Is a kilometer of boulevard in Varna more expensive than a kilometer of highway?

According to rough estimates, the reconstruction of the infamous “Vasil Levski” Blvd in Varna, which was completed last year, costs to taxpayers about BGN 38 million per kilometer. At the same time, the officially announced prices of 10 lots of the Hemus Highway, currently under construction, show that a kilometer of it costs an average of about BGN 9-10 million. The difference is almost four times.

Documents available to “Dnevnik” provide one of the possible answers to the question

how such a difference becomes possible

According to Varna Mayor Ivan Portnih (GERB), the price per kilometer of “Vasil Levski” Blvd is high due to the scale of the project and the complexity of its implementation. For this reason, he called it “the second Asparuhov Bridge”. In fact, the entire length of the boulevard is less than 3 km, and its construction was accompanied by a series of violations of the law, quick and with low quality implementations and misconceptions. Thus, the boulevard has become one of the brightest examples of uncontrolled spending of public resources. (How Boyko Borisov built “Vasil Levski” Blvd according to photos – here.)

Pursuant to a framework agreement with the local administration in Varna in 2018, the public procurement for the reconstruction of “Vasil Levski” Blvd was awarded to the joint-stock company “Hydrostroy”. The formation of prices for the various activities performed during the performance of the contract are described in detailed analyzes, which are an integral part of the annexes to the concluded contract.

Construction of “Vasil Levski” Blvd

One of the analyses concerns the construction of concrete pillars. The full name of the activity is “Concrete C30/37, laid on site for foundations and pillars according to the Technical Specification (TS), including delivery, laying and compaction, formwork, as well as all related costs without reinforcement”. The final price for this activity, indicated in the analysis, is BGN 484.73 per 1 cubic meter.

A second analysis concerns the formation of the unit price for elastomeric (neoprene) bearings. According to their description, they are 400/500/84 mm in size and the price includes their “delivery, installation and all related costs”. Each of them cost the Municipality of Varna BGN 592.74.

For the delivery and laying of one linear meter of transitional structures for expansion joints (intended for covering openings of bridge facilities and road structures – author’s note) with a maximum total dilatation (expansion) of 60 mm, the local administration in Varna paid BGN 1260.94.

The fourth item in the annexes to the contract of “Hydrostroy” for the reconstruction of “Vasil Levski” Blvd in Varna refers to “cast iron drains ф150” and all costs for their delivery and installation. According to the attached analysis for the formation of their price, each of the drains cost BGN 268.79.

All these materials were used in the reconstruction of about 2.8 km from “Vasil Levski” Blvd, locked between “Podvis” and “Devnya” Streets.

Completion of “Hemus” Highway

Other documents available to “Dnevnik” relate to the preparation of a “conceptual design for the completion of “Hemus” Highway (Stage 3)” from Targovishte to Belokopitovo.

The contract for the construction of the section was concluded on September 29, 2017 with the consortium DZZD “Hemus 16320”. It includes “Patinzheneringstroy-T”, “Avtomagistrali – Cherno More”, “Transconsult-22” and “Infra Expert”. Unofficially, in numerous media publications, the latter company is related to the owner of Hydrostroy, Veliko Zhelev.

The presented “description of the works” for the construction of the section describes completely identical positions with minimal deviations.

Thus for example, one of the items reads: “Concrete for pillars, foundations, crossbars and retaining walls (wings) with strength class C30/37, environmental impact class XF1, XC3, delivery, laying and compaction, as well as all related costs, including formwork without reinforcement”. This description almost completely coincides with what is reflected in the documentation for the repair of Varna’s “Vasil Levski” Blvd. However, the indicated unit price in this case is BGN 180 per cubic meter compared to almost BGN 485 paid by the Municipality of Varna during the reconstruction of the boulevard.

In two consecutive items in the documents to the contract for construction of the highway “Hemus”, “transitional structures for expansion joints” open “type” are described that are the same as for the Varna boulevard. The only difference is that for the highway they are smaller in size. However, the indicated price per linear meter is BGN 400 for one item and BGN 500 for the other item for “Hemus” against BGN 1,261 paid in Varna.

The elastomeric bearings “type C” also have a minimal difference in size from those used in the repair of “Vasil Levski” Blvd. During the construction of “Hemus” Highway, however, they had a unit price of BGN 430 against almost BGN 600 paid in Varna.

After the completion of Vasil Levski Blvd in Varna, it turned out that one of its intersections was strongly sloping and irregularly shaped and pedestrians could not pass through it.

There is also a serious difference in the prices of absolutely the same type of cast iron drains. For “Vasil Levski” Blvd in Varna they cost nearly BGN 270, and for the “Hemus” Highway – BGN 150.

Yet seven years ago, when the mayor of Varna Ivan Portnich took office for the first time, the Public Financial Inspection Agency (PFIA) announced

shocking data from audit

carried out in the administration of his predecessor Kiril Yordanov. The subject of the inspection were seven public procurements for over BGN 330 million, as well as the way in which nearly BGN 64.5 million more were spent without the legally obligatory tenders. For comparison, the final price of the reconstruction completed last year only on “Vasil Levski” Blvd was not announced, but according to interim estimates it exceeded BGN 115 million. Of these, BGN 80.5 million were granted by a government decision “by eye” – i.e. without a project and Bill-of-Quantities. (Who signed a project for BGN 1 million – here).

According to the findings reflected in the report of the PFIA from 2013, by circumventing the Public Procurement Act, the administration of the former mayor of Varna Kiril Yordanov had allowed the companies “Hydrostroy”, Ingstroyengineering”, the companies under the Law for obligations and contracts (DZZD) “Varna Stroy 2012”, “Zebra Varna” and “Consortium AB Varna” to perform repair and other construction works in different regions of Varna with a difference in the prices for identical activities, reaching … 1600 times. (What the Public Financial Inspection Agency Report contained – here).

The prosecutor’s investigation on the findings of the audit of the Public Financial Inspection Agency ended without result. And after the administration of the current mayor of the city Ivan Portnich appealed this decision before wrong instance, the case was finally closed. (Why the Municipality of Varna hid the motives with which it appealed the decision of the prosecutor’s office – here).

The former deputy manager of the municipal enterprise “Investment Policy” Hristo Ivanov, who, according to PFIA, showed official negligence for nearly BGN 72,000 is now the Deputy Mayor of Varna in the field of construction and infrastructure. The companies mentioned in the 2012 report continue to work on all infrastructure projects in Varna, without competition.

Yet on May 26, “Dnevnik” sent questions to “Hydrostroy”, which should have clarified the reasons for the discrepancies in the indicated unit prices for identical items, described in the documentation under the contract for reconstruction of “Vasil Levski” Blvd in Varna and the project for completion of the “Hemus” Highway. Two weeks later, no answers were received until the work on this text was completed.