected mid- 2014 (indicative value Eur 700,000 m). The requirements will be for a modern rolling stock fleet, coupled with telecoms, automation and safety features matching satisfying highest international standards.

 Solid waste: Currently Bulgaria utilises landfills for the disposal of municipal waste. The EU requires a decrease the number of landfills and building regional landfills for a group of municipalities. There is a critical need to find more environmentally friendly ways to handle hazardous, solid, and industrial waste, such as waste-to-energy projects.

 Bulgaria's accession to the EU was a major impetus for large-scale environmental remediation and implementation of new environmental standards in Bulgaria. The country will have to invest major funds to meet EU environmental requirements. Part of the funding will come under Operational Programme Environment (appr. Eur 2,5 B). projects. Bulgaria will need to import almost all of the technology for these requirements, and UK companies that possess world-class technology, equipment, services and systems at competitive prices would be well positioned to benefit from these opportunities.

 Upgrade of the water infrastructure in Bulgaria has been identified as a key priority; Eur 15 billion investment in water/waste water infrastructure is expected until 2020 . Supporting EU funds will be provided mainly under Operational Programme Environment (~€2.5 billion in 2014-2020). The recently adopted new Water Act will facilitate consolidation and investment in the sector, making it more attractive to UK companies.

 Current and upcoming projects include: integrated water projects; sewerage networks; wastewater treatment plans; clean water treatment plants, replacement/upgrade of old infrastructure; geographic information services (GIS) and introduction of a water cadastre; flood prevention and protection; extension of sewerage networks, launch of PPPs. The Bulgarian municipalities will tender these projects as design and build projects for municipalities with population above 2,000.

 UK capabilities sought:  Feasibility studies; Preliminary and detail design, EIA, technical supervision and project management services;

 Management/ implementation of PPP schemes, incl. specific legal advice;

 Earth-moving, road/rail – building equipment, signalling and communication systems, related GIS/ GPS applications, hydro-insulations, rail inspection units; rail network components; water monitoring/ quality check technologies; waste management technologies;

 Supply of rolling stock;

 Methods/ technologies for utilisation of construction waste;