The Bulgarian government and the German bank Kreditanstalt fuer Wiederaufbau (KfW) have signed an agreement for a loan for the construction of dikes.

The loan of EUR 34.4 M will be provided for the construction of flood and landslide prevention facilities in the Danube cities of Ruse and Silistra and the Black Sea resort town of Pomorie under the “Technical Infrastructure” Program of the Bulgarian government.

The credit agreement was signed by Bulgaria’s Finance Minister Simeon Djankov, Deputy Regional Development Minister Lilyana Pavlova and the first VP of KfW for Europe Roland Siller. German Ambassador to Bulgaria Matthias Hoepfner will also be present at the ceremony.

More specifically, the money will be spent on infrastructure facilities along the Rusenski Lom river near Ruse, landslide prevention infrastructure on Silistra’s Danube coast, and reinforcement of the Lahana Cape on the Black Sea near Pomorie.

Of the total amount of BGN 85 M needed for the three projects, BGN 18 M will come from the state budget, and the three respective municipalities are not required to contribute any money.

The vast amount of the BGN 85 M – about BGN 54 M – will go for the reinforcement of the banks of the Rusenski Lom river; BGN 17 M will be spent on the Danube bank near Silistra, and BGN 9 M on the project in Pomorie. All three projects should be completed in 3 years.

The KfW loan has a fixed interest of 3.8%, with a 20-year repayment period and a 5-year gratis period.

Bulgaria’s Finance Minister Simeon Djankov cited the granting of the KfW loan as a proof that the Bulgarian government is efficient in attracting foreign funding. He is going to visit Ruse and Pomorie on Friday in order to present the project to the local mayors and administrations.

"I am very happy that this agreement as been signed as the result of the efforts of both sides. In the last 20 years, the KfW has allocated EUR 320 M for various projects in Bulgaria. The Danube causes a lot of damage not just in Bulgaria but also in other countries, which is why this project is very important for the country,” declared German Ambassador Matthias Hoepfner.

“I believe that his agreement will help prevent floods in these municipalities. Floods caused a lot of damage in Bulgaria this year, too. I congratulate the Bulgarian government for allocating money to such projects, even in a time of crisis,” said the KfW VP for Europe Roland Siller.

A video of the ceremony with statements of the two sides watch HERE