The retrofitting of the concrete panel prefabricated buildings is among the main priorities in the investment policy of the Borissov 2 cabinet. However, the authorities would rely for its financing on money under the Regional Development Operational Programme, future loans and financial programmes. According to the plans, the beneficiaries would not pay for the retrofitting. One of the most discussed investment initiatives regards the retrofitting of prefab buildings constructed with wide-surface shuttering. The authorities are also planning to renovate dangerous buildings.

“ If our constructional inspection shows some technical defects and proves that a given building needs a full repair, we are to finance the refitting of these buildings, Bulgaria’s Deputy Minister of Regional Development and Public Works Nikolay Nankov commented.”

The retrofitting will be free of charge for the inhabitants of the buildings and will be financed under a national programme which is to start with a borrowed capital to the tune of EUR 500 million. This project allowed the cabinet to apply for EUR 600 million under the Juncker plan. More form Nikolay Nankov:

“Currently we do not have a particular partner, but we have started to negotiate with specific financial institutions such as the European Bank for Reconstruction and Development and the World Bank. The perspectives of the 2015 state budget framework do not allow us to spend money from the national budget, which does not mean that we would not be able to use such funds in 2016 and 2017 for instance. ”

The country is likely to take a loan which is to be reimbursed as follows:

“It would be paid off with CO2 emissions and the energy savings made by every single household. However, the citizens would not have to pay a penny, as we are to provide a full financing of the refitting.”

The system which envisages financing of retrofitted buildings with green certificates has been strongly criticized in the EU, because the savings made from energy bills become pointless due to the high fees paid to energy inspectors and the cost of the construction works which are carried out by authorized companies. The loans under this program are linked with the property itself, rather than with its owner which obstructs the sale of such properties.

“We are still in a process of negotiation. So, this is only one of the options we are now considering.”

The European Commission imposed sanctions to the tune of EUR 68 million due to infringements under the Regional Development Operational Programme linked with badly-organized tender procedures and mismanagement of funds. According to the intentions of the authorities, the money under the national retrofitting program would be managed by the Bulgarian municipalities.

“The municipalities got used to fulfilling public procurement orders and absorbing European money”, Deputy Minister Nankov further explains. “Yes, this is accompanied with the relevant sanctions imposed by the EC. However, Bulgarian municipalities will continue to manage financial flows, assign public procurement orders, communicate directly with the associations of the owners, assess the projects and provide financing,”

It is still unclear whether the municipalities will be in charge of the investment control, or it will be split from the contracting authority and will include representatives of the owners’ association. Currently, the real source of financing is the Regional Development OP which had to end last year, but it is still active, as the payments under this programme were recently unblocked again.

Some of the money under this programme is to be used for refitting of buildings through the Home Renovation Fund which has over EUR 6 million.

The future Regions in Growth Operational Programme will provide EUR 180 million to the home owners free of charge. The authorities intend to fully finance the refitting of all multifamily brick buildings in 67 Bulgarian towns.

English version: Kostadin Atanasov