The Bulemu consortium, comprising Alstom and RPV Invest company from Bulgaria, has been selected to deliver 35 single-deck EMUs under a contract financed through country’s Recovery and Resilience Plan.
This was announced by Bulgaria’s Deputy Prime Minister and the Minister of Transport and Communications, Grozdan Karadjov, during a Plenary session of the Parliament on March 7, 2025.
The consortium submitted an offer of EUR 445 million and the contract also includes the provision of maintenance services for a period of 15 years.
The minister said that currently it is waiting for the 10-day appeal period to expire and if there is no appeal, the consortium will be invited to sign the contract.
According to its declaration, the European Commission has confirmed that the contract to deliver all the single-deck EMUs will be fully paid under the Recovery and Resilience Plan, and the remaining sum will be covered by funds from the state budget, depending on the delivery plan.
The new trains are supposed to be delivered within 28 months, which means more than two years after the contract is signed, pushing the deliver to mid-2027. Under these circumstances, the exact value of the project’s financing remains uncertain because the funds from the Recovery and Resilience Plan (RRP) are available but must be fully absorbed by August 2026, as agreed with the European Commission. Therefore, according to the delivery schedule, there would be one year during which the acquisition of the trains could no longer be funded by the RRP, in which case the remaining value of the trains would need to be covered by funds from the state budget.
Recovery and Resilience Plan has provided EUR 559 million for the procurement of the new single-deck EMUs.
“The European Commission said that if the train delivery is completed by August 31, 2026, the Recovery and Resilience Plan will finance the entire contract, but the remaining trains to be delivered will be financed by the national budget,” the minister said.
Through the Recovery and Resilience Plan, EUR 559 million has been allocated for this tender. However, the funds available through this instrument are only accessible until August 2026, in accordance with the agreement with the European Commission. Therefore, the funds must be absorbed by the end of August 2026.
Issues of the tender procedure
The tender for the acquisition of electric trains has encountered a series of issues and delays. It was launched at the beginning of 2024, with two companies being eliminated from the procedure. Following the evaluation of the bids, it was concluded that these companies had not met the required technical specifications. In the spring of 2024, rolling stock manufacturers Alstom, Pesa, Škoda, and Stadler were invited to submit their offers for the contract, which was estimated to be worth BGN 1.1 billion (EUR 553.5 million, in current prices). It is important to note that the entire tender process has faced considerable uncertainty and delays.
This uncertainty has also influenced the financing structure, given that the funds from the Recovery and Resilience Plan must be absorbed by August 2026. As such, the completion of the procurement process and the subsequent delivery of the trains within the stipulated timeframe are now under increasing scrutiny.
Another issue was the withdrawal of Stadler from the tender procedure, as the manufacturer won several rolling stock contracts in Bulgaria, which could potentially lead to problems with meeting the delivery schedule. Stadler proposed a bid for BGN 642.5 million (EUR 323.3 million, in current prices) with a 28-month train delivery plan. In addition, Stadler has also requested the Ministry to terminate the contract for the delivery of 7 double-decker trains, also financed by the Recovery and Sustainability Plan.
Following this decision, the Ministry of Transport awarded the train contract to Pesa Bydgoszcz, ranked the second-best offer.
Pesa submitted a bid worth BGN 840 million (EUR 422.7 million), Stadler’s offer was EUR 323 million (but withdrew from the procedure) and Skoda’s, BGN 768.9 million (EUR 387 million).
It is worth noting that the Bulemu consortium has lodged a complaint, stating that the bids from two other companies did not meet the contracting requirements set by the authority and that the 28-month delivery timeframe is unrealistic. However, awarding the contract to this consortium would also mean their commitment to delivering the trains in accordance with the procedure’s requirements (28 months). Nevertheless, in August 2024, the Commission on Protection of Competition (CPC) ruled that these grounds were unfounded, leading the case to be escalated to the Supreme Administrative Court. The Minister of Transport personally requested the dismissal of the complaint.
This development highlights the ongoing legal challenges and the complexities surrounding the procurement process. The involvement of the Ministry of Transport at this stage underscores the critical nature of the case, which could potentially impact the timeline and execution of the project.
However, in December 2024, the Supreme Administrative Court accepted the consortium’s arguments, thereby invalidating the CPC’s decision. The case was sent back to the Ministry of Transport to continue the tender procedure in accordance with the mandatory instructions and legal provisions.
Nevertheless, the then Minister of Transport decided not to proceed with the procurement process due to the tight and limited timeframe for absorbing funds from the Recovery and Resilience Plan. The Minister stated that there was no manufacturer capable of delivering the trains within such a short period.
The new and current Minister of Transport decided to resume the procurement procedure for the single-deck EMUs, entering into negotiations with manufacturers and evaluating their offers and proposals. As a result, in December 2024, the Minister sent letters to the Bulemu Consortium, Pesa, and Stadler, requesting confirmation of the validity of their bids. Stadler, however, refused to proceed as it has withdrawn from the competition, despite being initially selected as the winning bidder, in July 2024. Consequently, the procedure continued solely with the Bulemu Consortium and Pesa.
Rolling stock renewal
Bulgaria is implementing a rolling stock renewal programme which includes the procurement of 62 trains and 18 battery shunting locomotives with a total investment of BGN 3 billion (EUR 1.5 billion) until 2027 financed from the National Recovery and Resilience Plan.
In September 2024, Škoda won a contract to deliver Bulgaria 25 RegioPanter electric multiple units, with a firm order for 20 4-car EMUs. For this tender, Škoda submitted a bid of BGN 511.4 million (EUR 257.3 million). The option has been exercised in November 2024. Under the contract, which also includes the provision of maintenance services for 15 years and staff training, Škoda Group will deliver the trains in 2026. At this tender, BUL20EMU consortium consisting of Alstom and RVP Invest submitted an offer of BGN 659 million (EUR 331.6 million).
It is important to highlight that issues related to the acquisition of rolling stock have been ongoing. The contract for 20 push-pull electric trains, including the provision of maintenance services, valued at BGN 1.2 billion (EUR 603.8 million), has attracted the attention of the European Commission, which has initiated an in-depth investigation. The investigation was prompted by concerns regarding the market-distorting effects of foreign subsidies, following a notification from CRRC Qingdao Sifang Locomotive to the Commission, outlining concerns with the tender process launched by Bulgaria. Prior to the Commission’s decision, in February 2024, Talgo announced that it had submitted a proposal to the Bulgarian authorities, who have entered into negotiations with the Spanish manufacturer for the delivery of 20 push-pull intercity trainsets.
Bulgaria has outlined an ambitious plan to modernise and renew its rolling stock for passenger services in the coming years, as part of its broader efforts to improve the efficiency and sustainability of its railway network. This initiative is focused on replacing outdated trains with new, more energy-efficient models that can better meet the needs of passengers, enhance service reliability, and contribute to reducing carbon emissions in the transport sector.
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