Zheleznitsa Tunnel: One Year of Construction and Several Facts*


The official construction of Zheleznitsa Tunnel on Struma Motorway began in October 2019. The public procurement for the site is divided in three lots – each with a different completion deadline and separate contractors.

Lot 1 contractor: consortium of companies of Glavbolgarstroy Holding

This section is assigned the shortest completion deadline which, at the moment, expires in February 2021. For the past year, the construction and assembly works amount to 36.5% while, for the remaining almost 2/3 of the works, the contractor has only five months. One of the gravest challenges for the contractors is the landslides processes in the north end of the section.


According to data provided by the Road Infrastructure Agency, the contractor for lot 1 has not generated additional expenses**. Note should be made of the relatively low value of the funds expended in comparison to the other two lots. The total amount stands at BGN 3,532,839.49 inclusive of VAT or 9.82% of the contract price. Of it, BGN 117,600 is for design and the remaining a little more than BGN 3.4 million is an advance payment for the construction.

Lot 2 is implemented by a consortium consisting of GP Group, Global Construction and the design company Via Plan.

The tunnel itself is located in the second section and the contractors have another 18 months to complete it. The progress of construction and assembly works for the first year is 42%.


As of October 2020, the contracting authority has expended BGN 78,258,874.32 inclusive of VAT or 35.18% of the total contract value, including: BGN 384,000 for design works, a little over BGN 21 million – an advance payment for construction and assembly works, and close to BGN 56.7 million for completed construction works. The additional expenses have been used up almost completely – 92.68%; moreover, given that less than half of the construction works have been completed.

Lot 3 is serviced by PST Group supported by two subcontractors.

For twelve months, the construction works in the section measuring 1.4 km are 47.92% ready; to complete the other half of the construction works, the contractor has another seven months. As regards the financial performance, the amount expended stands at BGN 9,031,258.02 inclusive of VAT or 40.81% of the contract value. Of it, BGN 184,800 is for design, approximately 2.1 million – advance payment for construction, and the remaining 6.75 million is for completed construction and assembly works. The additional funds used make up 39.62%.


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*The data is provided by the Road Infrastructure Agency and is up-to-date as of October 2020.

**The additional expenses are part of the overall contract value and are calculated as 5% of the value of the construction and assembly works. The purpose of these additional funds is to cover expenses for activities and materials unforeseen at the time the bid was submitted.

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