Bulgaria's Transport Minister Rules Out Unconditional Privatization of Cargo Railway Unit

Business | April 22, 2013, Monday // 13:27|  views

Kristiyan Krastev, caretaker Minister of Transport, Information Technology and Communications, has said that he does not back a privatization deal for the freight unit of the Bulgarian State Railways Company (BDZ) at any cost. Photo by BGNES

Kristian Krastev, caretaker Minister of Transport, Information Technology and Communications, has said that he does not back a privatization deal for the freight unit of the Bulgarian State Railways Company (BDZ) at any cost.

Krastev, as cited by the Bulgarian Telegraph Agency (BTA), suggested Monday that a privatization deal for BDZ Freight Services had to be sealed at an adequate market price which would cover a portion of the debts of the company.

"A loan from the World Bank is one option for securing funds to meet the needs of BDZ, but it is not directly related to the privatization of BDZ Freight Services," he explained.

Krastev noted that he was pursuing the rehabilitation and modernization of BDZ as a personal cause.

Bulgaria's caretaker Transport Minister argued that the absorption of funds under the Transport Operational Program would improve if the coordination was streamlined so as to prevent delays in the implementation of existing contracts.

He suggested that the results of the implementation of the Transport OP were promising, citing a total of BGN 3.75 B in contracted funds, or 95% of the total, and paid sums of around BGN 1.78 B, or over 45% of the budget.

Krastev claimed that Bulgarian airports were not particularly attractive for concessionaires because they were old and the surrounding infrastructure was in poor condition.

He rejected the scenario involving a relocation of Sofia Airport, saying that the step would require huge investments and create transport obstructions, as well as problems with the new environment.

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Tags: caretaker government, Transport Minister, BDZ, BDZ Freight Services, state railways, Bulgarian State Railways, privatization, Sofia Airport

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