We Are Preparing a New Draft Public-Private Partnership Act
“We are seeing significantly increased interest from our strategic partners. Everyone now views the Black Sea basin as a critical and strategic asset.” This was stated by Deputy Prime Minister and Minister of Economy, Investments and Industry Alexander Poulev during a meeting with Varna Regional Governor Mario Smarkov. During the meeting, it was announced that the Ministry is ready to submit the new draft legislation on public-private partnerships to the National Assembly.
According to Deputy Prime Minister Poulev, public-private partnerships are a powerful instrument and a substantive reform aimed at mobilising private capital and, in combination with EU funding, providing a measure that is relatively neutral in terms of its impact on the budget. At the same time, the objective is to support the large-scale modernisation of energy infrastructure and transport links, drawing on European best practices.
“We want to submit the draft legislation by the end of this month and put it out for public consultation for the maximum period permitted, so that we can hear the views of all stakeholders,” Deputy Prime Minister Poulev said.
“The idea is for this legislation to work, to be practical and applicable, and to genuinely mobilise private capital. At the same time, it must preserve macroeconomic balance, safeguard the interests of the state and provide the necessary incentives and impetus for private capital to invest in major, large-scale infrastructure projects in the country,” he added. According to Poulev, the feedback received so far has been very positive.
During his visit, Deputy Prime Minister Poulev visited Balchik Airport and the Port of Varna and discussed opportunities for their development.
According to Poulev, the growing interest in Bulgaria and the new draft legislation will also strengthen the role of the ports of Varna and Burgas in the region. He identified the development of the Black Sea Motorway as another important infrastructure project, which he said has considerable potential to improve connectivity between Bulgaria’s two major Black Sea cities.
He also highlighted opportunities for a public-private partnership involving the military airfield at Balchik. “There is very strong interest from the tourism industry in establishing joint use of the airfield, with one section serving civil aviation and another dedicated to military activities,” he said. According to Poulev, the project is well suited to a public-private partnership, as the military base is in a very poor state and pilots are literally risking their lives. “This is absolutely unacceptable, and an effective synergy can be created between the civilian and military operations,” the Deputy Prime Minister said.
During his visit, Deputy Prime Minister Poulev emphasised the need for the state to act as a partner to Bulgaria’s regions. To this end, the Government is providing substantial resources, with a total of more than EUR 1 billion to be allocated to projects under the Investment Programme for Municipal Projects. “This is a major investment in the development of municipalities, which will enable the implementation of key infrastructure projects and accelerate regional development,” he said. Poulev noted that the financing would be provided through two channels: funding from the budget of the Ministry of Regional Development and Public Works and through the Bulgarian Development Bank (BDB).