REHABILITATION OF PLOVDIV - BURGAS RWY PHASE II

Promoter – Financial Intermediary

REPUBLIC OF BULGARIA

Location

• Bulgaria

Description

The project concerns the completion of the rehabilitation and modernisation works on the Plovdiv-Burgas railway line, which is part of the main Trans-European Transport network (TEN-T) and part of the "Orient / East Mediterranean" corridor. The project will contribute to bringing the railway infrastructure in accordance with interoperability and relevant EU regulation. The initial phase of the project was implemented under the previous programming period (2007-2013).

Additionality and Impact

The Project is a second phase of railway modernisation between the cities of Plovdiv and Burgas in Bulgaria and concerns the upgrade and construction of approximately 110 km of railway track and the deployment of signalling and telecommunications on 285 km of railway line. It is located in a cohesion country along the Orient-East Med Core TEN-T Corridor and helps to fulfil a wide range of EU public policy goals, and thus receives EU ESIF grants, which the Bank financing will complement.
The Project supports the shift of passenger and freight traffic to rail and addresses market failures by minimising a number of transport externalities, such the harm to humans in terms of accidents and loss of life, or environmental externalities like noise, pollution and CO2 emissions. The Project generates good economic and good social benefits, e.g. by reducing travel times and by offering better access for persons with reduced mobility. Annually, it will bring benefits to close to two million passengers and ensures sustainable transportation of up to five million tonnes of freight.
EIB's advice and financial contribution has a positive impact on the technical quality and implementation of the project. The promoter has benefited from JASPERS involvement during project preparation. The EIB's involvement in the financing of the project will play a key role in facilitating the absorption of EU structural funds and lead to the improvement of the promoter's financial profile by diversifying its funding base, increasing its debt maturity structure and lowering its average cost of funding.

Objectives

The project will contribute to the development of a key part of the core railway TEN-T on the territory of the Republic of Bulgaria.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 43 million

Total cost (Approximate amount)

EUR 345 million

Environmental aspects

It is a requirement that all sub-projects under the Structural Programme Loan must be implemented in compliance with EU environmental legislation and the Promoter has identified those sub-projects for which it considers an environmental impact assessment (EIA) is required. Should any sub-project have a negative impact on an area forming part of the Natura 2000 network (falling under the Habitats Directive 92/43/EEC or Birds Directive 2009/147/EC), the Bank would require the Promoter to act according to the provisions of the aforementioned directives as transposed into national law. These matters will be clarified during the appraisal.

Procurement

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been/shall be tendered in accordance with the relevant applicable EU procurement legislation (Directives 2014/25/EU and related Directive 92/13/EU) as interpreted by the Court of Justice of the EU, with the publication of tender notices in the Official Journal of the EU, as and where required.

Status

Approved - 20/07/2021