The Commission for Protection of Competition allowed to Bulgarian State Railways - Passenger services Ltd, Kolovag Ltd. and Intercom Ltd. to found a joint venture. The business of the three companies is connected with trade and repair of passenger carriages. The new joint venture will be "BDZh - Bulvagon JSC and will be engaged in the manufacture, repair, recycling and trade in passenger rail carriages. The main purpose of creating the joint venture is to strengthen control in the design and repair of passenger coaches.
Source: Monitor (23.04.2009)

The company is registered in Territorial administration Big taxpayers and insurers towards 2009, 04.30
Source: Tax Administration (30.04.2009)

Antifiltartion screen and a gravity pipeline already take the drain water in the western part of the Oxide heap territory of the copper-extracting Panagyurishte-based Asarel-Medet. The value of the facility is BGN 1.366 mln. After the introduction of the installation, the monitoring data over Panova river confirmed the expected high environmental performance. The measured pH of the river water is permanently above 6.0 and meets the requirements for the concentration reported by the Regional Inspectorate for Environment Protection. This is the fourth antifiltartion screen on the territory of the complex - part of the system for water protection from pollution. In 2008 Asarel-Medet JSC invested over BGN 7 million in projects for environmental protection, monitoring and effectiveness of treatment facilities. This year, because of the global financial crisis, Asarel - Medet cut by half its investment program, but the planned investments in ecological projects will be implemented, the company reported.
Source: Dnevnik (08.06.2009)

BDZ Remains Bulgaria's Public Railway Carrier for 15 Years Bulgaria's government decided Wednesday that the state-owned railway company BDZ would be the country's public railway carrier for the next 15 years. BDZ Jsc was the only company bidding for the public railway carrier tender, and will thus remain the only company operating express and passenger trains in Bulgaria. Each year Bulgaria's state budget allocates a certain subsidy for the BDZ in order to help the company keep its generally low prices as well as its discounts for students and retirees, and to maintain its unprofitable sectors.
Source: Darik Radio (18.06.2009)

BDZ - Passenger Services SPLTD will invest BGN 1.2 billion in new trains by 2014. 30 new sleeping carriages, 50 passenger and 20 electric truck will be bought next year. A delivery of 5 new electric locomotives is also expected. By 2014 the railway will have a total of 50 new bedrooms wagons, 170 passenger, 50 electric truck and the 20 new electric locomotives. These investments are reflected in the realistic scenario for the development of BDZ. As a result of the financial rescue plan, a profit of BGN 5 million will be formed by the end of 2014. Capital of the company will be increased by BGN 500 million and over 100 measures to reduce costs and increase revenue will be implemented. In the pessimistic scenario, the shortage of funds will reach BGN 905 million, BDZ - Freight Services SPLTD will be sold and BDZ Passenger Services will be subsidized by the state.
Source: Standart (16.08.2010)

Bulgaria to shake up BDZ ahead of partial sell-off BDZ Tovarni Prevozi, the freight arm of the country’s national railway carrier BDZ, will be restructured and then partially or fully privatised, according to plans by the Ministry of Transport. Ministry officials told reports over the weekend that the shake-up should be completed by the end of 2011. At the moment, the sell-off cannot be implemented as its assets are owned by its parent company. No investor will be willing to buy just the operations while inheriting its debts, the ministry explained. Therefore the assets of BDZ Tovarni Prevozi and the carrier’s passenger transportation arm BDZ Patnicheski Prevozi will be transferred into separate companies. Thus, BDZ will be only responsible for strategic planning and financial oversight. But before that the ministry needs to persuade BDZ’s creditor banks to transfer its debts to its subsidiaries. BDZ board chairman Vladimir Vladimirov said the Bulgarian railway transport sector has already sparked interest by the German and Austrian market players. Meanwhile, transport minister Aleksandar Tsvetkov announced that BDZ narrowed its loss in end-August to BGN 24 million from BGN 40 million for the year-ago period. He attributed the improvement to the restructuring plan implemented in the company. The shake-up plan is a key argument in negotiations between BDZ, the World Bank and the European Bank for Reconstruction and Development (EBRD) for a BGN 460 million loan for the carrier to be used as debt refinancing and for ongoing needs. The financing needs the approval of the European Commission (EC), which has already received an inquiry but has not yet come up with a decision.
Source: Dnevnik (04.10.2010)

The passenger transport division of Bulgaria's national railway carrier BDZ, BDZ Patnicheski Prevozi, will set up a joint venture with local postal operator Tip Top Courier, according to a request filed with the Commission for Protection of Competition (CPC) to give its opinion about the proposed deal. The new business will allow BDZ to secure jobs for about 200 employees who will be laid off as part of the company's decision to suspend its parcel business, which suffers losses of BGN 2 million leva a year. BDZ will hold 51% in the JV, while Tip Top Courier will own the remainder, BDZ's board chairman Vladimir Vladimirov said. "We have been looking for a decision to keep the work of these people for about a year. Tip Top Courier offered itself to create joint venture and therefore we chose them," he said.
Source: Dnevnik (26.04.2011)

Railway trade unions affiliated to the Confederation of Independent Trade Unions and the Podkrepa Labour Confederation have demanded the resignation of Vladimir Vladimirov, Chairman of the Board of Directors of the Bulgarian State Railways (BDZ) Holding Company in a declaration addressed to the Prime Minister, the transport minister, the Parliament leader and the media. The trade unions demand negotiations on new collective labour agreements to start immediately, the agreements reached so far to be honoured and managers to be appointed by competition. The unions warn that if the signed agreements are violated, they will call on railway employees to go on strike. They recall that after railmen went on strike in March, a memorandum of understanding on the development of the railway sector and strike agreements were signed. Intentions for a gross violation of the strike agreements signed have been stated since June after the unprecedented change in the managements of the BDZ Holding Company and the Passenger and Freight Haulage companies, the declaration says. The new management's actions are aimed at skirting the good terms set in the collective labour agreement and infringing on the employees' rights, according to the trade unions.
Source: money.bg (12.07.2011)

Bulgarian company Transimpex has levied a distraint on the assets of national railway carrier BDZ over unpaid debt, according to an announcement in the Commercial Register by private bailiff Stoyan Yakimov, dated October 6. According to the statement, the railways' debt to the company was slightly more than 7.4 million leva as of December 17, while accumulated interests stood at more than 1.5 million leva as of October 6. The forfeit concerns BDZ's stakes in BDZ Tovarni Prevozi and BDZ Patnicheski Prevozi. In early October, the Privatisation Agency started a procedure for the sale of the company's freight division, which holds about 80 per cent of the country's cargo transportation market. As of June 13, Transimpex was 42.12 per cent-owned by Trans Nove EOOD, which is in turn controlled by Vato 2002 EOOD. Vato 2002 is part of Nove Holding AD, in which businessman Vassil Bozhkov holds a 98 per cent stake. Recently, BDZ's management announced plans to cut its workforce by 2000 and suspend services on some of its unprofitable routes. The proposed measures made trade unions decide on a nationwide strike starting on November 24.
Source: Darik Radio (11.11.2011)

BDZ insists on rescheduling of debts to suppliers We consider it necessary to negotiate with suppliers and creditors for the gradual repayment of the company's liabilities, stated yesterday Vladimir Vladimirov, Chairman of the Board of BDZ (Bulgarian State Railways) on BNT (Bulgarian National Television). So far, there has been such a disbursement practice. Should no agreement be reached, both BDZ - Passenger services Ltd and BDZ- Freight services Ltd will go bankrupt. This is one of the reasons for the BDZ management to demand an acceleration of reforms with the introduction of the five new measures. According to the managers of the Holding Bulgarian State Railways EAD, as a result, funds will be released for the repayment of the company's debts to banks and suppliers. "In this way, we will be able to balance the revenues for a certain period, while rescuing the company from the crisis," explained also Vladimirov. If the planned reforms are implemented, it will be easier for us to borrow a loan from the World Bank, indicated he. Particular interest in the purchase of BDZ-Freight services Ltd could be noticed, but potential investors also have financial difficulties. "Those companies that show interest either have their own problems or they lack the financial resources to penetrate the Bulgarian market," explained Vladimirov. As a result of the privatisation of the holding company, the accumulated amount of some BGN 200 mln is expected to be spent on the BDZ's debt repayment. The Bulgarian Privatization Agency has not announced yet who will be selected for consultant on this sale. The price of future sale transaction of 'BDZ-Freight services' Ltd will depend on the actual number of the bidding companies and on the final bid price. Vladimirov commented that the current EU economic situation was not favourable at all and he expressed concerns that the estimated cost might not be achieved and this would hinder the rehabilitation of the state railway company. Meanwhile, trade unions are preparing to stage a general strike on November 24.
Source: Class (15.11.2011)

A total of 200 workers of the Bulgarian State Railways BDZ have accepted the offer of the troubled company's management to be made redundant in exchange for six monthly salaries, BDZ announced. The 200 workers in question are about 10% of the 2 000 workers – out of a total of 13 000 employed by the Bulgarian railways – that the BDZ management wants to lay off as part of its desperate measures to save the "technically bankrupt" (in the words of Transport Minister Ivaylo Moskovski) transport company. The management of the state-owned BDZ Holding announced in early November that it intended to lay off 2 000 workers, and reduce the number of trains in operation by 150 by January 2011, which led the syndicates to declare a mass strike as of November 24, 2011. Of the 200 workers who agreed to quit voluntarily, 90 are employees of BDZ Passenger Services, and 110 are employees of the slated for privatization BDZ Freight Services.
Source: money.bg (15.11.2011)

BDZ will incur a daily loss amounting to BGN 600,000 if a strike is staged “The Bulgarian State Railways Holding (BDZ) will incur a daily loss amounting to BGN 600,000 if the workers and employees stage an effective indefinite strike,” said Vladimir Vladimirov, Chairman of the Board of Directors at the company. “Out of these, some BGN 400,000 will be in missed revenues of the BDZ Freight Services Department and the other BGN 200,000 in daily losses of the BDZ Passenger Transport Department." In the end, the effective protest will lead to the company’s bankruptcy. About 70,000 people use railway transport every day. Between 26,000 and 27,000 people will be affected by the planned strike on November 24. According to the company’s management, about 540 buses must be provided for the transport of people in the areas affected by the strike. "BDZ is unable to fulfil such a commitment," said Metodi Hristov, Head of the BDZ Passenger Transport Department. He added that it is not clear yet which areas will be affected. This renders the organisation of alternative transport impossible. The company has the practice of transporting passengers at short distances in emergency cases. If there is pre-sale of tickets for trains that will not travel, passengers will be compensated. The list of services which will not be carried out will be announced on the Internet site of the Railways. The management of the State Railways said that it will not abandon the 5 planned restructuring measures. They provide for the dismissal of 2,000 workers, stopping 138 trains, the sale of non-operating assets, raising ticket prices and the sale of the BDZ Freight Services Department. The trade unions announced that, on November 24, an indefinite effective strike will be staged because of the foreseen dismissals. Vladimirov said that the trade unions have no cause and alternative proposals. "The announced strike is illegal," said Vanya Florova, General Legal Adviser of the holding. She explained that the statutory requirements for the conclusion of agreements, ensuring appropriate transport services, have not been met. The signing of the agreement has to be done no later than three days before staging a strike and has to cover at least 50% of the volume of transport services.
Source: Class (23.11.2011)

BDZ incurs losses amounting to more than BGN 440,000 in the first four days of the strike In the first four days of the strike, the Bulgarian State Railways Holding company (BDZ) incured losses, amounting to more than BGN 440, 000. “The unrealized revenue of the BDZ Passenger Transport Directorate stands at BGN 375, 000," said Jordan Nedev, BDZ Executive Director, quoted by Investor.bg. “The losses of the BDZ Freight Services Directorate are about BGN 60-70, 000 ,” said for Klassa Plamen Dzhurov, company’s Manager. He explained that they came from additional costs for redirection of shipments during the night. Workers are paid overtime and the National Railway Infrastructure Company (NRIC) is charging higher fees for these extra activities. Schedules are being changed every day. “There is no outflow of consignors; in the recent days, there has even been an over fulfillment of the company’s plans," explained Dzhurov. Despite the expectations for negotiations, a meeting between the management and the strikers was not held yesterday. Officials from the press office explained that now negotiating of loan extensions is an urgent priority for the holding company. Above 80% of the passenger trains in the country stopped for a fifth consecutive day, according to information from the trade unions. Since the beginning of the strike, no train has left from the Central Stations in the towns of Sofia, Pernik, Mezdra, Gorna Oryahovitsa, Plovdiv, Burgas and Stara Zagora. Meanwhile, the BDZ Freight Services Directorate filed a complaint against ten employees of the company with the Sofia City Court. According to the managers, they have staged the protests. The claim is aimed at declaring the strike illegal. Some 30 trains will be stopped from travelling today. This is the first phase from the plan for reforms in BDZ. It is envisaged that in the next two weeks the number of passenger trains will be reduced gradually, so that on December 12, the travelling trains will be just 138.
Source: Class (29.11.2011)

