Standard Summary Project Fiche

1. Basic Information

CRIS Number 2003/ 005-630-01

Title Modernization the safety and telecommunication installations of the railwaytrack Blagoevgrad - Kulata.

Sector IN

Location Bulgaria, Blagoevgrad region (border region)

2. Objectives

2.1 Overall Objective(s)

• To develop full interoperability between the Hellenic railways and SRIC including general trafficmanagement system, based on optic technology common for the both countries;

• To decrease the travel time by the establishment of a modern cross-border document control systemin co-operation with the Border Police authorities of Greece. The activities will be carried out in accordance to the EU Directive 2001/12/EC and Directive2001/16/EC.

2.2 Project purpose

The project aims the adequate modernization of the safety and telecommunication installations,introduction of modern technologies, improvement and upgrades the railway stations’ facilities aswell as the facilities for the border authorities in order to reduce the travel time and increase thespeed of the passenger and cargo trains between the border regions Blagoevgrad and Serres.

2.3 Accession Partnership (AP) and NPAA priority (and implementing measures envisagedby the Action Plan for AP priorities related to strengthening administrative and judicialcapacity)

The project is in accordance with the requirements of the program PHARE - Cross-BorderCooperation between the Republic of Bulgaria and the Republic of Greece and priorities of theNational program for acceptance of European legislation. The project would enable theharmonization with the acquis communautaire on matters of competition in rail transportationservices of passenger and freight and would facilitate the development of the modern railwayroutes on the trans-European railway network. This will increase the interoperability andcompetition conditions on such network, in accordance with the Directives of the EuropeanCommission. AP priority: Transport policy - Continue legal alignment and reinforce administrative capacity in railwaytransport with a view to the implementation of the revised railway acquis. Pursue the restructuringof Bulgarian railways.

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2.4 Contribution to National Development Plan (and/or Structural Funds DevelopmentPlan/SDP)

The project contributes to the accomplishment of the following NDP priorities: 3rd Development Axis, 1st Programme: Transport, Subprogramme3: Border Infrastructure forall transport corridors crossing Bulgaria; 5th Development Axis, 1st Programme: Regional Development and 2nd Programme: Cross –Border Co-operation. The project is an essential part of the Main Trends for Strategic Development of the StateRailway Infrastructure Company.

2.5 Cross Border Impact

• Joint work of both Border Police authorities at the common border railway station Kulata;• Co-operation between the railway authorities of both countries;• Increase of the safety and interoperability conditions of the railway infrastructures of the

both border regions Blagoevgrad and Serres;• The trans-regional local trains between the both border regions will facilitate the movement

of people, living in the border regions Blagoevgrad and Serres;• Reduction of traveling time;• Reduction of the check-border time.

3. Description

3.1 Background and justification

The project is a prolongation of already realized PHARE CBC BG-GR supported investment inthe railway infrastructure of the Republic of Bulgaria, related to the electrification of the “Dupnitsa– Kulata” railway line.

This section of the railway network is equipped with safety and telecommunication installations attechnical level of the first half of the past century and with fully exhausted technicalcapacity. The Station installations are RUKZ type, for which there is not any spare partmanufacturer, and already fully depreciated technical aggregates. To ensure the safety of the trainmovement, at this section are in use relay semiautomatic block systems, manufactured at the halfof the past century. The existing cooper cable, which is the backbone of the telecommunicationnetwork, is fully depreciated and with exhausted technical capacity. The PABX installations are12 channels and are not suitable to the present technical conditions.

Railway Stations facilities do not meet the basic international standards . The time forcheck-border procedures is too long and the delays of trains are big. Greek and other foreignpassengers are not provided with basic travel information. Passengers with disabilities currentlyhave difficulties in using these stations.

The implementation of this project will finalize a process of synchronizing the Bulgarianrailway infrastructure conditions with the existing Greek railway infrastructure . Afterelectrification of the “Dupnitsa – Kulata” railway line, it is needed to upgrade this railway section

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with modern safety and telecommunication installations to ensure the establishment of theadequate regional traffic management system.

The optic cable will ensure the interconnection between both regions after its connectionwith the existing one at the Greek side. This will be a telecommunication backbone betweenthe two countries for information transfer not only in the field of railways, but also in the fieldsof international business relations, institutional relations and interconnections. It’s a preconditionfor know-how, business ideas and cultural transfer between both border regions.

The railway station Kulata will be a pilot station with new visual communication system.The station will be equipped with the information desks, signs and timetables using 3 languages– Bulgarian, English and Greek.

