EKIP– Expert Club for Economics and Politics A Different Opinion
Is it normal to find solutions that benefit only a handful of protesters, even when the investor is completely wiped out?
Hardly anyone would dispute that Sofia is a city that is constantly developing. Positive changes are a fact visible to everyone. Sofia is also the city with perhaps the most active residents. Unfortunately, however, in recent months, the protests of citizens - most often occurring in neighborhoods, have been either provoked or instigated by politicians with obvious political goals.
There is no dispute that the leadership of the Sofia Municipality should listen to the wishes of the citizens. However, should this be done at any cost - even when it comes to the legal process? Is it normal that decisions are always made in favor of only a handful of investors, even when the previous investor is completely wiped out and has complied with all legal provisions? The rule of law and compliance with it are of key importance for the investment climate in any country.
Unfortunately, as is always the case, the final bill is paid by us, the taxpayers, and not by the interested politician X, nor by the protesters. A similar development is fully realistic with the “Grand Canyon” project of the Turkish investment company “Garanti Koza”.
Sources close to the company have already stated that Garanti Koza is considering withdrawing from Bulgaria as they are extremely disillusioned with the bureaucracy and the administration's treatment of them in recent weeks.
What's more - the filing of lawsuits for millions in European courts, including against municipal officials, is a matter of concern.
The investment project is the largest in the Mladost housing estate at the moment - worth 200 million euros. In addition to housing, a hotel (from the global chain "Cycotel") and a shopping center, the investor also wants to create a beautiful city park (11 acres) for the residents of the area.
Despite the fact that by law he has the right to seek the construction of part of the existing infrastructure and other privileges, the company does not do so. The investor only wants one thing - quick service from the relevant state and municipal institutions, as actually provided for by law. Instead, a group of protesters is on their way to stop the entire project.
Let's continue with the examples, because the story of the "Grand Canyon", unfortunately, is far from unique.
In the “Mladost” district, projects of some of the largest and most respected Bulgarian and foreign construction companies have been blocked. This not only prevents the issuance of new building permits, but also blocks the work on already started projects.
As a result, chaos is complete - some of the companies have already filed lawsuits for financial damages. Entrepreneurs have sold part of the housing "on green" and if they do not complete them within the appropriate time frame, they will owe compensation to the buyers. Meanwhile, dissatisfied property owners in the “Mladost” district have united in an initiative committee, which will soon be transformed into an illegal organization. Since the end of November until today, the municipality in “Mladost” has practically not been operating from business. All documents related to the construction and investment process are blocked - changes to existing structural plans, as well as the approval of new ones, issuance of visas for planning and design, issuance of permits for construction, opening of construction sites.
The committee explained that they had reported to the police and the prosecutor's office that unknown persons were entering their property, breaking down fences, lying in front of excavators, calling false alarms on 112, and trying in every way to sabotage the construction. And this is the case, even though the investors have construction permits, for which they have paid the necessary fees, even though they pay taxes to the Sofia Municipality for the plots, and even though they do not want to do anything outside the parameters established in the regulations.
Specifically, in “Mladost”, investments are blocked mostly due to the actions and inaction of the new mayor and his unwillingness to comply with the legal framework. There is no explanation why the new administration is unnecessarily delaying and playing games with construction entrepreneurs. Single problem cases in the area are presented as mass practice and public opinion is manipulated - it is suggested that almost all construction and investment projects in "Mladost" are illegal. Such behavior and unprofessional attitude towards business says only one thing - the new administration does not have the capacity and desire to fulfill all the obligations specified by law.
The precedents in the Mladost district for the cessation of fully legal surveillance in the last year, unfortunately, lead to a deterioration in the investment climate in other municipalities as well.
The political ruckus also reeks of the recent protests of parents opposing an investment project in the yard of School No. 139 in the Lozenets district, where the entire project was suspended as a result of the protests.
I recall that about two months ago, parents went out to protest and collect signatures in favor of a housing cooperative in the immediate vicinity of the capital's 139th elementary school "Zakhary Krysha". Despite the fact that the investor had purchased the land in a completely legal manner from the previous owner, the reaction of the capital's municipality was to stop the project.
The mayor of Sofia, Yordanka Fandakov, is particularly sensitive to the problems of the schools. That is why she has repeatedly stated that she will consider the demands of the protesters. However, the plot has been privately owned since 1996 and its price is approximately 5 million leva.
The renovation of the building, which the school wants to expand, will cost no less than 2.5 million leva. However, these funds are not provided for in the 2017 budget, which means that the school will not be able to use the acquired property for another 5 years. Meanwhile, the preservation of the contested building will not enhance the school yard and it will continue to overshadow it. Adding to this the fact that a completely new school could be built for 6.5 million leva, it is considered a more reasonable and pragmatic solution.
Moreover, there are neighborhoods in Sofia where schools are in much greater need of renovation. Funds from the municipal budget should also be allocated for them.
What will be the reaction of other schools in the capital if only one school receives the estimated 6.5 million leva? Such a decision would be neither fair nor economically justified.
The original article is uploaded to: http://m.24chasa.bg/mnenia/article/6165471
The new administration had no desire...
In reality, very few people have been replaced, and those who registered fraudulently purchased plots of land are the same ones from this "old administration".
Sofia is "the best" at the expense of sucking up the countryside.
"However, the land has been privately owned since 1996 and its price is approximately 5 million leva."
Well, such a plot of land was fraudulently bought under the Business Park for 1000 leva. There was a detailed investigation. It was sold to the "investor" by the mayor for less than one leva per square meter!
Come on, at least once, shake hands with the new mayor and RESPECT the law - this mayor was elected, and Mrs. Fandakova should be careful with her other district mayors, not to allow such frauds with properties - fields between blocks.
And this investor is "respected" but he acquired a property of acres for 1,000 leva (under one leva per square meter)!
The frauds were big, that's why the suspension is big...