Deputy PM Pekanov: Bulgaria Could Have Lost Up to 800 Million Euros Under the "Regional Development" Programme

Bulgaria must declare €800 million in eligible expenditure to the European Commission by the end of the year, or the funding will be at risk of being lost. Deputy Prime Minister Atanas Pekanov announced this after the Council of Ministers approved an action plan to safeguard funding under the Regions in Growth Operational Programme 2021–2027. Pekanov made the statement during a briefing following the cabinet meeting on July 29.

According to him, the programme has been implemented at a very low rate. Five years after its launch, around 50% of the available funding has been contracted, while less than 10% has been disbursed.

"Had we not adopted this plan today, we would have lost these €800 million," Pekanov said.

He explained that the decision provides for the accelerated implementation of the programme and the financing of projects that are already at an advanced stage and comply with all European requirements.

"These include a range of projects that are already at an advanced stage of implementation and which we know meet all European requirements. The measures include securing funding for the children's hospital in Burgas, which is already at an advanced, almost completed stage. They also include providing funding under the municipal programme for projects that are at an advanced stage of implementation and comply with European requirements," the Deputy Prime Minister said.

Pekanov also stated that a procedure in which irregularities had been identified had been terminated after Bulgaria received warnings from European institutions.

""There will be no subjectivity, and the interests of individual entities will not be protected," he said, adding that companies which have acted in good faith will have the opportunity to obtain funding through a new procedure.

According to Pekanov, the plan also includes around €500 million for Bulgaria's coal regions under the Just Transition Fund. The funding is intended for the reclamation and rehabilitation of former mining sites, the development of industrial zones, the attraction of investors, and other strategic projects.

"These funds are guaranteed both for the reclamation and rehabilitation of former mining sites and for other strategic projects, including industrial zones, attracting investors and similar activities. The specific parameters will be finalised through discussions and agreed with the European Commission," Pekanov said.

"Just imagine how slowly this European programme has been implemented. Over the past five years, we have requested a total of €120 million from Brussels. Now, in the remaining five months until the end of the year, we must claim €800 million in order to avoid losing the funding," he added.

Pekanov thanked Regional Development Minister Ivan Shishkov and his ministry's team for the urgent measures they had taken and for maintaining active communication with the European Commission and the business community.