« Continuing Activity »: The state has been waiting for 18 years of unrealized investment for BGN 73 million.
| Asked if the investment made by Holding Varna was implemented on time, the BAI replied that the project was making partial progress, with Holding Varna submitted annual reports on the funds invested. |
According to the answer, the investor regularly notified the agency of stages of investment and delays, which were related to objective circumstances such as administrative obstacles and court procedures.
The facts show otherwise. From the investment plan of Holding Varna in 2007, 13 sites, so far – 18 years later, only infrastructure improvements such as water supply, lighting and parking lots were partially implemented.
The law is clear, the action is missing
The investment plan of the Alley First project contained 13 sections with a detailed description of the concept, goals, parameters, stages of realization within three years and 500 new jobs. It was envisaged to build a complex for providing a wide range of public services related to treatment, restoration, qualification of tourism, scientific and business buildings. 11 separate sites were planned on 30 thousand square meters. built -up area, as well as technical infrastructure, international and congress center, information center, training center, Institute of Hydrology, Recovery Center, Fisheries Village, Aquapark, Sports Base and Parking Zones. Almost two decades later, most of the terrains that all of this were to be built are completely neglected. And the « benefits for the Bulgarian state » seem to be missed.
The Investment Promotion Act obliges the BAI to monitor the implementation of certified projects and to report their development. Investors, for their part, are obliged to take into account the investments and progress of their projects at the end of each calendar year.
Against 118 acres on the shore in Varna, the state has missed benefits for millions
In the case of Alley One, it is clear that the investment project has not achieved the results set on time. It is understood from the BAI’s answers that the institution has accepted the annual reports of Holding Varna uncritically and even as evidence of activity. However, they mainly describe the preparatory activities, not the construction of real sites provided for in the investment plan.
| In your answers to the questions asked by Diary (the full text – in the attachment)from the BAI claims that the delayed 18 years (so far) deadlines for the implementation of the project are justified by sluggish administrative and judicial procedures for appeal, the construction prohibitions imposed on the Black Sea coast during the summer months, etc. |
The investor Holding Varna even referred to force majeure, such as the Covid-19 pandemic, which, according to the agency, actually contributed to the lag.
Thus, it turns out that according to the responses to the BAI, the regular submission of reports by Holding Varna has concealed the lack of actually completed facilities along the coastal alley in Varna, some of which – public -purpose buildings.
At the same time, while the project « Alley First » was sinking into oblivion, another business circle around « Chimimport » and « Central Cooperative Bank » – « St. St. Constantine and Elena Holding » at a rapid pace was constructing hotels, coastal facilities for the expansion of the beach and entire residential complexes.
Cheaply and without guarantees
In June 2009, the state sold 118 decares of land on the seashore in the city, separated into five properties to Holding Varna. The price was 50 euros per square meter, which is at least three times lower than the market value for such properties at the same time. This sale was made possible with the first -class investment certificate (Class A) issued to the company. The Investment Promotion Act provides for the possibility of selling real estate – private state property, at the location of the investment, without auction, after evaluation and written consent of the Minister of Economy and the Minister of Regional Development and Public Works.
However, the sale was made in the last of the three years in which the investment had to be realized. This circumstance raises the question of why the state has proceeded to finalize the transaction when it has already been obvious that the investment plan will not be implemented in the deadline issued by law – until 2010.
When asked by Dnevnik, whether the BAI had taken action to terminate the contract due to the failure to perform the investment, the agency said that it regularly notified the regional administration in Varna about the development of the project, as well as the difficulties that the investor had encountered.
| The BAI also explained that despite the delay, Holding Varna had not completely discontinued its investment intention. |
Varna Alley First: Investment Class A with expired shelf life
This position raises serious questions about what are the criteria for the activity of investors, on which the BIA evaluates them and what is the willingness of the state authorities to defend the public interest.
« Continuing Activity »
The procedure for granting preferential conditions to Class A investors in the acquisition of state or municipal property also provides for a subsequent system of control by the PAI on the implementation of the investment against which the privileges have been obtained. There is also a procedure for resolving disputes through arbitration at the Bulgarian Chamber of Commerce and Industry.
| Asked if new inspections would be undertaken for the implementation of the Alley First project, the agency’s executive director Mila Nenova replied that the last report of Holding Varna from January 31 this year. has shown « continuing activity ». |
It, as well as the development of the project, were traced through the documentation provided by the investor itself.
« The BAI has up -to -date information on the development of the Alley First project in connection with the annual reporting in accordance with the Rules for the Implementation of the Investment Promotion Act, Nenova wrote in the answers to the questions asked. The investor in the person of Holding Varna AD has submitted a regular report on the work carried out and the costs incurred. »
Control mechanisms
Despite this administrative activity, the real progress of the project still continues to be exhausted with the strengthening of about a kilometer of landslide slope, an ennobled pedestrian walkway with approximately the same length, power supply for domestic and fire -fighting, lighting, parking and waterproof facility.
An important detail of the BAI’s responses is that the examples of progress on the « Alley First » project are « completed design of sites included in the investment plan, for some of which were issued building permits and construction sites of public service sites were opened ».
However, there is still no trace of the promised tourism, science and sports centers in the properties along the coastal alley in Varna. And the example of the Varna « Alley First » is indicative of the deficit of control mechanisms with real effect in non -performance of contracts concluded between the state and private investors.
