Interview with Vice Premier Grozdan Karadzhov for “24 Chasa,” conducted by Mariyana Boykova.
– Mr. Karadzhov, how did it come to signing a contract for the 35 trains? You yourself said that the money for this order was lost?
– The order seemed absolutely lost. According to the tender conditions, 35 trains had to be produced within 28 months, which is physically impossible. When I took over as minister, there were only two confirmed bids – from the Polish “Pesa” and the French “Alstom.” There was also a decision of the previous team to present evidence that the candidates were able to produce the trains on time. From a budgetary point of view, it was important how much revenue would be received by August 31, 2026 – the deadline for utilizing the funds under the Recovery Plan. Without deliveries by August 2026, we realistically had no chance of concluding a contract, because we simply do not have such money outside the Recovery and Resilience Plan. “Pesa” did not make a similar improvement to its offer. And from the evidence gathered, it became clear that only one of the participants could manage on time and the commission chose it. This is the French “Alstom.”
– 12 of them will be delivered by August 31, is that correct?
– Yes. “Alstom” undertook to deliver all trains within a 28-month period, 12 of them by August 31, 2026, through reorganization of its production capacities and its supply chains, and with the relocation of its orders, because it is making the same multiple trains for other countries in the EU. On its part, it did not even give a chance for negotiations with the European Commission. We asked it not to pay 100% for these 12 trains, although the entire delivery will not be completed by August 31, 2026. After several weeks of talks and arguments presented by us, the EC agreed.
For the remaining 23 trains, we will apply for funds from the Social Climate Plan. A third of their funding is from the “Transport Connectivity” Programme 2021-2027, in case there are remaining projects that will be implemented in additional periods.
– Isn't this contract, which is for over 1 billion BGN, more expensive, while the initial offer was a little over 640 million BGN?
– “Pesa” has offered trains with four carriages and 220 seats, while “Alstom” – six carriages and 351 seats. Calculated per seat, this is the cheapest offer. The increased number of seats will solve the problem with standing passengers.
– When will the remaining 23 trains arrive?
– By the end of July 2027.
– What is happening with “Škoda” regarding the delivery of another 20 new trains with funds from the plan and another 5, paid for by the “Transport Connectivity” Programme?
– We want these 25 trains from “Škoda” to be 100% paid for with funds from the plan. We are applying to the TCP to change the source of funding – from the “Transport Connectivity” Programme than from the RRP. The EC expressed a desire to encourage reform, which will increase funding for railway transport. With these 25 trains, manufactured by “Škoda,” the new trainsets will become 60, satisfying 2/3 of the needs for new rolling stock. This, of course, lacks diesel trains, because we have non-electrified regional lines. Next week we will announce a tender for 10 new trains plus an option for another 10. We will conduct this tender under the shortest possible procedures and we want the manufacturers to be able to produce the first 10 by August 31, 2026 – i.e., we will make efforts for them to be 100% paid for by the RRP.
– Doesn’t this sound a little ambitious?
– Not a bit. I could say it’s even very ambitious. But we are doing it for the Bulgarian citizens, and after we were encouraged by the EC, we want these 10 trains to pass through the plan for recovery and sustainability, because we are committed to the most eco-logical diesel fuel, which is ahead of the Mechanism for Recovery and Resilience.
Previously, the entire investment for railway transport with European funds under the RRP was 666 million BGN. Now we want the RRP investment to grow to 1.46 billion BGN, and about 500-600 million BGN to be national co-financing. Of these 2.1 billion BGN, there will be investments in NRIC, because the trains themselves cannot provide this schedule, and so far there were no funds for railways under the RRP.
– Trains with a speed of 160 km/h on which lines will they run?
– We are completely modernizing the line from Sofia to Burgas and from Plovdiv to Svilengrad for a speed of 160 km/h, as well as Karnobat-Sindel-Varna for 130 km/h, which should be ready by 2029. To help NRIC, we have allocated 408 million BGN from the RRP. Thus, the amount we want from the EC under the RRP becomes nearly 1.46 billion BGN. This way we will save part of the funds under the RRP for Bulgaria for other investments, from which we are renouncing.
– What reform are you planning for the railway transport?
– It has two components. One is the introduction of at least two more private operators in regional passenger transport. The second is the adoption of the Public Transport Act.
– When will you announce the public passenger transport contract for railway transport, which was postponed by one year? The previous version envisioned dividing the network into three lots.
– The European Commission's understanding of introducing competition is that it should happen in stages, with private operators initially starting on a territorial principle with a share of around 10-20% of the transport. For servicing these regional destinations, they will receive subsidies. This is the scope of the public service contract. We will follow good EU practices and will announce a tender under the Public Procurement Act with three lots for passenger transport.
It's different from the previous concepts – one was a competition for the entire network, and the second was for it to be divided into three lots. What are the lots in the new vision?
– There will be three lots again. The two smaller ones are designated for the first private carriers. Licensed companies can currently transport passengers on a commercial basis, but they are not doing so. We need to open the door to new operators. The large lot will remain for BDZ. “BDZ – Passenger Transport.” Any other option carries the risk of a collapse in passenger transport in the country. It is not reasonable to suddenly replace existing passenger transport and give it entirely to new carriers on a national scale. In no other country has the state held three. We do not foresee a reduction in trains. The public discussion of the concepts will begin on June 1st. This will be followed by a tender and by December 31st we should have concluded contracts with the first three carriers, and the lots will remain three.
– Will there be express trains?
– Yes, there will be. The task we have set is for express trains to the coast to start running this summer. Regardless of the repairs on the railway lines and the shortage of carriages, a green route with a maximum of 2-3 stops will be cleared for express trains to Varna and Burgas.
