site.btaDeputy PM Pekanov: Inflation in Construction Necessitates Update of OP Contracts Worth Over BGN 4 Bln

Contracts worth over BGN 4 billion under four operational programmes are affected by inflation in construction and will have to be indexed to current prices, it transpires from a reference attached to the written reply of caretaker Deputy Prime Minister for EU funds management Atanas Pekanov to chairman of the Committee on Regional Policy in Parliament Kosta Stoyanov, published on Tuesday on the website of the National Assembly.

The largest number of contracts are under the OP "Regions in Growth" - 402 out of 586, followed by those under "Environment" - 156, "Transport and Transport Infrastructure" – 21 (worth over BGN 2 billion), and seven contracts under the OP "Science and Education for Smart Growth".

As of November 30, the total amount of the increase in the prices of the public procurement contracts requested by the contracting authorities is BGN 412.126 million, and the total amount of the possible increase in the contracts for the provision of grant financial assistance from the budget of the operational programmes is BGN 373.848 million, data from the report shows.

The Deputy Prime Minister reminds that Bulgaria is on the threshold of the last year of implementation of the programmes for the 2014-2020 period, and a significant part of the budget of the programmes has already been earmarked, which limits greatly the possibilities to increase the size of the project grants under the OPs. However, beneficiaries are given the opportunity to provide funds to increase the price of public procurement contracts at the expense of other sources: savings realised within the budget of the respective project, own or state budget funds, loan instruments, etc., Pekanov further points out.