[size=75:2yt0f7wv]novinite 26 February 2010

Bulgaria, Romania Seek EU Concession over Danube Bridge

The prime ministers of Bulgaria and Romania have approached the European Commission with a request to extend the deadline of the financial memorandum for the construction of a second bridge over the Danube River.

The memorandum with Brussels, to be financed under the ISPA program, ensures free funding of EUR 70 M for the bridge's construction and guarantees head-to-tail financing of the project. It is scheduled to expire at the end of 2010.

Bulgarian Prime Minister Boyko Borissovand his Romanian counterpart Emil Boc, who is paying an official visit to the country, have sent a letter to the European Commission President Jose Manuel Barroso, demanding that the deadline is extended by one year, until January 1, 2012.

“We hope Mr Barroso will take into account the fact that we are new governments and are not to blame for the delay in the project. Our ambitions are that every single euro is absorbed,” the Bulgarian prime minister said.

He suggested that two more bridge are constructed over the Danube River, linking Oryahovo-Bechet and Silistra-Kalarash.

Romania's Prime Minister Boc said he expects a positive response from the European Commission.

Romania and Bulgaria signed the agreement for the project construction in March 2000 but it was late in getting off the ground because of insufficient funding.

The 2km Danube bridge, which is a key element of a European transport corridor connecting the German city of Dresden with Istanbul in Turkey, is designed to span over the river connecting Bulgaria's Vidin and Romania's Kalafat.

The project will cost a total of EUR 226 M and the Bulgarian government has pledged to chip in more than EUR 60.7 M. Besides, it is also financed by loans and grants from the European Investment Bank, the French Development Agency and the German Credit Institution for Reconstruction and Development.

At the moment, the only bridge on the 610km Danube section of the Bulgarian-Romanian border, links Russe in Bulgaria and Giurgiu in Romania by road and rail.

Does that mean if its paid for by the EU,that crossing it will be free




Mik

[size=75:3omqka0h]novinite 27 February 2010

EC to Extend Danube Bridge II Deadline

The European Commission intends to be flexible about the deadlines for the EU ISPA program, including those for the construction of Danube Bridge II.

The information was reported by the EC spokesperson, cited Saturday by the Bulgarian National Radio, BNR.

The statement came on the heals of a request on the part of Bulgarian Prime Minister Boyko Borissov and his Romanian counterpart Emil Boc made before the EC to extend the deadline of the financial memorandum for the construction of a second bridge over the Danube River in order to rescue EU financing for the project.

EC says they are willing to extend the deadline until 2012 for several ISPA projects that expire at the end of 2010, where the largest projects with financing over EUR 100 M have the biggest chance for such extension.

Bulgaria is slated to receive EUR 70 M for Danube Bridge II, but financing for both Romania and Bulgaria exceeds EUR 100 M, which gives the project a significant opportunity for extension.

[size=75:tpl5x1kv]Sofia echo 17 March 2010

Bulgarian Parliament approves Danube Bridge funding extension

Bulgarian Parliament ratified the amendments to the contract with European Investment Bank on the funding of Danube Bridge 2, linking Vidin in Bulgaria to Calafat in Romania, Stroitestvo Gradut weekly said on March 17 2010..

The change would allow to retain the bank's funding past the current deadline. The new deadline is March 15 2011.

In exchange, Bulgaria agreed to shorten the loan's maturity to 14 and a half years instead of the initially-agreed 17 years, which means the payments themselves will be larger.

Danube Bridge 2 would become the second bridge across the Danube River between the two countries, the only one being now between Rousse and Giurgiu. EIB loaned Bulgaria 50 million euro, but only five million have been appropriated to date.

In February, Bulgarian Prime Minister Boiko Borissov and his Romanian counterpart Emil Boc visited the construction site to assess progress. At the time, the two heads of government said that they would ask the European Commission to extend the deadline for appropriating European Union funds allocated to the project.

The project, which was approved by Bulgarian and Romania as far back as 2000, has been obstructed by delays in several areas. It was initially projected to be completed by end-2010 and cost 226 million euro.

In October 2009, it was reported that construction delays added up to no less than seven months, while the cost of construction was expected to increase by an additional 20 to 30 per cent.