1. Chances in the transport infrastructure sector in Bulgaria Austria Showcase “Traffic Infrastructure” Sofia, 5 th April, 2006 Sofia, 5 th April, 2006 Presentation by Vessela Gospodinova Deputy Minister of Transport Ministry of Transport

2. Austria Showcase “Traffic Infrastructure” Sofia, 5 th April, 2006 Sofia, 5 th April, 2006 Presentation by Vessela Gospodinova Deputy Minister of Transport

3. Transport infrastructure projects under implementation Transport infrastructure projects under implementation During the pre-accession period Bulgaria took advantage of EU ISPA Programme, International Financial Institutions and other international Funds to develop the following major transport infrastructure projects:  Sofia Airport Reconstruction, Development and Extension  Electrification and Upgrading of the Railway Line Plovdiv - Svilengrad - Greek / Turkish Border  Construction of a new bridge over Danube River at Vidin – Calafat  Port of Burgas: New Breakwater, Bulk Cargo Terminal, and Dredging of the Access Channel

4. Sofia Airport Reconstruction, Development and Extension  The project is supported by the EU ISPA Programme, EIB, KFAED and national budget  Total value of the project – €210 M  Time of completion: - Lot B1 “New Passenger Terminal Building and Related Infrastructure” – August 2006 - Lot B2 “New Runway System and Related Works” – November 2006

5. Sofia Airport Reconstruction, Development and Extension  Project status: - 99 % of the finishings and installation works – completed - delivery, installation and testing of the equipment – concluded - 95% of earth works on the New Runway - completed - approximately 2500 meters of the New Runway – paved - works of the parking garage and installation works – completed - works on the bridge over the Iskar River - concluded

6. Electrification and Upgrading of the Railway Line Plovdiv - Svilengrad - Greek / Turkish Border  The project is supported by the EU ISPA Programme, EIB and national budget  Total value of the project – €340 M  Time of completion – year 2010 Implementation of Systems for the Whole Line - Works Technical Assistance for the Supervision of the Works Civil/Track/ Electrification – Works Parvomay – Borders LOT A Parvomay – Dimitrovgrad LOT C Harmanli - Borders Technical Assistance to the PMIU for the Project Management Civil/Track/ Electrification – Works Krumovo – Parvomay LOT B Dimitrovgrad - Harmanli Phase 1 Phase 2

7. Electrification and Upgrading of the Railway Line Plovdiv - Svilengrad - Greek / Turkish Border  Project status: - Contract for design and construction of the Section Krumovo – Parvomay was signed on 14 June 2005 with TERNA, Greece - The Long-Term Technical Assistance for the Overall Project Management Contract was signed on 22 August 2005 - Contract signature for the supervision tender is forthcoming - The tender dossier for Phase 2 construction is drafted, and is currently under improvement in accordance with Phase 1 results - The Tender Evaluation Report for the selection of a contractor to provide Technical Assistance to NRIC’s PMIU for the Improvement and Completion Process of the Works Tender Dossier for the Implementation of the Systems for the Whole Line was submitted to ECD for approval in January 2006.

8. Construction of a new bridge over Danube River at Vidin / Bulgaria – Calafat / Romania Total cost: 234.2 Meuro ISPA contribution: 70 meuro (31%) Co-financing institutions: EIB, AFD, KfW, ISPA and the Bulgarian budget

9. Construction of a new bridge over Danube River at Vidin – Calafat  Project status: - The land acquisition procedure for the Bridge – completed - The land acquisition procedure for the adjoining infrastructure - to be completed by the middle of 2006 - The construction permits for the adjoining infrastructure - issued - The D&B Bridge Works Tender Dossier under revision - The Technical Design for the Adjoining Bulgarian Road and Railway Infrastructure - completed and approved by the National Expert Council of the MRDPW. The Works and Supervision Tender Dossiers are elaborated and sent to the EC Delegation for approval in the summer of 2005.

