The Art of the Deal: How Suhindol Municipality Gave 10,000 Decares of Pastureland to an Investor in Exchange for Streetlights, Utility Bill Payments and a Minimum Wage

In violation of the law, the mayor and municipal council of Suhindol, and the director of the Regional Inspectorate for Environment and Water (RIEW) – Veliko Tarnovo, are fast-tracking the construction of a large solar park, which will destroy almost half of the municipality’s pastureland.

The decision of the director of RIEW – Veliko Tarnovo to approve an application for the early implementation of the project, which envisions developing a 500 MW solar photovoltaic park on some 9,500 decares of permanent grasslands and agricultural land, was repealed on 28 January by the Administrative Court – Veliko Tarnovo.

However, even after the court’s decision, questions remain about the EUR 450 mln. project.

The proposed solar park has sparked protests among Suhindol’s citizens. The investor, Wabi-Sabi Alpha OOD, is investigated by the public prosecution in connection with the removal of trees and shrubbery from municipal plots. In the spring of 2025, the company levelled a 700-decare plot after the mayor of Suhindol issued a permit for the clearance of self-seeded trees and shrubs.

“Unfortunately, we came across yet another example of how the undoubtedly important priority of supporting renewable energy is used to provide unfair advantages for certain investors in detriment to the interests of citizens and nature,” said Lora Georgieva, legal expert at the Anti-Corruption Fund Foundation (ACF).

Raw end of the deal

In a decision from 2023, Suhindol’s municipal council has outlined the social and material benefits pledged by the investor: creating jobs, installing new streetlights, partially covering the electricity bills of six public buildings, remuneration for one staff member at the local museum (BGN 1,500 per month) for two years, and support for the local football team over five years. What will the private company receive in return? The right to use a municipal plot, equal in size to 41% of the municipality’s pastureland and 11% of the agricultural land, for a period of 36 years.

What is public domain municipal property?

In addition to the dubious economic benefit for the municipality, the deal violates the law. The mayor and municipal councillors are abusing municipal property in the public domain, trying to convert it into a private domain without valid grounds.

“As per the Bulgarian Constitution, public domain municipal property belongs to citizens. Such plots are managed by municipalities with the goal of fulfilling the needs of local communities. They cannot be used for commercial ends,” said Irina Mateeva, a zoologist-biologist and member of the additional panel of the expert consultative body of RIEW – Veliko Tarnovo.

According to Mateeva, it is possible to build a solar photovoltaic plant on municipal property in the public domain only if the plot is leased for a period of no more than 10 years following a public tender procedure. Such a procedure has not been conducted.

How to influence an expert panel?

The meeting of the expert consultative body of RIEW – Veliko Tarnovo took place on 13 January. A week later, Eng. Stanislav Stanchev, director of RIEW – Veliko Tarnovo, issued a decision approving the investor’s application for preliminary implementation of the project.

Mateeva and the biologist Pencho Pandakov are two of three members of the consultative body who voted “against” during the meeting. Both said that representatives of the investor tried to influence the procedure, interrupting the experts, using abusive language, filming them, obstructing the debate and preventing voting on specific proposals made by experts during the meeting.

“The director of RIEW – Veliko Tarnovo should answer the question of what motivated his decision to allow an unusually large number of representatives of the investor at the meeting of the expert panel,” said Georgieva.

In addition to the above-mentioned violations, before the meeting, the experts were not provided with the full set of documents. Furthermore, they only had two days to review the facts and provide opinions.

To save nature, let’s destroy it

Environmentalists claim that the proposed solar project will negatively affect two protected habitats and many species of rare plants and animals, for example, bats. This information, however, has been omitted from the environmental assessment report produced on behalf of the investor.

Despite the inconsistencies and the fact that RIEW’s own biodiversity expert voted against the project during the meeting, the public institution’s director approved the investor’s application. Eng. Stanchev motivated his decision with the need to defend important interests of the state, linked to the need to increase the share of renewables. The decision refers to the EU Directive on the promotion of the use of energy from renewable sources.

However, the director of RIEW – Veliko Tarnovo has missed an important detail. Article 15c of the new Renewable Energy Directive states that member states should prioritise the development of renewable energy on artificial and built surfaces, as well as degraded land not usable for agriculture. The directive states that Natura 2000 sites and other areas important for biodiversity, such as permanent grasslands, are to be excluded.

What is more, Bulgaria had until May last year to map areas for the accelerated development of renewables – an obligation which has not been fulfilled to date. Last year, the European Commission initiated an infringement procedure against Bulgaria because of the country’s failure to fully transpose the directive.

“Unfortunately, the Suhindol project is just one example of the way in which renewable energy is being developed in Bulgaria. This is a model which contradicts European legislation, harms the interests of local communities, and leads to the destruction of forests, pastureland and agricultural land,” said Boyko Stankushev, director of ACF.