Bulgaria's Road Infrastructure Agency (API) said today it has imposed penalties on Radnevo Land DZZD, the contractor on the major repair of the III-5504 Madrets–Galabovo road, because the work was not finished on time. The contract deadline passed on 5 August 2026, and the contractor has been late since then.
The contractor owes €16,565.86 excluding VAT for each day the construction work is late. The penalty runs until the work is finished, but it cannot top 30% of the value of the construction work, or €2,484,878.54 excluding VAT. API says the money it has yet to pay under the contract fully covers that maximum.
The repair covers nearly 16 km of the third-class road, from km 0+000 to km 15+700, through Madrets, Iskritsa, Mednikarovo and Obruchishte (Radnevo, Galabovo). Construction began on 12 June 2024. The design-and-build contract is worth €10,111,308.24 including VAT.
API gave the details after videos about the repair appeared on social media. The agency warned that work which does not meet legal requirements will not be accepted or paid for. The contractor will also pay a penalty of 5% of the contract's sum for construction work on it. The independent construction supervisor will decide whether the work is of poor quality.
If poor work is proved, API can keep all or part of the performance guarantee. This is an insurance policy worth €421,304.51 excluding VAT, and the contractor must keep it valid until the road is fully finished.
During the work, API and the supervisor repeatedly noted a risk of delay and told the contractor. They asked it to bring in more people and resources, and to send written positions on how it would catch up. The size of the penalties is set in the contract.
API says it has used every legal option to get the repair finished. It says the aim is for the road to meet legal requirements and to be safe to use.
The INFRACONTROL 2022 consortium, which includes PATNKONSULT 2000 EOOD and EN AR KONSULT EOOD, supervises the construction. Its contract is worth €254,377.94 including VAT. Radnevo Land DZZD includes BG LAND KO AD, VIA PRO ENGINEERING OOD and EKJ Bulgaria Consulting Engineers EOOD.