10. Port of Burgas: New Breakwater, Bulk Cargo Terminal, and Dredging of the Access Channel  The project is supported by JBIC loan and national budget  Total value of the project – USD 196 M  Time of completion – year 2007 - New Breakwater Construction - July 2006 - Access Channel Dredging – June 2007  Project status: - Bulk Cargo Terminal 2A construction - completed in July 2004; - Bulk Cargo Terminal 2A equipment - installed in January 2006; - Bulk Cargo Terminal 2A equipment testing underway - expected completion – end of March 2006 - New Eastern Breakwater construction underway - expected completion end of July 2006 - Access Channel dredging – stopped; expected completion of the dredging – end of June 2007

11. Perspectives in the transport infrastructure sector in Bulgaria 2007 - 2013  The perspectives in transport sector in Bulgaria are oriented towards development of the priority Trans- European transport corridors – IV, VII, VIII and X.  In the new EU programming period 2007–2013 Bulgaria will take advantage of the Cohesion Fund and European Regional Development Fund for development and modernization of transport infrastructure of nation-wide, EU and cross-border importance.  The programming of the financial recourses in transport sector for the period 2007-2013 is taking form of Sectoral Operational Programme on Transport.

12. Trans-European transport corridors crossing Bulgaria

13. Sectoral Operational Programme on Transport  The OP Transport was developed by a Working Group, established in October 2004 with an Order of the Minister of Transport.  40 Members of the Working Group – representatives of the key ministries, local administration, NGOs, Employer’s, transport and environment organizations, Universities, socio-economic partners.  Until March 2006 ten working sessions were held.  Partnership principle while developing the SOPT has been strictly followed.

14. Objectives of the Sectoral Operational Programme on Transport  Overall Objective - Development of sustainable transport  Specific Objectives - Integration of the national transport system in the EU transport network - Achievement of balance between different modes of transport

15. Operational Priorities of the Sectoral Operational Programme on Transport 1. 1. Development of the railway infrastructure along the major Tran-European and national transport axes and promotion of combined transport 2. 2. Development of the road infrastructure along the major Tran-European and national transport axes 3. 3. Development of environmentally friendly public transport in urban areas 4. 4. Improvement of the maritime and inland waterway navigation 5. 5. Technical Assistance

16. Operational Priorities: Eligible operations under Priorities 1 & 2: Eligible operations under Priorities 1 & 2: - Construction, modernization and rehabilitation of motorways - Construction, modernization and rehabilitation of I class roads of nation-wide, EU and cross-border importance - Construction, modernization and rehabilitation of II class roads along the TEN-T of nation-wide, EU and cross-border importance - Rehabilitation, modernization and electrification of railway lines and sections along the TEN-T of nation-wide, EU and cross-border importance - Improvement of the technical, technological and operation parameters of the terminals Operations under this priorities will be co-funded by the Cohesion Fund

17. Operational Priorities: Eligible operations under priority 3: - Extension of Sofia metropoliten Operations under this priorities will be co-funded by the European Regional Development Fund Operations under this priorities will be co-funded by the European Regional Development Fund

18. Operational Priorities: Eligible operations under priority 4: Eligible operations under priority 4: - Modernization of the infrastructure along the Danube River and the maritime routes - Construction and modernization of aids to navigation Operations under this priorities will be co- funded by the European Regional Development Fund Operations under this priorities will be co- funded by the European Regional Development Fund

19. Operational Priorities: Eligible operations under Priority 5 Eligible operations under Priority 5 Technical assistance will be used for programming, managing, implementation, monitoring, control, evaluation of the SOP on Transport; publicity measures, improvement of administrative capacity linked to the management of the Funds, project preparation, studies. Indicative amount allocated for this priority – 4 % of the total for the Programme