The trans-regional local trains between the both border regions will facilitate themovement of people, living in the border regions Blagoevgrad and Serres. These trains will becheaper and comfortable for the people living in the both border regions and especially for thepassengers with disabilities. This will cause the orientation of travelers from auto to railtransport, which is cheaper and more ecological, and will enforce the possibilities for traveling ofthe passengers with disabilities. At least two local trains will be established and theirparameters/destination agreed with the Greek railway authorities after completion of the project.

3.2 Linked activities

The government of the Republic of Bulgaria undertook the Railway Rehabilitation Project (RRP)on behalf of the BDZ in 1995, which was the culmination of the EBRD funded study carried out in1994 by a consortium of international consultants Messrs. CIE, KPMG and K&D. This project iscurrently supported by the finance from Phare, IBRD, EBRD, Creditanstalt AG, UBS AG,Paribas and national funds. Finance for the RRP from IFI’s is regulated under the terms of thefollowing loan agreements:

The Bulgarian State Railways & IBRD, dated 8th Nov. 1995 The Bulgarian State Railways & EBRD, dated 17th Nov. 1995 The Bulgarian State Railways & Creditanstalt, dated 20th May 1998 The Bulgarian State Railways & UBS AG, dated 30th Sep. 1998 The Bulgarian State Railways & Paribas, dated 7th Dec. 1998

All loans are supported by guarantee agreements between the banks and the government of theRepublic of Bulgaria. As required under the Terms of the loan agreements, the projectimplementation plan was prepared and approved by the IFIs.

The former National Company “BDZ”(The SRIC is an inheritor of the NC”BDZ” in the field ofinfrastructure) have received assistance from European Community source – ProgrammePHARE CBC Bulgaria – Greece for the earlier part of this project – “Electrification of theDupnitsa Kulata railway line”, with the total budget of 38,2 MEUR.

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The Contracts are as follows:

1. Construction contacts : BG9904-01.01.02 – 4,2 MEUR BG9402-01.04 – 6,4 MEUR BG9511-01.01.01 – 22,4 MEUR Total construction: 33 MEUR

2. Supervision contracts : BG9402-01.02 – 4,3 MEUR BG9904-01.01.01 – 0,9 MEUR

Total supervision: 5,2 MEUR

Total Project budget: 38,2 MEUR

This project have been started on 01.06.1999 and finished on 31.08.2001. The guaranteeperiod has finished on 31.12.2002. There are not any problems in operation of the new facilitiesand equipment.

3.3 Results

The Project will results in the followings:

• Established conditions for increasing traffic on the trans-European railway network and in the firstplace between the two countries;

• Increased interoperability conditions between the Greece and Bulgarian railways;• Increased safety and telecommunication conditions along the Sofia – Thessaloniki railway line;• Improved and upgraded facilities of the railway stations in order to facilitate the local, long–

distance and international journeys by all passengers;• Trans-border local trains between border regions Blagoevgrad and Serres;• Facilitated equipment for providing services to the disable passengers;• Increased work conditions for the border authorities of both countries;• Increased quality of the transport services;

3.4 Activities:

q Delivery and construction of the signalling system for the railway stations: General Todorov,Kulata, Petrich and Damjanitsa; this equipment is needed to enable succeeding upgradeand connection to the centralized system for control and management at the highest level.

q Delivery and construction of the block system without gate signals and with axle counters atthe base of the supplied safety systems, for the sections Promahonas – Kulata, Kulata –General Todorov, General Todorov – Petrich, General Todorov – Damjanitsa andDamjanitsa - Sandanski.

q Delivery and equipment of the 3 existing level crossings with the automatic systems andrenewal and extension of the existing 2 pulse central telephone systems with new ATC inthe stations Blagoevgrad and Kulata.

q Delivery and construction of the 1 mode optic cable on the catenary systems betweenRadomir and Kulata.

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q Delivery and construction of the data transfer system STM4 along the Dupnitsa-Kulatarailway line including stations: Dupnitsa, Boboshevo, Kocherinovo, Blagoevgrad, Simitli,Cherniche, Peyo Yavorov, Stara Kresna, Kresna, Strumjani, Sandanski, Damjanitsa,General Todorov, Kulata and Petrich.

q Delivery of the specialized equipment for disabled passengers for the Stations of thissubsection.

q Repair, rearrangement and furniture of the technical rooms for the safety andtelecommunication installation in the stations: General Todorov, Petrich and Damjanitsa, aswell as the rooms for the traffic manager and the border authorities at the Kulata railwaystation. Introduction of new visual information system in Kulata railway station;

q Personnel training - to be made by the experts from the company - supplier of theequipment. Employees from the SRIC will be trained on us? of new equipment.

q Delivery and construction of the TETRA system components for the needs of the NationalBorder Police Service.

