site.btaUPDATED Innovation and Growth Minister Donchev Addresses Water Crisis, Risks to National Recovery and Resilience Plan Funding

Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev took part in Parliament’s Question Time on Friday. Answering a question from the Continue the Change – Democratic Bulgaria parliamentary group regarding whether the government plans to allocate funds for the reconstruction and construction of water pipelines as a solution to the country’s water shortages, Donchev said that the crisis in the water sector is not solely linked to actions concerning the water supply system.

"The climate is changing, and we must also consider the need to build at least five new reservoirs to ensure water supply for both the population and [its] irrigation [needs]," he emphasized.

Donchev addressed water supply issues in some settlements in Northern Bulgaria. He noted that the investment in completing the main water pipeline to the town of Sevlievo must be finalized, recalling the nearly BGN 10 million allocated over the years for its rehabilitation.

Regarding the water problems in Lovech and Pleven, the Innovation and Growth Minister stated that the construction of supply infrastructure alone would not be sufficient to resolve the issues in these two regional centres, stressing that additional water sources are also necessary.

He assured members of Parliament that the government's efforts would be focused on resolving the challenges in the water and sanitation sector, emphasizing the need for comprehensive consolidation within the industry.

Donchev also responded to a question from the parliamentary group of There Is Such a People regarding the status of the implementation of the National Recovery and Resilience Plan (NRRP) and the risk of losing EU funds. "A response from the European Commission regarding Bulgaria’s request for the second tranche under the National Recovery and Resilience Plan, submitted at the end of 2023, is expected in the coming days," he noted. However, given that the required reforms have only been partially implemented, Donchev warned that he expects Bulgaria to receive "zero" funding of the second tranche.

According to him, Parliament and the government will have six months to assess which of the reforms in the plan are feasible in order for the country to receive at least part of the funds from the second payment. He recalled that a total of nine payments are planned under the EU’s Recovery and Resilience Facility.

In addition to the delayed reforms, Donchev pointed out that an even bigger issue is the spending side of the NRRP. "So far, only about 11% of the funds have been disbursed over four years, which amounts to less than EUR 700 million. The deadline for payments is August 2026, meaning we have a year and a half to spend the remaining 89% of the funding," he said, adding that the government’s only goal at this point is to minimize the damage. In this regard, he stated that all responsible ministries have been mobilized, and negotiations with the European Commission have begun concerning the reforms outlined in future payments.

According to the data presented by Donchev in Parliament, Bulgaria has so far received EUR 1.36 billion under the NRRP—through the first tranche and an advance payment.

Donchev also stated that, in relation to the operational programmes, he will strive to provide simpler schemes that, in turn, will lead to tangible results for both businesses and citizens. According to him, from an economic standpoint, the country needs quick financing.