Only Bulgarian contractors should be hired for public procurement jobs funded under the European Union's operational programme for environment, Simeon Peshov, chairperson of the Bulgarian Construction Chamber and president of construction company Glavbolgarstroy, said on July 9 at a meeting with Environment Minister Djevdet Chakurov and the national association of municipalities.

The biggest chunk of funding under the programme, some 1.4 billion leva, is earmarked for the construction of wastewater treatment plants.

Neighbouring nations and countries in Central Europe pursue a similar policy of largely keeping foreign companies away from EU-funded projects, Peshov said.

Foreign expertise was welcome for sophisticated projects like Danube Bridge 2, the Belene nuclear power plant and the Sofia metro, but the Bulgarian contractors would have no problem handling the construcution of wastewater treatment station that costs 10-20 million leva, he said.

Bulgaria's public procurement law requires that all contracts worth more than 5.3 million euro are reported to the European Commission. The public procurement contracts awarded so far for the construction of wastewater treatment plants exceed that threshold.For instance, the cheapest offer submitted last year for the construction of a wastewater treatment plant in Rousse was worth 16 million leva.

"There is no backlash against foreign contractors. They are welcome here but the actual builders should be Bulgarian companies. It should be known that the capacity of the foreign companies will be only as supervisors," Peshov said.

He said that he expected many Bulgarian companies to switch their attention to EU operational programmes as the construction boom along the Black Sea coast fizzles out. Furthermore, operational programmes could cushion the blow for the local economy from the international financial crisis while ensuring strong growth in the construction sector.

Peshov said that some 50 Bulgarian construction companies generated an annual turnover in excess of 30 million leva, while another 250 were in the 8-10 million leva range. All that will ensure healthy competition for the public procurement deals, he said.

A total of 91 municipalities have so far handed in 113 projects for the construction of wastewater treatment plant, according to Chakurov.