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Seven Participants Show Interest in Burgas Municipality’s Road Construction Tender
Seven bidders have expressed their interest in the public procurement initiated by Burgas Municipality for the construction of the southern bypass of the coastal city. The estimated budget for this project exceeds 140.2 million BGN (excluding VAT) and encompasses comprehensive engineering services, which include design, construction, and supervisory oversight.
The total length of the planned section is 3.43 kilometers, meaning the cost per kilometer will reach nearly 41 million BGN (excluding VAT). This multi-million lev tender was announced by local authorities on June 20, and the applications submitted by companies were opened three days ago. Some of the bidders are among the largest road construction firms in the country.
Financial Breakdown and Project Specifications
The documentation indicates that 3 million BGN (excluding VAT) is allocated for the development of a technical investment project, while the actual construction is budgeted at over 136.7 million BGN (excluding VAT). An additional 500,000 BGN (excluding VAT) is designated for exercising supervisory oversight. Currently, the funding for the project has not been secured, as mentioned in the documents. It is only noted that the budget for the year 2024 includes slightly over 8.3 million BGN (excluding VAT).
The project envisions the section as part of the future distant bypass of the city, linking the northern bypass—completed last year—with the road leading to Sozopol and Tsarevo. The primary objective is to alleviate transit traffic. The road connection will provide transportation access to and from the residential area of “Meden Rudnik” to the republican road I-9, and subsequently to the city of Burgas and the southern Black Sea settlements.
Infrastructure Features
The construction plan includes a bridge over Burgas Lake, measuring 950 meters in length. The connection will traverse the periphery of the neighborhood, situated on the southern side, linking to the already constructed section of “Kooperator” Street and “Alexander Georgiev – Kodzhakafaliya” Boulevard with republican road I-9. To connect this road link with the established section of “Kooperator” Street, the design and completion of the street are necessary.
Additional features include intersections, overpasses, and underpasses, as well as a dedicated bike lane on the left side along the entire length of “Kooperator” Street and the road connection, which will link to the existing bike lane toward Kraimorie. In the sections of the road junctions, the bike lane will be designed with conflict-free crossings via a bike underpass.
List of Participants in the Tender
The participants in this significant procurement include a total of seven entities: two independent companies and five consortia:
- Consortium “Meden Rudnik 2024,” with participants “Geostroy” AD and “Patstroy-92” AD;
- Joint Venture “Burgas South,” with participants “Trace Group Hold” AD and “GP Group” AD;
- Joint Venture “Black Sea Via Bulgaria,” with participants “Autostrady – Black Sea” AD, “IKJ Bulgaria Consulting Engineers” EOOD, and “Via Pro Engineering” EOOD;
- Joint Venture “Southern Bypass – Burgas 2024,” with participants “Infra Expert” AD and “Patengineering” AD;
- “Hydrostroy” AD;
- Joint Venture “Southern Bypass – Residential Complex ‘Meden Rudnik’,” with participants “Nivell Stroy” EOOD and “Geoplan Construction” EOOD;
- “European Roads” AD.
It is noteworthy that some of the largest road construction companies in the industry, which have executed numerous public contracts in the Capital Municipality—namely “Trace Group Hold” AD and “GP Group” AD—have formed a consortium. Additionally, “Hydrostroy,” led by the well-known construction mogul Veliko Zhelev, is also competing in this tender.
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Connections and Controversies in Infrastructure Projects
Recent developments in infrastructure projects have revealed a web of connections among companies involved in road construction and maintenance tenders. One such company, led by a prominent figure in the industry, is actively engaged in the construction of sections of the Hemus Highway. A consortium, prominently featuring this company, has been tasked with executing a significant tunnel project under Shipka Pass.
According to reports, another entity involved in the consortium has ties to this industry leader, although he denies any association with the firm. Public records indicate that the company is owned by a different individual, yet intriguing connections persist. Notably, a member of the board of directors of this firm has previously served on the board of the leading construction company in the consortium.
Industry insiders have commented that it is widely recognized in the sector that these companies are interconnected. The consortium also includes a company from Ruse, which collaborates closely with the construction firm in question. The board of directors features a former head of the national road agency, who was appointed during a previous government administration.
Documentation from official registries identifies the actual owner of the Ruse-based company, who has stakes in several other construction firms as well. One of these firms previously had ties to the industry leader in question. Furthermore, another company in this network is believed to be affiliated with a major construction group, as its official majority owner has familial connections to the owner of this larger entity.
Implications for Future Projects
The intertwining relationships among these companies raise questions about transparency and fairness in the allocation of infrastructure contracts. As the industry continues to evolve, these connections may influence future bidding processes and project outcomes. Stakeholders are encouraged to scrutinize these associations to ensure accountability and integrity in the management of public resources.
