Bulgaria's privatisation agency extended until January 7 the deadline by which investors can buy tender documents for the sale of the freight transport unit of the state-owned railway holding company BDZ, the agency said on Thursday. The deadline was moved at the request of a candidate buyer, the agency said in a press release. Binding bids have to be placed by March 12, it added. A total of 2,325,087 shares in the company, equivalent to 100% of its capital, were put up for sale last month. Eligible strategic investors should have had a rail freight transport licence for the last five years and a turnover of at least 100 million euro ($132.8 million) in each of the last three years. Financial investors are required to have had at least 400 million euro in assets or equity holdings under management in each of the last three financial years. Local news daily Standart reported last week that tender papers have been purchased by six persons - local consultancy Urista Group, law firms Georgieva, Todorov and Co. and Grigorov and Partners, lawyers Valentin Ivanov and Todor Angelov and Bulgarian Railway Company (BRC), controlled by Agropolychim and Romania’s Grup Feroviar Roman. According to Moscow-based daily Kommersant, the Russian Railways is interested in the tender.
Source: econ.bg (02.01.2013)

Candidates for BDZ Freight melt Two prospective buyers of BDZ Freight Services SPLTD dropped out of the competition. The first is Bulgarian Railway Company (BRC), which itself purchased documentation for the tender. Experts say BRC does not meet the new conditions of the Privatization Agency for over EUR 100 million operating income for each of the last three financial years. The owner of BRC - the largest private Romanian railway carrier Group Feroviar Roman, significantly exceed this requirement, but cannot participate as the buyer of the documents is BRC, experts say. The second candidate, which decided not to participate, is the big Russian private railway carrier Pervaya Gruzovaya Kompania - PGK (Freight One). Rumors that the candidate from Moscow was the largest railway carrier in the world - Rossiyskie Zheleznie Dorogi" (RZD), appeared to be false.
Source: Standart (07.01.2013)

BDZ to raise fares by 5% “The Bulgarian State Railways (BDZ) has filed an official request for an average 5% increase of its fares and it will probably be accepted,” announced Transport Minister Ivailo Moskovski, quoted by Focus agency. Nevertheless, the price of rail transport will remain the lowest in Bulgaria. “The increase is absolutely tolerable. I believe that a 5% increase will not be a problem,” said Moskovski. The proposal is presently at the Ministry of Transport and Communications for an analysis and the position of the Ministry will probably be ready in a few days. “I have not read the reasons for the requested price rise but one of the arguments is certainly the price increase of excise duties. The decision will come into effect several days after being approved,” commented Ivailo Moskovski. In connection with the privatisation of BDZ Freight Services Minister Moskovski stated that he has no reason to doubt the expertise, capacity and capabilities of the Privatisation Agency in relation to this transaction. “The privatisation is not an end in itself. We will not be able to repay the liabilities of BGN 750 mln (accrued not by us) without ensuring a considerable amount of money in the company. Otherwise, there will be no BDZ,” stated Moskovski.
Source: Class (10.01.2013)

Transport Ministry Pins High Hopes on Freight Railways Privatization Deal Transport Minister Ivaylo Moskovski has said that the privatization of the freight arm of the Bulgarian State Railways (BDZ) would be a success if the government managed to raise BGN 200 M. In a Wednesday interview for TV7, Moskovski specified that the sum was needed urgently to pay off a part of the BGN 750 M debt of the holding. Bulgaria's Transport Minister suggested that BDZ would cease to exist unless a portion of the company's debts was paid off. "The trade unions claim that assets worth BGN 500 M will be sold for a song. If anybody brings me an investor who is willing to willing to shell out that much money, I will personally roll out the red carpet," Moskovski commented, adding that the privatization was not an end in itself and everything possible was being done to complete it successfully. At the first attempt for the privatization of BDZ Freight Services, investor.bg reminds, Bulgaria's Transport Minister claimed that the government expected to raise no less than EUR 150 M from the privatization of the company. After the first attempt of the Privatization and Post-Privatization Control Agency to sell the cargo unit of BDZ fell through, the criteria for the future investor were lowered, as well as the price of the company.
Source: Standart (10.01.2013)

K Engineering’s third project to the amount of BGN 233 162 was approved of and paid for by the Directorate General for European Funds. Plovdiv-based company’s participation is 30%. The project is aimed at improvement of manufacturing equipment, for increase of production’s efficiency and introduction of new technologies and machinery. K Engineering is the biggest supplier of spare parts for Bulgarian State Railways.
Source: Maritsa (22.01.2013)

Moskovski not to allow BDZ to increase ticket prices BDZ's ticket prices will not be increased, Transport Minister Ivailo Moskovski told reporters. According to analyses, there are no reasons for such an increase, he explained. "The main reasons for the request of price increases included the price increase in infrastructure charges and the increase in the excise duty on diesel oil. According to a contract with the State, BDZ has the right to demand such an increase following a period under review with increased values, so that an analysis based on their costs becomes possible," said the Transport Minister and added that, so far, this has not been reported. Moskovski announced that 177 carriages will be repaired this year. Next week, a contract will be signed between BDZ's management and the plant which won the procedure, Moskovski noted. The repair of these carriages is worth BGN 22 mln. The process of repair and renovation will be running throughout this year. "Everything that is renewed will come into operation as fast as possible, therefore, this is another piece of good news for BDZ," said Moskovski. Port Invest is the new concessionaire of port terminal Lom After an open procedure, the Government defined Port Invest Ltd. as port terminal Lom's concessionaire, said the Government Information Service. The company's offers exceeded certain minimum requirements in terms of quantitative criteria set out in the decision of the Council of Ministers for the initiation of the procedure for granting concessions and documentation for participation. Port Invest's offer provides for investments amounting to BGN 22,439,000 for the 35-year concession period and BGN 6,377,000 will be invested in the first four years. The fixed part of the annual concession fee amounts to BGN 187,100. The participant's production programme provides for an average annual cargo traffic at the terminal amounting to 480,000 tonnes and some 1,800 passengers serviced annually.
Source: Class (24.01.2013)

Foreigners want trains Railways BDZ Passenger Services may remain without the new trains - motor cars Siemens. Foreign brokerage companies and railway operators constantly make inquiries about buying the trains. Recently, Germany-based Rail-assets from the city of Augsburg asked about 3 electric motor cars Siemens. Earlier a request to purchase the 25 diesel locos Siemens Desiro came from private regional Hungarian-Austrian railway company GySEV/ROeEE. At least two other companies have also inquired. Increased foreign interest in the Siemens motor cars of BDZ is due to the fact that the company does not cover the majority of the principal of the loan to the German state bank KfW. Total debt to KfW at the end of 2012 is about BGN 230 million, 25% of which is overdue. BDZ pays about BGN 1.8 million principal and BGN 1.2 million interest each month to KfW, but it is insufficient. "The debt to Siemens hangs like a millstone in our relations with Germany," said a few months ago, Prime Minister Boyko Borisov. To sell the trains, however, is a decision of the Ministers of Economy and Finance of the Federal Republic of Germany, explained people familiar with the case. Such has not been taken, as the Germans wait, following his promise to end the privatization of BDZ-Freight Services. The reason is that the expected total revenue from privatization is to go cover debts to German lender KfW. 25 diesel and 25 electric trains Siemens Desiro were bought with contracts in 2005 and 2007 with a loan from KfW.
Source: Standart (28.01.2013)

