Background

Due to the extremely limited capabilities of municipal budget to provide funds for capital expenditures, the Municipality of Rakovski sought funding for technical and social infrastructure projects in partnership with foreign investors. The municipal team successfully applied to the Regional Initiatives Fund and was granted funding for two public works projects.

Practice

1. Public Works for Vultava Street, city of Rakovski
The project involved the building of 1 kilometer of storm sewer, pavement and sidewalks on one of the most important thoroughfares in the city, leading to the Roma neighborhood and the landfill. Construction works began in June 2000 to be completed by January 2001. The contractor, Road Construction Ltd., Plovdiv, was selected by a national bid. A pre-bidding conference was held to allow the companies ask their questions about the project. 29 companies from all over Bulgaria submitted bids. Total project value was BGN 220,000, of which the Municipality provided one-third.

2. Reconstruction of Water-Supply Network, village of Stryama
The project involved replacement of existing asbestos-concrete pipes and the building of new water mains in areas without water-supply. Replacement pipes were of high density polyethilene, and the total length of water mains replaced was 3 kilometers. Construction works began in April and were completed at the end of November, 2000. The contractor was Vodstroy Co., Plovdiv. Total project value was BGN 170,000, of which the municipality funded 10%.

The implementation of these two projects allowed the Municipality of Rakovski to partially solve one of the immediate problems it was facing for years, namely the provision of water-supply and sewer to the communities.

On the other hand, the construction works created 30 new jobs, a condition that was incorporated in the RFPs. As the unemployment rate in the municipality is extremely high, this provided an opportunity for people to make some money in support of their family budgets.

Results

The use of alternative funding sources allowed the Municipality of Rakovski to implement two public works projects. The projects were funded with support from the Regional Initiatives Fund, through funds allocated by the World Bank and managed by UNDP. The municipality funded the projects partially and generated 30 new jobs for unemployed people. The successful implementation of these projects made the Municipality of Rakovski feel that it could be a reliable partner to everyone who would be willing to finance similar projects.