Statements by Robert B. Zoellick, Bulgarian Prime Minister Boyko Borissov and EC Commissioner Kristalina Georgieva

World Bank President Robert B. Zoellick Visits Construction Site Under the Bulgaria Roads Infrastructure Rehabilitation Project

Transcript of Statements by Robert B. Zoellick, Bulgarian Prime Minister Boyko Borissov and EC Commissioner Kristalina Georgieva

Monday, August 09, 2010

Varna, Bulgaria

Robert Zoellick: I want to thank all of you for coming out to see us today. I just arrived in Bulgaria. As I told the Prime Minister, I was last in Bulgaria in 1990, so it's great to be back. I wanted to come to try to listen and learn, and I was invited by both the Prime Minister and my friend Kristalina, who was a good colleague at the Bank and now serves Bulgaria with the European Commission. This is a very important time in our relationship with Bulgaria. As all of you know, the world has gone through a difficult economic crisis, and Bulgaria, under the Prime Minister's leadership, has navigated that as well as any other. And we know these are difficult times. People are out of work, but at the same time that the government is trying to deal with the crisis, it's also trying to look ahead and lay the cornerstones for growth in Bulgaria.

I'll give you a question. Roads are a very important part of that growth and so is improving the workforce and education for people. Now here's the major challenge. Bulgaria qualifies for various funds from the European Union, but it hasn't been able to use all those funds effectively. So what I've been discussing with the Prime Minister and Kristalina is whether we at the World Bank can reorient our loans to try to help Bulgaria be able to tap a larger amount of those funds to invest in roads and infrastructure for development. And I also talked about this with President Barroso earlier in the year because this is the way we think the World Bank can help Bulgaria be able to deepen its integration and move towards convergence of living standards with others in the European Union. But there's another key part of this agenda. It's no secret that Bulgaria has had problems with corruption and failures of administrative services in the past, but over the course of the past year the Prime Minister and the team he has put in place have really advanced very far, and that's been recognized by the European Commission, by the US, the World Bank and others. But as I discussed with the Prime Minister, there's more work to do. And we help some countries with their judicial system, with administrative services, procurement, and this project's a good example. Because what we're adding with this project is not just money to build roads, it's expertise to be able to make sure that the roads are well built, that the companies are not cheating anybody, and to make sure that the European funds are well spent, and Bulgarian funds are well spent so the Bulgarian people aren't cheated. So I thank the Prime Minister for meeting me here in Varna so we could see this project. We'll talk tomorrow in Sofia. Because I think there's a real opportunity here, but we have to get the European Union, the World Bank and Bulgaria all working together. And I've come to try to see how we can do that better.

[Prime Minister Boyko Borissov via translation] 150 million euros from the World Bank, and this was 740 million euros from the European Investment Bank, from the EBRD, 250 million euros from the EU Fund. Today, we are sitting on 1 billion euros, so the question is this is precisely so valuable. Thanks to Kristalina and our hard work during this past year, which you just heard, how it has been appreciated, our fight with corruption and crime, our will to reform and everything else we do for it. Thanks to all that, we have begun to avail ourselves of the presence of Mr. Zoellick with us. He spoke to Mr. Rampart and Mr. Barroso, and we would not be able to avail ourselves of the expertise of the Bank in administering the property and all the designs we're thinking of, project for 2013, 14, 15, 16. Nobody in the world wants to hear yet again, the reason your government didn't place is that there are no new projects in the pipeline, and we can talk for years about what else can be done. We don't want this to happen again. Therefore, now we are developing the projects for 2014 we can do for a team. In parallel, we must try to have these investments, factor them into our deficit, and Brussels must understand that this is important and vital so people stop dying on the roads, stop being handicapped on the roads, and we have the support of Kristalina and the Commission in that, but in order to become a success, we are now working with Mr. Zoellick by showing him equipment and I'm sure the construction companies have been having nightmares today.