Three factories want to repair coaches for the BDZ passenger services. The new public tender started in August and is announced for 177 coaches that are to be repaired. There are three candidates: Vagonoremonten Zavod 99 based in Spetemvri, Vagonoremonten zavod-Intercom in Dryanovo and that located in Khan Krum. Total sum of the order is BGN 22 million, coaches for repair are divided into 22 different groups, as each of the candidates by themselves decises for which one of them is applying. At present BDZ passenger services works with about 258 carriages. The company needs about 300 coaches in order to work normally. In that way, through the order, half of the half of rolling park is to be changed.
Source: Capital (29.01.2013)

Creditors demand that BDZ Holding declares bankruptcy Five banks demanded that BDZ Holding declares bankruptcy, Trud daily informs. They filed the demands with the London Arbitrary Court. The reason is that the Bulgarian railway carrier has an outstanding loan worth EUR 120 million. The outstanding loan was negotiated with a banking syndicate, including four foreign banks and one Bulgarian bank. These are French BNP Paribas and Societe Generale, Austrian Kreditanstalt, and Belgian Dexia. Bulgarian First Investment Bank (Fibank) granted 15% of the loan. Fibank applied to take part in a privatization procedure of BDZ Freight Services, which is expected to be completed in March 2013. Experts in the railway transport sector speculated on the bank’s motives to take part in the bid. The state will hardly earn a huge profit from the sale of BDZ Freight Services, railway sector experts comment. Four companies will take part in the bid: Fibank, Bulgarian Cargo Express, and Donau-Finanz.
Source: Trud (04.02.2013)

Five banks have filed a claim with the London Arbitration Court to declare the Bulgarian State Railways company, BDZ Holding, bankrupt. The information was reported Monday by the Bulgarian Trud (Labor) daily, citing own insider sources. The reason behind the claim is the staggering debt accumulated by BDZ, more precisely the so-called second bond for EUR 120 M. The credit was granted to the previous Cabinet of the Three Way Coalition and installments have not been paid in many months. The news has been confirmed for Trud by senior officials from the Transport Ministry and personally by the Chairman of the BDZ Board of Directors, Vladimir Vladimirov. The defaulted loan has been contracted with the French banks BNP Paribas and Societe Generale, the Austrian Creditanstalt and the Belgiun Dexia. About 15% of the loan has been granted by the Bulgarian First Investment Bank (FIB). Recently, to the surprise of railway experts, FIB purchased documentation for the tender to privatize the cargo unit of BDZ. The privatization procedure is expected to conclude by March, 2013. In addition to FIB, the other three final bidders that emerged are: the largest, private Romanian railway operator Grup Feroviar Roman, which is the owner of BRC, Kiril Domuschiev with the recently founded company Bulgarian Cargo Express and the Austrian Donau Finanz. The bankruptcy claim comes as a shock to the Holding since 1 500 cargo train cars are used as collateral in the loan, and they are in the best condition. All remaining cars are obsolete and need serious repairs. "Banks are fed up with these gimmicks. How can one expect something different when the loan has not been serviced in 3 years, and no one even picks up the phone when they call to ask what is happening with their money," a source from the Transport Ministry, quoted by Trud has said. According to Vladimirov, the claim does not aim at declaring the Holding bankrupt, but rather to appease the banks that they have some guarantees in getting their money back. He explains the bankruptcy claim must be examined by a Bulgarian Court, which is backed by the legal counsel of the Transport Ministry and of BDZ. The delayed payments for the loan in the last 3 years already amount to EUR 32 M. BDZ is negotiating with creditors now in an attempt to be granted another deferral. Meanwhile, it emerged last Friday that the main account of BDZ has been garnished on a request from the German bank KfW. According to estimates, BDZ currently owes KfW some EUR 41 M for Siemens Desiro electric trains it bought in 2005, a debt it does not manage to service as per the arranged schedule. If BDZ is to be declared bankrupt, the money would not be enough to cover the huge debt, estimated in the vicinity of a total of over BGN 720 M. In mid-November 2012, Bulgaria's Privatization Agency launched a second privatization procedure for BDZ's Freight Services, after the first one fell through. The second attempt to sell the cargo unit of BDZ will only include strategic and financial investors. The privatization of BDZ's profit making unit, Freight Services, is to secure money to cover huge debts of the company and help revive its other unit, Passenger Services. However, experts from the railway sector have already said the State should not count on receiving much as the revenues of the cargo unit dropped by 30% in 2012, while the debt keeps climbing up.
Source: Trud (05.02.2013)

A railway infrastructure manager will be entitled to provide railway transport services in Bulgaria, under amendments to the railway legislation proposed by the Bulgarian government on Wednesday. “The bill envisages lifting the ban for the railway infrastructure manager or a company in which it holds a stake, as well as a concessionaire, when the latter acts as a manager of the railway infrastructure, to carry out rail transportation,” the government said following a regular weekly meeting. The project will not lead to the merger of state-run National Railway Infrastructure Company (NRIC) and Holding BDZ, the government pointed out.
Source: investor.bg (07.02.2013)

Railway Infrastructure Authorized to be a carrier Government approved and offers the National Assembly to adopt amendments to the Railway Act. The project envisages the abolition of the prohibition for the manager of railway infrastructure or a company in which he participates and concession when he is manager of the railway infrastructure, to operate as railway carrier. Simultaneously are introduced provisions ensuring the management independence of the railway undertakings, as defined in the Directive 91/440/EEC on the development of the Community's railways. The purpose of the proposed changes is to create a new rail carrier to replace the struggling BDZ Holding. The government, however, specify that the project does not incorporate the National Company Railway Infrastructure (NRIC) with Holding Bulgarian State Railways, including subsidiaries of the holding company.
Source: Class (07.02.2013)

Sofia City Court imposed a freeze on 100% of the shares of BDZ Freight Services, whose privatization is well advanced, according to documents in the Commercial Register. The distraint is in favor of the Dublin-based German-Irish bank Depfa bank, which owns bonds from the first bond issue of BDZ Holding. Bank’s claim is for about BGN 6.3 mln. After bondholders filed a lawsuit in a London court a few days ago claiming arrears, now the lender's grip tighten more the advancing privatization procedure and the four applicants for the freight carrier. According to lawyers, the distraint must mean that privatization cannot be completed. According to them, the possible sale of the company would not be insignificant, but whoever takes decision on the distraint property will be prosecuted.
Source: Dnevnik (11.02.2013)

BDZ Freight Business Privatization Greenlighted “The process of privatization of the freight business of BDZ will not be blocked,” Transport Minister Ivaylo Moskovski said. “I have just come back from Germany, where I had talks with representatives of KfW Bank that provided the loan for the purchase of fifty Siemens trains by the Bulgarian Railway Company BDZ. We are in negotiations with the other creditors that have filed claims against BDZ Holding, the owner of BDZ Freight Operations,” he said. We will do everything possible to facilitate the privatization process so that it is completed in the shortest possible term,” Moskovski added. In fact, the First Investment Bank is the only creditor of BDZ Holding that has not filed a defaulted debt claim against the company, yet. Some of the creditors have even threatened to block the company’s privatization.
Source: Standart (18.02.2013)

