60 Bulgaria building projects stalled by contractors
15 September 2009
Unblocking the 60 infrastructure projects frozen by the Bulgarian construction ministry is being hampered by companies’ unwillingness to renegotiate contract prices, Regional Development Minister Rosen Plevneliev said.
He said the ministry is holding strenuous talks with building firms, seeking a price reduction to account for a slide in building materials in the aftermath of the economic turmoil. Moreover, the prices on some projects have been inflated and do not match market prices, according to Plevneliev.
Citing a 52 million leva deficit, the ministry put on hold 41 infrastructure projects in a number of municipalities and has already sifted out the top-priority seven or eight schemes that should be completed by the end of the year. The ministry has so far clinched a deal to lower the contract price by up to 15 per cent on the project in the southwestern municipality of Blagoevgrad. Talks are still underway with the other contractors.
Another 19 municipal projects financed under the Regional Development programme of the European Union (EU) were put on ice owing to exorbitant prices.
Source: Dnevnik.bg
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