Bulgaria launches construction of 136.5 mln euro Mezdra-Botevgrad road section

Construction works are being carried out by a consortium comprising local companies Evropeiski Patishta and Vodno Stroitelstvo - Botevgrad, as well as Slovakia's Vahostav-SK under a contract worth 267 million levs ($152.1 million/136.5 million euro), VAT included, RIA said in a statement on Monday.

The contractor is currently carrying out preliminary construction works such as removal of the upper humus layer.

The winning consortium has signed the contract for the design and construction of the road section on September 3. According to registry agency data, Evropeiski Patishta controls an 80% stake in the consortium, Vodno Stroitelstvo - Botevgrad holds 19%, while Vahostav-SK has 1%.

Another consortium comprising local companies Geostroy and Patstroy-92 has been awarded a separate 159.6 million levs contract, VAT included, to build a 19.3-kilometre long section of the Mezdra-Botevgrad road. According to registry agency data, Geostroy holds a 60% stake in that consortium, while Patstroy-92 controls the remaining 40% interest.

Last month, local construction company Trace Group Hold filed a complaint before the country's anti-trust body against the decision of the Road Infrastructure Agency to disqualify the company from the tender for building the 19.3-km long section. Trace Group Hold had earlier filed another complaint over its disqualification from the tender for the 13.4-km long section but its appeal was rejected by the competition authority in July.

At the beginning of September, Bulgaria's government said that it will allocate up to 419.3 million levs to finance the modernisation of the Mezdra-Botevgrad road. The funds will come from sales of electronic vignettes and the planned introduction of an electronic tolling system for vehicles weighing over 3.5 tonnes.

In order for construction works to start this year, the government has decided to increase the size of the commitments which the regional development ministry can make.

The Mezdra-Botevgrad road is part of the 167-km long Vidin-Botevgrad road, which sees intensive traffic from the bridge over the Danube connecting Bulgaria's Vidin to Romania's Calafat.

(1 euro = 1.95583 levs)