Privatization of BDZ Freight is the Only Way to Save It Privatization is the only way to save the debt-ridden Bulgaria’s Railway Freight Unit, Minister of Transport in resignation Ivailo Moskovski said as quoted by the Focus Agency. Yesterday the protesting citizens demanded to stop the ongoing privatization bid of BDZ Freight. Commenting on the issue Moskovski reminded that the debts of the company gross BGN 800,000 M and privatization is the only solution that will allow paying to the creditors. “If BDZ fails to cover the debts the creditors will activate their receivables and BDZ will seize to exist,” Moskovski pointed out. Currently there are four prospective buyers for BDZ Freight and the privatization procedure is in an advanced stage. Before March 12 the investors have to table their binding offers.
Source: Standart (11.03.2013)

Credit Council saves BDZ A Credit Council will seek options to save Bulgarian State Railways (BDZ), said Transport Minister Kristian Krastev. The Council will include representatives of the main creditors of the company. Debts of the company are on two debenture loans and to KFW, from which were purchased railcars Siemens. The remainder on the first loan is BGN 6 million, but liabilities on the second and to the German company amount to BGN 493 million. According to the latest reschedulingg of the liabilities for the new trains, BDZ pays BGN 1.7 million a month from own revenues. At the same time, just over BGN 90 million are the debts to the National Railway Infrastructure Company (NRIC). Failure by BDZ to pay the money is considered a kind of state assistance, and is subject to sanctions by the European Commission. Experts explained that the talks with creditors will be tough because they just want to collect the money. The Transport Ministry has repeatedly warned that if creditors want their debts immediately repaid, even the sale of all the assets of BDZ would not be sufficient to cover the accumulated debts from last 20 years.
Source: Monitor (18.03.2013)

Just a few days after taking office, the Minister of Transport and Communications Kristian Krastev begins purge of executives at Bulgarian State Railways (BDZ). The main reason for this move is that managers of BDZ have made creditors nervous refusing to negotiate with them. In recent weeks, the company's assets were seized by lenders because the railways delayed payments. In the last four years the company's outstanding liabilities amounted to BGN 120 million. A new payment is forthcoming and then BDZ will pay BGN 200 million. Some time ago the former Finance Minister Simeon Djankov decided to stop the holding’s subsidy for its debts to the World Bank. After a plan to rescue the company was adopted, payment from the State was restored. Krastev did not specify exactly which managers will have to go. The minister said that in the future the creditors of the holding will be attended closely.
Source: econ.bg (20.03.2013)

Financial luminary takes railway carriage Financial tycoon undertakes Holding Bulgarian State Railways (BDZ). Philip Alexiev is the new CFO of Holding BDZ. His task is to bring order into the finances of the railways, which are red with BGN 716 million. He will negotiate with the creditors in the future credit board, which was formed after the orders of the new Transport Minister Kristian Krastev. Most likely Alexiev will also be the CEO of BDZ. He has extensive experience as a financial and executive director of state companies as airline carrier Balkan Air Tour, which replaced the defunct Balkan and was later renamed Bulgaria Air.
Source: Standart (21.03.2013)

The name of the new head of BDZ clear? Chavdar Trendafilov will be the new CEO of Holding Bulgarian State Railways JSC (BDZ). However, Trendafilov himself has refused to comment on his possible appointment. He said only that the new director will be determined by the interim Minister of Transport and Communications Kristian Krastev. Chavdar Trendafilov is a former ranks of BDZ. Until two years he managed a subsidiary of the holding company in charge of the locomotives. In professional circles he enjoys an impeccable reputation. Yesterday, Transport Minister in the interim government announced that a Credit Council will support the recovery of BDZ.
Source: econ.bg (25.03.2013)

BDZ Tovarni Prevozi, the freight transport unit of Bulgarian state-run railways company BDZ, has invited bids for the repair of 100 tank wagons, a public procurement notice showed. The project, divided into two lots, has a total indicative value of 3.88 million levs ($2.55 million/1.98 million euro), net of Value Added Tax, the noticed published on the website of the country's public procurement agency on Friday indicated. Bids have to be placed by April 20 and will be opened on April 23. The repairs have to be completed in six months after the contract is signed
Source: Standart (26.03.2013)

BDZ replaces collateral for about BGN 6.3 million BDZ offers creditors exchange of collateral on the first bonds loan, said Transport Minister Kristian Krastev. It is collateral of about BGN 6.3 million, outstanding on the bonds for BGN 30 million issued in 2004. The proposal will unclog the privatization procedure for the subsidiary BDZ-Freight Services. 50 days ago the Dublin-based DEPFA creditor obtained a decision of the Sofia City Court for collateral for its claim of BGN 6.3 million, which put a distraint on the assets of BDZ Holding, which is 100% owner of BDZ-Freight Services. We held meetings with the three largest creditor of BDZ, which agreed on all major issues, said Minister Krastev. We agreed to create a so-called. expert board of BDZ creditors , which is to support the management of the company.
Source: Standart (27.03.2013)

Bulgaria extends again deadline for filing binding bids for freight railway co Bulgaria’s privatisation agency said on Wednesday it extended until April 29 the deadline for submitting binding offers for the freight unit of the country's railway holding company BDZ at the request of the participants in the tender. Earlier this month the deadline, which originally expired on March 12, was extended until March 28. The deadline for submitting deposits for participation in the tender was extended until April 26, the agency said in a statement. Last month the privatisation agency admitted four candidates - Romania’s Grup Feroviar Roman, Sofia-based Bulgarian Cargo Express and Balkan Financial Services, and Austria's Donau-Finanz Transport und Beteiligung - to the next stage in the tender for 100% of BDZ’s freight unit. The government aims to get at least 200 million levs ($133.66 million/102.3 million euro) from the sale of the freight unit of BDZ, former transport minister Ivailo Moskovski said in January.
Source: Capital (28.03.2013)

Bulgarian Transport Minister Kristian Krastev has fired Vladimir Vladimirov, chairman of the Board of Directors of the troubled Bulgarian State Railways company, BDZ Holding. Another member of the Board of Directors, Emil Ivanov, has been also fired, according to local media. Vladimirov and Ivanov will be replaced by Chavdar Trendafilov and Nikolay Naydenov, the Bulgarian Transport Ministry has informed. The deadline for companies to submit their bids for privatization of the troubled Bulgarian State Railways company expires Friday. Several days ago, Krastev, launched emergency meetings to salvage BDZ from liquidation. He says the company is on the brink on collapsing, explaining the creditors are owed about EUR 35 M, while its total debt is over BGN 700 M. At the beginning of February, the Sofia City Court ordered a freeze of 100% of the assets of the cargo unit of Bulgarian State Railways company, BDZ Holding. The freeze happened on the request of the Dublin-based German-Irish bank Depfa Bank, which owns bonds from the first bond loan for BDZ. BDZ owes to Depfa about BGN 6.3 M. The news came on the heels of reports that five banks have filed a claim with the London Arbitration Court to declare BDZ Holding, bankrupt. In mid-November 2012, Bulgaria's Privatization Agency launched a second privatization procedure for BDZ's Freight Services, after the first one fell through. The second attempt to sell the cargo unit of BDZ only included strategic and financial investors. The privatization of BDZ's profit making unit, Freight Services, is to secure money to cover huge debts of the company and help revive its other unit, Passenger Services.
Source: Darik Radio (01.04.2013)