20. Indicative Financial Plan of the SOPT: №Priority % of the EU Funds EU Funds in € mln National co- financing in € mln Total in € mln 1 & 2 Development of road and railway infrastructure along the major national and Trans- European transport axes and promotion of combined transport 78,40%1 036,7 €357,8 €1 394,5 € 3 Development of environmentally friendly public transport in urban areas 9,70%128,6 €28,7 €157,3 € 4 Improvement of the maritime and inland waterway navigation 7,90%104,7 €35,2 €140,0 € 5 Technical Assistance 4,00%55,7 €15,8 €71,5 € Total 100%1 325,7 €437,48 €1 763,2 €

21. Project preparation  During the last years the Ministry of Transport put efforts to use the financial recourses of the EU ISPA Programme to prepare projects in the railway sector to be further financed by the Cohesion Fund  On 11.01. 2006 two ISPA Financing Memoranda were signed at the total amount €14,520.000: - 2005/BG/16/P/PA/002 “Technical Assistance for modernization of Vidin – Sofia railway line”. Expected results: Feasibility Study; Environmental Impact Assessment (EIA); Tender documentation for modernization of Vidin-Brusartsy railway section; Economic cost/benefit and Financial analysis - 2005/BG/16/P/PA/004 “Technical Assistance for renewal of railway infrastructure sections along Mezdra-Gorna Oryahovitsa and Plovdiv - Burgas railway lines” Expected results: Technical design and Tender documentation

22. Indicative list of projects in railway sector to be financed under the SOPT (2007-2013) PROJECTS Total value € mln State budget ISPA Cohesion Fund Electrification and reconstruction of the railway line Svilengrad / Turkish Border (L=19 км) 35,00011,5000,00023,500 Doubling and electrification of Parvomay - Yabalkovo railway line (L=17 км) 23,0008,0000,00015,000 Renewal of railway sections along Plovdiv-Burgas railway line (L=82 км) 66,54021,5303,01042,000 Modernization of Sofia - Dragoman railway line (L=51 км) 85,64028,4002,24055,000 Modernization of Sofia-Pernik-Radomir railway line (L=48 км) 103,04033,4602,58067,000 Renewal of railway sections along Mezdra-Gorna Oryahovitsa railway line (L=236 км) 166,94054,0405,900107,000 Modernization of Sofia-Plovdiv railway line (L=130 км – completion of Lot 1 Sofia-Elin Pelin and partially Lot 2 Elin Pelin- Belovo) 128,83042,1702,80083,860 Modernization of Vidin – Sofia railway line (L=152 км – Completion of Lot 1 Vidin-Brusartsi and partially Lot 2 Brusartsi - Mezdra) 324,580107,7903,430213,360 TOTAL: 933,570306,89019,960606,720

23. Indicative list of projects in railway sector to be financed by the state budget and other sources in the period 2006- 2015 PROJECTS Total value in € mln € mln Doubling and electrification of the railway line Carnobat - Sindel 200,000 Restoration of the design parameters (L=204 км) of the railway line Sofia – Karlovo - Zimnitsa 85,750 Restoration of the design parameters (L=135 км) of the railway line Ruse - Varna 47,460 Restoration of the design parameters (L=104 км) of the railway line Plovdiv - Zimnitsa 49,180 Restoration of the design parameters (L=84 км) of the railway line Ruse – Gorna Oryahovitsa 28,300 Restoration of the design parameters (L=302 км) of the railway line Gorna Oryahovitsa - Kaspichan 82,300 TOTAL: TOTAL: 492,990

