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IPB demands review of the contract for 2.7 km of "Struma"

The institute claims that the price is record high and the procedure has limited competition. The contract with DZZD "AM Struma 3.1" is for 107.9 million euros with VAT

Oct 24, 2026 11:02 52

IPB demands review of the contract for 2.7 km of "Struma" - 1

The Road Safety Institute insists on stopping and reviewing the contract for the construction of the 2.7-kilometer section of the "Struma" motorway near Simitli. According to the organization, the value of 107,889,340.04 euros with VAT is record high, and the choice of procedure has limited real competition.

The design and construction contract was signed on October 6, 2026 with DZZD "AM Struma 3.1". Its construction cost is 89,907,783 euros excluding VAT, or 107.9 million euros including tax. Separately, the RIA has commissioned consulting services and construction supervision for over 3.1 million euros excluding VAT.

The section is between km 373+300 and km 376+000. It should take the transit traffic to Bansko and Razlog outside the borders of Simitli and provide the connection to the next section of the highway.

IPB: The price reaches nearly 40 million euros per kilometer

The institute estimates that the agreed amount is equal to about 39.96 million euros with VAT per kilometer. If only the new 2.57 km long left lane is taken into account, the value according to IPB reaches approximately 42 million euros per kilometer.

For comparison, the organization cites an estimated price of 38.64 million euros per kilometer for the most complex section of the future highway between Veliko Tarnovo and Byala, as well as the prices agreed in 2023 for the sections in the Kresna Gorge, which are between 23.28 million and 28.08 million euros per kilometer including VAT.

IPB claims that the contract includes 80,316,395.64 euros excluding VAT for construction and installation works and 8,031,639.56 euros excluding VAT for additional costs. According to the institute, this additional item represents a 10 percent reserve, which was not present in the price offers submitted during the market consultations.

The order was awarded without prior announcement

The procedure was conducted through negotiations without prior announcement with one invited participant – DZZD „AM Struma 3.1“. Before that, RIA conducted market consultations, in which 13 companies and associations participated.

According to data from Economic.bg, the indicative offers were in a wide range – from 51.38 million euros excluding VAT to 97.4 million euros excluding VAT. However, RIA chose direct negotiations with the previous contractor. The agency motivated the decision with the technical connection of the new section with the already constructed part, as well as with the need to avoid disputes over technological consistency and warranty liability.

IPB disputes these motives. The organization points out that the same 13 companies submitted proposals for a scope of 142 positions and that RIA assigned the conceptual solution to the specific contractor, and subsequently used its authorship as a basis for restricting competition.

The institute also claims that in a statement dated September 14, 2026, the Public Procurement Agency questioned the choice of procedure due to the lack of independent technical expertise. According to the IRB, the contract was signed despite these reservations.

They demand inspections and international expertise

The IRB insists that the implementation of contract No. C268811 / РД-37-79 be suspended until the method of pricing and the legality of the procedure are clarified.

The organization also demands that the Court of Auditors, the Anti-Corruption Commission and the European Prosecutor's Office verify the actions of officials from the RIA and the Ministry of Regional Development and Public Works. It also insists on an independent international technical expertise to determine the real value of the construction compared to market prices.

„The safety and modernization of Bulgarian roads cannot serve as a screen for draining public and European resources through opaque schemes“, states the Institute for Road Safety.