Over 900 Workers Leave BDZ The negotiations over the possible cancellation of the ongoing strike of the railway workers in Bulgaria resume at 11 am today, with the participation of the directors of BDZ Freight Department and BDZ Passenger Trains – Mr. Georgi Ivanov and Mr. Metodi Hristov. Sources from the Transport Ministry said that the new collective bargaining will be the central issue on the agenda. The negotiations halted Thursday, when the trade unions’ leaders left in the middle of their talks with the BDZ Holding leadership. Today, the BDZ chiefs will be defending their stand, BDZ Chairman of the Board Vladimir Vladimirov said. Last Saturday, the number of BDZ workers on strike fell to 166 people from 320 a week before. Some 925 workers have agreed to table their resignations against a compensation of six net salaries.
Source: Standart (12.12.2011)

Management BDZ Passenger Services and union representatives signed a collective agreement, which put an end to the 24-day strike in the railways. The agreement provides for paid leave of railway to be reduced by 2 days and the saved money will go into a fund from, which bonuses would be paid by mid 2012. Layoffs in case of reduced operations would be agreed with trade unions. Retiring railroad personnel will receive eight instead of nine wages. Company executives believe that the signed agreement will allow the commenced reforms in the holding to be maintained. According to the unions, the strike has reached its goal and railroad interests will be protected. Since yesterday all trains in the country are travelling normally in their regular schedule.
Source: Class (20.12.2011)

BDZ to sell a warehouse in Russe “The Bulgarian State Railways (BDZ) will put up for sale its warehouse in the town of Russe, representing a large industrial property of dozens of decares,” Yordan Nedev, Head of BDZ holding company, said for investor.bg today. “In 2012, we must complete the main stages of the reform, including the new structures of the holding's two subsidiaries - BDZ - Passenger Services JSC and BDZ - Freight Services JSC. We should finalise the first wave of lay-offs,” he added. According to him, BDZ - Freight Services JSC counts on an increase of its cargoes by some 5%-10%. Contracts with new shippers, who were previously clients of the holding company’s rivals, have already been signed. “We have recently attracted new clients who have never transported cargoes from and to Bulgaria. The new services and products we have been offering in the recent months already have a positive impact on our business and the revenues from freight services,” commented Nedev. “The revenues from transportation of passengers will also increase after improving this service. Some 30 sleeping cars ordered earlier are expected to be delivered in 2012. There is much talk about the interest in BDZ - Freight Services JSC, but the investors have not clearly stated their positions yet, said Nedev.
Source: Class (01.02.2012)

Railway shipments decrease by 50% due to the bad weather ”Railway shipments decreased by 50% because of the extremely bad weather conditions. Currently, we transport about 15,000 tonnes per day, compared to 30,000 tonnes in normal conditions”, Plamen Dzhurov, Manager of BDZ-Freight Services, told Klassa. He explained that the company was not paying defaults yet because it managed to provide the transport services, albeit with a delay due to the very difficult conditions. According to him, the most problematic is the Lom-Mezdra-Vidin line, where the cleaning of the railway route is very difficult. There are also problems with the locomotives, because some of them have been redirected to BDZ-Passenger Services. Dzhurov specified that the company was ready to increase the number of freight cars if shipments increased steeply. According to him, talks are being held with port operators in order to increase the volume of freight. The company expects a return to the normal amount of shipments when the weather improves. Road haulage also reported losses due to the severe weather conditions. “The direct additional costs for a heavy-duty truck amount to BGN 700 per trip as a result of the restricted traffic along the Danube”, said Krasimir Lalov, Deputy Chairman of the National Association of Bulgarian Carriers. The reason is that, at present, all the traffic passes through the Danube Bridge near Russe. Thus, the trip to Sofia is 500 km longer, which means an additional 180 litres of fuel. An alternative for the transportation of goods to Europe is via Serbia, but the permit needed will cost additional fees and will thus raise the price of the service.
Source: Class (16.02.2012)

The Bulgarian government will terminate attempts to concession Sofia's Central Railroad Station, says Transport Minister, Ivaylo Moskovski. The reason for the move is upcoming renovations and repairs with the use of EU funds. EUR 30 M from EU operational programs will be invested by the end of the current program period in the complete and long-overdue renovation of the railroad hub. The deadline is the end of 2014. The State-owned National Company Railroad Infrastructure informs that the design project is ready. The application form will be submitted by the end of the current year and construction will begin in 2013. After that, the space in front of the Station's building could be offered for concession. The concession idea first emerged in 2010, during Moskovski's predecessor, Alexander Tsvetkov, but never materialized due to issues with the ownership of adjacent properties.
Source: Monitor (29.02.2012)

Bulgarian State Railways pays BGN 1,7 mln per month to crediting banks “Every month, a total of BGN 1.7 mln is being paid off to crediting banks,” said Vladimir Vladimirov, Chairman of the Management Board of the Bulgarian State Railways (BDZ) on BNT. In the first months of 2012, the company recorded a negative financial result, but it is expected to be compensated in the summer period, and the holding to finish the year with profit. The savings after the start of the reforms in the company are deemed to make this possible. “The company’s damages from theft of fuel alone are about BGN 3 mln per year,” said Vladimir Vladimirov. He explained that the losses incurred in Freight Services are about BGN 2 mln per year and those in Passenger Services - about BGN 1 mln. This is the reason for the intensified inspections in the company which started late last week and are aimed at determining actual fuel consumption. The inspections have detected so far about 160 litres of illegally drained diesel by employees from the Locomotive Equipment Unit in Svilengrad and from the Locomotive Depot in Dupnitsa. Last year, the unprofitable lines were suspended, which substantially reduced losses. Staff optimisation is expected to continue this year, after the release of about 2,000 workers at the end of 2011. " In the first three months of 2012, the free financial resources of the holding were BGN 12 mln more, compared to the same period last year," said Vladimirov. He added that the reforms were progressing as planned, every foreseen step had been implemented, the deadlines will be kept and this development will continue. Around BGN 200 mln is the expected amount from the privatization of Freight Services. Potential investors should declare their interest in the company directly to the Agency for Privatization and Post Privatization Control. Italian, Spanish and Austrian companies have submitted inquires so far. Russian Railways declared its interest in the acquisition yesterday.
Source: Class (26.04.2012)

BDZ reduces its loss by BGN 6 mln since the beginning of the year BDZ (Bulgarian State Railways PLC) reduced its financial loss by BGN 6 mln for the first three months of 2012, compared to the same period last year, stated yesterday Vladimir Vladimirov, Chairman of the Board of Directors of the Holding Bulgarian State Railways SPLTD. For the period January -March of 2011, these amounted to BGN 21 mln and for the same period of 2012, the losses were BGN 15 mln. Last year, the total loss of the Holding decreased. According to statistics as of April 1, 2011, the financial loss was BGN 806 mln, while on the same date this year, it reached BGN 743 mln. Vladimirov explained that for the first three months this year BDZ reported the worst financial results. The free funds operated by the Holding amount to BGN 12 mln. "This allows us to start disbursing our liabilities to all creditors and bondholders," stated Vladimirov. Every month, BDZ transfers a disbursement instalment of BGN 1.8 mln to the German KFW bank for redemption of the loan borrowed for the purchase of the Desiro trains. "We are achieving a gradual repayment of our debts. We have reached additional agreements on the disbursement of our liabilities with all major suppliers and lenders," stated Yordan Nedev, BDZ CEO. According to him, an austere fiscal policy has been imposed and the structural reform is a priority. The option of redeeming the bond loan borrowed by the Holding via the sale of 3,500 freight waggons is currently under discussion." Negotiations have already been conducted with the creditors and they finally agreed with this proposal," stated the Chairman of the Board of Directors. According to him, the freight cars, which are not part of BDZ - Freight services LTD, are assets of the holding and their sale will not affect the privatisation procedure. The freight waggons were estimated at BGN 52.2 mln, while the loan to be repaid to the bond lender is nearly BGN 200 mln. The company management expects, as a result of the sale of BDZ - Freight services LTD, to be able to disburse a portion of its liability. The rate of collectibility of receivables from debtors has also increased. Currently, these are at their absolute minimum and reach some BGN 1.5 - 2 mln for the three companies, explained the Holding's management.
Source: Class (10.05.2012)

Moskovski stops the layoffs in the Freight Services Department of BDZ Yesterday, Ivaylo Moskovki, Minister of Transport, Information Technology and Communications, suspended the layoffs in the Freight Services Department of the State Railways (BDZ). This happened after a meeting with Plamen Dimitrov, President of the Confederation of Independent Trade Unions in Bulgaria, where trade unionists presented their arguments against the intentions of the company's management for new layoffs. Two days ago, it was announced that 400 workers have to be dismissed. According to Moskovski, these layoffs have already been agreed, but have not been carried out. “Additional cuts, beyond the number that has already been agreed, are not foreseen.” Regarding a possible dismissal of employees from the Passenger Services Department, the Minister of Transport explained that there would be no layoffs, but it was a matter of further structural optimizations. According to him, there are no reasons for protest actions.
Source: Class (11.05.2012)

Bulgarian State Railways co BDZ has received its first 12 sleeping cars as part of an order of a total of 30 sleeping cars from Turkey's state owned manufacturer Tuvasas. The last time the Bulgarian State Railways bought new sleeping cars was in 1982, and the last time the company bought regular cars was in 1988. The 12 sleeping cars are the first new ones to be purchased by BDZ in the past 30 years, Bulgarian Transport Minister Ivaylo Moskovski stated at a ceremony in Turkey's Adapazari where the purchase was presented to the public, as cited by the Bulgarian government press service. Turkey's Transport Minister Binali Yildirim also attended the ceremony. Moskovski declared that the new sleeping cars are the start of the gradual renewal of Bulgaria's railway transport. He said Tuvesas was expected to deliver the rest of the sleeping cars by the end of 2012. He also noted that in July 2012 Bulgaria will launch the modernized section of the Plovdiv-Svilengrad railway leading to the Turkish border, allowing trains to run by 160 km/h. Bulgaria commissioned Tuvesas to build the 30 sleeping cars back in December 2010 in a BGN 63 M deal. In the fall of 2010, Tuvasas defeated in court the Bulgarian state railways over the same order as BDZ tried to cancel the deal after initially contracting the Turkish company.
Source: Dnevnik (21.06.2012)

Bulgarian Prime Minister Boyko Borisov has declared his idea to trade BDZ Freight Services, the cargo unit of the Bulgarian State Railways BDZ, to Siemens in exchange for BDZ's debt to the German company for a recent train purchase. Borisov announced his idea Thursday after a meeting with Hans Heinrich Driftmann, the President of the Association of German Chambers of Industry and Commerce. This is not a brand-new idea since it was discussed back in January 2012 when the Bulgarian transport authorities mentioned it as an option for covering the debt of BDZ Holding to German bank KfW for the purchase of 50 electric and diesel Desiro trains since 2003. Back then KfW threatened to seize all Desiro trains – which are the only new trains bought by the Bulgarian State Railways after 1989 – over a delayed payment of EUR 24 M by BDZ. Back in 2005, KfW granted BDZ a loan of EUR 190 M for the purchase of the 50 Desiro trains. At present, BDZ still owes KfW BGN 235 M, or about EUR 115 M, according to Vladimir Vladimirov, head of the BDZ Holding Board, as cited by Mediapool Thursday. The assets of BDZ Freight Services are worth some BGN 320 M, as mentioned by Bulgarian Transport Minister Ivaylo Moskovski at the end of 2011. During its first privatization attempt, BDZ has hoped that its freight division can be sold for BGN 200 M but critics say BGN 100 M would be a more realistic price. The push to sell BDZ Freight Service has been highly questionable since it remains the only somewhat profitable division of BDZ. At the same time, Borisov's statement about swapping BDZ Freight Services for BDZ's KfW Siemens train debt comes just days after the first attempt of the Borisov Cabinet to privatize BDZ Freight Services failed since it attracted only a single bidder with mysterious ownership. "Bulgaria owes almost BGN 300 M to Germany under this deal, and this deal weighs heavily on us. This deal is uniquely stupid," the Bulgarian PM told reporters after his meeting with Hans Heinrich Driftmann, the President of the Association of German Chambers of Industry and Commerce. "BDZ Freight Services is up for privatization, and I have asked for talks with Siemens if they would agree to take over the company in exchange for this debt. That is why we are inviting them to the privatization tender," Borisov stated. Meanwhile, the German bank KfW has warned BDZ that it has violated its loan contract with the transformation in 2010 when BDZ was turned into BDZ Holding, transferring all of its assets to its subsidiaries – BDZ Freight Services and BDZ Passenger Services. It is still unclear whether Siemens and KfW have been approached with the idea; if Siemens accepts the offer, they will acquire BDZ Freight Services, which has a 75% market share in Bulgaria, and was valued at BGN 200 M during its first privatization attempt. Bulgarian state-owned railway co BDZ is a state of dire crisis, as in early July Finance Minister Simeon Djankov terminated the state subsidy for the company – about BGN 13 M per month for its failure to serve a World Bank loan of USD 80 M dating back to 1995. "Ever since the state subsidy of BGN 13 M monthly has been blocked, we are unable to figure out what the Finance Ministry wants from us in order to restore it," BDZ CEO Yordan Nedev is quoted as saying. Nedev has not denied the possibility of a gradual shutdown of BDZ because of the total lack of funds.
Source: mediapool.bg (03.08.2012)

