[size=75:1zjnwha3]Sofia echo Wed, Nov 25 2009

World Bank approves 81M euro loan for infrastructure projects in Bulgaria


The World Bank managing council has approved the release of an 81 million euro loan earmarked for the financing of infrastructure projects in several Bulgarian municipalities, Dnevnik daily said.

The loan envisaged to be used for infrastructural development in the municipalities of Rudozem, Madan, Panagyurishte and Tryavna. Specifically, funding would go to the construction of the Luda Yana dam in Panagyurishte, and the dams in Neikovtsi (Tryavna) and Plovdivtsi (Madan) which are to be completed. Additionally, the Studena dam was poised for a thorough rehabilitation and modernisation, Dnevnik said.

The loan would also assist in the construction and installation of 48 new water supply and canalisation networks in six other municipalities across the country.

After the infrastructure developments, the citizens of Tryavna, Rudozem, Madan and Panagyurishte would have substantially cleaner drinking water, both for personal use and irrigation.

The loan itself had a 19 year term, with a seven year interest-free period.

"
The citizens of these municipalities in Bulgaria are all looking forward to seeing a significant improvement in the water supply to their communities,"
Gabriel Ionita, World Bank Senior Agriculture Specialist, was quoted as saying in a media statement.

"
The lack of a steady source of quality drinking water as well as water for agricultural use is seen by many as one of the main issues affecting their well-being,"
Ionita said.

The construction of three of the dams that are now poised to receive funding has been postponed for different reasons over the past twenty years. This was a major concern not only for the local people but also for the local authorities who insisted that measures were taken outright to resolve the problem.

Accordingly, the World Bank’s funding for the completion of the facilities provides an opportunity for further economic development, and the potential for developing a tourist industry in the region, the report said.

Ultimately, once the construction of the dams is finally complete, about 141 000 Bulgarians in four municipalities would have a secure and reliable supply of quality water.