site.btaOpposition Calls for Termination of Passenger Rail Service Tender

In a declaration read out in Parliament Friday, the Continue the Change – Democratic Bulgaria coalition (CC–DB) called for the immediate termination of an ongoing procedure to award passenger rail transport contracts and for the launch of a new tender prepared with the assistance of international consultants from countries such as Germany or the United Kingdom.

On December 15, Transport Minister Grozdan Karadjov announced that contractors had been selected for three separate passenger rail transport lots, provisionally designated as Western, Northern and Southern. The Northern and Southern lots were awarded to Ivkoni Express, the only other company to submit bids, while the state-owned BDZ Passenger Transport retained the Western lot.

If the procedure is not halted immediately and a new one is not announced, CC–DB intends to refer the case to OLAF, the European Public Prosecutor’s Office, the EU Commissioner for Transport, and the managing authority of Bulgaria’s Recovery and Resilience Plan, in order to prevent further damage to a sector of vital importance to Bulgarian society, said MP Stela Nikolova.

According to Nikolova, the decision taken by the Transport Minister has placed Bulgaria on the brink of signing a 12-year contract for passenger rail services that would create a private monopoly, guarantee it substantial state subsidies, and grant it the use of new trains purchased with EU funds. She said the circumstances surrounding the procedure point to a pre-determined outcome of the tender and political protection.

CC-DB argued that it is wrong when an outgoing minister determines the future of the entire rail sector for the next 12 years under conditions "that raise well-founded suspicions of corruption and a pre-arranged procedure with a single winner". Nikolova added that it was equally unacceptable that the sole private bidder has no prior experience in passenger rail passenger transport, calling this "a perfect recipe for chaos".

She further said it was improper and inconsistent with good European standards for Ivkoni Express to simultaneously receive monopoly status, state subsidies and the right to operate new trains purchased with EU funding. According to Nikolova, under the guise of liberalization, the procedure effectively reveals a scheme for the appropriation of state assets and funds in a sector that can only have a future if genuine competition and quality are ensured.