Velik Zanchev Appointed Chair of Bulgarian Railways Board Financial expert Velik Zanchev has been appointed Chairman of the Board of Directors of the troubled Bulgarian State Railways company, BDZ Holding. Nikolay Naydenov will be his Deputy, while Chavdar Trendafilov is now BDZ CEO. Zanchev has a long career as leading manager of a number of companies, including BDZ Director of Finance and Administration and CEO of the Holding. On Friday, caretaker Transport Minister Kristian Krastev fired Vladimir Vladimirov, who was the chairman of the BDZ Board of Directors. Another member of the Board of Directors, Emil Ivanov, was also fired. Vladimirov and Ivanov are replaced by Chavdar Trendafilov and Nikolay Naydenov.
Source: Darik Radio (03.04.2013)

National Railway Infrastructure Company has significant claims from BDZ "Holding" and BDZ Freight Services, which amount to nearly BGN 100 million. The company receives regular pay from BDZ Freight Services, after the railway company received its subsidy. The freight unit of BDZ does not pay its full contributions. National Railway Infrastructure Company’s budget is structured in such a way as the company to disposes with funds, which is to receive, but not to exceed its own resources. National Railway Infrastructure Company is ready to make compomises as far as debts of the national railway carrier are concerned. They are acquainted with the version for exchange of debts for property, which is to alleviate BDZ’s financial situation
Source: investor.bg (05.04.2013)

New wagons of BSR with showers and hot drinks Transport Minister Christian Krastev in the presence of media travelled to Vakarel and back to inspect new sleeping cars produced by Turkish company "Tyurkie wagon Sana A. Y. Tyuvasash." Contract price of the cars is 32,205,000 euros without VAT. BSR (Bulgarian State Railways) "Public Transportation" (BDZ.bg) has paid the full value of the contract carriages and the company "Tyuvasash" will perform maintenance during the 2-year warranty on the cars. On 1 April 2013 BSR "Passenger Services" submitted an application to the Executive Agency Railway Administration to initiate the procedure for granting permission for the commissioning of the 2 new types of sleeping cars. At present, the procedure is in progress and finished work on the assessment of technical documentation to meet the requirements of national technical regulations and national safety regulations. All coaches will go through a trial operation. It is expected to be successfully passed all phases of the procedure and operating and permission to happen by the end of April 2013. The goal is Bulgarian citizens to use the wagons in normal operation for the upcoming Easter holidays. Each carriage has 10 bedroom cabins with 3 beds, a fire alarm system and an information system. Wagons are also equipped with an intercom system for communication. Each carriage has a shower, toilet and room offering hot and cold drinks. Wagon air conditioning allows individual temperature control in each room. Wagon will be included in the compositions of the night trains on lines: Sofia-Varna-Sofia (through Gorna Oryahovitsa), Sofia-Varna-Sofia (through Karlovo), Sofia-Dobrich-Sofia (through Gorna Oryahovitsa), Sofia-Silistra-Sofia (through Gorna Oryahovitsa and Ruse), Sofia-Bourgas-Sofia (through Sofia) and Plovdiv-Varna-Plovdiv (through Karnobat).
Source: vesti.bg (12.04.2013)

Bulgaria's Transport Minister Rules Out Unconditional Privatization of Cargo Railway Unit Kristian Krastev, caretaker Minister of Transport, Information Technology and Communications, has said that he does not back a privatization deal for the freight unit of the Bulgarian State Railways Company (BDZ) at any cost. Krastev, as cited by the Bulgarian Telegraph Agency (BTA), suggested Monday that a privatization deal for BDZ Freight Services had to be sealed at an adequate market price which would cover a portion of the debts of the company. "A loan from the World Bank is one option for securing funds to meet the needs of BDZ, but it is not directly related to the privatization of BDZ Freight Services," he explained. Krastev noted that he was pursuing the rehabilitation and modernization of BDZ as a personal cause. Bulgaria's caretaker Transport Minister argued that the absorption of funds under the Transport Operational Program would improve if the coordination was streamlined so as to prevent delays in the implementation of existing contracts. He suggested that the results of the implementation of the Transport OP were promising, citing a total of BGN 3.75 B in contracted funds, or 95% of the total, and paid sums of around BGN 1.78 B, or over 45% of the budget. Krastev claimed that Bulgarian airports were not particularly attractive for concessionaires because they were old and the surrounding infrastructure was in poor condition. He rejected the scenario involving a relocation of Sofia Airport, saying that the step would require huge investments and create transport obstructions, as well as problems with the new environment.
Source: econ.bg (23.04.2013)

Bulgaria's State Railways Company Posted Losses of BGN 22 M in 2012 Bulgaria's State Railways Company (BDZ) ran up losses of BGN 22 M in 2012, according to the unaudited report of the company presented during a sitting of the public council at the Ministry of of Transport, Information Technology and Communications. The agenda of the sitting included a discussion of the situation of BDZ, according to reports of investor.bg. Citing the financial report, Filip Aleksiev, Financial Director of Holding BDZ, informed that the Passenger Services unit of BDZ had registered a profit of nearly BGN 3 M in 2012, while the Freight Services unit, for which a privatization procedure had been launched, had kept accumulating debts. He made clear that the negative trend had remained in place in the first quarter of 2013, with losses of over BGN 16.5 M for the period. Aleksiev noted that BDZ owed a total of BGN 707 M by March 31, 2013, of which BGN 487 M were debts to financial institutions. He announced that BDZ owed its suppliers a total of BGN 145 M, BGN 111 M of them overdue debts. The Financial Director of Holding BDZ pointed out that the main portion of the company's debts to its suppliers was owed to the National Railway Infrastructure Company (NRIC). He said that the company's overdue debts to financial creditors amounted to BGN 154 M, the main portion of which was liabilities to the KfW bank and bondholders.
Source: investor.bg (24.04.2013)

Bulgaria’s privatisation agency said on Friday it extended until June 10 the deadline by which candidates to buy the freight unit of the country's railway holding company BDZ should file binding offers. The agency's decision was taken in response to requests by the participants in the tender, it said in a statement. The deadline for submitting deposits for participation in the tender was moved to June 7. The agency has already extended the deadline twice. In February the privatisation agency admitted four candidates - Romania’s Grup Feroviar Roman, Sofia-based Bulgarian Cargo Express and Balkan Financial Services, and Austria's Donau-Finanz Transport und Beteiligung - to the next stage in the tender for 100% of BDZ’s freight unit. The government aims to get at least 200 million levs ($133.1 million/102.3 million euro) from the sale of the freight unit of BDZ, former transport minister Ivailo Moskovski said in January.
Source: Capital (29.04.2013)

