The Bulgarian Government is to start working on projects in the water sector worth more than 200 million leva.

Funding for the projects has been provided by the World Bank (WB), which granted Bulgaria a loan totalling 109 million euro, the Regional Development and Public Works Ministry said, as quoted by investor.bg.

The projects envision several dams including Neikovtsi near Tryavna and Luda Yana near Panagyurishte.

The rehabilitation of Studena dam near Pernik will be done through the same programme.

Implementation of the projects will start in April 2008.

State budget funds will be used for the Kyustendil, Byala and Cherni Osam dams.

Deputy Regional Development and Public Works Minister Dimcho Mihalevski said that problems with water supply in the country would be resolved by 2012 with the building of six to eight dams.

He said that currently nearly 600 small settlements had water shortages