Bulgaria has absorbed about 23 per cent of the funds for infrastructure from EU"s pre-accession ISPA programme.

According to data published on February 19 by the Ministry of Finance, the total sum for ISPA projects is 1.5 billion euro. However, the EU, international financial institutions and Bulgaria"s co-financing budget, have paid only 347 million euro so far.

The Finance Ministry data, however, indicates that funds for contractual projects in 2007 have doubled. At the end of January 2007, the funds were only 34 per cent of the total volume of the programme, while the January 2008 report indicates the contracts already cover 70 per cent of ISPA scope.

The greatest delay occurs in the water supply sector in Sofia, Sliven, and Kyustendil, for which no contractual funds were agreed in 2007. The Environment Ministry warned that 58 million euro, envisaged for Sofia"s water supply and sewerage system, could be lost.

Water supply projects in Rousse and Bourgas are already underway. There are delays, however, in contracts for the sulphur purifying installations for the Maritza Iztok 2 thermal power plant and for the garbage disposal management centre in Kurdjali.

Financial Ministry data indicates another disturbing trend - despite the fact that the sum for many projects has been contractually agreed, its absorption is greatly delayed. Examples include the Plovdiv-Svilengrad railway electrification, construction of the second bridge connecting Bulgaria and Romania across the Danube and of the Lyulin Highway.

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