Contacts: In Sofia: Ivelina Taushanova (+3592) 9697-239, Itaushanova@worldbank.org In Washington: Steven Jouy (+1-202) 473-4215, sjouy@worldbank.org WASHINGTON, June 26, 2007 – The Board of Executive Directors of the World Bank today approved a Road Infrastructure Rehabilitation Project in the amount of EUR90 million for the Republic of Bulgaria. The project aims to assist the country reduce road transport costs by improving the condition and quality of its roads network during the first years of EU accession. Bulgaria’s road network is of critical importance for trade with the European Union as well as for the integration of the country’s remote regions in the European market. However, limited funds for road rehabilitation and maintenance have led in the past to a deterioration of a large percentage of roads, which may be depriving Bulgaria from an important source of economic growth. In addition, road accidents have become an increasing issue with the growth in motorization, with Bulgaria having a traffic fatality rate twice as high as the European Union’s average. Under the Road Infrastructure Rehabilitation Project, the Government will rehabilitate selected Class I, II and III roads totaling about 450 km. The Project will also assist with enhancing the technical and managerial capacity of the National Road Infrastructure Fund, by investing in equipment, technologies, and procedures which would allow for a more efficient use of the resources allocated to the road sector, including future EU grant funds. Finally, the Project will assist with developing plans and targeted investments to improve road safety and reduce the number of road traffic accidents. “The World Bank’s portfolio of ongoing and planned projects aims to support the country in its first years of EU membership in order to speed up the convergence of living standards. This project will assist the Bulgarian Government with improving the condition of roads for greater access to markets for the population and enterprises in small towns and rural areas, thus augment their opportunities after EU accession, and also reduce traffic conflicts and road accident black spots,” said Anand Seth, Country Director for Bulgaria, Romania and Croatia. In the Strategy for the Development of the National Transport System as well as in the Sectoral Operational Program for Transport, the Government has identified an efficient road transport system as a core element of the prerequisites for faster integration in the European Union. “Investments in road rehabilitation, coupled with enhancement of the technical and managerial capacity of road sector institutions, in this case the National Road Infrastructure Fund and the Ministry of Transport, are key to developing an efficient road transport system and making good use of the limited financial resources available to the sector. This Project will have tangible impacts on road transport costs, and it will make real improvements in the performance of the National Road Infrastructure Fund,” said Henry Kerali, World Bank Project Manager. The Road Infrastructure Rehabilitation Project has a maturity of 17 years, including a five-year grace period. ### For more information on the World Bank’s work in Bulgaria, please visit http://www.worldbank.bg |
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