Bulgaria could lose around €400 million in European Union funding as 19 railway contracts come under investigation by EU authorities, according to the country’s newly appointed Minister of Transport and Communications, Georgi Peev.
Seventeen contracts related to railway infrastructure projects are being investigated by the European Public Prosecutor’s Office, while two rolling stock procurement contracts are under review by the European Anti-Fraud Office (OLAF). Bulgaria also risks losing EU funding due to delays in completing key rail infrastructure projects.
Alstom Train Delivery at Risk
One of the biggest concerns is the potential cancellation of the delivery of 23 out of 35 Alstom Coradia Stream electric multiple units ordered in April 2025. According to Peev, Bulgaria has yet to approve the establishment of a Social Climate Fund, which is required to access financing from the EU’s carbon emissions trading system.
The country needs €356 million to meet its contractual obligations for the 23 trains. Without securing the necessary funding, the delivery could be jeopardised.
Questions Over Procurement and Infrastructure
The minister also warned of risks related to the maintenance of Siemens trains, which currently operate on nearly half of Bulgaria’s railway network.
An audit of the country’s transport and communications system found that the national railway infrastructure manager, National Railway Infrastructure Company (NRIC), had assumed unfunded obligations worth €764 million.
The audit identified what the ministry described as questionable procurement practices, including non-transparent emergency repair contracts, advance payments made before work had been completed, and infrastructure projects launched before land acquisition, archaeological surveys and geological studies had been finalised.
Ageing Fleet and Financial Problems
The review also highlighted the poor financial condition of Bulgaria’s state railway operators. The passenger operator BDZ Passenger Services has overdue debts of approximately €30 million, while most of its rolling stock is more than 40 years old.
The state-owned freight operator BDZ Freight Services was described by the minister as “practically bankrupt” and in urgent need of stabilisation measures.
“Rail transport is the most problematic sector in the system and undoubtedly our greatest responsibility,” Peev said. “The analysis carried out during the first month of the new government’s work shows an accumulation of serious problems that require not cosmetic reforms but a comprehensive change in the way the sector is managed.”