4. Institutional Framework

As the result of the restructuring process of the National Company "BDZ", two separate businessenterprises have been established – the State Railway Infrastructure Company (SRIC) and theoperator "BDZ" SPSH (Single-person Share Holder). The SRIC is a railway infrastructure manager and works over the achievement of the objectives of theEC Directives in the field of railway transport as an essential part of the European integration processof the country. According to the Directive 2001/16/EC, the project needs to establish conditions to achieve highinteroperability within the Community territory of the Trans-European conventional rail system, part ofwhich is Greek railway system. These conditions concern design, construction, putting into service,upgrade, renewal, operation and maintenance of the parts of this system as well as the professionalqualification and health and safety conditions of the staff who contribute to its operation.

The SRIC set as an objective to develop the access of the railway network as well as to fulfill theneeds of the passengers. The achievement of this objective means SRIC to develop the functionalnetwork of stations with access for disabled passengers, with the wide cooperation with the Union ofthe Invalids and the railway undertakings. This network will be functional if guaranties the access toevery part of SRIC railway network and if the network was developed and coordinated with theadministration and municipality bodies of each region. The Project aims to introduce modern technologies related to the development of this functionalnetwork of stations.

The State Railway Infrastructure Company will act as “Employer” and will become “Owner” of theassets.

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5. Detailed Budget

In EUR Phare Support

Investmen

t Support

Institution Building

Total Phare(=I+IB)

National Co-financing* IFI* TOTAL

Telecommunicationand safety installations

3 910 000 250 000 4 160 000 1 500 000 5 660 000

Modernization ofborder train stations

140 000 140 000 60 000 200 000

Total 4 050 000 250 000 4 300 000 1 560 000 5 860 000 Note: The National Co-financing will be arranged from the State Budget. All activities under the contracts are described in the point 6.4.Contracts.

6. Implementation Arrangements

6.1 Implementing Agency

The project shall be managed under the Practical Guide to contract procedures financed fromthe General Budget of the European Communities in the context of external actions (May2003). The Phare CBC Implementing Agency is the Ministry of Regional Development andPublic Works (MRDPW) which retains overall responsibility for the implementation of theproject: approval of technical specifications, of tender dossier, of evaluation criteria, ofevaluation of offers, signature of contracts, authorization and payments of invoices.

The project beneficiary institution is the State Railway Infrastructure Company. It is responsibletowards the Phare CBC Implementing Agency for the operational management of the project:preparation of technical specifications, of tender dossier, of evaluation criteria, of evaluation ofoffers, of contracts and of invoices for payment.

The technical preparation and implementation of the Project will be accomplished by the existingPMIU at the Head Office of the State Railway Infrastructure Company.

6.2 Non-standard aspects

The Practical Guide to contract procedures financed from the General Budget of the EuropeanCommunities in the context of external actions will be strictly followed.

6.3 Contracts

The project to be implemented under the following contracts: 1 (one) Supply Contract for € 5 660 000; 1 (one) Works Contract for € 200 000;

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7. Implementation Schedule

7.1. Start of tendering/call for proposalsNovember 2003

7.2. Start of project activityJune 2004

7.3. Project completionJune 2006

8. Equal Opportunity

Equal opportunity for men and women to participate in all the components of the project will beensured.

9. Environment

Railways by their nature are environmentally friendly. In addition, the activity to be undertaken willcarry no direct environmental impact and is in fact designed to bring conformity between the operationconditions of the SRIC infrastructure and these lied down by the Commission for all railways ofEuropean Union Member States.

10. Rates of return

The Project is seen to be considered as part of the overall Railway Rehabilitation Project, the costbenefit analysis for which is as follows: Capital investment: 300 MUSD Estimation Period: 20 years Internal Rate of Return: 15,4% * *CIE, KPMG, K&D, Report ‘94

11. Investment criteria

11.1. Catalytic effect: Without Phare assistance, the project would never take place due to a lack of fund.

11.2. Co-financing: Phare must use its grants to attract as much co-financing as possible from all sources.

Additionality

The project is co-financed by 1 560 000 EUR, which will provide 26,6 % of the total cost of theproject.

