Bulgaria : Railways Policy Note
Under a succession of reform-minded governments, the Bulgarian rail sector has achieved some ambitious targets-stable traffic volumes and hard-won financial stability that was endorsed by investor confidence during a recent bond issuance for EUR 12...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2009/03/16374029/bulgaria-railways-policy-note http://hdl.handle.net/10986/12886 |
| Summary: | Under a succession of reform-minded
governments, the Bulgarian rail sector has achieved some
ambitious targets-stable traffic volumes and hard-won
financial stability that was endorsed by investor confidence
during a recent bond issuance for EUR 120 million. Today,
all Acquis Communautaires relevant to the rail sector have
been adopted. Vertical unbundling of services separated
public railway infrastructure from operation of railway
transport services; the track access charges that were
introduced opened market access to rail infrastructure and
allowed cost recovery; and public service contracts were
laid out to clarify government contributions to the sector.
In addition, Bulgaria's substantial accomplishments in
improving railway operating efficiency included reducing the
State-owned railway company staff by 40 percent; creating a
holding company structure with three legally independent
subsidiaries and business lines-freight, passengers, and
traction services. The various roles of the State in
Bulgaria's rail industry- policymaker, regulator,
owner, and client require a cultural change if Government is
to optimize the balance among public policy choices, entity
management constraints, and available fiscal space.
Overcoming the railway industry's challenges will be
difficult and should not be underestimated; the current
financial crisis will appear to militate against immediate
action in an investment-intensive sector such as
infrastructure, but the railway industry in Bulgaria has
never been better positioned to move forward. Postponing the
completion phase of railway reform will not only squander
future economic prospects through continued asset
deterioration and loss of market share, but also lay waste
to the past investments that have brought the country so far
along in attaining today's railway market position and
financial stability. |
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