1. 9 th Cohesion Fund Monitoring Committee CR 1164/94 ISPA Measure 2002 BG 16 P PE 018 Shoumen Water Cycle Improvements

2. ISPA Measure 2002 BG 16 P PE 018 Shoumen Water Cycle Improvements The total rate of the financial execution is 82%. 9 th Cohesion Fund Monitoring Committee CR 1164/94

3. 1. Works Contract WWTP - terminated The arbitration procedure started by the Works Contractor in relation with the deductions made contractually by the Employer at a rate of 1 443 915 € is ongoing. 9 th Cohesion Fund Monitoring Committee CR 1164/94

4. 2. Works Contract Rehabilitation and Reconstruction of the Water Supply and Sewerage and Network System of the city of Shoumen Commencement Date: 24 th April 2009 Completion Date: 23 rd December 2010 Physical execution 98 % Financial execution 100 % of the ISPA Financing, 72% of the total contracted amount – 20,4 millions € Completion the Contractor’s obligations within the originally concluded duration Additional Works at a rate of 484 k€ have been awarded to the Contractor in order to be kept Bulgarian regulations in accordance with the official Engineer’s statement. The completion date was reconcluded on September 01, 2011. 9 th Cohesion Fund Monitoring Committee CR 1164/94

5. 2. Works Contract Rehabilitation and Reconstruction of the Water Supply and Sewerage and Network System of the city of Shoumen 9 th Cohesion Fund Monitoring Committee CR 1164/94

6. 2. Works Contract Rehabilitation and Reconstruction of the Water Supply and Sewerage and Network System of the city of Shoumen 9 th Cohesion Fund Monitoring Committee CR 1164/94

7. 2. Works Contract Rehabilitation and Reconstruction of the Water Supply and Sewerage and Network System of the city of Shoumen 9 th Cohesion Fund Monitoring Committee CR 1164/94

8. 3. Service Contract Technical Assistance for Water Cycle Survey, Detailed Designs, Works Tender Dossiers Preparation and Works Supervision for Shoumen Water Project Service contractor: DIWI/IGIP/LOPP Commencement Date: 1 st August 2007 Completion Date: 31 st January 2012 Financial Execution: 88 % 9 th Cohesion Fund Monitoring Committee CR 1164/94

9. Compliance with Article 8 of the Financing Memorandum Art. 8.4.a) - under implementation Evidence that: - The industrial wastewater is pretreated in accordance with the European directives and/or recycled as appropriate - The pretreatment and/or recycling of industrial waste water are monitored and enforced by the appropriate environment authorities - The industrial loads are not harmful for the designed treatment process - An appropriate charge will be introduced for industries that are acceptable to the Commission, based on the quality of effluent and on the cost of treatment Art. 8.4.c) The Master plan was approved by EC. The article is considered as fulfilled. /Letter No Au 182 154 Brussels, REGIO 12/SP/dd dated 18.Feb.2011/ 9 th Cohesion Fund Monitoring Committee CR 1164/94

10. Thank you for your attention!