11.3. Project readiness and size:

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The preliminary studies are completed and the implementation of the project can start accordingto the implementation chart (Annex 2). The project complies with the 2 MEUR minimum Phareallocation requirements.

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11.4. Sustainability The investments will be sustainable to the long term. The “Owner” will pay for the futuremaintenance and operation costs.

11.5. Compliance with state aids provisions The project respects the state aids provisions.

11.6. Contribution to NDP and/or Structural Funds Development Plan/SPD

The Project is a feasible part of an overall regional development strategy, as defined in the NDP,the Development Plan of the Ministry of Transport and Communications and the Main Trends forStrategic Development of the State Railway Infrastructure Company.

12. Conditionality and sequencing

Part of this project shall be executed in co-operation with the Republic of Greece in the field of (1)arrangement the local cross-border passenger trains and (2) effective check border control.Tendering procedures will be followed for the supply of equipment in accordance with requirementsand practice within PHARE Programme (Practical Guide to contract procedures financed from theGeneral Budget of the European Communities in the context of external actions).

The Works Contract will be carried out from the Employer under the FIDIC Green book. The SRICadministrative structure contains certified and licensed personnel to manage and implement thesupervision of supply contract activities. Regarding to the nature of the SRIC main activities, carriedout under the specialized own regulations, concerning safety of the railway traffic and infrastructure,the SRIC is the unique organization, which can manage, control and supervise all activities in the fieldof railway safety.

The project implementation will ensure in the long term:

• Increased quality, effectiveness and reliability of the SRIC services, supplied to the railwayoperators;

• Enhanced investment climate at the both border regions;• Improved and upgraded facilities of the railway stations in order to facilitate the local, long–

distance and international journeys by all passengers.• Facilitated equipment for providing services to the disable passengers;• Easier and reliable communication based on the established backbone network for

management and control systems of train movement as well as data transition;• Faster and easier check-border control procedures based on the established new system for

check-border document control.

ANNEXES TO PROJECT FICHE

1. Logical framework matrix.2. Detailed implementation chart.3. Contracting and disbursement schedule by quarter for full duration of programme.4. Reference to feasibility/pre-feasibility studies.5. Reference to relevant Government Strategic plans and studies

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6. Letters for project support from the National Border Police Service7. Statistics and Budgeting

ANNEX 1 - Logical framework matrix

LOGFRAME PLANNING MATRIX FORProject

Programme name and number Phare CBC Bg-Gr2003/000-630-01:

Modernization the safety and telecommunication installations of the railway track in the border sectionBlagoevgrad - Kulata. Improvement and upgrade the facilities of the Kulata railway station.

Contracting period expires: 30.11.2005

Disbursement period expires:30.11. 2006

Total budget : 5,86 MEUR Phare budget : 4,30 MEUROverall objective Objectively verifiable indicators Sources of Verification• To develop full interoperability between the

Hellenic railways and SRIC including generaltraffic management system, based on optictechnology for the both countries;

• To decrease the travel time by the establishmentof a modern cross-border document controlsystem in co-operation with the Border Policeauthorities of Greece.

These activities will be carried out in accordance tothe EU Directive 2001/12/EC and Directive2001/16/EC

• Establishment of the modern controland signalling systems;

• Establishment of the modern trafficmanagement and control systems;

• Establishment of the modern cross-border document control system.

Trade statistics Account Reports of the bothcompanies Annual reports

Project purpose Objectively verifiable indicators Sources of Verification Assumptions• The project aims the adequate modernization of

the safety and telecommunication installations,introduction of modern technologies,improvement and upgrade the railway stations’facilities as well as the facilities for the borderauthorities in order to reduce the travel time andincrease the speed of the passenger and cargotrains between the border regions Blagoevgradand Serres.

• Number of passengers from bothborder regions increased by 15%.

• Travel time decreased by 20%between Blagoevgrad andPromahonas

• Decreased check-border time by20%

• Arranged 2 new local trainsbetween the border regions

• New normative documents forcheck-border procedure practice.

• Corporate statistics of bothcompanies

• Timetable of both railways• Corporate legislation• National Border Police Service

legislation

• The both railways have resourcesto use the modernized installationsand equipment

• The both railways continue torespect the EU Directives andstandards

• The both countries continue todevelop the economy of the borderregions.

