Bulgaria’s New Concession Basket Stays Empty

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Government of Mr. Oresharski failed to record any significant concessions during its period in office, though they invested a lot of effort to do so. Now the Ministry of Transport is working actively to transfer into private hands the railway station in Varna, the port terminals Ruse East and Zimovnik in the same city, the port terminal Vidin – centre, as well as civil airport in Plovdiv. These sites are currently being discussed to be included in the scope of public-private partnership to make estimates of the necessary investment programmes, the sizes of concession fees and duties of future concessionaires to social programmes for employees .

The BANKER found out in the most advanced stage of preparation for the port terminal Vidin – centre serving passengers. The decision to initiate the procedure for the concession is scheduled for the end of this month, but is unlikely to pass in the emerging finale of the current cabinet. So after the elections, the ministers will have the opportunity to get a flying start in the management and put on the counter last terminal of the Vidin port, which is state-owned. The facility is located in the central part over an area of 17 decares. It is also close to train and bus stations, creating a very convenient logistics for arriving and departing for passengers. It has a quay wall with a length of 1440 meters, to which four pontoons are mounted to welcome Bulgarian and foreign ships.

Before the finalisation are the activities for the concession of the Central Station in Varna. In the OP, the current power-tender is scheduled for August 27. Schedules will probably not be met, but when this happens, this concession will probably attract investor interest. The preparatory activities for the launch started yet in 2012, when a public procurement for the preparation of the necessary analyzes was opened.

This summer is expected to complete its work for the concession of the port terminal and Ruse-East. This is the biggest Bulgarian port on the Danube River. The availability of freight forwarders, customs control organizations and check-point at its territory gives it significant competitive advantages. For these reasons, in the last two years, the state developed a central terminal storage and distribution equipment of regional importance. The result is not too late – in 2013 were reported near 1.7 million lev income and expenses amounted to 770,000 levs.

The other terminal Ruse – Zimnik will expect their concessions this autumn. Then the public-private partnership will be ready also for Plovdiv Airport, which will be a far more cucculent bite. In 2009, the state invested 20 million levs there to build a new terminal. The building is in line with European standards. The airport has an area of 5000 square meters and there are separate central public area with a snack bar and cafeteria, shops, offices of airlines, tour operators, car rental, currency exchange, room for cargo shipments and more. It further extended the existing platforms were they built new public parking, new water and sewer system, had fully reconstructed and upgraded the electrical and lighting systems. Since then the airport has managed to attract low-cost airline Ryanair, but its traffic can not fill the potential of the new terminal.

Yet are to be reassessed the opportunities for concessions at the airport in Gorna Oryahovitsa. In 2011 the authorities had already made attempt to find a private owner, but candidates never turned up.

The BANKER

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