"The subsidy to BDZ Passenger Services will be fully restored. There will be no layoffs and no termination of train services," Bulgarian Transport Minister Moskovski told reporters after a meeting between the Finance Ministry, the Transport Ministry, and the BDZ management. Moskovski elaborated on the package of measures and reforms that the three institutions agreed upon in order to patch up the situation at the Bulgarian State Railways whose total debts near BGN 1 B. "We have agreed to implement as soon as possible all short term measures to reduce BDZ's expenditures in any way possible," he stated. In his words, the first measure to be implemented will be a major legislation amendment to allow Transport Police and the BDZ conductors to fine free-riders. "Keep in mind that the railways can make millions by cutting the gratis trips," Moskovski said."The state subsidy for July will be paid in full by the end of the year, the way it is stipulated by the law. We will work out the details in the next couple of days. There is no reason not to allocate the money," he said.
Source: Capital (07.08.2012)

BDZ and ADIS to be sold by Christmas The freight business of the ailing Bulgarian railway carrier BDZ and the Agency for Diplomatic Properties in Bulgaria ADIS will be put on the counter by the end of 2012, said Emil Karanikolov, chief of the Agency for Privatization and Post-Privatization Control, in an interview with Investor.bg. In a letter sent to the company last week we requested an update of the BDZ freight business’ appraisal, he added. The Agency will be cooperating with international finance consultants to find potential buyers for the two state-owned companies. Ernst&Young have already agreed to help Bulgaria’s privatization regulator. I hope we will draw the interest of other consultants as well, because most of the big, strategic investors do not know the Bulgarian market very well, Karanikolov said. He explained that the price of the freight service of the BDZ needs updating, as assets are being withdrawn from the company’s capital to be transferred to the Transport Police Service. Some assets will in turn be transferred from BDZ Passenger Services Ltd to the company’s freight business. So, the new privatization procedure will be announced after the abovementioned transfers are completed. Unlike, the ailing BDZ Freight Services, ADIS has stirred high interest among foreign investors, Karanikolov said. We have already received a number of enquiries from big international companies, including the consultants that we contacted to sell BDZ. In September, the state will also put on the counter its minority shares in the energy utilities CEZ and E.on.
Source: Standart (22.08.2012)

The Bulgarian National Audit Office will inspect BDZ Passengers Parliament asked the National Audit Office to audit the activity of BDZ Passengers for the period January 1, 2011 – September 9, 2012. During the discussion on Wednesday the opposition urged the executive power to make the necessary inspection. The audit should be ready by 2013 and be submitted to the National Assembly in March. Vanya Doneva from Citizens for European Development of Bulgaria (GERB) said that one of the main reasons was the high amount of public funds managed by the company. These amounted to BGN 180 mln in 2011 and another BGN 20 mln in capital transfers. The second reason is that the activity of the company is of great social and economic importance. “We all know that there are constant problems between employer and employees, some structural changes were made to improve the company's activity, some changes were made to the company's management which is a risk factor and creates the need for an audit,” Doneva commented during the discussion. The third reason she pointed out was that, at present, the National Audit Office has not carried out a full audit of the holding. BDZ Passengers should be inspected, BSP MP and former Minister of Transport Petar Mutafchiev said. However, he asked why the audit has to be carried out on the proposal of Parliament and not as a result of the plan inspection of the Ministry of Transport, Information Technology and Communications, which is the correct procedure, according to him.
Source: Class (20.09.2012)

A Bulgarian-German consortium to analyse the railway sector in Bulgaria Within a year, the Bulgarian-German Consortium InfraCare - TransCare will analyse the railway sector in Bulgaria. The analysis will be conducted in three phases and will be financed by Operational Programme Transport. The three contracts are worth BGN 2,064,000, VAT excluded. This was announced at a press conference where a project for preparing an analysis on the state of the railway sector in Bulgaria under Operational Programme Transport was presented. “The market demand for passenger services will be assessed under the first contract and measures for their optimisation will be projected,” Nelly Stoycheva from InfraCare explained at the press conference. The Transport Ministry expects the analysis to be useful in drafting a project for the purchase of new rolling stock for the Bulgarian State Railways (BDZ) Passenger Services during the next programming period of the operational programme. “An analysis of the administration and the personnel in the railway sector - BDZ, the National Railway Infrastructure Company (NRIC) and the Transport Ministry will be made under the second contract. Proposals for optimisation will be made on the basis of this analysis. The aim is to improve the efficiency of passenger services,” explained Stoycheva. The analysis projected under the third contract will contribute towards improving the work of NRIC within the projected State budget. “Solutions will be proposed for reducing the costs of maintaining infrastructure and optimisation of the centres for the management of transport. The aim is to improve the activities for maintaining the railway infrastructure,” Stoycheva specified. The first and the third contract are for a period of seven months and the second one is for 12 months. During the last month of the implementation, discussions will be held and the results will be announced at final press conferences.
Source: Class (26.09.2012)

Freight transport by state rival The state will create a rival of BDZ-Freight Services, which aims to reduce the cost of future projects for construction of new and repair of old railway lines. This is one of the main goals of the project to change the Law on Railway Transport, prepared by the Transport Ministry. The changes will remove the current ban for Railway Infrastructure (NRIC) to perform transport operations and creates conditions to create a rail carrier. For the first time since January 1, 2002 the same railway company will be able to maintain the railway network and transport by train. BDZ Holding will collapse three months after the sale of BDZ-Freight Services. According to sources the second aim of the change in law is to create conditions to form a new state holding between NRIC, BDZ Passenger Transport and Transport Constructions and Recovery (TCR). Although all three companies will remain separate in accounting within the future holding, the intercompany indebtedness between them will decrease and stabilize BDZ Passenger Transport and TCR.
Source: Standart (09.10.2012)

A European Court ruling may stop the creation of BDZ-2 A European Court ruling may block the amendments to the railway transport law, the bill on which was published two weeks ago on the website of the Ministry of Transport. According to these changes, the National Company Railway Infrastructure will have the right to provide its own transport. According to railway experts, these changes give the possibility of creating a holding company between the infrastructure and BDZ Passenger Transport. Such a holding pattern currently exists in Germany and Austria, where DeutcheBan (DB) and the Austrian Federal Railways (OBB), respectively, are responsible for the infrastructure and perform operator activities. Exactly these two cases, however, are currently at the lawsuit phase at the European Court for the application of criminal proceedings for failure of the First Railway Package. According to the European Commission, the existence of these holdings is against the application of the European requirements for liberalisation of the market. Advocate General at the Court Niilo Jaaskinen said that, legally speaking, the existence of these holdings is legal and does not violate the directives. According to him, there is no legal requirement for the railway infrastructure to be a separate entity from the passenger carrier. If the Court adopts a decision against DB and OBB, then, the eventual unification of NRIC and BDZ - Passenger Transport will result in taking up criminal action against Bulgaria. The topic "pros and cons" of holding structures will be the centre of the upcoming debates on the project about the Fourth Railway package of measures. According to the EC, the carrier should be completely separated from the infrastructure. Late in September, Commissioner Siim Kallas announced that he is sceptical about the ability of the companies maintaining the railway to provide equal conditions for all railway operators, given that they are their competitors.
Source: Class (19.10.2012)

Holding Bulgarian State Railways looks for a company that is to take up security of one of its departments- BDZ Passenger Services in the newt three years. The company announced a public bid under the name of Making nonstop physical armed”guard with firearms and technical resources of both BDZ Passenger Transport’s site and property". The holding is ready to allocate approximately BGN 5.86 million VAT excluded to engage a specialized company to protect its property. The canidate which is to win the order will guard a total of 37 sites in the countires. Apart from physical security the company is expected to set cameras for observation, as well. The public order has a term of 36 months. Candidates are to hand out papers for participation until the 4th of January 2013
Source: investor.bg (12.12.2012)

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)

Commission for Protection of Competition (CPC) has canceled as unlawful the decision of Railways – Passenger Services managers for the procurement of nearly BGN 6 million for security of company’s property. According to the anti-monopoly regulator, part of the requirement set out in the procedure violates the provisions of the Public Procurement Act (PPA). The Commission's decision comes after a complaint from Burou of guarding and Señurity IT. It is one out of six participants, that purchased documents for participation in the procedure. However there is no information who the other five participants are, nor how many of them have submitted bids by the deadline January 14, 2013. However, the decision of the CPC reads also that by request of Burou of guarding and Señurity IT the 'regulator has temporarily stopped the procedure.
Source: Capital (15.02.2013)

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 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)

The Corporate Commercial Bank, the Central Cooperative Bank, Investbank, UBB, UniCredit Bulbank, Raiffeisenbank are the financial institutions managing funds of state companies, 24 Chasa daily reveals. Standart daily specifies that the number of these banks is 11 and adds the names of Postbank, First Investment Bank, D Commercial Bank, CIBank and Bulgarian-American Credit Bank. Some 41 of state companies have deposited too much of their money into only one bank, research by Bulgarian ministries revealed. Some 59.44% of money of NEC, 96% of money of Bulgartransgaz, 88.20% of BEH and 90.85% of deposits of Bulgargaz are managed by the Corporate Commercial Bank. Five companies related to the Ministry of Economy have large deposits in the Central Cooperative Bank. 42.54% of the money of Kozloduy NPP is deposited in Investbank. Money of BDZ Passenger Services is managed by UBB and Eurobank, money of BDZ Freight Railway Services is managed by the Corporate Commercial Bank, 61% of the money of Bulgarian Posts is managed by UniCredit Bulbank, while 91.95% of the money of Bulgarian Port Infrastructure Company is managed by the Central Corporate Bank.
Source: Standart (23.05.2013)

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 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)

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)

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)

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)

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)

Bulgaria’s BDZ Tovarni Prevozi sees 2013 profit at EUR 1.8 mln BDZ Tovarni Prevozi, the freight transport unit of Bulgarian state-run railways company BDZ, expects a profit of some BGN 3.5 million for 2013, the company’s manager told local media. BDZ Tovarni Prevozi has payed back loans worth BGN 50 million in the last four months. The company needed structural and financial changes, Dimitrov, who became the head of BDZ Tovarni Prevozi in August, added. The BDZ holding has cut its total debt to BGN 655 million at the end of 2013, from BGN 704 million in the beginning of June, Bulgarian transport minister Daniel Papazov said in December. Earlier this year, BDZ said it expected its freight transport volume to stay flat on the year despite a bad beginning of the year.
Source: Dnevnik (06.01.2014)

BDZ reduced its loss 6 times BDZ reduced its losses in 2013 nearly six-fold as to 2012, the group announced. According to preliminary data, consolidated loss of BDZ melted from nearly BGN 30 million in 2012 to around BGN 5.6 million last year. As main reason for the loss was pointed the lower volume of transported cargo - 9.7 million tons in 2012 to 8.8 million tons in 2013. Meanwhile BDZ - Freight Services continues to maintain a number of employees which can handle at least 20 million tons of cargo annually. The new management of the railway carrier has made efforts to lure 300 thousand tons additional cargo in the last 3 months, which seriously reduced the loss. Along with the annual subsidy of BGN 170 million and the increased revenues from the higher number of passengers, on operational data, BDZ - Passenger Transport reported profit in 2013.
Source: Standart (13.02.2014)

