Bulgarian infrastructure project receives many international bids
Bulgarian infrastructure projects are becoming increasingly interesting for foreign investors and companies. A total of 12 companies placed bids for the construction of the first phase of the Maritsa highway, which spans from Orizovo to Dimitrovgrad.
“We have a new record,” Rosen Plevenliev, minister of Regional Development said. The other major Bulgarian infrastructure project, the Trakia highway, attracted 11 bids during its auction.
“I did not expect so many bids. It is a success that so many foreign investors are showing interest in Bulgarian projects,” said Bojidar Yotov, chairman of the Road Infrastructure Agency.
A total of 44 companies bought bidding documents for the Maritsa project. The 31 kilometer stretch of highway is estimated at 77 EUR million. The completion deadline is 25 months after the signing of the contract.
The Maritsa infrastructure project attracted 13 foreign and 6 Bulgarian companies, some of which bid together to make the total of 12 bids. There isn’t a single fully Bulgarian bid. The reasons behind this are the steeper requirements, mainly sufficient revenue figures for the last three years and a high bank guarantee. Requirements were inflated due to quality concerns.
“We want our highways built by companies with experience and this is what is happening,” Plevenliev commented.
The Maritsa highway auction attracted a variety of Italian, Greek and Austrian companies, while the number of Bulgarian companies is decent. Many Bulgarian companies will be hired as subcontractors, Plevenliev added.
Italian companies placed the most bids, a total of five, and most of them have entered the auction together with Bulgarian companies.
Three Greek companies placed bids and have done so on their own. Among them is “Aktor,” which is currently working on a stretch of the Trakia highway from Nova Zagora to Yambol, and is four months ahead of schedule.
Two Austrian companies placed bids, Alpine and Strabag, which are usually always among the bidders for bigger Bulgarian infrastructure projects. Strabag has entered the auction alone, while Alpine is partnering with Bulgarian company SK-13. SK-13 is involved in the construction of the Trakia highway stretch from Stara Zagora to Nova Zagora.
Prices have not been declared yet, but bidders commented that they will be lower than those for the Trakia highway. Price will be an essential factor in choosing the winner, especially with the high competition and the attractiveness of the project. Estimates are predicting a price of about 2.5 EUR million per kilometer. Yotov commented that he hopes the final price is around 3 EUR million, stating that anything lower would compromise the quality of the Bulgarian infrastructure project.
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Tags: Bulgaria, economy, Projects
