What is an investment proposal?

24.03.2021by ecoadm0

The term “investment proposal” is defined in the Environmental Protection Act and its annexes. It is a key stage in the conduct of the  Environmental Impact Assessment  (EIA).

What is an investment proposal?

In the spirit of the additional provisions accompanying the texts of the law, this is a proposal for  realization of construction works or construction of schemes or installations,  or other type of intervention in the natural environment and the natural landscape. This definition also applies to the extraction of ores and other minerals.

In which cases are we obliged to prepare an investment proposal?

In the EIA procedure  the investor is called the contracting authority.  This is because it is he who is obliged to present the Project for each of his projects, which falls within the above description. This is how the procedure for environmental impact assessment is started.

With the approval of the  authorized body, work can be started directly.  In the cases when the regulator assesses, a report with a more detailed environmental assessment is prepared, or the project is blocked at the proposal level.

What is an investment proposal?

Commercial sites and offices, as well as residential buildings, are not subject to a requirement for the Project under the EPA.

What should it contain?

The proposal must  list all the activities that will be carried out.

  • For example, in the case of a processing consideration,  we must provide its capacity.
  • If it is a question of construction or reconstruction of a room for cattle,  we must describe for how many animals a place will be provided and what will be their way of breeding

For a press-thermal workshop, the energy of the presses, etc. will have to be mentioned.

What is an investment proposal?

It is necessary to describe in detail all the parameters of the construction and installation activities to be performed, as well as the expected results from them. We also need to indicate  the materials that will be used in the implementation.

The water sources are also described, as well as the volumes of water that will be needed for the  implementation of the Project.  A plan for the use of electricity is attached – how much will be needed for the operation of the respective facilities. Remember that if in the process of approving investment proposals, if they are extended or amended in connection with  App. 1 and 2 of the EPA  and if this will lead to a significant negative impact on nature, they must also be subject to environmental assessment.

The Project must also include the specifications of the project in its operation phase. In particular, the following shall be provided:

  • projected emissions
  • raw materials
  • auxiliary materials and resources
  • generated waste and so on.

What is an investment proposal?

To explain the difference between different types of consumables, we will take for example a classic animal farm. In this case, the raw materials will be the birds we raise, as well as the feed materials we intend to feed them.

As auxiliary materials we could mention  the detergents we use in the premises  to maintain hygiene and a healthy environment. As resources, we initially define the electricity and water flow, which we consume in the process of realization and operation of our facility. We need to describe all this in our II.

In accordance with the procedure under the EPA,  the investment proposal is submitted together with a complete set of documents,  including a document for paid fee, completed questionnaire according to Appendix. 2 of the Ordinance on EIA with contact of the contracting authority and summary of the submitted II, as well as documentation that can prove that public access to the information under this Annex of the Ordinance, as well as information on the public interest.

What next?

After the preparation of our investment proposal, it is time to apply with it to the relevant competent authority, which should consider it. Once this is done, we will receive  the decision of the authority in electronic or paper form, respectively,  depending on how we have stated it.

Is it possible that our investment proposal will be rejected?

Unfortunately,  there is always such a possibility.

The purpose of submitting the Project is to  inform the environmental regulator of the country about our intention as investors . The most important thing is to outline all the potential risks to the environment that may arise, as well as whether and what measures can be taken to prevent them. In turn, he assesses whether these dangers are negligible, unexplained or in need of proper prevention.

The first case, of course, is the  best case scenario  we can hope for. With it, our investment proposal will be given the green light and the EIA process will end successfully for us.

In the second case, victory is still far away – a requirement will be required within a legal timeframe  to draw up an environmental assessment report on the project (EIA). Attached to this report is our investment proposal.

It may turn out that our proposal was rejected.  This can happen for two main reasons:

1) if the risk to nature is too high

2) if the circumstances are not well presented, the Project is not complete or properly drafted.

It is especially unfortunate if we lose the blessing of the environmental regulator due to a poorly prepared investment proposal. Trust only experts in the field of EIA procedures and preparation of the Project.

What happens if we do not have a coordinated investment proposal?

The regional inspectorates of the Ministry of Environment and Water and the Ministry are the competent bodies,  which monitor the fulfillment of the obligation for the Project under the Environmental Act and other relevant regulatory framework. They make both periodic and random checks for the correctness of all implemented projects, respond to received signals from citizens or organizations that for a construction project has not been submitted EIA, or the intention has been implemented contrary to the decision of the regulatory body.

If we do not comply with our responsibility as an investor and assignor, we are subject to solid administrative penalties (fines) imposed by the relevant body.

Can the decision of the Investment Intermediary be appealed?

Yes. This is done in due course  by virtue of the APC of the Republic of Bulgaria . Accordingly, the local administrative courts assess whether an investment project was lawful or not.

There are so many things to keep in mind when preparing an investment proposal for a project. Each of these things can go wrong and ruin our plans completely. Obtaining regulatory approval should not  fall victim to poor strategy or implementation.

Save yourself the trouble and trouble associated with the  environmental assessment procedure . At Ecoabonament.bg you will find consultations on all issues related to EIA and your investment proposal.

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