# Bulgarian infrastructure procurement and oversight reforms > Live situation record from CLSTR: https://clstr.news/situations/bulgarian-infrastructure-procurement-and-oversight-reforms > Updated: 2026-10-22T06:29:10.000Z. Sources: 11. Developments: 6. Bulgaria has initiated a series of reforms to increase oversight and accountability in public procurement and infrastructure construction. Minister of Regional Development and Public Works Ivan Shishkov announced that inspections will expand beyond documentation reviews to include direct on-site assessments of construction quality. This measure is intended to ensure that national and European Union funds are used for high-quality infrastructure rather than mere fund absorption. Following reports of fraud involving false documentation and unfinished projects, the government has introduced a new financing model for major highway projects, such as the Hemus Motorway and the Montana-Vidin motorway. To prevent the misuse of funds, the state will move away from advance payments in favor of deferred payments over five to six years, contingent upon proven quality. Additionally, the Directorate for National Construction Control (DNSK) will conduct monthly on-site inspections of all major infrastructure sites. Legal actions have already been initiated, with the mayors of Asenovgrad and Lovech referred to the prosecutor’s office following discoveries of financial abuse. Expanding on these transparency efforts, the Ministry of Finance has proposed a mandate requiring all payments within the construction sector—including contracts for installation, material deliveries, and equipment—to be made via bank transfers to ‘improve the traceability of financial flows and prevent revenue concealment, undeclared employment, and the use of fictitious expenses.’ Recent developments indicate ongoing systemic challenges. The Bulgarian Commission for Protection of Competition (CPC) reported a surge in public procurement complaints, with 905 active proceedings as of October 2026. CPC Chairman Rosen Karadimov noted that over four-fifths of these involve municipal procurement, with a focus on combating tender manipulation and the abuse of appeal rights. Further scrutiny has targeted the railway sector. ## Claims - Procedures exceeding 355 million euros have been halted at the National Railway Infrastructure Company (NRIC). (corroborated by 5 sources) - Contracts worth over 20 million euros have been terminated. (corroborated by 5 sources) - Audits have resulted in 17 files being opened at the European Public Prosecutor's Office. (corroborated by 5 sources) - One investigation involves suspected embezzlement of EU funds, transfers to shell companies, and cash withdrawals. (corroborated by 5 sources) - The European Anti-Fraud Office (OLAF) is investigating BDZ irregularities. (corroborated by 5 sources) - Bulgaria expects to have a specialized search and rescue vessel by the end of 2029. (corroborated by 5 sources) - Audits revealed irregularities in Bulgarian State Railways (BDZ) regarding rolling stock procurement and contract changes. (corroborated by 5 sources) - NRIC procedures included lack of secured funding and criteria favoring a single bidder. (corroborated by 5 sources) - Cooperation with North Macedonia on Corridor VIII is progressing. (corroborated by 2 sources) ## Timeline ### 2026-10-22: Bulgaria infrastructure declared in ‘Red Code’ due to funding gaps Bulgaria's Minister Ivan Shishkov declared a ‘Red Code’ for Northern Bulgarian infrastructure, citing road projects awarded without secured funding and critical repairs needed for the Topli Dol tunnel. 2 sources. https://clstr.news/cluster/bulgaria-infrastructure-declared-in-red-code-due-to-funding-gaps ### 2026-10-18: Bulgarian railway authorities halt 355 million euro procurement amid fraud suspicions Bulgaria has halted over 355 million euros in railway infrastructure procedures and terminated 20 million euros in contracts following audits revealing suspected fraud and irregularities. 5 sources. https://clstr.news/cluster/bulgarias-transport-ministry-halts-355-million-in-railway-infrastructure-orders ### 2026-10-12: Bulgarian Competition Commission reports surge in public procurement complaints Bulgaria's CPC reports over 1,000 public procurement complaints in 2026, with a focus on municipal contracts and preventing tender manipulation to protect EU-funded infrastructure projects. 3 sources. https://clstr.news/cluster/bulgarian-competition-commission-reports-surge-in-public-procurement-complaints ### 2026-10-06: Bulgaria proposes cashless construction payments and procurement changes Bulgaria is proposing mandatory cashless payments in the construction sector to improve financial traceability and has updated public procurement rules to exclude advance payments from inflation indexation. 2 sources. https://clstr.news/cluster/bulgaria-proposes-cashless-construction-payments-and-procurement-changes ### 2026-09-29: Bulgaria implements new financing model for major highway projects Bulgaria is implementing a new financing model for major highways, requiring completion within three years without advances to ensure quality and prevent corruption in public procurement. 2 sources. https://clstr.news/cluster/bulgaria-implements-new-financing-model-for-major-highway-projects ### 2026-09-28: Bulgaria to intensify oversight of public procurement and construction Bulgarian Minister Ivan Shishkov announced stricter oversight of public procurement and construction quality to ensure national and EU funds produce high-quality infrastructure and road safety. 4 sources. https://clstr.news/cluster/bulgaria-to-audit-public-construction-procurement-nationwide --- Cite as: Bulgarian infrastructure procurement and oversight reforms. CLSTR, https://clstr.news/situations/bulgarian-infrastructure-procurement-and-oversight-reforms