EU funding to boost Bulgarian construction

By Helen Wright31 May 2012

The availability of EU funding and Bulgaria's increased capacity for investment will drive steady growth in the country's civil engineering sector in the next decade, according to a report.

Research company PMR said road building would become one of the most dynamic parts of Bulgaria's civil engineering market, which in 2011 was worth BGN5.7 billion (€2.9 billion) - up 7% year-on-year.

PMR said a substantial increase in the number of road building projects in Bulgaria was expected for 2012 to 2014. More than 20 schemes are currently under construction in the country, scheduled to be finished this year and next, and it is estimated that projects in excess of €800 million are to be completed by the beginning of 2014. The value of road projects planned for 2014 to 2020 is put at more than €4 billion.

However, Bulgaria's rail infrastructure sector still lacks momentum, despite some improvements in the last two years. The report said the main focus of development would be between the capital, Sofia, and the country's second largest city, Plovdiv, as well as between Plovdiv and Bourgas, a city on Bulgaria's Black Sea coast, and between Sofia and the north-western towns of Mezdra and Medtkovets.

"A limited interest and general indifference towards the development of railway transport in its neighbouring countries certainly is compounding the situation in Bulgaria, although the intention to turn more to the trans-European corridors project might stimulate faster development in the next three years," the report said.

Meanwhile, in the airport construction sector, PMR said efforts to develop air transport infrastructure in Bulgaria have focused on the search for potential investors in concession contracts to develop three airports - Gorna Oryahovitsa, Plovdiv and Sofia.

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