Results Objectively verifiable indicators Sources of Verification Assumptions The Project will results in the followings:• Established conditions for increasing traffic on the

trans-European railway network and in the firstplace between the two countries;

• Increased interoperability conditions between theGreece and Bulgarian railways;

• Increased safety and telecommunicationconditions along the Sofia – Thessaloniki railwayline;

• Improved and upgraded facilities of the railwaystations in order to facilitate the local, long–distance and international journeys by allpassengers;

• Trans-border local trains between border regionsBlagoevgrad and Serres;

• Facilitated equipment for providing services to thedisable passengers;

• Increased work conditions for the borderauthorities of both countries;

• Increased quality of the transport services;

• Printed Reports of working groups• Reports for delivery and

construction works• Procurement reports• Assembled 4 signaling systems• Assembled 5 block systems

without gate signals and with axlecounters.

• Assembled 4 automatic level-crossings systems

• Established 162 km optic cable• Assembled STM4 data transfer

system• Assembled 2 ATC systems• Established 4 visual and sound

communication systems fordisabled passengers

• Delivered 20 specialized cars fordisabled people

• Rearranged 5 technical rooms• Furnitured 3 rooms for border

authorities• Delivered TETRA system

components – 1 based unit and 5terminals.

• Acceptance Minute Documentsfor the signaling systems, blocksystems, level-crossings, opticcable, STM4 system, ATCsystems, specialized equipmentfor disabled passengers androoms.

• Document on local trainarrangement between the BDZand the CH.

• Reports on delivery andconstruction works

• Procurement report• Supervisory report

• Machinery and equipment isdelivered and assembled

• Signed Acceptance MinutesDocuments

• Accepted reports• Specialized groups work

effectively.• The proposals from working

groups are implemented asnormative documents in the bothrailways.

Activities Means Assumptions1) Delivery and construction of the signalling system for the railway stations:

General Todorov, Kulata, Petrich and Damjanitsa; This equipment is needed toenable succeeding upgrade and connection to the centralized system for controland management at the highest level.

2) Delivery and construction of the block system without gate signals and withaxle counters at the base of the supplied safety systems, for the sectionsPromahonas – Kulata, Kulata – General Todorov, General Todorov – Petrich,General Todorov – Damjanitsa and Damjanitsa - Sandanski.

3) Delivery and equipment of the 3 existing level-crossings with the automaticsystems and renewal and extension of the existing 2 pulse central telephonesystems with new ATC in the stations Blagoevgrad and Kulata.

4) Delivery and construction of the 1 mode optic cable on the catenary systemsbetween Radomir and Kulata.

5) Delivery and construction of the data transfer system STM4 along theDupnitsa-Kulata railway line including stations: Dupnitsa, Boboshevo,Kocherinovo, Blagoevgrad, Simitli, Cherniche, Peyo Yavorov, Stara Kresna,Kresna, Strumjani, Sandanski, Damjanitsa, General Todorov, Kulata andPetrich.

6) Delivery of the specialized equipment for disabled passengers for the Stationsof this subsection.

7) Repair, rearrangement and furniture of the technical rooms for the safety andtelecommunication installation in the stations: General Todorov, Petrich andDamjanitsa, as well as the rooms for the traffic manager and the borderauthorities at the Kulata railway station. Introduction of new visual informationsystem in Kulata railway station;

8) Personnel training - It is intended within the project’s budget this training to bemade by the experts from company - supplier of the equipment. Employeesfrom the SRIC will be trained on us? of new equipment.

9) Delivery and construction of the TETRA system components for the needs ofthe National Border Police Service.

Procurement works.Work and supply contractsGroups for researching possibilities tocheck border time reducing and localtrain(s) arrangement.Repair, rearrangement and furniture ofthe technical rooms.Purchasing and assembling thefollowing equipment:1. Signalling systems for the railway

stations in this section.2. Block systems without gate signals

and with axle counters.3. Automatic level-crossings

equipment.4. Optic cable.5. Data transfer system STM4.6. ATC telecommunication systems7. Specialized equipment for disabled

passengers.8. TETRA system components.

• Effective co-operation between bothrailways

• Signed contracts• Established working groups• Delivered and constructed signalyng

systems.• Delivered and constructed block

systems without gate signals and withaxle counters

• Delivered and constructed automaticlevel-crossings

• Constructed optic network• Delivered specialized equipment for

disabled passengers• Repaired rooms in the Kulata station• Developed outlined details for costing

purposes• Delivered and assembled TETRA

system components.• Procured works

Preconditions• Continued EU and IFI’s support• Failure to implement the

necessary activities of theproject.

• Support and confidence frommanagement and staff.

