site.bta Transport & IT Minister: Bulgarian State Railways Owes Lv 600 Mln to Creditors

ESD 18:14:30 03-09-2014

VE1814ES.120
120 ECONOMY - TRANSPORT - MINISTER - REMARKS

Transport & IT Minister:
Bulgarian State Railways Owes
Lv 600 Mln to Creditors


Sofia, September 3 (BTA) - Bulgarian State Railways (BDZ) owes
600 million leva to its creditors and is planning to negotiate
for a repayment plan, Transport, Information Technology and
Communications Minister Nikolina Angelakova said, emerging from
the Council of Ministers weekly meeting Wednesday.

Angelakova said the national budget has a small amount allocated
for paying off part of the principal and the interest owed by
BDZ, which is broken down into monthly payments of 3 million
leva until the year's end. This is far from enough, she noted.
According to the Minister, the government is expecting a
notification from the European Commission about 172 million leva
in state aid which should be provided for in the national
budget scheme and which is for outstanding obligations. There is
a 195 million leva shortfall for scheduled and incidental
repairs at BDZ, and there is no money to buy rolling stock, she
said.

The Transport, Information Technology and Communications
Ministry has denied a freight transport licence to TETs Bobov
Dol-Tovarni Prevozi, because the applicant has failed to meet
legal requirements, particularly financial stability standards,
Angelakova went on to say.

The National Company for Railway Infrastructure is in the red by
109 million leva for co-financing railway projects. That amount
of money was not laid out in the national budget, she said.

Angelakova also complained of a lack of a clear strategy and
continuity as to electronic government policy. Experts are
trying to figure out exactly how much has been spent on various
aspects of electronic government. So far they have gathered
information about 400 million leva in funding from the national
budget and money under the EU-backed Operational Programme
Administrative Capacity.

Faulty planning has made it impossible to sign a planned 15
million leva contract by September 15 relevant to the building
of an intermodal transport terminal in the seaport of Varna. The
procedure will be stopped and the terminal will not be
constructed, Angelakova said. VI/VE