National Railway Development Strategy, BDZ Rehabilitation Plan Provide for Lv 210-430 Mln Investment

Sofia, April 7 (BTA) - The medium-term strategy for the
development of the national railways and the BDZ Rehabilitation
Plan provide for investments between 210 and 430 million leva, a
 reduction of the company's obligations to 134 million leva and
the purchase of 15 electric engines and 30 railbuses, Transport,
 Information Technology and Communications Minister Ivaylo
Moskovski and the BDZ management told journalists Tuesday.

Moskovski underscored that both documents should be subject to
public debate and parts of them could be changed. The sale of
inoperative assets such as rolling stock, engines, terrains and
resthouses could bring in at least 69 million leva. A mechanism
to settle the debts of BDZ to the National Railway
Infrastructure Company to the amount of 75 million leva has also
 been designed.

The plans are to dismiss about 1,200 staff from BDZ - 600 each
from passenger and freight services. There will be no mass
layoffs, the staff will be reduced when the people retire and be
 the result of normal outflow, Moskovski said. The strategy
allows BDZ Freight to be privatized, holding Director Vladimir
Vladimirov said.

The main routes along which BDZ will operate include the border
with Serbia (Sofia-Plovdiv-Bourgas, the Turkish and Greek
borders, as well as the Sofia-Varna route, which requires 1,400
million leva investments, Railway Infrastructure Director Milcho
 Lambrev said. If the Sofia-Varna line is restored to the
quality it was constructed then travelling between the two
cities will drop by an hour - from 6 hrs 50 mins to 5 hrs 50
mins. Moskovski, however, is skeptical he will be able to find
such a sum.

Lambrev underscored that Railway Infrastructure may give up the
idea to maintain and dismantle railway sections if they are not
profitable. Such, for example, is the Septemvri-Dobrinishte line
 which generates a loss of 5 million leva a year. Other such
lines include Gorna Oryahovista-Elena, Sofia-Bankya. Some of the
 lines may also be awarded under concession to municipalities or
 businesses, Lambrev said.