The construction of Trakiya and Maritsa highways would likely be financed with money from Iraqi debt to Bulgaria, funds from the structural reserve and the budget surplus, Bulgaria's Prime Minister Sergei Stanishev said while on an inspection of Maritsa highway alongside Regional Development Minister Assen Gagaouzov, Dnevnik daily reported on May 21.

Under a bilateral agreement, Iraq is to transfer $360 million to Bulgaria's coffers. As previously reported by The Sofia Echo, the remaining 80 per cent of the $1.86 billion debt was written off.

No funds were assigned for Trakiya highway in the state budget for 2008, which until days ago was believed it would be financed by a Portuguese-Bulgarian tie-up. However, the consortium failed to file the necessary financing documentation by the May 15 deadline, as a result of which the concession arrangement was annulled.

However, Stanishev said that the highway could easily be financed by public funds. The land expropriation procedure has also been completed, hence construction could start shortly.

According to Stanishev, a 40km section of Maritsa highway, linking the town of Haskovo and the border checkpoint with Turkey, could be completed by mid-2009. The remaining 68km to the village of Orizovo could be financed under the European Union's operational programme for transport, Stanishev said. However, its construction could be launched only after the investigation into embezzlement allegations at the National Road Infrastructure Fund are completed.

Meanwhile, the infrastructure companies owned by businessman Vassil Bozhkov, Holding Putishta and Moststroy, said they were ready to complete Trakiya highway. The 117km section could be completed in two years' time, Moststroy chief executive Roumen Yovchev was quoted by Dnevnik daily as saying. The total cost of the project is estimated at 300 million euro.