It was almost certain that the concession for Trakiya highway will be canceled, Bulgaria’s Regional Development Minister Assen Gagaouzov told the morning talk show of private broadcaster bTV on May 15.

The Bulgarian-Portuguese tie-up comprising Portugal’s Lena Engenharia e Construcoes S.A., Moniz Da Maia Serra & Fortunato-Empreiteiros (MSF) and Somague, along with Bulgaria’s Technoexportstroy failed to file financing documentation by the May 14 deadline, Gagaouzov said.

Furthermore, Gagaouzov said the ministry had no evidence that the consortium had secured any loan financing, yet he would not rule out the opposite provided that he lacked any information from the consortium whatsoever, he said.

Should the concession be annuled, Gagaouzov said, the state could begin building the highway section on its own. The minister said he would extend the necessary sum by using financial reserves. The minister added that the construction of the section between Stara Zagora and Karnobat could begin within a month and a half.

Construction works on the 107km section, divided into four lots, is due for completion in two years’ time.

Last week, Kapital weekly said that the Portuguese firms lost interest in the project due to its rising costs. The delays with the signing of the contract, which drew criticism from the European Commission for the non-transparent way in which it was awarded, has further put off the Portuguese firms, prompting them to look for investment opportunities elsewhere, Kapital said.

In the meantime, Bulgarian authorities have attempted to force the consortium's hand on the issue which local companies would be picked as subcontractors, further straining relations with the consortium.

The delays with the signing of the contract, which drew criticism from the European Commission for the non-transparent way in which it was awarded, has further put off the Portuguese firms, prompting them to look for investment opportunities elsewhere, Kapital said.

Awarded in 2004, the concession deal was signed two years later, but had to be amended last year, after the EC said it breached European Union state aid rules. The EC gave its approval for the amended contract in January, after which the consortium had 120 days to secure financing.