Bulgaran National Railways debts down by BGN 9 million The debts of the Bulgarian National Railways (BDZ) fell by BGN 9 million (EUR 4.59 million) from BGN 716 to BGN 707 million in the last two months, Transport Minister Christian Krastev announced on bTV, suggesting that the recent personnel changes in the holding apparently already begun to bear fruit. If Turkey continues to impose restrictive measures and to delay Bulgarian carriers at the border, our country will respond in a reciprocal manner, added Minister Krastev. But he was adamant that he believes in the long-term solution of the problem after a meeting with his Turkish counterpart Binali Yildirim, scheduled for tonight in Leipzig. Krastev thanked Yildirim for his swift assistance and the temporary lifting of restrictions on the Turkish side until 31 May.
Source: Standart (22.05.2013)

New Transport Minister Plans to Stop Privatization of BDZ Freight Unit The Bulgarian government will likely stop the privatization deal for the freight unit of the Bulgarian State Railways Company, the country’s newly appointed Transport Minister said Wednesday. Transport Minister Danail Papazov told reporters that hundreds of jobs would be lost if the deal goes through. However, the new Minister pointed out that no conclusive decision hasn’t been made yet, adding that the situation should be thoroughly analyzed.
Source: Class (30.05.2013)

Bulgaria extends binding bid deadline for rail freight co until June 25 Bulgaria’s privatisation agency said on Friday it extended until June 25 the deadline by which candidates to buy the freight unit of the country's railway holding company BDZ should file binding offers. The deadline for submitting deposits for participation in the tender was moved to 1700 local time on June 21, the agency said in a statement. The agency has already extended the deadline on three occasions. In February, the privatisation agency admitted four candidates - Romania’s Grup Feroviar Roman, Sofia-based Bulgarian Cargo Express and Balkan Financial Services, and Austria's Donau-Finanz Transport und Beteiligung - to the next stage in the tender for 100% of BDZ’s freight unit.
Source: econ.bg (03.06.2013)

BDZ pays debts with hotels and bridges Debt to equity. This is one of the schemes under which BDZ will cover part of their huge debts, said Transport Minister Captain Danail Papazov. It is a transfer of rest homes and other properties from BDZ to Railway Infrastructure (NRIC) to cover the debt of BGN 100 million accumulated from years from infrastructure charges. Both movable bridges of the ferry complex Varna will be transferred to NRIC’s assets. It is time to regulate the relationship between BDZ and NRIC, Papazov said. BDZ has about 15 rest homes, some of which are large hotels at attractive locations - the sea, Hisar, Bansko, Vitosha, etc. The Holding holds a small rest homes as well as a boarding-house in Veliko Tarnovo. Three of the appetizing hotels – at Panichishte, "Journalist" and Primorsko, serve as collateral for loans from the KfW Bank for the purchase of the Siemens motor cars.
Source: Standart (04.06.2013)

Papazov: Of the 6 options to save BDZ Freight Services, two are privatization Railways are the first and most important thing to pay attention now, said Minister of Transport and Communications Daniel Papazov. According to him, there are six options for the future of the company, and four of them provide preservation of Freight Services, while two are privatization. These include options to swap debt for ownership of NRIC (which is one of the largest creditors of BDZ). Measures are provided for renegotiation of loans, increased freight and increase the comfort level of passenger transport. Asked whether changes in the management of BDZ and NRIC is considered, Papazov said such are probably going to happen at the infrastructure operator, but they are unlikely to be significant. He added that at this stage he trusted CEO of BDZ Chavdar Trendafilov, as well as the heads of BDZ Passenger Services and BDZ Freight Services.
Source: money.bg (10.06.2013)

Bulgaria is looking for a strategic investor for the posts The future of "Bulgarian Posts" is in finding a strategic partner to take the company and to improve its operations. That said the Transport Minister Danail Papazov. According to him, the activities of the state-owned company can be improved by outsourcing certain activities. Papazov pointed out that it's not about pure privatization. According to him, a private company would never be interested by losing branches of post offices in remote villages. "The option is some form of public-private partnership. We are at the beginning of the idea", said the minister. Papazov argued that the problem is related to the postal universal service which they provide at low prices. He explained that these years for the Posts are allocated 2 million levs, and the actual cost of providing the universal service is 22 million levs.(inews.bg)
Source: Other (11.06.2013)

BDZ saved with money from the state BDZ is to be saved with money from the state. The Holding has developed three main options on which lawyers and financiers at the transport ministry ponder. The aim of the three is BDZ to deal with its huge corporate debt, which as of April 30 exceeded BGN 709 million. All three options are related to the provision of money from the state. The first option, which is formally still valid, is completing the privatization of BDZ Freight Services and the sale of other non-operating assets. The aim is to provide own contribution of 50% of the debt, which will allow the EC to allow State aid for payment of the remaining 50%, explained financiers of transport. There have been developed several sub-options depending on the arrangements that can be made with the creditors for rescheduling. Transport Minister Daniel Papazoff however, expressed doubt that a buyer of BDZ Freight Services will appear until June 20.
Source: Standart (17.06.2013)

Bulgaria Abandons Privatization of Cargo Railway Unit The Bulgarian Agency for Privatization and Post-Privatization Control has decided to cancel the procedure for the privatization of the freight unit of the Bulgarian State Railways Company. The Agency has noted that the decision was coordinated with the Ministry of Transport. The Socialist-led government of PM Plamen Oresharski hinted that it would stop the privatization of the freight unit soon after it took over at the end of May. In mid-November 2012, Bulgaria's Privatization Agency launched a second privatization procedure for BDZ's Freight Services, after the first one fell through. The second attempt to sell the cargo unit of BDZ only included strategic and financial investors. The planned privatization of BDZ's profit making unit, Freight Services, aimed to secure money to cover huge debts of the company and help revive its other unit, Passenger Services.
Source: Capital (21.06.2013)

Bulgaria Stops Privatization of BDZ Cargo Unit The Bulgarian Agency for Privatization and Post-Privatization Control decided to cancel the procedure for the privatization of the freight unit of the Bulgarian State Railways Company. The Agency has noted that the decision was coordinated with the Ministry of Transport. The Socialist-led government of PM Plamen Oresharski hinted that it would stop the privatization of the freight unit soon after it took over the power. In mid-November 2012, Bulgaria's Privatization Agency launched a second privatization procedure for BDZ's Freight Services, after the first one failed. The second attempt to sell the cargo unit of BDZ only included strategic and financial investors. The planned privatization of BDZ's profit making unit, Freight Services, aimed to secure money to cover huge debts of the company and help revive its other unit, Passenger Services.
Source: Standart (21.06.2013)

South Stream Project to Save Bulgaria’s State Railways The construction of South Stream gas pipeline will help the rescue of Bulgaria’s state-owned railways – BZD – Cargo transport, Bulgaria’s minister of transport Danail Papazov stated in his greeting to the participants in a round table on the development of the project. "South Stream is one of the main priorities of Bulgaria’s cabinet,” minister Papazov stated. “Bulgarian transport companies are ready to meet the challenges on the transportation of all cargoes connected with the construction of the gas pipeline,” Mr Papazov added. “Varna and Bourgas Black Sea ports and BDZ – Cargo Transrt are ready for the construction of the pipeline”, minister Papazov stated further. “We have the assurance of Bulgaria’s cabinet that the construction of the gas pipeline will start by the end of the year,” Alexander Siromyatin, deputy head of Gazprom’s “Project Management” department stated. The construction of Bulgaria’s part of South Stream pipeline will cost 3.3 billion euro. From end-2015, Bulgaria will receive from South Stream pipeline 15,75 billion cubic meters of gas a year, 2/3 of which will go for Turkey and Greece. From end-2018, the four pipes of South Stream will carry 63 billion cubic meters a year from Russia through Bulgaria for Europe. 68% from the Bulgarians support South Stream project while only 5% are against it, shows a survey of English company Worldthinks.
Source: Standart (26.06.2013)

