EC unfreezes EUR 115 M ISPA Funds for Bulgaria

Commissioner for Regional Policy Danuta Hübner and Bulgarian Deputy Prime Minister Meglena Plugchieva, in charge of the management of EU funds, signed in Brussels a paper unblocking 115 million euro from the pre-accession ISPA programme, BNR reported. Agricultural aid and PHARE money are still blocked.

"This decision was made after detailed and serious examination. In the past year our country demonstrated full political will. Thus the results did not take long. The efforts of the government to recognize all faults have now culminated", Prime Minister Stanishev declared on in a press conference.

The ISPA funds which are to be unblocked are earmarked to projects for the construction of Liulin high way, as well as for technical assistance for the preparation of road projects in relation with the Pan-European transport corridors, Focus Information Agency reminded.

The decision of the European Commission to stop the interim payments on the Cohesion Fund "Construction of Liulin Motorway, Sofia Ring Road - Daskalovo Road" Project and the "Technical Assistance for Preparation of Road Projects along the TEN-T located in Bulgaria" Project was made on July 23, 2008.

The money was blocked on the basis of findings that the former "Republican Road Infrastructure Fund" does not have a system for management and control which can guarantee good financial management of the Cohesion fund in line with the commonly accepted standards, as well as for the correct implementation of the public procurement procedures.

In order to unfreeze the ISPA funds, the Parliament adopted the Act on Prevention of Conflict of Interests. Other acts were also amended.

Republican Road Infrastructure Fund was reformed into National Agency Road Infrastructure and now has the status of the primary body allocating budget funding at the Council of Ministers.

While the National Road Infrastructure Agency was still undergoing a number of audits and check-ups, on April 15, 2009 Bulgaria was informed that the Directorate General has started the procedure for canceling the decision for the temporary blocking of the projects.