Rail Transport: New Changes to the Law

The National Assembly approved amendments to the Railway Transport Act, sparking heated debates and criticism from the opposition.

The vote, held on second reading, introduced several changes affecting the management and concessioning of railway infrastructure.

According to the adopted texts, the railway infrastructure objects and the land on which they are built remain public state property, managed by the National Company "Railway Infrastructure" (NKJI) or by concessionaires, in accordance with the Concessions Act.

However, the lawmakers added a clarification defining these entities as managers of the railway infrastructure, thus creating a new legal context.

Strict impartiality requirements

The bill introduces strict impartiality requirements for persons holding management positions in the railway infrastructure.

• They are obliged to act impartially, without being influenced by conflicts of interest,
• they are prohibited from carrying out competitive activities or being in contractual relations with railway companies.

The law categorically prohibits the simultaneous holding of positions as a member of the management bodies of the infrastructure manager and a member of the management bodies of a railway company. The same applies to other management positions, including supervisory boards, in order to prevent potential abuses and conflicts of interest.

These provisions are in line with the European Directive (EU) 2016/2370, aiming at transparency and good governance in the railway sector.

Lifting of prohibitions

A significant change in the bill is the lifting of the prohibition on transferring certain functions from NKJI to third parties.

Among the repealed prohibited activities are:

• providing access to the railway infrastructure for licensed carriers on an equal footing;
• activities related to the development, repair, maintenance and operation of the railway infrastructure;
• and determining and collecting infrastructure fees.

However, the bill introduces a condition according to which the railway infrastructure manager may only assign functions to a third party if it is not a railway company, does not control and is not controlled by a railway company. This is applicable only in the absence of a conflict of interest and guaranteed confidentiality of commercial information.

The railway infrastructure manager retains its supervisory powers and bears full responsibility for the exercise of its functions.

The bill categorically prohibits state bodies, railway companies or other entities from exercising decisive influence over the railway infrastructure manager regarding its core functions.

Strong opposition reaction

The changes met with fierce resistance from the opposition parties "Vazrazhdane", "Moral, Unity, Honour" (MECH) and "Veliko Tarnovo".

Members of Parliament from "Vazrazhdane" expressed serious concerns that concessionaires will begin to take over the functions of NKJI, describing the bill as a scheme for draining the state and highlighting the security risks associated with the transfer of management of strategic infrastructure into private hands.

MECH MPs supported these concerns, arguing that the changes will lead to the transfer of profitable lines into private hands, while the state will bear the losses, and will lead to the final collapse of BDZ (Bulgarian State Railways).

From "Veliko Tarnovo", emphasis was placed on the social function of the Bulgarian State Railways and called on the ruling party to awaken to national conscience, stressing that BDZ is not for sale in parts.

The Parliament hall was filled with tension, reflecting the seriousness of the debates and the high stakes involved in the future of the Bulgarian railway system.