site.btaOutgoing Transport Minister Karadjov Signs 12-Year Passenger Rail Transport Contracts

Outgoing Deputy Prime Minister and Minister of Transport and Communications Grozdan Karadjov signed 12-year contracts with the selected contractors under the procedure for awarding passenger rail transport services. The ceremony took place at the Ministry of Transport and Communications here on Wednesday.

Following an open and competitive procedure, the Western region, which accounts for around 75% of all rail transport in Bulgaria, has been awarded to BDZ Passenger Services Ltd. For the other two regions – Northern (14% of services) and Southern (11%) – Ivkoni Express EAD ranked first in the procedure.

“For the first time in Bulgaria there will be more than one railway operator providing passenger services. And for the first time, a private operator will carry passengers on the national rail network following an open, non-discriminatory and transparent procedure,” Karadzhov said.

He stressed that by signing the 12-year contracts, the state is effectively completing a key reform set out in the Recovery and Resilience Plan. According to him, failure to meet commitments on time would have risked not only delays but also the loss of part of the funds earmarked for investment in rolling stock.

The Minister noted that the procedure was carried out in full coordination with the European Commission and following public consultations with trade unions, transport operators, representatives of academia and non-governmental organizations. “Instead of a formal decision that could later be challenged, we built a model that was pre-agreed and compatible with European rules,” he said.

Karadjov was adamant that the state is not withdrawing from the sector. “The state retains its key role – it defines the scope of the service, the quality standards, exercises oversight and provides the bulk of the funding,” he said. The rolling stock purchased with EU funds, as well as that yet to be acquired, will remain state property and will be made available to operators for the duration of the contracts, after which it must be returned in the agreed condition.

By December 13 this year, the operators must prepare their systems, arrange the allocation and maintenance of rolling stock, and ensure a smooth transition to the new model. “People’s expectations are clear – higher quality, more punctual trains and more comfortable travel,” Karadjov said.

He also highlighted the social dimension of the reform. The procedure provides for a total of 813 BDZ employees to transfer to Ivkoni Express while retaining their current working conditions. “These are not just staff positions, but professionals with experience and expertise. The stability of the system depends on them,” the Minister emphasized. 

According to Karadjov, two further steps remain to complete the reform – the adoption of the Public Transport Act by Parliament and the approval of the technical specification for the unified electronic ticketing system.

“The signed contracts are not a technical formality, but a key structural reform. This is a difficult but inevitable step, without which the modernization of rail transport in Bulgaria cannot take place,” Karadjov said.