BDZ looks at Hyundai and Skoda locomotives Holding BDZ prepares a procedure for purchase of new EMUs. Experts from the company have traveled half of Europe to do market research on manufacturers of new railway rolling stock. They visited factories of Skoda in the Czech Republic, Pesach in the city of Bydgoszcz, Poland, Koncar in Croatia, Stadler in Switzerland, etc. The office of BDZ was visited by representatives of Hyundai. The biggest manufacturers of railcars – Siemens, Alstom and Bombardier, whose production is well known, will be invited to participate in the future proceedures, BDZ explained. Based on analysis of the train travels, BDZ sent to the Transport Minister justification for the purchase of twenty five electric locomotives, twenty of which 4-car, and five - 5-car. They need to replace part of the long- suspended Latvian railcars. Procurement of new trains, however, will be announced prior to an agreement with creditors of BDZ, experts said, which is expected to happen by the end of March.
Source: Standart (04.03.2014)

Bulgarian Railway Co Faces Bankruptcy Unless Accounts Are Unblocked Deputy Transport Minister Anton Ginev has cautioned that the Bulgarian State Railways (BDZ) company faces bankruptcy unless its accounts are unblocked. In a Monday interview for mediapool, he said that the talks on the matter with the creditors of BDZ were cumbersome and difficult. In early February 2014, German financial institution FMS Wertmanagement froze the bank accounts of BDZ over overdue debts of EUR 11 M. One year earlier, the assets of the cargo unit of BDZ, BDZ Freight Services, were frozen due to unpaid debts to Depfa bank. Ginev made clear Monday that Germany insisted on solving the problem with the outstanding debts of the Bulgarian state-owned railway company on a governmental level, adding that a solution was unlikely to be reached soon. Bulgaria's Deputy Transport Minister did not specify a deadline for the end of the talks but he assured that BDZ had the necessary sum of over BGN 10 M to pay the loan installment due in May. Ginev also explained that it was good news that the debts of the company were decreasing, reaching BGN 620 M from a previous rate of around BGN 700 M. He also noted that BDZ was considering creating a subsidiary specializing in repairs. Ginev admitted that repair works were not profitable but he argued that efficient management combined with a minority private stake would help optimize the state-owned railway holding. Ginev did not name the company with which BDZ was planning to set up a joint venture. He said that an analysis was being made to select the repair units of BDZ which would become part of the subsidiary, given that the company had over 20 such sites based in Sofia, Plovdiv, Karnobat, Dimitrivgrad, etc. Ginev claimed that the components of the subsidiary would be clear by mid-2014. He also informed that the Transport Ministry did not plan to establish new state-owned companies.
Source: mediapool.bg (15.04.2014)

Bulgarian National Railways 'Not Facing Bankruptcy' The Bulgarian National Railways (BDZ) are facing nether bankruptcy nor mass layoffs, Hristiyan Krastev, the state-owned company's chief executive, said on Monday. Krastev told the public broadcaster BNT that BDZ is still committed to reducing its huge debt, which in his words went BGN 100 M (EUR 50 M) down in 2013. He added that his company continues negotiations with lenders and stakeholders. Purchase of new wagons and locomotives is scheduled to be made by the end of the year, with a special focus on improving conditions and capacity of passenger trains. The total debts of BDZ amount to BGN 620 M (EUR 310 M) as of end-April 2014, and its larger creditors (banks like Societe Generale, BNP Paribas, KFW, and Bulgaria's First Investment Bank) have been considering whether to sell off some of the company's assets due to concerns it would could not handle its financial burden. Transport Minister Danail Papazov has however asserted BDZ is not facing bankruptcy and has vowed that his government would conduct successful negotiations.
Source: Darik Radio (19.05.2014)

Bulgaria's BDZ, NRIC suffer fin damages from thefts Bulgarian state-operated railway companies BDZ and Bulgaria's National Railway Infrastructure Company (NRIC) have endured thefts amounting to a total value of BGN 1.6 million in the period from the beginning of the year to mid-October, the two companies said. NRIC reported thefts amounting to BGN 1.06 million during the period while BDZ reported losses amounting to BGN 500,000, the two companies said on Tuesday in separate press releases. The passenger unit of BDZ, BDZ Patnicheski Prevozi, has reported around BGN 400,000 in losses from thefts, while its cargo unit, BDZ Tovarni Prevozi, has suffered theft-related damages of more than BGN 100,000. In addition, a series of violations, including intentionally placing large objects on railway lines, throwing stones at trains and deliberately stopping freight trains with the sole purpose of robbing them, have continued to cause material and financial damages to the companies concerned. The most important repercussion of such actions, however, is that they undermine the safety of trains, as well as the lives and well-being of the companies' customers and employees, the press releases said. Such attacks could also cause crashes and other unforeseen developments.
Source: 24 chasa (06.11.2014)

Bulgarian state rail co freight, passenger units seen posting losses in 2014 The freight and passenger units of Bulgarian state-owned railway holding company BDZ are expected to have closed 2014 in the red, the country's transport minister said. The loss of BDZ-Freight Services, the freight unit of the company, is expected to amount to 12 million levs ($7.2 million/6.1 million euro) last year, while the holding company's passenger unit, BDZ-Passenger Services, is seen ending 2014 with a loss of 15 million levs. Moskovski also said that BDZ-Passenger Services will receive 140 million levs in state subsidies in 2015, in line with plans. The company will also receive an additional 30 million levs as a capital transfer, which would be used to repay part of its liabilities to creditors, as well as another 40 million levs from the state budget if the government gets the relevant nod from the European Commission. Earlier this week, BDZ put out of services 38 passenger trains while the routes of another 10 passenger trains were shortened following a cut in its state subsidy by 40 million levs in 2015. The company said it expects to close 2015 with a loss of 44.6 million levs due to the reduced subsidies. Last month, BDZ executive director Vladimir Vladimirov said as many as 140 routes will have to be dropped and 1,500 employees laid-off as a result of the subsidy cut.
Source: Standart (15.01.2015)

BDZ Rehabilitation Plan Provide for Lv 210-430 Mln Investment The plans are to dismiss about 1,200 staff from BDZ - 600 each from passenger and freight services. There will be no mass layoffs, the staff will be reduced when the people retire and be the result of normal outflow, Moskovski said. The strategy allows BDZ Freight to be privatized, holding Director Vladimir Vladimirov said. Transport, Information Technology and Communications Minister Ivaylo Moskovski underscored that both documents should be subject to public debate and parts of them could be changed. The sale of inoperative assets such as rolling stock, engines, terrains and resthouses could bring in at least 69 million leva. A mechanism to settle the debts of BDZ to the National Railway Infrastructure Company to the amount of 75 million leva has also been designed.
Source: Duma (08.04.2015)

Trade union demands dismissal of BDZ management The first private trade union in the country demanded that the management of Bulgarian State Railways (BDZ) be fired. According to their press release they have sent a letter to the Ministry of Transport asking the minister to dismiss the chairman of the Directors' Board, the CEO of the company and the chief executive of BDZ Passenger Transport – respectively Velik Zanchev, Vladimir Vladimirov and Dimitar Kostadinov. The motives involve embezzlement, mismanagement and further actions of the sort that resulted in exacerbation of the financial crisis within the state railway system. The trade union adds that the collective labor agreement inflicts damages on BDZ staff, reinforcing the gap between the salaries received by regular employees and management.
Source: Standart (18.08.2015)

Bulgarian state railways BDZ swings into 1.8 mln euro net profit in H1 Bulgaria's state-owned railways operator Holding BDZ posted a group net profit of BGN 3.6 million for the first half of 2016, reversing a net loss of 13.7 million levs in the same period last year. Group sales revenues, which include BDZ's freight and passenger units, fell by an annual 2.9% to 87.6 million levs in January-June, while its operating revenue, including state subsidies, declined 6.2% to 182.8 million levs, the company's interim financial report, posted on the finance ministry's website, showed. At the same time, group operating costs dropped by annual 12.3% to 179.8 million levs. BDZ's freight unit turned to a net profit of 1.3 million levs in the first half from a net loss loss of 7.3 million levs a year earlier, as its total revenue fell 13% to 52.6 million levs and total costs dropped 24.4% to 51.2 million levs. Its passenger unit's first-half net profit soared to 8.9 million levs from 231,000 levs in the first six months of 2015, with total revenue down 5.1% to 129 million levs and total costs down 11.5% to 120.1 million levs. In an interview for Bulgarian state-owned broadcaster BNT, Holding BDZ's CEO Vladimir Vladimirov said that company's debts have been reduced to 400 million levs from 849.4 million levs in 2009. He added that after the concession of Sofia Airport is finalised, BDZ's debts to banks, which amount to some 200 million levs, will be repaid. In July, Bulgarian transport minister Ivaylo Moskovski predicted that in September, the European Commission will approve the government's plan to allocate the proceeds of the planned concession of Sofia Airport towards repayment of the debts of BDZ, which represents state aid. The exact amount of the funding is yet to be determined, he added. In June, Bulgaria's transport ministry launched a 35-year tender for the concession of Sofia Airport seeking at least 550 million levs in a one-off concession payment.
Source: Sega (05.08.2016)

BDZ launches a new repair company BDZ Services will repair locomotives and carriages of BDZ – Freight Services and BDZ - Passenger Services. This will be a new third company under the Holding Bulgarian State Railways, according to the restructuring program, which is already strictly implemented. According to it, starting 1 November the new company BDZ Services will take over the repair of all types of locomotives and wagons of the freight and passenger public carriers. Manager of the new company would be Velik Zanchev, who has been Chairman of the Board of Directors of Holding BDZ since November 2014. The creation of BDZ Services is necessitated by the fact that all private repair workshops in Bulgaria do not accept orders from Holding BDZ as it chronically does not pay for their services. The most modern railway plant in the country – Ruse-based Express Service, refused to accept locomotives of BDZ and the mixed company BDZ Koncar has filed a lawsuit against the holding company for unpaid repair of 10 machines Series 46. Therefore BDZ is trying to patch up the locomotives in their own stores, but for now - unsuccessfully.
Source: Standart (12.09.2016)

Transport Minister Orders Railway Company to Draw Up Troubleshooting Plans The caretaker Minister of Transport, Hristo Alexiev, has required Bulgarian State Railways (BDZ) to draw up a long-term and a short-term plan to address its problems. Alexiev told a news conference on Tuesday that the short-term action plan should guarantee the fulfillment of the passenger train timetable in 2017. He described the situation at BDZ as "highly critical" and said that the management of the national railway company has not taken any steps to overcome the problems. BDZ's passenger division is failing to provide the services which it is scheduled to provide because it does not have enough locomotives and motor carriages. "Nothing has been done to address the issue. Not a single procedure has been started to award contracts for the repair of motor carriages, or for renting locomotives and motor carriages," Alexiev said. In 2016, BDZ spent one million leva on providing temporary bus services as a substitute for train services for which it had no locomotives. "This is shortsightedness, and it means that there is no clear concept about how to solve the problem," Alexiev said. There are now plans to examine all available locomotives and conduct procedures for renting more of them. Various options exist to refinance the BDZ loan, the minister said. Discussing Operational Programme "Transport," Alexiev said the main task is to finish the old programme. All relevant reports are to be submitted by March in order to prevent possible losses of funding. In connection with the new programme, an integrated transport strategy should be devised by the end of March.
Source: Standart (08.02.2017)

Bulgaria’s Transport Minister Sets up BDZ Rescue Plan "A plan containing urgent measures meant to secure the sustainable functioning of Bulgaria's state railway carrier BDZ is going to be presented next week," Transport Minister Hristo Aleksiev told journalists at a special news conference at the Council of Ministers, yesterday. He went on to say that the company's new leadership had managed to provide ten extra locomotives for the BDZ passenger service through reorganization and optimization of the subsidiary's work. A few days ago, BDZ CEO was dismissed, following a conclusion of Minister Aleksiev that the company had not provided enough locomotives for the normal functioning of its passenger service. As a result, last year alone BDZ had to pay BGN 1.3 M for the transportation of its passengers by coaches, in the sectors of the railway system where there aren't enough locomotives. Yesterday, Minister Aleksiev said BDZ actually had the locomotives in their depots, but the their timetable was inefficient and thus they could not service all destinations.
Source: Standart (16.02.2017)