24. Indicative list of major projects in road sector to be financed un the SOPT (2007-2013) PROJECTS Total value € mln State Budget ISPA Cohesion Fund Vidin - Montana, section Dimovo-Bella- Ruzhentsi L=20.5 км 32,00010,6000,00021,400 Kardzhali - Podkova с L=16,9 км and Kardzhali bypass L=15км 32,00010,6000,00021,400 ІV and VІІІ, L= 880 км Reaching the technical and opeartional parameters of the road infrastructure for sections on corridors ІV and VІІІ, L= 880 км 407,625135,8750,000271,75 Ruse-Veliko Tarnovo - L=107 км 250,00082,6000,000167,400 Transit roads ІV – second phase, L=286 км 49,80016,4000,00033,400 (E79) Vratsa-Botevgrad modernisation to a four lane road with technical parameters of a motorway in the section Mezdra- Botevgrad L=31,5 км 85,00028,0000,00057,000 Construction of bypass roads along the ТЕN-T- phase І : for Montana L=11,2 км; Vratsa L=6,5 км and gabrovo L=24 км 80,00026,0000,00054,000 Hemus Motorway – connection Jablanitsa road junction Kortina L= 8,5 км 30,00010,0000,00020,000 Restoration of the technical and operational parameters of road 3 (E83) Botevgrad-Pleven-Byala L=110 км 36,67512,2250,00024,450 TOTAL: 1 003,100 332,3000,000670,800

25. Indicative list of projects in road sector to be financed with the State Budget and other sources in the period 2006-2015 PROJECTS Total value in € mln. € mln. Hemus Motorway temporary connection Shoumen – road junction Belokolitovo L= 10,5 км 30,000 (E79) Botevgrad-Sofia, construction of a motorway connection between the Sofia Ring Road and Hemus Motorway - L= 8,5 км 33,000 Construction and extension of the Sofia Ring Road Souther Arch: Simeonovo- Boyana L=4,6 км 30,000 Extension of the Sofia Ring Road – Southern Arch : 1. Vrana-Simeonovo L=9 км; 2. Bukston Street- road junction of Lyulin Motorway" L=7,6 км; 3. Road Junction Lyulin Motorway – beginninog Northern Arch of Sofia Ring Road L=5 км 108,000 Hemus Motorway -Lot 1 Kortina - road 35 262,000 Hemus Motorway - Lot 2 road 35 - road 5 (E85) 378,000 TOTAL: TOTAL: 841,000

26. Indicative list of other infrastructure projects to be financed under the SOPT in the period 2007-2013 PROJECTS Total value € mln StateBudget Sovereign Guaren ted Credits EFRD Extension of the Metropoliten Sofia from “Interpred” to “Mladost”, “Druzhba” and new terminal at the Sofia Airport 228,00075,5000,000152,500 Improvement of the navigation on the Danube in joint Bulgarian - Romanian parts: from rkm 530 to rkm 520 - Bathin from rkm 576 to rkm 560 - Belene 146,60039,62025,50081,480 Establishment of River Information Services System in the Bulgarian part of Danube River 5,0001,6600,0003,340 Vessel Traffic Management Information System - phase 3 3,8501,2800,0002,570 TOTAL:383,450 118,06 0 25,500239,890

27. DEVELOPMENT OF PORTS AND AIRPORTS The following Airports will be developed under PPP:  The Airports of Varna and Burgas – procedure ongoing  Ruse Airport – concession analysis under preparation  Gorna Oryahovitsa and Plovdiv Airports – outstanding issues to be resolved – the ownership problem  Targovishte Airport - concession analysis to be prepared in 2006

28. DEVELOPMENT OF PORTS AND AIPORTS Major Port Projects to be developed under PPP  Ferryboat Terminal in Silistra – concession contract signed February 2006  Port Terminals in Balchik and Lesport – concession contracts signed in 2005  Port terminals in Somovit, Svishtov and Oriahovo – decision of Council of Ministers under appeal in front of the Supreme Administrative Court  Procedures expected to start in 2006 – container terminal Varna West, port terminal Vidin South, ferryboat complex Vidin – concession documents under preparation

29. OTHER PPP PROJECTS  Intermodal Terminals in Sofia and Ruse – procedure expected to start in 2006/2007  Railway Stations in Sofia and Plovdiv – procedure expected to be launched in 2006

30. Austria Showcase “Traffic Infrastructure” Sofia, 5th April, 2006 Chances in the transport infrastructure sector in Bulgaria Thank you for your attention