International companies are interested in the Yambol – Zimnitsa railway section

The fifth attempt by the National Railway Infrastructure Company (NRIC) to commission the modernization of the problematic railway section between Yambol and Zimnitsa (near Zavoy station) has attracted international interest. After a series of terminated procedures and a dramatic increase in the project's cost, some of the major construction companies in Central Europe have entered the competition for the project. These include the Austrian companies PORR (through its Bulgarian subsidiary) and Strabag, as well as the Hungarian company Belfry.

We would like to remind you that the procedure started in September with an estimated value of over BGN 23.5 million excluding VAT. The deadline for submitting bids was November 3. All bids from the companies were submitted on that day. The bids were opened the next day, but the price offers have not yet been announced. The CAIS does not specify a date when this is expected to happen.

The candidates

Four consortia and one company are participating in the tender. These are:

• DZZD "Railway Zavoy," with the company "Parsek Group" EOOD listed as the sole participant;
• Consortium "Rail Construction Strabag" DZZD, "Strabag" EAD, "Strabag Rail" a.s. and "Belfri BSS" Kft.;
• VPV 25 DZZD, with participants Pustroy VDH EAD and VDH AD;
• TRAYS GROUP HOLD AD;
• Gara Zavoy – 2025 DZZD, with participants PST Group EAD, ORS – Infrastructure OOD, PORR Bulgaria EOOD, and Start-Engineering AD.

The participation of PORR Bulgaria EOOD is particularly noteworthy. The company is wholly owned by the Austrian giant PORR Bau GmbH, which has a long history in Bulgarian infrastructure. Years ago, they modernized the Harmanli – Svilengrad railway line, as well as the Stamboliyski – Plovdiv section. However, the group's name is also remembered for one of the most discussed road projects – Lot 2 of the Maritsa motorway. In 2015, they won the contract with a record low price, but two years later, warranty repairs were required on the joints of the bridge structures.

According to the company's report for 2022, revenues doubled to over BGN 6 million (compared to nearly BGN 3 million in 2021). Profits also grew, reaching over BGN 2.1 million before taxes, according to information in the Commercial Register. An interesting detail is that this financial leap was achieved with an optimized team – at the end of 2022, the company employed 12 people, one less than the previous year. The company continues to focus on its core strengths – construction and installation activities and heavy machinery rental.

Belfry BSS Kft is a Hungarian company specializing in the construction and maintenance of railway contact networks. It is part of the international BELFRY Group, which operates in Central and Eastern Europe and also has a presence in Bulgaria, according to its official website. It is participating in the tender as a partner in the Rail Construction Strabag consortium.

This suggests that their participation in the tender is not accidental. BELFRY specializes in railway energy infrastructure—contact networks and power supply. Their expertise fits perfectly with the requirements of the Zavoy station contract, which calls for the construction of a completely new contact network and lighting.

The very presence of Strabag through its Czech railway subsidiary (Strabag Rail a.s.) is an additional signal that the project is perceived as strategic despite its relatively small volume.

Chronology

This is the fifth procedure after the previous tenders were terminated for various reasons within a period of four years. The new one has a higher estimated value – over BGN 23.5 million excluding VAT. This is a significant increase from the initial value of BGN 16.6 million in 2021.

• Attempt 1 (July 2021): Tender for BGN 16.6 million, terminated due to missing documents even before the bids were opened;
• Attempt 2 (September 2021): Cancelled due to contradictions between the technical design and the candidates' bids;
• Attempt 3 (November 2022): The estimated value is raised to BGN 19.6 million. The only bidder admitted to the final stage – DZZD "Hydro – Vod Stroy" (associated with "VDH" and "Hidrostroy") – offers BGN 20.9 million. NRIC terminates the tender because the price exceeds the budget, leading to a long legal battle, ultimately won by the state;
• Attempt 4 (December 2024): Price of BGN 23.2 million. The procedure is suspended by NKZI itself due to recognised "irremediable deficiencies" in the documentation.

The project is part of phase 2 of the "Plovdiv-Burgas" rehabilitation and is funded under the "Transport Connectivity" Programme 2021-2027. The aim is to remove the "bottleneck" at Zavoy station, where a sharp curve limits the speed to 80 km/h. The winner will have 555 days to build a new railway line, an underpass with elevators, new platforms, and a contact network.

Translated with DeepL.