Four firms show interest in Bulgaria’s 70 mln euro train maintenance tender The Bulgarian State Railways (BDZ) company said on Tuesday four companies have submitted applications for participation in a 137 million levs ($74.3 million/69.8 million euro) tender for the maintenance of diesel and electric multiple-unit trains. The tender has attracted the interest of Bulgaria’s Expres Servise, France’s Alstom, Stadler Hungary and Desiro Siemens, BDZ said in a press release. The candidates who pass the preliminary selection process will be invited to submit technical and price offers. The participants in the tender will be required to provide maintenance services for 22 diesel and 24 electric multiple-unit trains for a period of five years, according to a notice posted on the website of the country's public procurement agency.
Source: Sega (08.03.2017)

BDZ wants BGN 1.3 billion for new trains “We have estimated budgets for what investments are needed for the overall technological upgrading of the railways. The sums are huge - an investment of between BGN 800 million and BGN 1.3 billion,” said Vladimir Vladimirov, CEO of Holding Bulgarian State Railways EAD. He presented a draft for the purchase of new train. Vladimirov presented a special report, developed by 3 universities - UNWE, Technical University and Higher Transport School, together with experts from BDZ, NRIC and representatives of the Ministry of Transport. Conditional investment in the technological renewal of the carrier will be divided into two stages. “The first one is planned to buy 41 wagon trains, and the second one - 44. The minimum amount needed for Passenger Transport to make the first stage is BGN 380 million,” Vladimirov specified. The first new trains will come into use during the end of the government's term.
Source: Standart (05.09.2017)

BDZ-Passenger Transport accounts distraint The creditors of the second debenture loan granted to BDZ Holding levied distraint on the accounts of BDZ - Passenger Transport. The reason - the subsidiary company is a joint debtor with the holding company. The distraint is for BGN 40 million, Velik Zanchev, Deputy Minister of Transport, Information Technologies and Communications, announced. It is partial, Zanchev specified. " The whole debt due from a second bond issue is BGN 103 million, and this second bond issue was issued in 2007. We have paid a part of it and BDZ Holding owes BGN 103 million principal to date," he explained.
Source: Standart (31.05.2018)

BDZ Will Not Sell Assets after Creditors Had Its Accounts Frozen by Court The Bulgarian State Railways (BDZ) issued a press release denying media reports that assets of the national rail carrier will be auctioned off in connection with a preservation of its accounts by creditors. According to the top story in Thursday's "Douma", creditors have obtained a preservation order for the accounts of BDZ Passenger Services over about BGN 60 million in principal payments and BGN 30 million in overdue interest payments and threaten to sell more than 1,200 carriages of BDZ Freight Services and all 25 Siemens Desiro multiple unit passenger trains by which the loan is secured. The BDZ press release specified that two of the creditors under the Second Bond Issue have indeed brought an action against BDZ Passenger Services before the Sofia City Court for BGN 40 million principal of the loan, and the court allowed part of the claim, amounting to BGN 20 million, in favour of the bondholders, as a result of which bank accounts of the company have been attached. The BGN 240 million Second Bond Issue was contracted in 2007 to refinance outstanding obligations to various institutions for current maintenance of freight cars. At this point, the balance due under the bond issue is BGN 103 million.
Source: Dnevnik (01.06.2018)

Bulgaria to provide aid to indebted railways operator BDZ Bulgaria's government will have to provide aid to indebted state-owned railways operator BDZ Holding to prevent a halt in its operations, finance minister Vladislav Goranov said on Friday. "If we want the railways operator to be sustainable, in addition to the hundreds of millions, given from the central government budget each year, this means of transport should be legally prioritised in some way," Goranov said in a press release issued by the ministry. Last week, the Sofia City Court froze 40 million levs ($23.9 million/20.4 million euro) in bank accounts held by BDZ Passenger Services, a unit of BDZ Holding, due to BDZ Holding's failure to make payments due on its 120 million euro bond which matured in 2017, Velik Zanchev, deputy transport minister, said in a video file posted on the website of public TV station BNT. BDZ Passenger Services is a co-debtor on the bond issue. In 2007, BDZ successfully placed a 10-year 120 million euro bond issue, consisting of 120,000 bonds with a nominal vlaue of 1,000 euro each. The issue carries a floating rate of 3M EURIBOR plus a premium of 3.5% on an annual basis. BDZ planned to use proceeds from the bond placement to finance repairs of rolling stock and refinance existing debt.
Source: mediapool.bg (04.06.2018)

Bulgaria's BDZ Passenger Services offices up for sale for 3.7 mln euro A part of a historic building in Sofia where Bulgarian state-owned railway company BDZ Passenger Services is headquartered, has been put up for sale by a private enforcement agent for a starting price of 7.3 million levs ($4.4 million/3.7 million euro), local media reported on Monday. The private enforcement agent has put up for sale an area of 1,854 sq m, which represents half of the total area of the building, Capital business newspaper reported in its online edition. Last week, Capital said that bank accounts of BDZ Passenger Services have been temporarily blocked due to creditors' claims. On Thursday, Bulgarian transport minister Ivaylo Moskovski said he has asked the finance ministry to grant state aid to the company.
Source: Other (05.06.2018)

Government agrees to 100M leva purchase of new passenger trains for Bulgarian state railways Bulgaria’s government agreed on July 18 to an investment project that envisages spending BGN 100 million on new passenger trains for state railways BDZ in the year 2020. The project foresees the acquisition of two sets of train carriages, first 41 and then 44, able to travel at speeds of up to 200 kilometres an hour. BDZ Holding chief executive Vladimir Vladimirov told the media in April that he intended starting a process of investment in passenger train for the state railways, and expected that by the end of the term of the current government, there would be new trains on the lines of Bulgaria. In June, it emerged that debt collectors were moving against BDZ. This was followed by the Finance Minister, Vladislav Goranov, announcing that the fiscal reserve would be used to assist BDZ. /publics.bg
Source: Other (19.07.2018)

BDZ will buy new trains with EU funds BDZ Passenger Services will buy new trains with EU funds. This is clear from the words of the Minister of Transport Ivaylo Moskovski during the cabinet meeting on July 18, when the government allocated up to BGN 100 mln for the purchase of new railway rolling stock. The idea is that from the following year BDZ Passenger Services will be positioned in "such good financial condition, that they can already be beneficiaries under the Operational programs, both Transport and Environment, and can start gradually renew the rolling stock through the European Structural Funds, as we do for the metro," says Moskovski. At present, BDZ Passenger Services is not a beneficiary of the two programs financed by the European funds. From Moskovsky's statement, it is not clear whether the state railway operator can get Europen for trains from the current operational programs or will have to wait for the next programming period after 2020. The second option is more likely. During Boyko Borisov's second cabinet, Moskovski repeatedly announced plans for BDZ to become a beneficiary of the Operational Program Transport in order to buy new trains.
Source: mediapool.bg (24.07.2018)

Bulgarian state railways open 345 mln euro tender for supply of passenger railcars Bulgarian state-owned railways company BDZ Passengers opened a BGN 675 million tender for the supply of 42 passenger railcars, it said on Friday. The assignment also calls for technical support for a period of 15 years, BDZ said in a public procurement notice. The deadline for submitting offers in the tender is October 12. Bids will be ranked according to price and quality criteria. Last month, Bulgaria's transport ministry opened a tender for awarding a 35-year concession contract for the operation of Sofia International Airport and said it will use part of the proceeds from the concession to finance indebted BDZ. The estimated value of the concession contract is EUR 3.9 billion.
Source: Banker (20.08.2018)

Siemens and Skoda are appealing the tender for new BDZ locomotives Siemens and Skoda have filed complaints with the Commission for Protection of Competition against the conditions in the public procurement announced by BDZ for the supply of 42 new modular trains. The two companies are the biggest suppliers of the Bulgarian railways over the years. "Any potential participant has the right to file a complaint with the CPC if it does not agree with the conditions of the procedure. At present, BDZ Passenger Transport has no grounds to take action to terminate the procedure ", the reply of BDZ reads.The deadline for submitting offers is October 12. The order was announced in August, it is for 22 trains with 230 seats each with increased comfort, 8 with 230 seats with standard comfort and 12 with 150 seats with standard comfort. The value is BGN 675 million excluding VAT, compared to the previously announced BGN 450 million. The difference of BGN 225 million is intended for maintenance of these trains for a period of 15 years.
Source: Dnevnik (14.09.2018)

BDZ ends 2018 with operating profit of BGN 10 million BDZ ends 2018 with pre-tax profit in the amount of BGN 10 million, the Chairman of the Board of Directors of Holding BDZ EAD announced at a press conference. The company is recording profits and they are growing. The financial position of the company is stable, assured the Executive Director of Holding BDZ. He pointed out that the main goals are improving the organization and the group’s results, based on a 6-year plan. The capital transfer plus the generated funds will be invested in development, repair and payment of debts. The group generates about BGN 350 million a year, half of which comes from state subsidy. The capital transfer is BGN 40 million and the operational liabilities to suppliers amount to about BGN 100 million. The main creditor is the National Railway Infrastructure Company (NRIC), to which BDZ owes BGN 80 million and pays on a repayment schedule. The BDZ's budget for this year will be submitted for approval to the Transport Ministry by 15th February. For its development BDZ still relies on the concession of Sofia Airport, for which the deadline for submitting offers has been extended several times.
Source: investor.bg (16.01.2019)

BDZ plans to invest BGN 71 million in improving the service The BDZ business plan for 2019 sets the capital investment to improve the service provided for passenger transport to amount to more than BGN 71 million. Of these, BGN 65 million are only planned to improve the condition of the rolling stock. Preliminary data for 2018 in BDZ - Passenger Traffic EOOD show that in 2018 the revenues of the company are formed from BGN 51 million sales, BGN 10.4 million compensation and BGN 175 million subsidy, or a total of BGN 236.4 million, which is 2.7 million BGN below the planned ones. Operating expenses amounted to BGN 215.2 million, by BGN 10 million less than forecasted, with the savings being made from external service and energy costs. As a result, the company will make a net profit of nearly BGN 1 million for the first time in 6 years.
Source: 24 chasa (06.03.2019)

Bulgaria's BDZ Passengers signs spare parts supply deal with Czechia's SSS Trade Bulgaria's BDZ Passengers, part of state-owned railway group BDZ Holding, said on Monday that it has singed a 1.1 million levs ($632,000/562,000 euro) deal with the local branch of SSS Trade Czech Republic for supply of spare parts for electric railcars. The deal was signed on February 18, BDZ Passengers said in a notice. Two companies filed bids in the public procurement procedure for awarding the contract.
Source: economic.bg (12.03.2019)

BDZ records profit for the first time in many years For the first time in many years, BDZ will have an accounting profit, the Chairman of the Board of Directors of Holding BDZ said. BDZ Passenger Services records stable revenues at the same level, with a slight increase. Passengers have also increased by about 500,000, which is a rise by about 2.5%. Operational profits of Passenger Services remain within BGN 20 million and the subsidy remains unchanged - BGN 175 million. The capital transfer, scheduled for repair is within BGN 39 million. More revenues compared to the past year are also planned in the BDZ Freight Services, by about 15%.
Source: Trud (21.03.2019)

BDZ invited Alstom and Stadler for the big train repair BDZ is pushing one of the "fattest" public procurement contracts that has been running since the beginning of 2017. It is about the repair of the diesel and electric Siemens wagons, owned by BDZ - Passenger Transports. The value of the order is BGN 137 million, excluding VAT. Last Thursday, the holding invited the Romanian branch of French giant Alstom and the Hungarian division of the Swiss Stadler to direct negotiations. Their bids will be open on July 24. The large sum is for 5 years of technical support for 22 diesel and 24 electric wagons. The order was blocked for a long time by a series of scandals. During the previous procedure, the manufacturer Siemens and Express Service - the factory in Ruse, which deals with railway repairs, were disqualified. The Bulgarian enterprise was cut off on the grounds that it did not have the required certificate from the Railway Infrastructure Executive Agency. Express Service has said they could repair the wagons at a much lower price. Siemens was removed as it had named Express Service as a subcontractor.
Source: Sega (29.05.2019)

Holding BDZ will no longer rely on additional funds from the state Henceforth, Holding BDZ will hardly need extra financial aid. The financial position of the three companies in the holding is the main focus of the new management, said Grigori Grigorov, Chairman of the Board of Directors of BDZ Holding. According to him, the holding is developing very well, the costs are limited and the focus in the last months is on the sale of non-operating assets. Freight transport reported a slight decline in May, resulting in annual revenue reductions of 3-4%. For passenger transport, revenue growth is about 2.5% for the first five months of the year, he said. According to Grigorov, a further increase in wages in Holding BDZ could be expected with a new increase in minimum wages.
Source: investor.bg (19.06.2019)

