Page 81 - SE Outlook Regions 2022

The third project, on the rehabilitation and expansion of Bulgaria’s gas
transmission network, should be carried out in three phases and should
increase the country’s annual transportation capacity to 2.4 bcm.

3.3.5 Construction

Bulgaria’s construction sector was among those seriously affected by
the coronavirus pandemic and the lockdowns imposed by the
authorities in 2020 and the first months of 2021. However, it started
showing signs of recovery in the second quarter of 2021 to swing to a
fall in the third quarter of 2021.

According to the GDP data, the construction sector contracted by a real
4.8% y/y in Q3 2021.

In 2022, construction could pickup if the new government restarts the
procedures for the construction of Hemus motorway as indicated. In
2021, the caretaker government has revealed schemes to siphon off
hundreds of millions of levs paid in advance for the construction of
stretches of the motorway.

Another project that could improve the construction sector’s
performance is the completion of the pan-European Corridor VIII. In
October 2021, Bulgaria, Albania and North Macedonia signed a
memorandum of cooperation for the construction of sustainable
infrastructure along the pan-European Corridor VIII.

The completion of Corridor VIII, which includes road, rail and port
infrastructure, will lead to better transport and economic connectivity, as
well as improved efficiency of transport services. Corridor VIII connects
the Bulgarian and Albanian coasts via North Macedonia.

3.3.6 Major Sectors

The tourist sector, which is among the most important for the Bulgarian
economy, is still struggling to recover from the coronacrisis. The
authorities had to support the sector since the outbreak of the
pandemic in spring 2020. The support will be needed in 2022 as well.

In December, the government approved an additional BGN6mn
(€3.1mn) in state aid for tour operators. The funds will be provided to
tour operators to compensate their clients for trips cancelled due to the
pandemic. The funds are part of a BGN70mn package included in the
2021 budget plan that should help the tourist sector to survive the
pandemic.

The funds will be distributed proportionally depending on the number of
requests for state aid and on the turnover of the companies for 2019.

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