The concluded concession contracts will bring investment of over 1 billion lev to Bulgaria. This generous announcement made last week the Minister of Transport and Communications Ivaylo Moscovski meeting with journalists from the U.S., Russia, China, Turkey and European Union countries within the conference Prospects for the development of foreign investment in the sectors of transport, logistics and engineering. The information was circulated in most media, but nobody asked how that much money will actually be collected? According to official notice of the meeting these funds will come from the 10 sites that currently have been given to concessionaires. But what are these sites in fact?
And finally to stir up the mess, Minister Moskovski added: We are preparing procedures for the concession of several important sites, which we hope will be attractive for foreign business. Sofia Airport could be developed through involvement of strategic investor and a pre-concession analyzes is currently being carried out for it. In a preparation to be concessioned are also a number of port terminals in Burgas, Ruse, Vidin, Lom, Nikopol and Tutrakan as well as the railway stations in Plovdiv and Varna.
Whether the money will come from already contracted, or future concessions, it is of great importance. As to the talks about attracting 1 billion lev in public-private partnerships, this seems to be no longer a hit among Bulgarian journalists. Back on 1 April 2010 at the presentation of concession strategy of the transport ministry, the then deputy of Mr. Moscovski – Mr. Kamen Kichev said he expects a 1 billion lev in revenue from public – private partnerships over the next few years. Alas, the year now is 2012 and this strategy started sounding like an April Fools joke. Then it was expected that most interest will be directed to the 11 terminals and port facilities in Varna and Burgas. But until now, only terminal 2A in Burgas was let to the Navigation Maritime Bulgare.
Ivaylo Moscovski’s team had problems also with small river terminals. Although in August last year it started the preparation of Nikopol and Tutrakan for concessions, both sites still remain at the phase of analysis.
Actually the only serious option for a concession that emerges in ports is probably Burgas – West terminal. In any case in February tender for selection of consultant to prepare all the necessary analyzeswas announced. This is the busiest port terminal in Burgas. It handles general, in bulk and ro-ro cargo and containers, supplies ships with water, telephone and electricity and processes discharged waste. The terminal has a maximum depth of 11 m and has a direct connection to the national road and rail network and provides excellent opportunities for combined transport. However, a contract will be hard to conclude within the mandate of the current Government. The specifics in the Burgas – West is that its territory are a common entrance, and contain communications, buildings and facilities used by all operators in the port and the control authorities. So this important detail can not but be taken into account when considering different options for public-private partnership for this facility.
A complete disaster is the situation with the airports. In the words of Ivailo Moskovski the airports in Plovdiv, Rousse and Gorna Oryahovitsa are being prepared to enter a concession procedure. The Minister, however, failed to mention that this will be done again. At the end of 2011 the government suspended the concession of the cargo area in Plavdiv. The reason was that by the deadline (December 7) not a single offer was submitted, although the deadline had been extended twice. Now the state is preparing a new procedure, this time letting the whole airport. Ministry of Transport intends to include the new passenger terminal built and put into operation in 2009 (which has already produced defects) in a bid to attract more candidates.
