THE GOVERNMENT PROMISES THAT BULGARIA WILL DOUBLE ABSORPTION OF EU FUNDS BY THE END OF 2011

"Our goal is by the end of 2011 payments under projects financed by EU funds to exceed to 20% or BGN 1.5-1.6 bn," Minister of EU Funds Management Tomislav Donchev said on BNR yesterday. According to him, some 10.3% has been remitted so far which means that Bulgaria hopes to double the absorption. For comparison, only 2%, or about BGN 400 mln, were allocated in 2007- 2009.

"A 10% absorption of EU funds is not an impressive figure," highlighted EU Commissioner for Budget and Financial Planning Janusz Lewandowski after his meeting with Finance Minister Simeon Djankov at the end of last week. However, the European Commissioner pointed out that Bulgaria had made a progress last year and the big infrastructure projects to be implemented in 2011 would significantly raise the absorption of EU money. According to Lewandowski, the countries using EU financing must show the European taxpayer that they are achieving positive results.

"In each of the following years, Bulgaria should double the percentage of absorption," said Donchev. He reminded that construction of the Maritsa and Struma motorways and rehabilitation of the Plovdiv - Burgas railroad should begin this year under Operational Programme Transport. The Minister stressed that Bulgaria should speed up the processes under road projects because the deadline for negotiating funds for them is 2013 and payments should be effected by 2015.