Outgoing Deputy PM Karadzhov: Bulgaria Opens Rail Market to Private Passenger Operator for the First Time

Bulgaria is opening its railway market to a private operator for the first time and will now have more than one passenger rail provider, outgoing Deputy Prime Minister and Minister of Transport and Communications Grozdan Karadzhov said at the signing of contracts with BDZ Passenger Services Ltd and Ivkoni Express AD for domestic passenger rail services on February 11.

With the liberalisation of the service to private operators, rail transport is expected to become increasingly comfortable and punctual for Bulgarian citizens, he added.

“By signing these contracts, we have successfully completed a key reform under the Recovery and Resilience Plan. Without its precise and timely implementation, Bulgaria risked not merely delays, but the real loss of investment in new rolling stock under the Plan,” Karadzhov stressed.

He noted that two important steps remain. The draft Public Transport Act has been prepared by the Ministry of Transport and Communications, approved by the Council of Ministers and submitted to Parliament.

“It is due to be considered by the parliamentary committees this week and in plenary next week, if the National Assembly’s schedule allows. We also expect the Ministry of e-Governance to approve the technical specification we have submitted for the unified electronic ticketing system,” the outgoing Deputy Prime Minister said.

According to him, the state retains its central role in rail transport: it will define the scope of services, quality standards, oversight and funding. Rolling stock will also remain state-owned.

“We prepared and conducted the procedure with unprecedented transparency. All documentation was drafted under constant monitoring and in coordination with the European Commission. This was a deliberate choice: rather than creating a formal ‘Bulgarian solution’ that could later be challenged, we built a model fully compatible with the European framework,” he said.

He emphasised that the next 10 months would be crucial, as both operators must fully prepare their systems — addressing rolling stock arrangements and establishing clear procedures for cooperation to ensure a smooth transition and improved service for passengers after 13 December.

“The most important resource in the railways, however, is people. The procedure предусматриes that 813 BDZ employees will transfer to Ivkoni Express while retaining their current working conditions.

“These are not just staff positions — these are the lives of professionals and, above all, families,” Karadzhov underlined.

Following an open and competitive procedure, the Western region — accounting for 75% of all rail services in the country — has been awarded to BDZ Passenger Services Ltd. For the other two regions — Northern (14%) and Southern (11%) — Ivkoni Express AD ranked first in the tender process.

The contracts for the three lots are for a 12-year term and will enter into force on 13 December 2026.