Grozdan Karadjov: The competition for railway transport is a commitment under the Recovery Plan, not a political initiative

The former Deputy Prime Minister and Minister of Transport and Communications in the caretaker government, Grozdan Karadjov, dismissed the criticism of the coalition "We Continue the Change – Democratic Bulgaria" (WCC–DB) regarding the procedure for providing the public service for passenger railway transport. He stressed that the competition is a mandatory reform, laid down precisely in the National Recovery and Sustainability Plan (NRSP), drawn up by the WCC–DB coalition itself.

Karadjov wrote on his Facebook profile that the reform was approved by a decision of the Council of Ministers in 2022 by Kiril Petkov's cabinet and was subsequently accepted by the European Commission as a condition for providing funds for the purchase of new rolling stock. According to him, the procedure is not political in nature, but represents a commitment of the state under the National Road Map, the implementation of which depends on funding.

He reminded that the Plan clearly states that the new public service contract must be concluded through an open, non-discriminatory and competitive procedure, divided into separate lots with the aim of liberalizing the market and promoting competition. "This is exactly what the European Commission requires," Karadjov stressed.

The former minister rejected accusations of creating "regional monopolies", stating that the alternative would be a single national contract, which actually guarantees complete monopolization and contradicts the National Railway Transport Strategy. According to him, it is the current model that has led to outdated rolling stock and chronic problems in the railway sector.

Commenting on the reproaches that some companies were "hastily licensed", Karadjov clarified that permits for passenger railway transport are issued in accordance with European legislation, are of an indefinite nature and are subject to periodic control. They do not require prior experience, but meet specific criteria for safety and financial stability. "One of the licenses issued was given precisely during the management of a minister from WCC–DB," he noted.

Karadjov assured that the procedure is transparent, has been discussed with trade unions and interested parties, has been presented to the parliamentary Transport Committee and is under constant monitoring by the European Commission. "The accusations of a pre-determined competition are completely unfounded," he added.

According to him, the contracts should be signed by the end of the year in accordance with the commitments made under the NRSP. Any suspension or restart of the procedure would jeopardize the implementation of the Plan and could lead to a loss of over 600 million euros for new trains, as well as the return of already paid advances. "The Minister of Transport is precisely fulfilling the obligation that the state undertook before the European Union," Karadjov further stressed.

The Bulgarian Telegraph Agency reminds that this week the Deputy Prime Minister in the caretaker government Grozdan Karadjov announced the names of the selected contractors for the three separate positions for passenger railway transport, provisionally called western, northern and southern carrier. For the northern and southern zones, the contractor became the only company that submitted an offer – "Ivkoni Express", and "BDZ – Passenger Transport" retains the western part.

Yesterday, the "We Continue the Change – Democratic Bulgaria" coalition insisted in a parliamentary declaration that the procedure for awarding the public service for passenger railway transport be terminated and announced again. The WCC–DB proposes that the new process be drawn up with the help of external consultants and experts from countries such as Germany and the United Kingdom.

The MP from the coalition Stela Nikolova, who presented the declaration in the National Assembly, stated that "it is not right and does not meet good European standards for a single candidate – 'Ivkoni Express' – to simultaneously receive monopoly positions, state subsidies and the right to serve the new trains purchased with European funds". According to her, under the pretext of liberalization, a scheme for the appropriation of state resources is actually being opened in a sector that can only have a future if a truly competitive environment and high quality of service are created.