We would choose our seats on the train with the new BDZ system BDZ - Passenger Transport and Information Services started the implementation in the real environment of the reservation module in the ticketing system. Tickets will soon be available to buy online, which will reduce the ability to buy transportation documents with no accountability. Thanks to the new system, customers will be able to choose a place of their own in the wagon. It is important for the system to function properly in a real environment. The national carrier announced that steps had been taken to remedy any inaccuracies in a timely manner. During the implementation of the system, two-screen displays will be installed in the main ticket offices and railroad offices to visualize seats on the train, facilitating customer choice. Transport Minister Rosen Zhelyazkov announced that no radical change in the price of rail should be expected. Within the 3-year budget forecast, the BDZ subsidy will not undergo a radical change and therefore relies on better absorption of European funds.
Source: Banker (21.08.2019)

BDZ will invest BGN 295 million in upgrading its trains At least BGN 295 million will be invested by BDZ by the end of 2024 in the renovation of many of the old and depreciated trains. All public procurement can be carried out without external lending, as the company has sufficient cash flows, which, however, have not been used so far due to poor management. It is not a question of the state subsidy of BGN 175 million a year, which BDZ-Passenger Transport receives under its contract with the state until its expiration in 2024. The amount is earmarked to cover the costs of social rail transport and maintenance on trains on less busy railway lines. However, the company also receives a capital transfer of BGN 39 million annually for the repair and purchase of new rolling stock. Thus, for the five years to the end of 2024, the company will receive BGN 195 million from the state earmarked for the modernization of its trains.
Source: economic.bg (21.10.2019)

BDZ Holding will be liquidated by the end of January BDZ Holding will cease to exist until the end of January next year. Its freight and passenger subsidiaries will be transformed into joint-stock companies in the hope that the two companies will get out of their deteriorating state. This was decided by the board of directors of the parent company. Their intention was supported by the Minister of Transport. Instead of one manager, BDZ Passenger Transport and BDZ Freight will have boards of directors to make decisions. One of the reasons for the reform is the decline in financial performance, which is not a surprise given the tragic state of the holding for many years, and its accumulated debts. Months ago, the state gave about BGN 200 million to help BDZ cover them. For the first six months of the year, the loss of the holding is just over BGN 9 million, the financial statement of the company shows. For the next three years, BDZ Passenger Transport will receive BGN 175 million annually, which is foreseen in the mid-term budget forecast for the period 2020-2022. The same period also envisages funds for the capital expenditures of the future joint-stock company from the state budget.
Source: Sega (30.10.2019)

BDZ will buy and rent locomotives for almost BGN 80 million BDZ - Passenger Transport is determined to part with its bad image. In an attempt to renovate its old trains and put an end to the delays, the company plans to buy, rent and repair a total of 24 locomotives for almost BGN 80 million. To that end, the company has launched a series of public procurement contracts that come a month after BDZ - Passenger Transport opened another procedure - for the purchase of 40 new coaches for almost the same amount. The largest order is for the delivery of 10 new locomotives - BGN 57.5 million, excluding VAT. The price includes warranty support. The aim is to invite selected participants to negotiate by the end of February. However, whether this deadline will be respected depends on whether there will be an appeal against the procedure and how long it will continue. Judging by the practice of conducting large auctions, this is almost guaranteed. The selected company must deliver the locomotives within 54 months, or up to 4.5 years. The main criterion for choosing a supplier will be the price, and the warranty period and delivery time of the machines themselves will "weigh" less.
Source: Sega (20.11.2019)

BDZ has signed its most expensive contract so far BDZ - Passenger Transport EOOD has signed its most expensive contract so far - about BGN 137 million excluding VAT. It is with Alstom Transport and is in charge of repair and maintenance of Siemens electric and diesel engines. The contract is for a term of 5 years. According to the Commission for Protection of Competition (CPC), the antitrust authority has not received a complaint from the Swiss-based company Stadler against the public procurement of BDZ-Passenger Transport for the repair and maintenance of Siemens electric and diesel engines. This automatically meant that the contract with the winning company Alstom Transport would be concluded by Christmas.
Source: economic.bg (18.12.2019)

4 major manufacturers compete for delivering electric locomotives to Bulgaria Bombardier Transportation GmbH, Siemens Tron, Exelor-EL Consortium and Stadler Rail Valencia SAU have applied for participation in the public procurement for delivery and maintenance of new electric locomotives for the passenger transport department of the Bulgarian State Railways (BDZ). The estimated value of the contract is BGN 57.5 million, VAT not included. The signing of the contract is planned to take place by March 2020 and the delivery of the first new locomotives is planned to happen within 18 months after the signing. In the meantime, the Council of Ministers decided to extend the deadline for repayment of the obligations by BDZ on the interest-free loan of BGN 62 million until March 31, 2020. The funds were provided to the state railway for repayment of overdue debts to the revenue agency.
Source: Dnevnik (20.12.2019)

The three BDZs become two by October By the end of October, the current two passenger and freight railroad companies will transform from SPLTDs into SPJSCs. It is likely that their parent company BDZ Holding will merge into the passenger company or remain on its own, Transport Minister Rosen Zhelyazkov announced at a hearing. "We finished 2019 with a good trend and contradictory results," Zhelyazkov said, adding that the reorganization in the railways has been started and the assets of the auditors of the companies have been analyzed. The holding will be "cleared" of all operating assets that will be transferred to the two future SPJSCs. "The railways use a Serbian model for their restructuring," said the head of the holding, Nikola Vasilev. The companies' not necessary assets will be under the hat of the holding company, which will sell them. Last year alone, the holding had BGN 8 million of revenues. The reason for the changes is the Law on Public Enterprises, as well as the desire of the managers of the two companies to be under the direct management of the Minister of Transport. Experts commented that after the sale of non-operating assets BDZ Holding would be terminated.
Source: Monitor (30.01.2020)

BDZ-Passenger Transport announced a public procurement contract for the rental of 5 highway electric locomotives with an option for another 5 for a period of two years, with the possibility of extending the term by one more year. The total value of the contract is BGN 25.688 million, excluding VAT, for the rental of all 10 locomotives for the whole term, including the option to extend their rent for one year. The scope of the public procurement includes both the rent and the current technical support (planned and unplanned) and the repair of the locomotives for the entire rental period, including the delivery of the necessary consumables, materials and spare parts for them. The price also includes the training of BDZ-Passenger Transport's repair and maintenance staff, which must have exactly 50 drivers and 10 repair personnel.
Source: economic.bg (06.04.2020)

Siemens Mobility submits sole bid in Bulgaria's BDZ tender for new locomotives Bulgaria's BDZ Passengers, a unit of state-owned ralilway group BDZ Holding, said that a tie-up between Siemens Mobility Austria and Siemens Mobility Bulgaria has submitted the sole offer in its tender for purchase of 10 new electric locomotives. The contract has an estimated value of 57.5 million levs ($32.1 million/29.4 million euro), VAT excluded, BDZ Passengers said in a statement. The tie-up's technical offer is now due to be assessed before moving on to the assessment of its price offer. The first locomotives are expected to be delivered within 18 months of the contract signature date. Four bidders submitted expressions of interest in the tender but one of them - a tie-up led by local Excelor Holding Group, was disqualified. The two other companies, which expressed interest in the tender, were Germany-headquartered Bombardier Transportation and Spain's Stadler Rail Valencia.
Source: Banker (14.04.2020)

BDZ orders 10 Siemens locomotives Ten smart locomotives from the latest generation of German supplier Siemens will order BDZ Passenger Transport, according to the company after negotiations with the sole bidder on state-owned railways last week. Only the Snezon Throne has submitted a tender, despite initially announced interest from three more candidates. The proposal of the company is to manufacture and deliver the machines for BGN 55 544 816,10 without VAT or over BGN 66,7 million with VAT. The amount is lower than the announced estimated value in the procedure of BGN 57.5 million excluding VAT. The price at which the deal will be concluded includes the value of the Siemens Smartron locomotives, technical support and all necessary spare parts and consumables for a period of 3 years and 600 thousand km, as well as transportation, insurance and commissioning.
Source: Duma (04.05.2020)

BDZ recycles 7 passenger cars for BGN 3.45 million. BDZ - Passenger Transport has launched a public procurement for recycling of 7 passenger cars through "negotiation without prior invitation to participate". It is worth BGN 3.45 million without VAT and is divisible into seven positions - for each wagon separately. The wagons are owned by Passenger Transport, but have been stored for 11 years in the halls of Kolovag (former Wagon Repair Plant) in September, where they remained unfinished after the termination of a previous recycling contract on April 14, 2009. According to railway experts these are old sleeping cars, manufactured in the former German Democratic Republic and imported in Bulgaria in the mid-80s of the last century. The full recycling of the seven wagons must be completed by December 21, 2020 at the latest. BDZ - Passenger Transport will accept the wagons only after performing road and brake tests of each of them at the expense of the contractor. The samples must be at least 50 km in direction, and the wagons must reach a speed of 140 km / h. The warranty period of the recycled wagons is 3 years.
Source: Duma (22.06.2020)

BDZ's order for 16 new locomotives is blocked again The public procurement of BDZ Passenger Transport for delivery of 16 new locomotives is again blocked in the Commission for Protection of Competition (CPC). Stadler Consortium, one of the three bidders, has filed a complaint against the carrier's June 17th decision, allowing all three companies to submit initial bids at the next stage of the procedure. The minutes on the basis of which the decision was made note that all three companies - DZZD STB Trains with members Siemens Mobility Austria and Siemens Mobility SPLTD, Alstom and Consortium Stadler with members Stadler Polska, Stadler Busnang, Stadler Service AG, has been requested to provide additional information, which has been provided and the ambiguities in the documentation have been removed. The commission, which examines the documents, has concluded that all the candidates meet the announced requirements for personal status and selection criteria and there are no grounds for removing any of them.
Source: Duma (01.07.2020)

Three companies are competing to supply locomotives to BDZ Three of the five candidates to lease five main electric locomotives to BDZ have been admitted to participate by the commission reviewing the submitted documents under the public procurement. These are the German company ELL, the Slovak S Rail Lease and the Bulgarian Ubex-Bulgaria EOOD. A letter has been sent to the three companies for participation in negotiations and submission of initial offers, and the price proposals must be submitted by July 17. The estimated value of the contract is BGN 25.7 million. The company that wins the tender, in addition to renting the locomotives, will also provide their technical support, as well as the delivery of the necessary consumables, materials and spare parts for them. The price also includes the training of the repair and maintenance staff of BDZ-Passenger Transport, which must be 50 drivers and 10 technicians.
Source: Trud (15.07.2020)

Despite a 30% drop in passengers, BDZ will not close trains and stations BDZ passengers have decreased by about 20-30% due to the COVID pandemic. The company's net revenues have fallen by the same amount. However, there will be no reduction of trains and railway stations. This was assured by the Minister of Transport Rosen Zhelyazkov. He announced that at the end of December the new locomotives will start arriving, renovated wagons will come into operation, and the modernization of BDZ will continue with the service of the population with 695 stations and stops. The State Railways expects 10 Siemens Smartron locomotives, which should be delivered by June 2021. The supplier - DZZD Siemens Tron was selected in April this year, and the value of the contract is BGN 55 million, without VAT. Bus carriers are also severely affected by the corona crisis, especially the international sub-sector, said Minister Zhelyazkov. He announced that next year the subsidies and compensations for intercity transport and lines in hard-to-reach areas will be increased by BGN 10 million. A special grant of BGN 30 million is provided for them, and each company will receive a grant in the amount of a certain percentage of the turnover for the last year, with which to cover their working expenses.
Source: Sega (12.11.2020)

The Council of Ministers gave its consent to BDZ Passenger Services to sell by direct negotiation spare parts for electric and diesel trains, which are located in the warehouses of the locomotive depots in Sofia and Gorna Oryahovitsa. The sale of the spare parts will take place with the company Alstom Transport SA, Romania, with which the company BDZ-Passenger Services has a contract for major repairs and five years of technical maintenance of trains. In December 2019, the two companies signed a five-year contract for the maintenance of 46 trains. The scope of the contract includes full current maintenance, as well as major repairs of 22 diesel and 24 electric trains.
Source: Banker (19.11.2020)

