The Sofia Municipal Council approved the assumption of debt of up to 367 million euros for a large-scale investment program, including the renovation of public transport and key infrastructure projects. On the air of Your Day, municipal councilors Boyko Dimitrov from PP-DB and Vili Lilkov from Blue Sofia united around the need for investments, but outlined different views on part of the costs.
Dimitrov explained that half of the financing will be provided by the European Investment Bank, and for the rest, an open procedure will be held to select a lending institution. The absorption is when there is a real need for payment, he emphasized and specified that the funds will not be spent all at once.
Lilkov defined the decision for a loan as correct and pointed out that Sofia has a good credit rating and the ability to service its obligations. There is no danger, because we will pay less than 10% of our own revenues on this debt, he said. According to him, however, some of the repairs included in the program should not be financed with debt, but through the municipality's current repair programs.
The two councilors also defended the inclusion of infrastructure projects outside the central part of the capital. Dimitrov pointed to Rozhen, Iliyantsi and Copenhagen boulevards, as well as sites in Vrabnitsa and Lyulin. A large part of the sites are actually in the northern part of the city, where we have said that there should be a focus, he said. Lilkov also highlighted the expansion of Lomsko Shosse, Chelopeshko Shosse and the connections with the Northern Expressway.
There are differences between the two regarding investments in public transport. According to Blue Sofia, part of the bus lines should be provided to private operators, who themselves should bear the costs of new rolling stock. Sofia's public transport does not need continuous financial injections, but a very serious reform, Lilkov said.
Dimitrov agreed that better management of municipal transport companies is necessary, but defended the planned purchase of new vehicles. According to him, out of about 600 buses, 200 of the oldest will be replaced. He allowed in the future for part of the public transport to be taken over by private operators, but under very clear conditions that would protect the public interest.
Regarding the price of public transport, Lilkov said that there is an understanding among the municipal councilors that the ticket should not increase in price until the end of the mandate. According to him, the new parking system can provide additional revenue and help maintain an affordable price for public transport.
The two also commented on the problems of Sofia District Heating. Dimitrov assured the capital's residents that there will be hot water and heating this season, but stressed that a serious conversation with the state is coming and that the company needs private investments, and in his opinion, the best option is a concession.
Lilkov made a much more alarming assessment. The debt is huge, the technical condition of the network is literally on the verge of collapse, he said. According to him, even the choice of an excellent new management will not be enough without large-scale external investment.