The first van and actually all this equipment cost one and a half million euros. Together with the computers. This little van, however, allow us in 5 years to traverse all the roads in Bulgaria. Its monitors and computers will record the entire data as to what needs to be done in Bulgaria, and everybody will know in the whole world. Alongside with all that, the most urgent roads soon will be measured, and the work there will be launched. The second van should be protected from terrorists. You can take pictures of it as well. Because it will make the cuts of the roads and tell you need so much asphalt, you have so much asphalt and so much of this and that. And if the dear construction companies did not invest all that was needed, we will then fine them. So now we will see what Stanishev's (former PM) companies have been up to. And this is objective, this is all objective, and when motor ways are launched, or other roads are launched, this van will do the measurements and we will decide whether we will pay or not. Thus, everybody [unclear] in Washington, D.C., will know that [unclear] would be done according to standards, with good quality, and that there is no theft involved. So this is the different between this government and the previous one. If you spend one billion on roads, and then are achieved for one million in order to buy the equipment to control everything, the center is certainly not serious. That is why we have visitors here coming to express their support for our government. They come to visit Varna to back us up. We are not going to request a specific amount of money, but long-term cooperation. Even today we can borrow as much as we want; however, what was demonstrated to Zoellick today is will, organization, control and projects for the future? And construction coming in a transparent and honest way. If you work in this way, not one billion, but 50 billion may be requested, and we may receive it.

Robert Zoellick:  Bulgaria is fortunate it's a member of the European Union. Countries all over the world want money for infrastructure. You can get it if you take care of the administrative issues, if you take care of the anti-corruption issues, and you develop a plan for it. That's where your billion dollars will come from. Now, our money can help you meet some of those initial steps and, working with Kristalina, we can work with those in Brussels to demonstrate that there's a new government that has taken a different approach to infrastructure. If you've seen the latest European Commission Report, they already recognize the changes over the past year. But this needs to go beyond infrastructure. We're talking about energy and water and education.

Prime Minister Boyko Borissov: That is why ministers Traykov and Plevneliev are here now today....

Robert Zoellick: I just had a chance to talk to the Rural Affairs Minister about his plan. He had good experience in road construction in Germany, so if we can bring that together with some of our worldwide expertise, we can get a greater takeoff here for growth.

Interpreter:   … with Russian help, how do you deal with it?

Robert Zoellick:  In the same ways you're trying to deal with it in Bulgaria. The minister told me that he brought in Transparency International. He tried to have an open procurement process. You have standards for your bidders, and you check to make sure the road is what you're supposed to have built. And it's important: Roads are a problem for corruption everywhere, and we at the World Bank are trying to learn lessons from that from other countries to try to apply to Bulgaria and others. But there's great potential in this country. You've got a downturn and the government's doing good things to put it back on track, but what I, one reason I wanted to come is not just to look for the next six months, but to look for the next six years, and that's what the Prime Minister and his government are trying to do.

Interpreter:   … a typical example of two men arguing …

Question: We know what the situation in Moscow is at the moment. Prime Minister Putin received support from our Prime Minister.  Are you going on site, are you going to provide support from the Commission?

EC Commissioner Kristalina Georgieva (via Interpreter):  We are looking at the situation in Russia very seriously, because the problem there as we see it will the health of many people. I spoke to Minister Shoygu how to support children's health, rehabilitation, environment, support the affected region, and develop a strategic plan for the future because this is not going to be a one off situation. The climate is changing indeed, and we need to be prepared, we need to come up with measures which will protect our citizens and our future. As for Russia, specifically, as an EU member-state, we're willing and ready to provide relief and assistance. Italy, Bulgaria sent their firefighters, our firefighters very quickly, they're there already. The Italian airplane has arrived as well, and ...at this time to get the situation under control and make sure it does not extend and expand. We anticipate the fires will be put out. Prime Minister Putin thanks the Bulgarian Prime Minister for his quick response. We are looking for opportunity to bring children and people and firefighters who were affected by this calamity to Bulgaria. I personally lived in Moscow. I know what this means to this city to be surrounded by fire in effect. We'll see if [unclear] fatalities.

Prime Minister Boyko Borissov (via interpreter): We shall take the people here, firefighters as well. This country is rich amongst riches. We can provide recreation facilities, and when we join efforts with the European Commission, then we can really do something.

Interpreter:   What about Poland? Is Poland going to receive some relief because of the floods there?

EC Commissioner Kristalina Georgieva (via interpreter): Poland turned to the European Commission, and we are not preparing our own reply to this request for assistance. As soon as we judge they meet the requirements, they these damages will be about 1.6 percent of the GDP of the country, there will be a resolution of the European Parliament, and you know Parliament reconvenes in the beginning of September, 6th of September, I think.

Interpreter:   Did you discuss Belene, the nuclear power plant are supposed to put in.

Prime Minister Boyko Borissov (Interpreter):   What do you mean? Do you want me to merger or what? We have a lot of work to do. We have work to do, let's roll up our sleeves and get down …