The Prosecutor’s Office launched a preliminary check for the loan of the Municipality of Blagoevgrad for a spa complex

The District Prosecutor’s Office in Blagoevgrad launched a preliminary check for the occasion of media publications about the intention of the Municipality of Blagoevgrad to withdraw long-term debt in order to realize the investment intention “Scapto Therme Aqua Park Bachinovo”. The project is for rehabilitation and restoration of the green park area in the Bistritsa River Basin, repair of a water park, construction of a recreation area and new parking lots and other activities.

In connection with the preliminary check, the Blagoevgrad District Prosecutor’s Office asked the Mayor of Blagoevgrad Municipality to provide information on outstanding debts as of 31.12.2021, with regard to publicly disclosed data on the difficult financial situation of Blagoevgrad Municipality. The prosecutor’s office believes that the justification of the project, the business plan and the plan-account should be applied, taking into account the specific economic and demographic situation in the Municipality.

The mayor was asked whether a local referendum on the need to realize the investment intention “Scapto Terme Aqua Park Bachinovo” and the related assumption of long-term municipal debt was discussed.

The short term given by the Blagoevgrad District Prosecutor’s Office to the municipal administration to get answers to the questions is impressive. According to the press release of the prosecutor’s office, the deadline is February 1, 2022, and two of these days are weekends.

The state prosecution notes that information about the project is published on the website of the Municipality of Blagoevgrad. An invitation has been issued for its public discussion. The amount of the debt for the implementation of the project is set at BGN 29,170,000, with a term of use and repayment of up to 240 months. Sources for debt service are indicated – current and future cash receivables, representing own revenues of the Municipality of Blagoevgrad. It is announced that the investment intention will be divided into two phases, as the proposal for taking on debt for the first of them is for BGN 17,784,538.

 

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