What does "construction indexation" mean?

The Minister of Regional Development and Public Works, Ivan Shishkov, revealed a large-scale scheme under which the state was set to pay out 1.237 billion BGN (approximately 632 million EUR) in the form of indexation to construction companies for projects where no actual work has been carried out.

"This is a government robbery by a former government," Minister Shishkov stated regarding the suspended indexation methodology.

Critical sites and missing routes

According to the Minister, indexations were planned for huge advances paid out as early as 2018–2019. The most shocking examples are:

  • Lot 7 and Lot 8 of the Hemus Motorway – where there is not even a defined route.
  • Vidin – Botevgrad.
  • Landslide stabilization activities.

The future of road infrastructure

The Ministry is focusing on completing critical projects over the next 2-3 years, including:

  • Ruse – Veliko Tarnovo Motorway.
  • Black Sea Motorway (with interest from Turkish investors).
  • Tunnel under Petrohan.
  • Rila Motorway.

The goal is for the "map of shame" in road construction to be transformed into a modern European network through public-private partnerships and targeted funding for over 268 km of routes that are currently under construction or planned.