Delays are constantly occurring on individual projects under the Recovery and Resilience Plan, and 45 days remain. This is a deadline, not an indicative one. I call on project implementers not to wait for me in front of the Council of Ministers, not to call me and my relatives, there is no way to postpone it. This was stated by Deputy Prime Minister for European Funds Atanas Pekanov during a hearing in the relevant parliamentary committee.
However, he remained optimistic that we will be able to cope.
Pekanov recalled that some of the projects have been revised, others dropped, and two new ones have been added - for the digitalization of the National Revenue Agency and the Customs Agency, writes "24 Chasa".
There are delays in several projects financed under the Recovery and Sustainability Plan (RSP), including the industrial park in Svishtov, energy efficiency measures and BAS projects. It is not yet clear what the possible financial losses will be, since the sanctions mechanism, according to Atanas Pekanov, is not sufficiently transparent.
He pointed out three main problem areas in the reforms. The first is related to the Water and Sewerage sector, where negotiations with the European Commission continue. According to Pekanov, there is progress, as Brussels no longer insists on a rapid consolidation of the companies, but allows it to happen gradually if the necessary conditions are met.
Due to the adopted legal changes at the end of May, some of the payments under the PVP were unlocked, including those related to the reform of the Anti-Corruption Commission. In order to fulfill the requirement, commissioners must be elected by the end of August, as well as a budget and a building for the institution must be provided.
The most serious risk for the fifth payment is related to the reform of the Bulgarian Energy Holding (BEH). It provides for the removal of the TPP “Maritsa East 2“ and “Mini Maritsa East“ from the holding's structure. According to Pekanov, the refusal of this change could put at risk about 1 billion euros under the Territorial Just Transition Plans and another about 400 million euros under the PVP.
According to him, the maximum loss in the event of failure to implement a separate reform could reach 437 million euros. However, he believes that some of the European Commission's requirements may be dropped after negotiations.
Pekanov explained that talks are underway with the EC to provide state aid for the coal region “Maritsa East“, which would be used for land reclamation. According to him, about 500 million euros from the Just Transition Fund could be directed to the region – for the restoration of lands, industrial zones and attracting new investors.
He specified that the funds could not be directly provided to the TPP “Maritsa East 2“ or “Mini Maritsa-East“, but an option for the companies to participate as subcontractors is being discussed. Part of the production capacity will probably be kept as a cold reserve.
Pekanov also said that Bulgaria hopes that the price of carbon emissions will not continue to increase, as a number of countries have already expressed a similar position.
Three more bills remain unadopted under the PVP – related to collective investment schemes and public procurement, renewable energy sources and the Civil Servant Law.
According to Pekanov, it is more important for Bulgaria to receive the funds from Brussels than whether all payments to the project contractors will be made by the end of August. However, he admitted that state payments are currently lagging behind – only about 48% of the funds have been paid.
Pekanov predicts that the European Commission will continue to apply the “money for reforms” model and in the next programming period, but according to him the mechanism should become more transparent. He expects a greater emphasis on competitiveness, industrial development and reduction of administrative burden.