The state stops layoffs and starts to invest in BDZ as the goal is the company to be revitalized, said Transport Minister Daniel Papazoff. For the past 4 years 4701 people of BDZ has been laid off, which is 40% of the staff, fromNRIC were fired 3173 people, or 20%. The program of the ministry pledged repayment of BDZ Holding. This will be phased under the scheme debt to equity. After the BDZ administration is moved, the ownership of the building will be transferred to the NRIC and announced for sale. Non-operating assets and scrap stocks go on sale immediately.
Source: econ.bg (05.07.2013)

Holding Bulgarian State Railways is looking for BGN120 million. The money is needed for purchase of 30 rimbuses, said the head of BDZ Passenger Services Georgi Ivanov. Rimbuses are buses that run on rails. They are used for places with fewer passengers. Rimbuses’ operating costs are several times lower than those of the trains. Railways is planning to buy rimbuses since 1995, but could not set aside money for them.
Source: Standart (26.07.2013)

Audit Confirms Dire Condition of Passenger Services Unit of Bulgarian State Railways A report of the National Audit Office published on Thursday confirms the impression of the tragic condition of the Passenger Services unit of the Bulgarian State Railways (BDZ) company. The audit report spans the period January 1, 2011 – September 30, 2012 and was assigned by the previous Parliament on September 19, 2012, according to reports of mediapool.bg. According to the report, the rolling stock is worn out and does not meet modern standards and the fleet of aging rail cars cannot provide travel comfort for passengers. According to the document, 4% of the train cars were manufactured in 1974, 35% of them were made before 1980, 42% were made between 1980 and 1989 and 20% were produced in the period 1990 – 1996. The situation with locomotives is more or less the same, with 4% of them made more than 40 years ago and nearly half of them manufactured over 33 years ago. Some 30% of the total was delivered in the period 1994 – 2008. Keeping the rail cars, locomotives and railcars technically compliant is difficult as the manufacturing of spare parts for some series has been stopped. The restructuring of the railway company has not been completed by the time of the inspection, and the property has not been conclusively divided among BDZ Holding and the Passenger Services and Freight Services units. As a result, BDZ Passenger Services has rented train cars and locomotives from BDZ Holding at its own expense, paying the parent company BGN 1.27 M, VAT excluded, in rent for 48 locomotives and BGN 336 000, VAT excluded, in rent for 7 train cars. Meanwhile, BDZ Passenger Services has uncollected receivables from BDZ Freight Services amounting to BGN 21 M.
Source: Dnevnik (02.08.2013)

No layoffs in BDZ reform are planned, Minister of Transport says We do not plan layoffs in the reform of the Bulgarian State Railways (BDZ), Bulgarian Minister of Transport, Information Technology and Communications Danail Papazov said at a meeting with railway workers on the occasion of their professional holiday and the 125th anniversary of BDZ, Focus News Agency reported. I have not been afraid of high spending, but of low incomes, he said and added that a priority in the BDZ reform would be how to attract more passengers and cargo. A network of tourist offices will be set up and sale of train tickets through text messages will be introduced. Information services for passengers are also planned. Other measures are the modernization of technologies and support from the owner of Holding BDZ for repaying some of the company’s debts. "The sources can be also loans from the World Bank. We have met with the managements of commercial banks and various funds for buying debts," he said. "Wheels without tracks cannot exist. The modern infrastructure that has been built under Transport OP will not generate many results, if it is not well maintained. The dialog between BDZ and the National Railway Infrastructure Company should be enhanced considerably," said the minister. "The measures are a lot and specific. The first and most important condition is the negotiations with our creditors. The ministry and the managements of the companies will do everything possible to rescue BDZ," he added. The Board of Directors of Holding BDZ has a new chairperson, Bulgarian Minister of Transport, Information Technology and Communications announced at a meeting of the Public Council in the railway transport. Velik Zanchev will be replaced by Anelia Krushkova, announced the press center of the Ministry of Transport, Information Technology and Communications. In September the Ministry of Transport, Information Technology and Communications, Ministry of Finance and the debenture holders are to hold a meeting to discuss the rescheduling of the company’s debts, said the minister.
Source: Standart (07.08.2013)

NRIC becomes hotelier to save BDZ The Council of Ministers approved the proposal through which BDZ will sell some real estate through direct negotiations. Debt to equity scheme is part of the reorganization plan of the railroad prepared by the new government as the state carrier must repay to the infrastructure company obligations of over BGN 100 million. The ball, however, remains in the infrastructure company. In addition to not receiving much-needed fresh money, NRIC will have to enter a new field, unusual for a company managing railroads and train stations - the hotel business. The transfers of property are expected to take place in three stages. This move is expected to reduce the obligations of BDZ to NRIC by roughly BGN 15 million. BGN 5 million of them will come from the transfer of properties like the holiday home in Dobrinishte and the rehabilitation center in Kyustendil, as well as several smaller and less attractive. Roughly BGN 10 million is the estimated value of the facilities of BDZ in the ferry complex in Varna (elevation-transitional bridges), which inexplicably remained in the assets of the carrier after its separation from the infrastructure company years ago. Valuation of assets, however, is still ongoing.
Source: Capital (08.08.2013)

Licenses of BDZ for transportation expired a month ago Trains have been riding passengers and goods without a license for a month., The license on BDZ Passenger Services and BDZ Freight Services expired on July 9, according to the website of the Executive Agency Railway Administration (EARA). The licenses of the two companies were issued on 10 July 2008 and had a maturity of 5 years, confirmed the CEO of EARA Veselin Vasilev. However, they are in the process of re-licensing, Vassilev said, adding that the two companies should not have a problem to ride passengers and cargo, as both have valid safety certificates that expire at the end of the year. According to lawyers, however, this contradicts to the current Railway Transport Act, under which safety certificates are issued only to licensed railway operators. This means that the lack of licenses cancels the safety certificates of BDZ Passenger Services and BDZ Freight Services. It turns out that the two railway companies have already implement changes to the Railway Transport Act, published for public comment, before being adopted by the parliament.
Source: Standart (09.08.2013)

Bulgaria's State Railway Co Names New Heads of Passenger, Cargo Units The Board of Directors of the state-owned Holding Bulgarian State Railways BDZ EAD, has approved changes to the management of its passenger and freight transport units, according to a media statement of the company. The new head of BDZ Passenger Services EOOD is Dimitar Dimitrov, while the new director of BDZ Freight Services EOOD is Georgi Drumev. The managerial staff changes were made due to the worsened financial results and the deterioration of the quality of service at the two firms, according to the press office of parent company BDZ Holding EAD, as cited by Btv. The newly-appointed directors have extensive experience in the sphere of rail transport and are well acquainted with the specificity of work and the problems at the companies, according to BDZ Holding EAD.
Source: Capital (19.08.2013)

