Serious tension is building in the municipalities of the Plovdiv region due to delays in government payments for infrastructure projects that have already been completed. Mayors warn that the lack of payment puts local administrations at risk of lawsuits, penalties, and even account freezes.
The situation is particularly serious in the municipality of Kaloyanovo, where, according to Mayor Mladen Kichev, payments from the Ministry of Regional Development and Public Works (MRDPW) have been delayed for more than a year. This has led to a buildup of debt owed to construction companies that have already completed the work specified in their contracts.
Among the most affected projects are the construction of a water main on Tretata Street in the village of Dlugo Pole, as well as the reconstruction of Koprivshtitsa Street in Kaloyanovo. The total cost of the two projects exceeds 1 million euros.
“We haven’t even received an advance payment for Koprivshtitsa Street. People are waiting for the government to release the funds so we can pay our bills. Right now, we owe money to the contractors working on these projects. There are no payments from the Ministry of Regional Development and Public Works (MRDPW). Everything has come to a standstill. All municipalities are in the red. Overall, the MRDPW isn’t functioning,” commented the mayor of Kaloyanovo. He added that they have less than 600,000 euros annually for capital expenditures.
The problems are not limited to the payment of agreed-upon amounts for projects that have already begun. The signing of contracts for new projects—which were approved two years ago—is also being delayed. Among them is the improvement of public squares in Kaloyanovo and the village of Razhevo Konare, which are awaiting implementation.
“We can’t win projects and then fail to carry them out due to a lack of payment,”
Kichev commented. He warns that if contractors file lawsuits, the burden will fall on the municipal budget and the residents.
The municipality of Maritsa finds itself in a similar situation, where there is already a real risk of accounts being frozen. Mayor Dimitar Ivanov has sent several letters to the regional ministry demanding payment of over 3 million leva for completed infrastructure projects.
These include repairs to the key road sections Kostievo–Radinovo–Benkovski and Kalekovets–Krislo. For the first project, over 2 million leva (about 1 million euros) from last year are still pending, and for the second, over 1.3 million leva for completed work and supervision.
The Kostievo–Radinovo–Benkovski route is more than 7 km long and is of strategic importance because it connects two national highways—the Pazardzhik Highway and the Golyamokonarsko Highway. At the other site, the municipal road between Kalekovets and Krislo was rehabilitated; it is important because it connects the industrial parks in the region and ensures safe access for residents of the municipality who travel on it.
To date, no payments have been made. “As a result of the delay, the contractors on these projects have taken steps to collect their receivables, including placing liens on the municipality’s bank accounts, charging statutory interest for late payment, and initiating legal action,” Mayor Dimitar Ivanov wrote in a letter to the Ministry of Regional Development and Public Works (MRDPW) at the end of March.
“I do not blame the contractors, because they have done their job,” Ivanov clarified, but warned that the situation could disrupt the municipality’s normal operations. “If the state lacks the funds to pay for completed infrastructure projects, why does it enter into contracts with companies?” asks the mayor of the Maritsa Municipality, adding that he is surprised by the actions of the Ministry of Regional Development and Public Works. “We have always been good partners, and the state has sought our cooperation on more than one occasion. We have responded to requests for property expropriation or donations to enable the implementation of infrastructure projects that benefit the municipality’s residents,” he adds.
The problem is similar in other municipalities in the Plovdiv region, such as Sadovo. There are also delays there, but regarding VAT refunds for projects funded by the State Fund for Agriculture. According to the administration, this puts a strain on local budgets and limits opportunities for new investments.
Mayors from the Plovdiv region are urging the government to urgently begin paying for projects that have already started and been completed, in order to avoid the risk of widespread asset seizures, lawsuits, and financial instability in the region. They note that those most affected by this situation are the residents, who are taxpayers. They are awaiting the completion of these projects and the renovation of the deteriorated underground and above-ground infrastructure.
