Topical Information

With the latest proposals for changes to the investment program for the municipalities, financed with funds from the state budget, the total estimated value of the projects for the period January 1, 2024 - December 31, 2026 is over BGN 6.6 billion.

For 2024, the transfers provided to the municipalities through the budget of the Ministry of Internal Affairs and Communications under concluded agreements until 31.08.2024 are in the amount of BGN 87,270,257.27 under 183 agreements. Requests for final payments for fully implemented projects have already been submitted by the municipalities of Lesichovo, Tervel and Ivaylovgrad, and 78 municipalities have signed agreements on all proposed investments.

However, NSORB receives daily signals from municipalities about delays in concluding agreements, as well as in the payment of advances. The municipalities that contacted us indicate that, in view of the timely start and observance of the technological schedule for the implementation of the SMR of the sites and in view of the delay in the provision of advance payments, it should be possible to provide working capital to pay for completed activities according to concluded agreements through own funds, a loan from the Flag Fund or from a credit institution.

As part of a hearing in the National Assembly from June 2024. the Minister of Regional Development and Public Works indicates that a large percentage of received requests for payments cannot be approved immediately, given that the documents presented by the municipalities do not meet all the conditions of the agreements. Most often, with the requested advance payments, no collateral is submitted by the contractor to the municipality in accordance with the provisions of the ZOP, or collateral is submitted that does not cover the advance payment in full.

In connection with the preparation for the negotiations on the next state budget, the members of the Board will also discuss the proposals for which the NSORB should have a mandate in the talks with the Minister of Finance. The priority position of the municipalities is related to the continuation of the investment program, providing the opportunity to update the remunerations in the municipal administrations, guaranteeing the subsidies and compensations for public transport and preserving the approach to financing activities in the field of education and culture through national programs.

The main problems identified in the municipalities' work with the MRRD are related to the order of signing the agreements and clarifying the priority criteria. Important, from the point of view of municipalities, is compliance with the deadlines for providing advance and interim payments and greater efficiency in written communication with municipalities to eliminate irregularities in payment requests.

Within the discussion, some aspects that are within the competence of the Ministry of Finance were highlighted:

Legal regulation of the possibility for municipalities to use their own or borrowed resources to pay for the projects until the recovery of the funds by the MRRD;

Within the framework of the budget procedure, the possibilities for realization of the planned but unused funds for 2024 and what will be the order of transfer of the requested resource in 2025 should be specified.