The construction of the Luda Yana dam in the southern Bulgarian municipality of Pazardzhik is to start in 2013.

The project is to be completed in 38 months and its cost has been estimated at EUR 1,392 M, VAT included, including the contractor's control over the construction of the water reservoir.

According to a media statement of the Ministry of Regional Development and Public Works, the Luda Yana dam will contain 19.94 million cubic meters of water.

The project will be built with funding from the World Bank loan.

Dobromir Simidchiev, Deputy Minister of Regional Development and Public Works, signed a contract Wednesday with Greek engineering consortium G.Karavokiris-Edafos for site exploration, designing of the dam and preparation of the tender documents for the construction of the facility and an accompanying drinking water treatment plant.

The dam is to supply water to over 45 000 people in the region of Panagyurishte.

The southern Bulgarian region currently relies on the Maritsa highway pipe which is over 30 years old and is very run down.

Regional Development Minister Lilyana Pavlova invited Austrian companies to participate in tenders for the construction of dams and water supply and sewerage infrastructure in Bulgaria during an Austrian-Bulgarian business forum in Vienna.

Pavlova, as cited by Bulgarian Standard daily, explained that the Ministry of Regional Development and Public Works was preparing the tenders for the construction of three dams near Plovdiv, Neykovstsi and Luda Yana.

She made clear that the three projects worth a total of EUR 500 M would be built using a loan from the World Bank.