Local governments will receive 350 million levs, while the central one – 150 million levs, under the new investment programme Growth and Sustainable Development of the Regions, said Bulgaria’s Finance Minister Peter Tchobanov. Those were his first words after a decree on the implementation of the state budget in 2014 was adopted in mid-January. As it is already known, it is the first to have earmarked 500 million levs for a public investment programme aimed at development of the regions in the country.
Municipalities, however, were not that glad of this otherwise long-awaited decision. From the very outset, they wanted 70-30 distribution of the money in their favour, which happened. What was not quite right, though?
Overall sentiment summed up specifically for the BANKER Emil Savov, the deputy executive director of the National Association of Municipalities in the Republic of Bulgaria. First, he expressed concern about a situation in which the Minister circulates the information orally and in the decree there is not a single word about these or any other distribution schemes of the money between the central and local bodies. An undoubtedly good intention of the Minister could very easily be trampled by rabid political bargaining in the actual distribution.
The administrative way for the application of municipal projects, on the other hand, had deliberately been left to be longer than that of the ministries, despite our requests, added Mr. Savov. Ministries send their projects to the Ministry of Finance, which passes them to be approved by the Council of Ministers. For municipalities, though, the project goes into the hands of the regional governor, who decides whether to send it to the Interdepartmental Council, where if it gets ratified, may enter the Council of Ministers for approval.
Nobody paid attention to the urging of local authorities that regional governor should only make the assessment of eligibility.
Regional governors will coordinate the entire process of presenting the investment fund, means of preparation of the projects and their applications, the decree says. They will have the commitment in the shortest possible time to organize meetings with local mayors and assist them in completing the project proposals in a special application form.
Mr. Savov is convinced that the status of the governors makes them an unnecessary link in the chain, which can only slow down and distort the whole process, rather than help with anything. And because the district governor is generally appointed by the Government, typically for the Bulgarian reality, he will seek to put a rod in the wheels of the projects of municipalities controlled by the opposition.
In the Interdepartmental Council among key ministers there is only one municipal representative on whose voice practically nothing depends.
„The money from the investment fund will not be allocated according to the political affiliation of mayors and local authorities, no one should worry about this,“ assured the Finance Minister, as if anticipating potential doubts.
Otherwise the goal of the programme is to boost economic growth, to increase the competitiveness of the economy, to cultivate the regions and to create conditions for new jobs. Municipal projects will receive funding of up to 15 million levs for a year, and the Central Government ones – of up to 30 million levs.
The sectors in which municipalities and ministries will be eligible for funding are environmental, social, cultural and transport infrastructure. In the programmes of the various departments priority will be put on those with a regional focus, so as to overcome the wide disparities between regions in the country. Those 350 million levs will be aimed at smaller settlements. Mr. Tchobanov was even sure that smaller municipalities will be equal when applying for funds from the investment fund. However, the option is being considered, however, greater privileges to be given to the poorer municipalities in northwestern Bulgaria, who decide to participate in projects. This part of the country is most in need of support, admitted the finance minister. This does not mean that the big cities and the capital will not be able to apply with their own projects. Just, this time the resources will not be concentrated in Sofia, the Minister said.
The criteria which projects must meet are 11, and one of the most important is that the project should be able to increase employment in rural areas.
The BANKER
