Bulgaria risks losing €100 mln under the Rural Development Programme

“Bulgaria risks losing €100 mln under OP Rural Development,” Rumen Porozhanov, Executive Director of Bulgaria's State Agriculture Fund, told Nedelya 150. According to him, over 58% of the funds under the programme were negotiated, while 40% were paid. “We have contracts for over €650 million from the European Agriculture Fund for Rural Development without co-financing on our part, and by the end of the year projects of up to €1 bn have to be paid off. The problem lies with the way beneficiaries implement the projects,” the fund's director stated. He added that in the case of municipal measures, the problem was in the Public Procurement Law, while in the case of private beneficiaries, the difficulties were encountered in guaranteeing the funding of the project. As Porozhanov explained, the existing Guarantee Fund with the State Agriculture Fund had allowed greater liberty of withdrawing advances and along with bank guarantees, a guarantors' scheme was implemented successfully. “The great problem of the programme is the so called Axis 2, where 25% of the funds should be earmarked for agroecology. The fact is that beneficiaries' interest in agroecology is not serious enough and we will not be able to absorb all funds. Porozhanov explained that applications for over BGN 750 million were received for public and municipal measures under Axis 3, while the budget was only BGN 260 mln. Because of the considerable interest in these measures, the funds have invited representatives of the National Association of Municipalities in Bulgaria to take part in the selection of municipal projects. “The aim is to negotiate funds as fast as possible,” the fund's director pointed out.

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