After a 33-year break, BDZ once again presented new locomotives For the first time after a 33-year break, BDZ putchased brand new locomotives. The first two of the 10 agreed modern electric locomotives Siemens Smartron should arrive at BDZ - Passenger Transport soon. The locomotives have a maximum power of 5600 kW (7500 hp) and develop a speed of up to 160 kilometers per hour. Each of the machines costs about BGN 5.5 million without VAT, and the price includes their delivery to Locomotive Depot - Sofia, where they will be painted in the colour theme of BDZ - Passenger Transport.
Source: Banker (10.12.2020)

BDZ terminated the order for delivery of electric railcars BDZ-Passenger Transport terminated the tender for the supply of 16 new electric locomotives. According to the manager of the company Lyuben Nanov and the procurator Velik Tonev, the decision was made because "there is only one suitable offer, which hinders the real competition". Bids in the most expensive public procurement in the history of the state-owned company had been submitted by the well-known manufacturers Alstrom, Siemens and Stadler. It is clear from the decision of BDZ, signed on April 5, that Alstrom and Stadler did not appear on the specified date for negotiations and did not confirm their offers. The only remaining offer is from Siemens, but according to the BDZ management, in this way "the most economically advantageous offer cannot be chosen, which violates the principle of free competition." The reasons for the suspension also state that "the only bidder has offered a price exceeding the estimated value for the implementation of the public procurement". The decision also states that the public interest would be better protected when conducting a new contract in order to achieve optimal market proposals. The decision is subject to appeal within 10 days. This is the second suspension of the order with an estimated value of BGN 246.8 million without VAT (BGN 296 million with VAT). In 2020, it was suspended due to the complaint of Skoda Transport to the Commission for Protection of Competition (CPC) and the case in the SAC.
Source: economic.bg (07.04.2021)

BDZ claims to receive a BGN 1.5 million penalty for slow repair of railcars BDZ - Passenger Transport will claim to receive a penalty of BGN 1.5 million from Alstom for delayed repair of trains. Under the contract between the two parties, protocols for the penalty have already been issued. Transport Minister Hristo Alexiev has repeatedly expressed his dissatisfaction with Alstrom's slow work. During a sudden inspection at the railway depots in Sofia and Iliyantsi, the Minister had reported a disapproving implementation of the contract on the project for the maintenance of the motor vehicle. At that time, there was a clear delay in the implementation of major repairs. At the moment, only the current maintenance of the trains has been made and time has been lost in a period of one year and nine months after the restoration. In December 2019, BDZ - Passenger Transport and Alstom Transport S.A. signed a five-year contract for the maintenance of 46 trains. The scope includes full current maintenance, as well as overhaul of 22 diesel and 24 electric locomotives, which costs the state company nearly BGN 137 million. The first overhauled locomotive should be ready on December 4. The Minister of Transport will check again then. Alexiev has commissioned an audit of the contract with Alstom.
Source: economic.bg (15.11.2021)

BDZ companies will be merged into one national company The Bulgarian state railway companies BDZ Holding, BDZ Freight and BDZ Passenger Transport are merging into the national company BDZ. For this purpose, the trend of reducing costs and increasing revenues in the railway company in the first six months since the beginning of the reform has to be observed, said Transport Minister Nikolay Sabev. "From the beginning of 2024, we intend to cease asking the state for more money, because we are fulfilling the public transport contract and we will enter the capital markets in Europe," he was quoted as saying by Bulgaria ON AIR. The railways have been at a loss of BGN 421 million every year since 2002. Sabev hopes that revenues will increase by expanding the market share and costs will be managed much more efficiently. "The difference between the small number of goods transported by BDZ and the costs incurred has been repaid by selling the assets of the railway," the minister was quoted as saying by BTA. He is adamant that BDZ's assets will no longer be sold. "BDZ must develop in parallel with other freight carriers. In this regard, a large-scale transformation of transport services has begun," he said. The goal, he said, is for at least 72% of long-distance road transport to go by rail. That is why the EC will finance the modernization of the railway service in our country.
Source: investor.bg (07.02.2022)

BDZ reform starts without cost-benefit analysis The reform of BDZ, which envisions the current three companies merging into the Bulgarian State Railways National Company, has started without a cost-benefit analysis and without approval from the European Commission. BDZ Holding, BDZ Freight Services and BDZ Passenger Services must merge into one company by September. The number of staff will be optimized by eliminating duplicate administrative units. There will be investments in training and improvement of working conditions. The new company will have two accounts so that there is no hidden subsidy for liberalized rail freight. This was said by the Deputy Minister of Transport Iliya Iliev, who is responsible for the railways, before the deputies from the parliamentary committee on transport. They wanted to know more about the reform of state railways announced in early February by Transport Minister Nikolay Sabev. On Friday, the 5-year roadmap for the development of BDZ will be presented.
Source: mediapool.bg (18.02.2022)

The Minister of Transport Nikolay Sabev has signed a decision on the merger of BDZ-Passenger Transport and BDZ-Freight Transport into BDZ Holding. The new merger will be called "National Company Bulgarian State Railways" EAD. The aim of the restructuring is to improve the planning, management and control of the movement of passenger and freight trains, as well as to reduce administration and costs.
Source: offnews.bg (14.07.2022)

BDZ accelerates the repair of passenger cars On October 27, 2022, the managements of the railway company and "Vagonen Zavod - Intercom" AD (Dryanovo) signed Additional Agreement No. 2 to the Contract for the modernization of 15 passenger cars, concluded on April 22, 2021. The total value of the contract is BGN 26,697 million without VAT, which makes BGN 2,136 million per wagon together with the indirect tax. According to it, "Passenger Transport" pays BGN 6,941 million in advance, which is 26% of the agreed amount. In practice, more than a year and a half after signing the contract, BDZ-PP have not received anything. For which the wagon repair plant in Dryanovo is justified with force majeure occurred. With the additional agreement No. 2 to the Modernization Contract, a corrected timetable for the modernization of the wagons was adopted. According to him, the last modernized wagon should be handed over to "Passenger Transport" by the end of December 2023, and "at 100% readiness - after presentation of an operating permit for a speed of 160 km/h".
Source: Banker (11.11.2022)

BDZ with financial losses of nearly BGN 30 million The financial situation of BDZ Passenger Transport is deteriorating again, despite the large number of people traveling by train. Passengers carried for the first half of the year were 10.8 million, which is 804,250 more than last year. Against this background, BDZ's passenger transports are at a loss of BGN 27.3 million. For comparison, the losses amounted to BGN 2.3 million in the first half of 2022. A loss, although smaller, is also reported by "BDZ Freight Transport" - BGN 1.45 million. The profit in this segment for the half year of 2022 is BGN 6.9 million. The main reason is the decrease in revenues from the state to compensate for high electricity prices by BGN 5.2 million and a 3% drop in revenues from freight transportation. And with this company, the main expenses are for personnel - 34.77 million BGN  out of a total of 72.78 million BGN. 2,262 people work in freight transport. The average salary is BGN 1,929 compared to BGN 1,643 last year, an increase of 17%. 2.79 million tons of cargo were transported at BGN 3.48 million for the same time last year, or 20% less. The cap of the two companies - "Holding BDZ" - is in the red by 1.66 million BGN with a profit in 2022 of 6.67 million BGN. The deterioration of the result is again due to income of a one-time nature in 2022 - BGN 9.64 million from a long-term litigation. BDZ's commitment to support Ukrainian citizens housed in their bases leads to a loss of over 1 million BGN. The company expects to receive state funding of BGN 832,000. 10.8 million people have been transported for the first half of 2023. The other reasons why passenger train losses have increased nearly 8 times is the increase of BGN 1.3 million in fuel costs, and infrastructural fees - by nearly BGN 6 million. The biggest increase is the money for wages - by BGN 11.53 million. BGN 28.17 million was received from the sale of tickets and cards, and compensation from the state under the public service contract was BGN 98 million. The company's total revenue was BGN 128.61 million. , and the expenses - BGN 147.31 million. There are 5,165 people in passenger transport per state, the total expenses for them are 73.72 million BGN, 54.53 million were paid for salaries, the rest is mainly insurance. As of January 1, fees have been increased by BGN 130 per person. From the report on the repairs of locomotives and wagons, it is clear that the company is not fulfilling its business program. The worst is with the ongoing maintenance and periodic repair of locomotives. BGN 13.8 million is planned for 613 machines, the report shows BGN 3.3 million spent, and the number of maintained locomotives is 457. In all types of repairs, the company does not fulfill its program.
Source: money.bg (08.09.2023)

First license for private passenger trains The first license for a private passenger railway carrier was issued by the Executive Agency "Railway Administration". It is owned by the PIMK Rail Express company, it is clear from the agency's website. PIMK Rail has a license for freight transport and has been one of the railway carriers since 2015. At the moment, the only company that transports passengers by train is BDZ Passenger Transport, and for the first time a competitor appears. Penko Nestorov, one of the owners of PIMK, said they have a year to launch the project and business plan. "We are looking at the possibilities for a route on which to launch trains. The main one is Sofia-Burgas, where higher speeds are allowed on completed sections of the railway line, as well as automated train traffic control, which gives greater throughput. Only then it makes sense to invest in new rolling stock," he added.
Source: 24 chasa (25.10.2023)

The PIMK Rail Express company has received a license for a private passenger rail carrier from the Executive Agency "Railway Administration". PIMK Rail has a license for freight transport and has been one of the railway carriers since 2015. At the moment, the only company that transports passengers by train is BDZ Passenger Transport, and for the first time a competitor appears. Penko Nestorov, one of the owners of PIMK, said they have a year to launch the project and business plan. "We are looking at the possibilities for a route on which to launch trains. The main one is Sofia-Burgas, where higher speeds are allowed on completed sections of the railway line, as well as automated train traffic control, which gives greater throughput. Only then it makes sense to invest in new rolling stock," he added.
Source: 24 chasa (26.10.2023)

CPC again stopped orders for new trains For the second time, the Commission on Protection of Competition (CPC) has suspended orders for new trains, which total over BGN 2.7 billion, following complaints. Two of the procedures have been blocked. The first time the suspension was for announced orders from the caretaker government. After the change of the ministers of transport, the new one - Georgi Gvozdeikov, stopped the procedures to be reworked, and then - on September 4 and September 6, he announced new ones. There are four public contracts. The first is for the supply of 20 single-deck electric push-pull trains for a speed of 200 km/h with a capacity of at least 300 seats. The estimated value is over BGN 1.2 billion excluding VAT. The second is for the delivery of 35 electric locomotives with a capacity of at least 200 seats. The estimated value is BGN 1.1 billion. The third is for 7 double-decker electric motor trains with a capacity of at least 300 seats. They are valued at BGN 410.528 million. The fourth requires delivery of 18 electric shunting locomotives in two positions. For them, the estimated price is BGN 68.36 million. A condition for all tenders is 15 years of maintenance and staff training. The orders for the 35 electric trains, as well as for the 7 double-deckers, which are worth BGN 1.5 billion in total, have been appealed.
Source: 24 chasa (02.11.2023)

The future subsidized railway carrier will be selected by tender The future public railway carrier of Bulgaria, which will be subsidized by the state, will be selected by public procurement. The conditions of the procedure will be announced by March 31, 2024. This is clear from a message from the Ministry of Transport to the Public Procurement Agency in connection with the performance of public transport services in the field of railway transport. Thus, Bulgaria will keep the commitment made before the European Commission, through the National Recovery and Sustainability Plan (NRSP), from January 1, 2025, to give the opportunity to other railway companies, besides BDZ, to receive a state subsidy to transport passengers. The current contract between "BDZ Passenger Transport" and the state for the transport of passengers expires at the end of 2024. For this year, the subsidy received by the state carrier is about BGN 200 million. It is expected that interest in the tender will be high, because the future operator will received the right to operate the new rolling stock as well, and the state will pay and even its maintenance for 15 years, which the Ministry of Transport will buy with the money under the NPVU. It is unofficially commented that, in addition to BDZ Passenger Transport, several private railway carriers also have plans to participate in the tender. Currently, only PIMK Rail Express has a license for passenger transport. The company plans to launch a passenger line in the Sofia - Plovdiv - Burgas direction next year.
Source: mediapool.bg (09.11.2023)

