Construction output 7.8% down since the beginning of 2012

“In the first six months of 2012, construction output declined by 7.8%, compared to the same period of last year,” Svetoslav Glosov, Chairman of the Bulgarian Construction Chamber, reported to journalists on Wednesday, cited by BTA. He said that before the opening of a discussion forum entitled “Construction in 2013 - Prospects and Challenges”.

“The indebtedness of municipalities to businesses is BGN 187 mln, 80% of which are liabilities to construction companies,” announced Glosov. According to his information, civil engineering registered some 16% drop, while building construction picked up slightly. Some 80% of the orders in the sector come from the State and are funded by the EU. So far, the State has not defaulted on its payments to businesses,” specified Glosov, quoted by BGNES. Nevertheless, the construction sector is facing difficulties and the main outcome of this situation is the assignment of public procurement orders and the attraction of foreign investment.

According to Lilyana Pavlova, Minister of Regional Development and Public Works, 2013 will be crucial because this is the closing year of the first programming period for negotiating EU funds since Bulgaria’s accession to the EU.

“The funds we should absorb exceed €2 bn and 2013 will also be the year of small-sized companies,” added Pavlova. “This is due to the energy efficiency programme for Bulgarian homes. There will be a contractor for each building. This will open job opportunities in 36 big towns and in construction supervision,” explained the Minister.

“When this programming period began, we were not quite well prepared and our funds were insufficient. Currently, the key projects include the completion of the initiative for improving the public transport in the 7 biggest Bulgarian towns, worth more than BGN 400 mln, to be implemented in 2013. The Ministry of Regional Development and Public Works and the Ministry of Environment and Water will cooperate in reforming the water sector where investments have not been made for years,” said Pavlova.

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