No layoffs in BDZ and Bulgarian Posts The Ministry of Transport does not plan any layoffs in BDZ or in Bulgarian Posts, said Minister of Transport, Information Technology and Communications - Daniel Papazoff. He said that layoffs can be avoided by restructuring the companies and giving them work. We have a good financial results in BDZ and I even think this year the company may report profit, minister said. In May this year, the railways reported a loss of BGN 25 million, and now it is reduced by half, he said. According to Papazoff, henceforth the railway carrier should be subsidized only for specific results. It is very important how we complete negotiations with creditors in September, he said. The Ministry will introduce them to the restructuring program and will have to convince them to agree with it. If this happens, we would be able to restructure the debt of the company.
Source: Dnevnik (03.09.2013)

Bulgarian State Railways Co Does Not Face Bankruptcy - CEO The Bulgarian State Railways (BDZ) company will not go bankrupt, but it is hardly likely to report a profit, according to Hristiyan Krastev, Executive Director of Holding Bulgarian State Railways (Holding BDZ). In a Tuesday interview, Krastev, as cited by the BGNES news agency, was adamant that the bankruptcy scenario for BDZ Holding had been avoided. He noted, however, that BDZ Holding was hardly likely to report a profit because one of the units, BDZ Passenger Services, was a subsidized company. "Talks with creditors continue, the experts are now in Brussels, and next week the creditors will return to Sofia. We are negotiating about a deferred payment scheme so that the bankruptcy of BDZ can be avoided," Krastev said, adding that the sides were likely to reach agreement in a few weeks' time. The Executive Director of Holding BDZ was adamant that the creditors had no interest in the company going bankrupt and they wanted to get their money back. Krastev further added that the new train schedule would be ready by September 15. He informed that the new schedule would restore train service between a number of big and small train stations. Krastev also assured that no staff cuts were planned, adding that the only job losses which could be expected concerned employees reaching retirement age. - See more at: http://www.novinite.com/view_news.php?id=153352#sthash.CQA6CPc5.dpuf
Source: Novinar (04.09.2013)

Average of 5% will be the hike in train tickets by the end of the year, said new CEO of BDZ Hristian Krastev. This will happen only for non-subsidized services, he said. Appreciation will only affect the fast trains on main lines. Ten new trains will be launched by BDZ Passenger Services from 15 December, when the new schedule comes into force, said the head of the company Dimitar Dimitrov. The new trains will serve the busiest areas - from Sofia to Plovdiv, Ruse, Pernik, etc. New modern ticket-issuing reservation system will be implemented by BDZ Passenger Services within a year. It will offer tickets via the Internet, from offices of tour operators, vending machines and mobile phones with SMS. Payment of the tickets will also be available through debit and credit cards.
Source: Standart (05.09.2013)

Sulfuric trap for Agropolychim There is production chemistry between the copper-maker Aurubis - former MDK Pirdop and the Devnya-based fertilizer factory Agropolychim - sulfuric acid connects them. The first company produces it during the processing of copper-making and in reality is the largest producer of sulfuric acid in the country. The second one is its largest consumer, as it is one of the main raw materials in the production of phosphate fertilizers. Indeed both giants need each other. As sulfuric acid gathers both companies foryears, so, however, it separates them. The latest rift on the issue began after the 10-year contract between the two companies for the sale expired in mid-2012. In the beginning of 2013 Aurubis sharply raised the prices at which it sells its waste product. The story involves another producers of sulfur – Plovdiv-based KCM (Non-ferrous Metals Smelter) (after stopping of OZK - Kardzhali, manufacturers are only two). The new dispute and participants on the subject are clear from the appeal of Agropolychim to the Commission for Protection of Competition (CPC), passed in late August, and the accompanying explanations. Fertilizer plant blames Aurubis and KCM in "prohibited agreements, decisions and concerted practices, abuse of monopoly or dominant position." Suspicions of the fertilizer plant are that through high prices in the local market Aurubis tries to compensate costs for exports to the rest of its produced sulfuric acid. The collision can be called titanic. The three companies are in the top 30 in the ranking by income of Kapital Daily of the 100 largest companies. Parties negotiate prices whole year, but failed to reach an agreement. Now the sulfuric ball of the Titans is in the CPC. According to the Executive Director of Agropolychim Vasil Alexandrov the issue with prices of sulfuric acid does not only affect the company's business. This increases the average costs and hence the cost of production of farmers.
Source: Capital (18.09.2013)

3 Options to Settle BGN 700M Debts of Bulgaria's Railway Co Bulgarian Transport Minister Danail Papazov has said that the debts of the Bulgarian State Railways (BDZ) company could be settled through capital transfer, state subsidy, or a new loan. He informed that the ongoing implementation of the debt restructuring plan for BDZ had helped reduce the debts below the level of BGN 700 M, the aim being to bring the total below BGN 670 M. He said that the issue of a deferred payment of debts to creditor was still an undecided matter, adding that while the creditors insisted on a 5-year period, Bulgaria sought a 10-year scheme. "We hope that BDZ will register a profit one day, and this may even happen next year" Papazov noted, adding that it was an illusion to believe that this could happen without the assistance of the state. The Transport Minister reported an increase in cargo rail services, which had reached up to 30 000 tonnes per 24 hours, and an increase in the number of transported passengers. Papazov pointed out that he had received thank you letters from passengers for the new sleeping cars which had been supplied during the term in office of former Transport Minister Ivaylo Moskovski.
Source: mediapool.bg (25.09.2013)

Recovery programme for Bulgaria’s state railways is ready: ministry “Recovery programme for the Bulgarian State Railways (BDZ) is ready,” said Bulgarian Minister of Transport, Information Technologies and Communications Danail Papazov speaking with journalists at a press conference themed “Priorities in the transport for the next programme period 2014-2020”. The Minister remarked that there were three variants of the recovery programme, which have been presented to the Ministry of Finance and the government. “On Monday, there will be a meeting with the Prime Minister, at which we will discuss the future of the BDZ and its financing over the next years, aiming at overall renewal of the rolling stock. We will look for financing under the EU programmes, too, for the purchase of new rolling stock, especially for the passenger’s transportation, but there are several conditions and they are very hard. The most important of them is for the company to report a profit or at least zero debt to apply as a beneficiary for such an investment,” the minister explained.
Source: Agency Focus (27.09.2013)

Executive Director of Holding BDZ Kristian Krastev will start due diligence in implementing the technology requirements for the safety of the railway service in the preparation of train travel, the press office of the holding said. Inspection will cover depots for repair and maintenance of passenger and freight cars, locomotives and railcars, units for passenger and freight traffic, and more. Purpose of the inspection is to follow each stage of the preparation of trains for traveling - from compliance with the regulatory and technological requirements for the maintenance and repair of rolling stock to the preparation of board staff's performance of official duties. Diligence will be carried out by officers from the Safety departments in both subsidiaries of Holding BDZ.
Source: Monitor (14.10.2013)