Record state guarantees for the last ten years to be included in the budget for 2024, the Ministry of Finance proposes. The amount is up to BGN 4.5 billion, with the government guarantee mainly intended for energy projects. The majority of the amount - about BGN 3 billion or EUR 1,500,417,089 - is earmarked for the construction of the Seventh Block of the Kozloduy NPP. The state guarantee is necessary for borrowing by the project company for the construction of the new nuclear power plant based on Westinghouse's AP-1000 technology. At the end of October, the government decided that "Bulgarian Energy Holding" will contribute BGN 500 million to the capital of the project company "NPP Kozloduy New Capacities" and thus become a co-shareholder of the nuclear power plant in this company. The other major state guarantee is actually transferred from last year a guarantee for the loan for 207.5 million euros already taken by the state gas operator "Bulgartransgaz" from the European Bank for Reconstruction and Development. The funds are for the project to expand the gas storage in Chiren and increase its capacity for useful use of reserves to 1 billion cubic meters. Its total value will be around 308 million euros according to the latest data. The state guarantee, included last year in the budget update, in favor of the state gas supplier "Bulgargaz" is also preserved. The company then received a guarantee for a loan of about BGN 300 million or EUR 150 million for the provision of alternative quantities of blue fuel after the suspension of Russian supplies at the end of April 2022. Two new guarantees are included in next year's budget in favor of " The National Electric Company (NEC) and its water projects. One is for the modernization and rehabilitation of the Chaira Paving Plant, which is not working after a serious accident, and is for BGN 80 million. In April 2022, during preparations for commissioning after rehabilitation, one of the four units was permanently damaged. The other repaired facility was never launched for security reasons, and the other two were already shut down. The next guarantee for NEK is for BGN 75 million and is also for new loans to increase the volume of the lower leveler of the Chaira Pavement Plant with the construction of the Yadenica dam and a reversible pressure tunnel to connect with the Chaira dam. EUR 300 million have been pledged to guarantee loans to "BDZ - Passenger Transport" for the acquisition of rolling stock. In the period 2020-2022, the state guarantees were between BGN 760 and 840 million, and in 2019 they were only for BGN 215 million, in 2018 and 2017 they were for BGN 700 million each, and in the previous two years they reached BGN 3 billion.
Source: Duma (16.11.2023)

The intermodal terminal in Ruse was dropped from the National Recovery Plan When planning the investments under the "Transport Connectivity" Program 2021-2027, a balance will be sought between Northern and Southern Bulgaria. "The past 2 program periods clearly show that there is a need to significantly speed up the implementation of railway projects, where the biggest delays are generated," said Minister Gvozdeikov. After the intermodal terminal in Ruse was dropped from the National Plan for Recovery and Sustainability, the state is looking for opportunities to finance it. "The terminal fully corresponds to the policy for promoting investments in Northern Bulgaria, as well as for stimulating combined transports," emphasized Gvozdeikov. The "Obelya" intermodal station will be used daily by 12,000 people who travel in this part of the capital. According to him, this project will bring added value to the railway transport in the western directions to Dragoman, Kyustendil and Bozhurishte.
Source: economy.bg (23.11.2023)

BDZ signed a contract for BGN 83 million for locomotive maintenance "BDZ - Passenger Transport" signed a contract for BGN 83.8 million for the maintenance of 15 Siemens Smartron locomotives for a period of 9 years. The executor of the order is the association "Siemens Tron". To this order there is also a second, smaller one - for the supply of spare parts worth BGN 867 thousand. "The contracts are an important part of ensuring the maintenance of the locomotives, whose warranty period expires in 2024," wrote BDZ - Passenger transports" when announcing the news. The locomotives in question were purchased in 2020 in two stages for almost BGN 100 million. The last of them were delivered towards the end of 2021. In the following year, more than half of the brand new locomotives were stopped from running for a period of time due to wear and tear on monobloc wheels. The specifics of the track were cited as the reason, which led to faster wear than expected, and the delivery of the necessary spare parts was not agreed on time. Participants in the association "Siemens Tron" are "Siemens Mobility", with sole owner, the "Siemens Mobility Holding" registered in the Netherlands, as well as the Austrian "Siemens Mobility Austria". The contracts are the result of direct negotiation with the contractor, as he is also the rolling stock manufacturer.
Source: Capital (18.12.2023)

BDZ and Siemens Tron signed a contract for 10 new locomotives "BDZ-Passenger Transport" and "Siemens Tron" have signed the contract for the supply of 10 new electric locomotives worth over BGN 91 million. The first machine must be delivered within 18 months after the signing of the contract, or in the second half of 2025 Last week, contracts were signed for the maintenance of the 15 locomotives that are in operation. In the next 9 years, it will be carried out by "Siemens Tron" for over BGN 90 million. To date, only the private Plovdiv company "Pimk" has been issued a license for rail passenger transport.
Source: Duma (21.12.2023)

"BDZ - Passenger Transport" remains a monopolist on the market for at least another year At the end of last year, PIMK Rail Express became the first company to officially receive a license for a private passenger rail carrier. To a large extent, at the moment, however, there are neither conditions nor a legal basis for private rail transport to start. BDZ's monopoly in the passenger transport sector is coming to an end, although it is not yet entirely clear when exactly it will come. According to "BDZ Passenger Transport", there are currently no more than 12 profitable railway routes in the whole country, with 5% of the lines generating up to a third of the revenue, which turns the passenger transport market into a not particularly attractive territory for private investors. One option is for the state to bundle the new companies in the sector with a profitable line along with several smaller ones that are more difficult to generate profit. The so-called "package option" (which several Eastern European countries such as the Czech Republic and Romania have already implemented) would only be possible if the sector were subsidized for all loss-making lines. The subsidies (which currently only BDZ can receive) are part of our country's commitments to the European Commission through the National Recovery and Sustainability Plan. This should happen next year with the new contract for the public passenger service, which will run until 2039. Thus, in practice, by the end of 2024, the Ministry of Transport will have to launch a public procurement for passenger transport, in which any company with a license for such transport on railway lines will be able to participate. At the moment, there are 18 companies in our country with a license for freight rail transport and only one for passenger transport, but in the first months of this year, at least 2 more companies are expected to officially enter the segment. In practice, the key to the liberalization of this market remains with the rulers, who have to pass laws concerning the regulations for obtaining a subsidy. There is another dimension to the change in the way railways operate. At the moment, all stations, depots and objects serving passenger transport are under the management of the state company. In order to operate, private carriers would need to be able to lease or lease from the Ministry of Transport such mission-critical infrastructure, which could further delay the entry of private carriers.
Source: econ.bg (10.01.2024)

BDZ and Deutsche Bahn are in the final phase of negotiations to buy up to 70 modernized passenger cars BDZ and Deutsche Bahn are in the final phase of negotiations for the purchase of up to 70 wagons from the rolling stock of German railways. With them, the national rail carrier will modernize more than 20% of the rolling stock currently in use, which is over 40 years old. Between 50 and 70 modernized passenger cars, which until last month were in operation by Deutsche Bahn on the "Intercity" lines, will be purchased. The rolling stock is for speeds up to 200 km per hour, air-conditioned, without compartments, and open space type, having all the comforts for passengers. A Bulgarian team is due to visit Germany by mid-February to specify and finalize the delivery and acquisition procedures.
Source: Banker (25.01.2024)

Pimk, the first private passenger train company in Bulgaria, wants to launch a high-speed train to the sea Pimk, the first private train company in Bulgaria, wants to cover the destination from Sofia to Burgas with stops in Plovdiv and Stara Zagora. The company wants to serve the railway routes with express trains, developing a higher average speed than BDZ trains. The machines of the private trains will be able to move at up to 160 km/h. At the moment, three passenger trains have been requested. According to Penko Nestorov, manager of PIMK Rail Express, the estimated period in which it will be able to start its operations is December 14, 2025. At the end of October 2023, the Plovdiv-based private transport company Pimk announced that it had received a license for rail passenger transport from the Railway Administration Executive Agency. The activity of the company will be carried out through the company "Pimk Rail Express" EOOD, which was established in April last year. Thus, for the first time in its history, the state-owned "BDZ - Passenger Transport" will have a real competitor in the transport of passengers in Bulgaria. The Plovdiv company has a license for freight transport and since 2015 has been carrying out freight rail transport.
Source: money.bg (03.06.2024)

IMF: State-owned companies in Bulgaria are expensive, inefficient and carry risks for everyone Large companies with state participation in Bulgaria have low profitability and inefficient allocation of resources, and although they are not significant in terms of share, they play a decisive role in the production network, which can negatively affect the productivity and competitiveness of the entire economy. The level of state-guaranteed debt of state-owned enterprises is small - on average only 0.5% of GDP in 2010-21 (the average level in the EU is 9%, and in other countries of Central and Eastern Europe it is 3.5%). And the support with such guarantees due to the COVID-19 pandemic was many times lower - 0.3% of GDP in Bulgaria compared to almost 2% in the EU for 2019-2021. But there is a key point - there is no generalized information on guarantees in Bulgaria, issued by the state-owned enterprises themselves, since their activity does not require the approval or supervision of the Ministry of Finance. Thus, total liabilities averaged around 12% of GDP in 2013-2021, which could be a source of concern. This is stated in the Analysis of the International Monetary Fund "Fiscal risks of state-owned companies". The analysis is based on data from 15 companies in which the authorities at various levels have over 50% share: Energy sector (National Electric Company (NEK), Kozloduy NPP, Bulgargaz, TPP Maritsa Iztok 2, Electricity System Operator, Bulgarian energy holding (BEH), Mini Maritsa Iztok, "Bulgartransgaz"), Transport sector (National Railway Infrastructure Company (NRI), BDZ - Passenger Transport Ltd., Air Traffic Control (RVD), Transport Construction and Reconstruction (TSV), BDZ - Cargo Services Ltd., Port of Varna, Bulgarian Port Infrastructure). The total assets and liabilities of these 15 companies represent about 70% of the total for the entire segment with state participation 2015-2021, which covers about 700 companies. The general assessment for them is that the fiscal support is much higher than what they give as revenues to the budget. In 2017-19, they received subsidies, capital investments and capital transfers (direct support) and deferred tax and dividend exemptions (indirect support) of an average of 1.5% of GDP. To this they have responded with a contribution of 0.2%. Net, they absorbed 1.3% of GDP immediately before the pandemic and at the end of the last GERB government. In the first pandemic year (2020), this ratio became 2.5% against 0.1% and is an illustration of how an unexpected shock can lead to large fiscal costs for companies with state participation, the IMF says. These are companies in which 4.1% of all employed work. Their financial stability can affect the fiscal performance of the state, especially when they have incurred potentially significant costs, whether expressly guaranteed or without the authorities making a contractual commitment. In 2023-2024, the state doubled the dividend collected by these companies from 50% to 100% to support the budget, but the price for this is a risk to their investment, productivity and profitability. "Furthermore, the dividend policy lacks predictability and seems to be driven by the needs of the state budget. Such a policy reduces the incentives of companies to invest and thus has a significant adverse effect on economic activity," the authors of the report add. State-owned companies are much, much less profitable than those in the private sector. Return on assets (one of the key measures of profitability) was between minus 1% and 2% for the period 2015-2021, with an average of 10% in private. In 2022, this difference suddenly melted (9% for state-owned, 11% for private), but not because there was better management, but because of three specific companies - NEK, Kozloduy NPP and Maritsa Iztok 2 TPP, and their income from sharply increased energy prices due to Russian aggression against Ukraine. Return on equity (another measure of profitability, measuring a firm's ability to generate profits using its shareholders' capital) for SOEs is on average 20 percentage points lower than that of private firms. Due to the specifics of many state-owned enterprises, profitability is logically lower than that of private ones, but in countries with better management results, the difference between them is 4 percentage points or five times smaller than in Bulgaria, the IMF recalls .Everyone suffers from the bad management of business with state participation. Six state-owned enterprises have been facing short-term challenges in meeting their obligations for years. In the period 2015-2022, without sufficient liquid assets to cover the amounts due to creditors in the next 12 months were National Railway Infrastructure Company, TPP Maritsa Iztok 2, National Electric Company, BDZ - Passenger Transport, BDZ - Freight Transport and Transportation Construction and Reconstruction. Bulgargaz faced a liquidity crisis in mid-2022 due to low collection of receivables and arrears from Toplofikatsia Sofia. Accumulated arrears to suppliers were paid through a (bridging) loan and/or state aid. Another indicator of concern to IMF analysts is the high debt-to-asset ratio (ie, less financial flexibility) of several large state-owned enterprises. These are, for example, "Bulgartransgaz", National Railway Infrastructure, Bulgarian Energy Holding and Electric Power System Operator. It has also seen how debt-to-asset dynamics can change sharply - in the case of Bulgargaz, it jumps from around 45% in 2019 to over 90% in 2022. The combination of high debt and low profitability raises concerns for the ability to service the debt and therefore risks at the fiscal level, the IMF explains.
Source: Dnevnik (18.07.2024)