– How long would travel with them be?
– Hours are very difficult to reduce due to repairs on 8 large sections of the railway lines. 90% of train delays are due to these repairs. We will try with organizational measures to ensure the fastest possible passage of the express trains and we hope that citizens will prefer them to their cars.
– In the previous version, there was an option for new trains to go from “BDZ to private carriers. Does this option remain?
– The state will provide an equal and non-discriminatory principle to private carriers: a percentage of the new trains, corresponding to the transported passengers and kilometers, as well as part of the old rolling stock. And the depots for repair activities will be common property for use by all operators under equal conditions.
– With the draft law on public transport, you are taking on a hot potato, because it concerns bus lines and their schedules, and so far the bus lobby has prevailed. What do you foresee?
– What does a person need if they decide to travel from Sofia to one of our villages, for example? The main question is whether there is a convenient connection from the train station with a bus that will take them to the respective village. At the moment, such a common transport scheme does not exist in Bulgaria. We have talked about it a lot over the years, but so far no one has made it. It is truly difficult to implement because it involves private operators, mayors, regional governors, ministries, and agencies, as well as citizens. I hope that with this Law on Public Transport Act we will bring together the interests of everyone in one place under a clear preliminary condition – the backbone of the transport system becomes railway transport. With a new national train and bus schedule, we are making steps towards that golden age for transport – we are renewing trains, making them punctual, fast, and comfortable, and repairing the railway lines. And we will provide the opportunity to buy the entire journey – by train and bus – with a single ticket. Another good news about the Public Transport Act will be the requirements for the quality of the transport service and guaranteeing passengers’ rights.
– It sounds like a dream...
– A dream that is already being worked on.
– Who will prepare the national transport scheme?
– We – the Ministry of Transport in consultation with mayors, carriers, regional governors, civic organizations and citizens. Bus lines will continue to be managed by the mayors, but the schedule will be unified and compliant with railway transport. Regardless of whether they are private or municipal operators, they will be subordinate to this schedule, which is convenient for the passenger, not for the mayor, the regional governor, or the carrier.
– What is happening with connectivity in Northern Bulgaria and the crossing of the Balkan Mountains, which we haven’t been able to do for over a century?
– There is a huge imbalance in the development of Northern and Southern Bulgaria. The South is developing faster economically and that is why Southern Bulgaria is richer than Northern Bulgaria. There, where there are main highways, railways, and communications, the economy thrives. Accidentally, 70% of our industrial strength is structured around the Trakia highway. For the economy to develop, it needs roads, electricity, water and 5G. This is lacking in Northern Bulgaria. Our ambition in the ministry is by 2029 to complete the modernization of all main railway lines in directions such as Sofia-Burgas and Karnobat-Sindel-Varna, but right at this moment we are starting to plan the new routes.
They need to be repaired for speeds of 160 km/h. We are starting with the repair of Vidin-Medkovets and will continue with the main northern route through Gorna Oryahovitsa to Varna. We need to provide two or three routes that cross the Balkan Mountains so that we can connect the southern and northern parts of the country with convenient railway transport. We have started preliminary design studies. By 2029, there will be a very serious rehabilitation of the railway lines in the north.
– Where will the crossings of the Balkan Mountains be?
– It is not yet decided, but we are considering one option to be Troyan-Hristo Danovo. This way we will connect Northern Bulgaria with Southern Bulgaria without sharp turns and low speeds. The second crossing we are planning is from the south to the north towards Stolnik, which will connect Northern Thrakia with the Sub-Balkan line. The rehabilitation of Karnobat-Sindel is the third crossing of the Balkan Mountains. And here stands the big question – whether we will persuade Romania to agree to two more bridges over the Danube.
The current Sofia-Varna railway line through the Iskar Gorge cannot achieve speeds higher than 60 km/h. Therefore, the option is the Stolnik-Mezdra tunnel. The journey from Sofia through the Podbalkan line to Stolnik and through the tunnel to Mezdra will be at a speed of 130 km/h. From Mezdra, one can then travel towards Vidin and when the infrastructure in Romania is repaired – directly towards Northern Europe.
– Will you prepare proposals and projects for the next programming period?
– I want us to start designing and legalizing all projects now so that whoever is minister can have them and continue them in order to equalize Northern and Southern Bulgaria. And then the goods that are transported and congest the roads will be able to go by rail. Toll taxes are becoming more expensive throughout Europe and the railway is becoming increasingly competitive.
– Will the government survive in order to achieve the outlined goals?
– The government will remain for a full mandate because the people want it. The progress we manage to achieve even in the first 100 days is significant. People feel it and therefore support us. This guarantees us support from various parliamentary forces, which are inclined to give their vote for a reasonable, pragmatic, technocratic policy and government. This is the reality and I do not see this changing in the next four years. For this to change, PP-DB, Vazrazhdane and MECh would have to embrace and shake hands, which is not only exotic, but also disastrous for Bulgaria. This is the only government that has not produced any scandal with its work in the first 100 days.
– GERB and ITN did not like each other as political forces, now you say that things are going well. How did that happen?
– GERB has a lot of accumulated management experience and this is the point of convergence. We also work well with BSP. So far, the three formations have shown institutional maturity. Problems that arise in the territory of several departments are resolved very professionally and quickly. There is no jealousy and no clashes between individual ministers.
– And with BSP?
The same is true with BSP. On some issues that they care about, for example social sensitivity, they meet understanding from GERB and ITN, because this affects our parents and children. But when it comes to reformist policies, like the one in the railways and other reforms that are ahead of us, we have their full support. So far, there are no issues that have divided us.