Public rail carriers to receive BGN 3 billion in state subsidies

The Ministry of Transport has published a preliminary notice in the Official Journal of the European Union regarding the upcoming public tender for the selection of public transport operators in the railway sector. According to the documentation, the official tender will be launched on September 1.

As expected, the contracts will be for 12 years, and the tender is divided into three lots.

In total, the state plans to pay the companies that win the contracts €1.4 billion (BGN 2.73 billion) excluding VAT.

The highest subsidies (as expected) will go to the participants selected to serve the western region, which includes the most profitable lines – those from Sofia to Varna and Burgas. The indicative value of the service is estimated at €980.6 million (BGN 1.92 billion) excluding VAT.

In return for this amount, the contractor for the public rail transport service will have to transport passengers on all railway lines in the western region with express, fast, passenger, international, and night trains upon the carrier's assumption of the transport obligation and tariff obligation, including the transport of passengers who are entitled to free or reduced-fare travel.

The contract for the northern region has a much lower estimated value of €229.5 million (BGN 449 million) excluding VAT. For this money, the contractor will have to provide rail passenger transport on all railway lines in the northern region with express and passenger trains upon the carrier's assumption of the transport obligation and tariff obligation, including the transport of passengers who are entitled to free or reduced-fare travel.

The third lot in the contract has an estimated value of €186.3 million (BGN 364.3 million) excluding VAT. The railway carrier's commitment will be to transport passengers on all railway lines in the southern region with express and passenger trains upon the carrier's assumption of the transport obligation and tariff obligation, including passengers who are entitled to free or reduced-fare travel.

The contract is pan-European, which means that, in addition to the state-owned BDZ and licensed Bulgarian private rail carriers – Plovdiv-based Pimk, Stara Zagora-based Reilimpex and Ivkoni Express – international players will also be able to participate.

Translated with DeepL.