site.btaBulgarian Water Holding CEO: Investment in Water Infrastructure Impacts Pricing

Investment in the water distribution system is financed solely through revenue from water services and directly affects water prices, Bulgarian Water Holding (BWH) CEO Irena Georgieva said during a parliamentary hearing on Wednesday. 

The session, requested by MPs from the parliamentary group of the nationalist party Vazrazhdane, focused on the rising cost of water in most settlements across the country.

Georgieva said that 69% of the water distribution system managed by the holding's subsidiaries is made up of pipes designed to last 30-35 years. However, the majority of these pipes were installed in the 1970s.

She stressed that investment is the key approach to reducing physical water losses and pointed out that the infrastructure is owned by the state and municipalities.

Georgieva also mentioned that BWH is working on a method to calculate physical water losses. This is part of a pilot project focused on evaluating these losses.

Additionally, she said that a team within the holding is carrying out inspections to identify illegal connections to the distribution system. The aim is to apply best practices and take necessary actions when violations are detected.

Georgieva clarified that BWH does not directly invest in the water distribution and sewer system but does so through its subsidiaries. These subsidiaries submit investment proposals, and funding decisions are made by the holding’s management. Depending on the project's value, approval from the line minister may also be necessary.

At present, BWH is managing 19 investment loans worth BGN 123 million, financing the construction of 125 km of water pipelines and 5 km of sewer systems. BWH is also involved in the implementation of the National Recovery and Resilience Plan, with ongoing public procurement procedures, Georgieva added.