site.btaGovernment Approves Key Transport Reforms Tied to Recovery and Resilience Plan Payments

The government has adopted two key decisions related to reforms directly linked to the fourth and fifth payments under Bulgaria’s Recovery and Resilience Plan (RRP), outgoing Deputy Prime Minister and Minister of Transport and Communications Grozdan Karadjov said at a briefing at the Council of Ministers on Wednesday.

Karadjov warned that if the reforms are not completed, RRP funds will be either significantly reduced or lost entirely. Karadjov stressed that the measures are long overdue due to inaction by previous governments and are aimed at substantially improving the quality, modernity, and accessibility of transport services.

The first decision is the approval of a brand-new draft Public Transport Act, which will be tabled to Parliament. Karadjov said that Bulgaria has never had such a law before and that it places passengers at the centre of the transport system. The draft legislation provides for the creation of a national transport system that will integrate rail, bus, air, and water transport schedules, with rail transport as its backbone.

He said public transport in Bulgaria currently does not function as a system but in a fragmented way, leaving entire regions without any service. According to municipal data, 738 settlements have no public transport at all, while around 600 more have only formal services that do not operate in practice.

Under the new law, each settlement will be guaranteed at least three daily transport connections, coordinated transfers, and feeder services. It also envisages the development of a modern digital system with real-time information, requiring every carrier to provide up-to-date data on timetables and routes.

A key element of the reform is the introduction of a unified electronic ticket and clearing system, enabling travel with a single transaction across different modes of transport – rail, bus, air, water, and urban transport. The system will ensure fair revenue distribution among operators based on the services actually provided.

Karadjov emphasized that adoption of the draft Public Transport Act is a condition for the fourth RRP payment.

The second reform concerns the conclusion of contracts for passenger rail services for the next 12 years. The government has authorized the minister to sign the contracts with the selected operators later in February. The contracts will enter into force on December 13, 2026.

Karadjov said the procedure was conducted in a non-discriminatory and competitive manner, in line with RRP requirements and in constant coordination with the European Commission. He recalled that the Commission doubled the investment for new rolling stock, bringing it to EUR 734 million, with the funds directly tied to the implementation of the rail sector reform. The bidders were BDZ Passenger Services and Ivkoni Express.

BDZ will operate more than 75% of passenger services nationwide, or 17.7 million train-kilometres per year, while Ivkoni Express will serve the Northern and Southern regions with under 3 million train-kilometres annually. The contracts will run until December 2028.

Karadjov noted that operators’ profit margins will be legally capped at 3.57%, and any excess will be deducted from the state subsidy. New rolling stock purchased with public funds will be provided free of charge to operators and will revert to the Transport Ministry once the contracts expire.

He also assured that no employees of BDZ Passenger Services will be laid off and that all social benefits and labour rights will be preserved.