Mr-N MIROSLAV IVANOV
I.D. PRESIDENT
AT A PEOPLE'S ASSEMBLY
MR KIRILL PETKOV
RETIRING PRIME MINISTER
Mr. ASEN VASILEV
DEPUTY MINISTER-CHAIRMAN FOR EUROFUNDS
AND RETIRING MINISTER OF FINANCE
Mr. Grozdan Karadjov
DEPUTY MINISTER-PRESIDENT
AND MINISTER OF REGIONAL DEVELOPMENT
AND THE PUBLIC DEVELOPMENT IN RESIGNATION
DEAR MR IVANOV,
DEAR MR PETKOV,
DEAR MR VASILEV,
DEAR MR KARADZHOV,
In connection with a letter received from the Chamber of Builders in Bulgaria, a collective member of KRIB, regarding the continued lack of indexation in contracts with public contractors and the resulting difficulties in the execution of public procurement, KRIB expresses its support for the demands of the branch organization for immediate finding of a solution to this very serious problem.
Some of the objects currently being implemented were awarded or tenders were held for them years ago at prices that are unrealistic in the current economic situation and put the companies from the "Construction" sector and all participants in the construction-investment process in front of the impossibility of realizing them .
The topics raised in the letter were also touched upon at a meeting held in May by the management of KRIB with Prime Minister Kiril Petkov, Deputy Prime Minister Asen Vasilev and Minister of Energy Alexander Nikolov. At this meeting, we discussed with you and reached an agreement on the adoption of legislative changes aimed at defining a mechanism for indexing contracts with public funds and speeding up the initiated payments with road construction companies under already executed contracts.
Unfortunately, at the moment, these commitments made by the government to the "Construction" sector have not been fulfilled.
According to the Chamber of Builders in Bulgaria, which is a collective member of KRIB, as a result of growing inflation and the increased prices of construction materials, energy, fuels and labor, more and more construction companies are falling into financial difficulties and the inability to complete the projects assigned to them. This creates a serious problem for the sector and its survival.
The lack of indexation of contracts due to the unpredictability of inflation processes, the increased costs of labor, fuel, energy and the difficulties in the supply of raw materials and materials, also caused by the military actions in Ukraine, endanger the implementation of a huge number of projects with European and national funding.
Failure to implement projects under the operational programs will lead to additional losses of funds for the country and society as a whole.
We believe that the lack of adequate solutions on the part of the government will lead to severe consequences for the economy - both to the bankruptcies of companies and the contraction of the activity of the industry as a whole, and to the burden on the social system by generating additional unemployment.
We support the request of the Chamber of Builders in Bulgaria to hold urgent meetings with you in your capacity as representatives of the legislative and executive authorities and to take actions to adopt a fair mechanism (methodology) for indexing the current contracts for the execution of construction and assembly works and payment to the state and municipalities for all completed projects.
We express our concern as business representatives that the lack of urgent action on the part of the state will call into question the implementation of some of the planned activities under the Recovery and Resilience Plan.
We appeal for a responsible attitude and immediate decisions on the part of the legislative and executive authorities for the "Construction" sector, which is one of the structurally determining sectors in the country's economy, providing between 12-14% of the GDP for recent years.
With respect,
Eugene Ivanov
Ex. director and member of the Board of Directors
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