CONCESSION WAVE SWEEPS OVER BULGARIAN TRANSPORT

In the nearer future, four new concessions of infrastructural sites are about to begin.

In early November, the cabinet has to initiate the procedure for conceding the Rousse airport. It is located 20 km to the south of the Danube town and in 2005 its ownership was transferred from the defence ministry to the transport one. The team led by Minister Mutafchiev intends to attract cargo flights and low-cost carriers to the airport as they will use it as an alternative to the international airport in Bucharest. The Rousse airport has not been used for military or civil purposes for fifteen years, which is why the future concessionaire will be required to restore its exploitation suitability. This will be achieved through re-covering the entire flight strip, renovating the technical infrastructure and the passengers terminal, and building new storehouses. According to plans of the Ministry of Transport, investments worth EUR13MN will be needed, but a foreign investor is said to have expressed interest already.

Private owners will also be sought for the airports in Gorna Oryahovitsa and Plovdiv, but when the procedures will begin is not clear yet. The problem with the first site is merely technical - the issue of ownership should be clarified with the Ministry of Defence. The situation of the airport near Plovdiv seems much more complicated - 75 dka of land, along with the terminal, were sold to private owners in 1995. Negotiations are now being led on restoration of the airport estates in return to compensations.

However, there are three other concessions that are certain - for the Vidin-Centre passengers port, for the cargo port in Lom, and for the terminal Vidin-North and the Vidin ferry complex which will be offered together. The procedures for them will be announced by resolutions of the Council of Ministers in December. A tender for designing and constructing the 114 km railway section between Parvomay and Svilengrad is expected to be announced by the end of 2006, too. This is the second stage of the project for reconstruction and electrification of the railway Plovdiv-Svilengrad. Its total value is about EUR340MN. The ISPA program will provide EUR153MN, the European Investment Bank will launch a EUR150MN loan, and the state budget will allocate EUR37MN. BANKER