Sat, Nov 21 2009

Under the bridge

Fri, Jul 10 2009 10:00 CET 1189 Views 1 Comment
Under the bridge

KEY LINK: When completed, the 1971m long Danube Bridge 2 will become a part of European Transport Corridor IV between Dresden in Germany and Istanbul in Turkey. 


Photo: Assen Tonev

At the end of June this year several minor Bulgarian news websites revealed problems surrounding construction of the second bridge over the Danube river between Bulgaria and Romania. The bridge, known as Danube Bridge 2, will connect the towns of Vidin in Bulgaria and Calafat in Romania. Deadline for completion is 2010.  

These reports, based on news websites’ own sources who preferred to remain anonymous, claimed the project had been delayed because of late payments to Spain’s Fomento de Construcciones and Contratas (FCC) who won the tender to build the bridge. The news, published a week before the July 5 elections, became an issue in the campaign.

This probably prompted the Transport Ministry, which is in charge of the project on the Bulgarian side, to issue a statement saying that "such media speculation can only harm the relationship between the contractor, the project company and the executor of the project". The FCC, meanwhile, has remained silent.  

According to the Ministry, the foundations of the railway infrastructure and the bridge itself, scheduled for completion by the end of July this year, were now being laid. As for financing, the Ministry said that a total of 43.26 million euro had so far been spent on the construction of the bridge itself and a further 10.22 million euro on accompanying infrastructure on the Bulgarian side. The money had covered expenses on construction and technical supervisory works.  

The project’s estimated cost, according to the signed memorandum, was 226 million euro, the ministry said, noting that Bulgarian financing was 60 million euro. The memorandum was signed in 2005 between the Transport Ministry and the European Commission under the EU’s Ispa pre-accession programme.

The project is also financed by loans and grants from the European Investment Bank, the French Development Agency and the German Credit Institution for Reconstruction and Development. According to the Ministry’s July 30 2009 statement, financing for the project has been guaranteed by both EIB and Bulgaria’s budget, so that "there is no delay".

Currently, work on the project complies with the updated 2008 schedule after the FCC requested an extended deadline and an increase in implementation costs. When the memorandum was signed the project deadline was set at 2008, but after the FCC’s request, this was extended until 2010 because, in August 2008, it was already six months behind schedule.

The reason for the FCC’s demands were the additional geological studies it had to make, changes to the project and delays in the expropriation of private land needed for the project. Romania has also fallen behind schedule but, in June 2009, Bucharest said it would make up the delay.
As for unease surrounding possible delays in payments, the Ministry failed to give a straight answer. On July 1 2009, Transport Minister Petar Moutafchiev conceded some delays on the project - mounting since  2000 - when Ispa went into operation for Bulgaria.

"This team has the necessary will and capacity to lead all of the transport infrastructure projects to a satisfactory resolution," Moutafchiev said. However, he said this a few days before the elections that his Bulgarian Socialist Party lost to Sofia mayor Boiko Borissov’s Citizens for the European Development of Bulgaria (GERB).

Borissov and his team will now be entrusted with the task of completing construction on the second Danube bridge between Bulgaria and Romania. Borissov’s promise to begin work on several highway projects a few weeks after the formation of the Cabinet could be a good omen. Given that the 2km bridge is a key element of a European transport corridor connecting Dresden with Istanbul, its construction is likely to get the support of the new cabinet. Even more so because the Ispa money will run out at the end of 2010, which is also the target launch date for the bridge.

Comments

Anonymous Jordan Sun, Jul 12 2009 18:10 CET
Inappropriate comment?

Infrastructure in Bulgaria is key to its economic growth. I am sure hoping that the newly elected GERB party leader and his cabinet will get on the work and finish all the projects that have been shelved, because of crisis and so on. Work and investments will create more work, after all people are the ones who create that slow down in world economy and the very same people can get the world out of it. I know easier said then done, but the world has to start moving again, people are scared and they just don`t want to spend and enjoy, WHY?, because the big giants of a corporation are doing all that restructuring a little to late. Get on it and start working on the BG infrastructure.

Toronto

Write comment

Name:Comment:

Generate new code
Send your comment
Cabinet negotiates for a 1B euro loan for infrastructure projects

The Bulgarian Government is currently negotiating for yet another loan from the European Investment Bank (EIB) for additional financing along the framework of the Ispa pre-accession aid programmes

Danube Bridge 2 construction to bring 60M euro boost for Vidin

About 60 million euro will be invested directly in the regional economy of Vidin region in northwestern Bulgaria during that Danube Bridge 2 is being built to link the town to Calafat in Romania, weekly Stroitelstvo Gradut reproted. The direct investments will come as building materials, fuels, equipment, machinery, manpower and their kit. The bridge itself and the adjoining its infrastructure, including works on the Romanian side, is 274 million euro, of which 226 million are on the Bulgarian side.

Danube Bridge 2 on track to meet deadline -minister

The bridge over Danube River that will link the Bulgarian town of Vidin and Calafat in Romania is still on track to meet its April 2010 deadline, Bulgaria's Transport Minister Petar Moutafchiev said on August 28 2008, as quoted by Focus news agency. The project is currently six months behind the schedule, caused by additional geological and archaeological surveying that Spain's Fomento de Construcciones y

Danube Bridge 2 contractor eyes project extension, revision of costs

Spain's Fomento de Construcciones y Contratas (FCC), hired to build a bridge spanning the Danube at Vidin-Calafat, has requested an extension to the project deadline and an increase in the implementation costs, a Transport Ministry official has said. The building contractor said the reason for its demands were the additional geological studies it had to make, changes to the project and delays in the expropriation of

More in this category

Bulgarian MPs resurrect proposal to raise spirits excise

Strong public opposition to price hikes prompted Prime Minister Boiko Borissov to axe the Finance Ministry proposal to increase the excise duty on spirits, but MPs have put it back on the agenda.

Back to the future

Bulgaria’s Cabinet seeks to reverse recent changes in the telecommunications sector

At a crossroads, again

Kremikovtzi’s prospects for a recovery plan appear increasingly distant

Cash or card?

Bulgarians are getting the hang of debit and credit cards, MasterCard says

Bulgarian telecom Spectrum Net acquires local peer Orbitel

The two telecoms, both set up to challenge former fixed-line state monopoly BTC, will merge operations and expect to report 20 million euro in revenue and a gross profit of five million euro in 2010.