BDZ wants 5% rise in ticket BDZ Passenger Services insists for a 5% increase to the price of train tickets by the Ministry of Transport. The Office of Minister Daniel Papazov has not yet reviewed the proposed increases in train travel and has given permission for it. Therefore it is not clear whether the increase, if any, will take effect with the new train timetable on 14 December or after the New Year, BDZ said. There will be no layoffs at BDZ , said the deputy Executive Director of BDZ Holding Chavdar Trendafilov at the opening of the campaign for comprehensive pre-travel checks on trains. About 10% of the employees retire annually, which practically solves the problem of reduction of staff, there are activities for which there is a chronic shortage of staff, said Trendafilov .
Source: Standart (15.10.2013)

Bulgarian Posts and Holding Bulgarian State Railways selling properties in Sofia Bulgarian Posts and Holding Bulgarian State Railways are selling properties in Sofia. Bulgarian Posts will sell via direct negotiations its share in a property located on 8 Totleben Boulevard which has an area of 195 square meters to the building’s owner Fortera SPJSC. The property is not used by the post as it generates solely expenditures for security and taxes. Holding Bulgarian State Railways will sell to its long-term employee an apartment of 65.8 square meters in the Sofia’s region of Poduyane. Both properties are to be sold under Rules for the exercise of the rights of the state companies with state participation in the capital at a price not lower than that set by independent appraiser.
Source: Standart (17.10.2013)

Part of Bulgarian State Railways Holding’s debts paid Bulgarian State Railways Holding paid back serious part of its debts. After the company deposited a large tranche Bulgarian State Railways’ obligations dropped under BGN 670 million. As a matter of comparison- as to the 30th of April the company’s debts were to the amount of over BGN 709 million. As a month’s average Bulgarian State Railways pays back several million. At a meeting with the company’s creditors it was decided upon forming a joint working group. It is to draft concrete schemes for paying back the company’s debts and to prepare project for a deal under them. The committee is rendered a deadline until Christmas. All creditors are taking part in the negotiations, including German state company KfW that funded purchase of the 50th railcars Siemens.
Source: Standart (18.10.2013)

Since the beginning of next year PIMK Plovdiv (one of the biggest Bulgarian road hauliers) should launch its project for ro-la transportation, said Penko Nestorov, one of the two owners of the company. According to Nestorov, PIMK participated and won a competition of the European Commission (EC) to support ro-la projects under the Marco Polo programme to reduce air pollution and ease traffic by directing loads to the railway tracks. However, the entire project should be run by a private company. The funds from the European Commission will be received subsequently and are not really much essential: PIMK will receive EUR 2 of support from Brussels per 500 tonne-kilometers transported under the new scheme, after the audit .
Source: Capital (05.11.2013)

BDZ sells old wagons for BGN 5.7 million After the new management of BDZ said it would work to improve the financial state of the railways by re- performance and sale of partof its movable property, the company announced a tender for the sale of 40 old locomotives. The invitation to tender can be found on the official website of the carrier. Under the terms of the tender, BDZ organized a sealed bid auction for a total of 40 different locomotives. Simple calculation of the total amount of the starting bid price of all cars shows that the railways will search over BGN 5.7 million revenue from the sale of the old trams. The auction will take place on 22 November this year in the building of Holding BDZ.
Source: investor.bg (07.11.2013)

Bulgarian railway co BDZ seeks to reschedule debt over 10 years Bulgarian state-owned railway holding company BDZ seeks to reschedule its debt over ten years, the country’s transport minister was quoted as saying by local media on Friday. Currently, the company's debt is estimated at BGN 655 million, Danail Papazov was quoted as saying at the parliament by online newspaper Dnevnik. A working group will start discussing BDZ Holding's debt rescheduling plan next week, Papazov pointed out. The company is undergoing tough reforms and is selling non-operating assets, the minister added. The holding company’s net loss amounts to some BGN 18 million, Papazov said without disclosing the reporting period. At the this point, BDZ can cover its current expenses but is not able to make due payments without the government’s help, the minister explained. The railway operator managed to lower its debt by BGN 30 million in October alone, minister Papazov added.
Source: investor.bg (18.11.2013)

Bulgarian State Enterprises Accrue Debt of BGN 10 B Bulgarian enterprises with over 50% State stake have accrued total debt of BGN 9.9 B, according to Deputy Prime Minister, Daniela Bobeva. Speaking Tuesday, at a conference dedicated to management of State-owned enterprises (with over 50% stake), Bobeva said that there were 249 such enterprises in the country with a net profit of BGN 220 M (with the exception of the Bulgarian Energy Holding, BEH) and a debt of 9 B, of which 5 B were short-term debt. The Deputy PM announced that she has organized 2 months ago a work group for new legislation on State participation in the economy, stressing this initiative was part of the government's program to boost economic growth. Bobeva explained that as the privatization of most of the State sector has concluded, the focus now should be better management of the remaining State enterprises as they form a significant part of the country's jobs and of the Gross Domestic Product, GDP. Better management includes new ways to appoint Boards of Directors and a new dividend policy of the State.
Source: Sega (27.11.2013)

One of the largest creditors of the Bulgarian State Railways (BDZ) - German KfW - demands for the repayment of EUR 12 million until December 15, 2013. The bank financed the purchase of Siemens Desiro diesel passenger trains. The BDZ’s debts currently amount to BGN 646 million, compared to BGN 709 million three months ago. The state company has decreased its debts significantly from BGN 709 million to BGN 646 million within three months. Holding Bulgarian State Railways has no new debts but still the company continues to pay back old ones. Accumulated overdue debts are to the amount of BGN 303 million.
Source: Class (28.11.2013)

Director of Bulgarian Mail Fired Yet Again Plamen Pavlov, CEO of Bulgaria's state mail operator Bulgarian Post, has been released from his duties due to the company's poor performance. This is the fourth change in the Post's managing positions within the last six months. Pavlov, who has been the company's CEO only since end of July this year, has been dismissed by Bulgaria's Minister of Transport Danail Papazov a week after reporting to a parliamentary committee about his work. MPs from ruling coalition senior member Bulgarian Socialist Party were not happy with the report, writes Mediapool.bg. Valentin Petrov, a Socialist functionnaire from the Pernik regional organization, and current Bulgarian Post board of directors member, is to be appointed at the company's helm. After a liberalization of the mail services marked, Bulgarian Post started registering losses, and finished 2012 with a net loss of BGN 11 M. A similar number is expected for 2013. Mail officers came out in protest over the summer, amid rumors of layoffs and oncoming privatization. Minister Papazov has denied either, saying the state has no intention to sell Bulgarian Posts, and promising an increase of salary.
Source: Capital (02.12.2013)

Bulgaria state railways’ debt drops: minister Total debt of the Bulgarian State Railways (BDZ) by June 1 used to top BGN 700 million, while at the moment the debt amounts to BGN 625 million,” Bulgarian Minister of Transport, Information Technologies and Communication, Danail Papazov, said at the presentation of a pilot project for online booking and sale of tickets for the Bulgarian State Railways (BDZ), FOCUS News Agency reporter informed. “The sum is decreased not only in terms of interest but also in terms of principal. In addition, there are active negotiations with the creditors and we have achieved certain agreements,” the minister added.
Source: Agency Focus (20.12.2013)