• Stable National Economy.• Continued policy of the both

countries to develop the borderregions Blagoevgrad and Serres.

ANNEX 2. Detailed Implementation Schedule

MODERNIZATION THE SAFETY AND TELECOMMUNICATION INSTALLATIONS OF THE RAILWAY TRACK IN THE BORDER SECTION BLAGOEVGRAD - KULATA.IMPROVEMENT AND UPGRADE THE FACILITIES OF THE KULATA RAILWAY STATION.

2003 2004 2005 2006Components

S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M JSUPPLY CONTRACT T T T T T T C I I I I I I I I I I I I I I I I I I I I I I I I IWORKS CONTRACT . T T T T T T C I I I I I I I I I

T=Tendering; C= Contracting; I= Implementation/works & training; R = Review/evaluation;

ANNEX 3 - Contracting and disbursement schedule by quarter

Components Cumulative contracting schedule by quarter in MEUR Total PHAREAllocation

2003 2004 2005 2006III IV I II III IV I II III IV I II

1 Supply Contract 4,16 4,16 4,16 4,16 4,16 4,16 4,16 4,16 4,16 4,162 Works Contract 0,14 0,14 0,14 0,14 0,14

Total contracting: 4,30 4,30 4,30 4,30 4,30 4,30 4,30 4,30 4,30 4,30

Components Cumulative disbursement schedule by quarter in MEUR Total PHAREAllocation

2003 2004 2005 2006III IV I II III IV I II III IV I II

1 Supply Contract 0,125 1,200 2,400 2,400 3,000 3,200 3,800 4,160 4,160 4,1602 Works Contract 0,005 0,005 0,005 0,010 0,010 0,080 0,100 0,120 0,140 0,140

Total Phare 0,130 1,205 2,400 2,410 3,010 3,220 3,900 4,300 4,300 4,300National co-financing1 Supply Contract 0,300 0,450 0,600 0,750 0,900 1,050 1,200 1,350 1,500 1,5002 Works Contract 0,012 0,018 0,024 0,030 0,036 0,042 0,048 0,054 0,060 0,060

Total National co-financing

0,312 0,468 0,624 0,780 0,936 1,092 1,248 1,404 1,560 1,560

Total disbursement: 0,442 1,673 3,024 3,190 3,946 4,312 5,148 5,704 5,860 5,860

ANNEX 4 – Reference to feasibility/pre-feasibility studies

1. Preliminary Design on safety and telecommunication installations, rearrangement of the Kulata railway station

and introduction of modern technologies, related to the visual orientation systems and passengers with

disabilities along the railway section Dupnitsa – Kulata incl. Blagoevgrad – Kulata.

2. Design Study for the Project “Modernization the safety and telecommunication installations and introduction

of modern technologies along the railway section “Sofia – Dupnitsa – Kulata”

3. TINA Final Report (1999)

4. TINA status of the Ten Pan-European Corridors of Helsinki Report (2000)

5. Traffic Forecast on the Ten Pan-European Corridors of Helsinki, financed by PHARE Multy-Country

Transport Programme, (1999, NEA – INRETS – IWW )

6. Feasibility Study on the Development of Railway and Combined Transport on Corridor IV between

Hungary, Romania and Bulgaria, financed by PHARE Multy-Country Transport Programme, (1998,

ITALFERR – NETHCONSULT)

7. Masterplan Study for Long Term Management of the Bulgarian Railways, financed by JICA – Japan

International Cooperation Agency (1998, Japan Railway Service – DAIWA Institute of Research – Yachiyo

Engineering Co.)

8. Preparation of Traffic Forecasts and Investment Programmes for the years 2000 and 2010 for the

Development of the Bulgarian Transport System, in consideration with the Transition to a Free Market

Economy, financed by PHARE National Transport Programme (1997, Bonifica – T.E.C.N.I.C –

DOXIADIS)

ANNEX 5 - Reference to relevant Government Strategic plans and studies.

1. National Plan for Regional Development, Ministry of Regional Development and Public Works (1999,

National Center for Regional Development and Housing)

2. National Strategy – Transport Sector 2000-2006 (2000)

3. Programme for Transport Infrastructure Development 2001-2005, October 2001

4. Main Trends for Strategic Development of the State Railway Infrastructure Company, February 2003

ANNEX 6 – Letters for project support from National Border Police service.

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MINISTRY OF INTERIOR

NATIONAL BORDER POLICE SERVICE

! Translation !TOGENERAL DIRECTORSTATE RAILWAY INFRASTRUCTURECOMPANY

Mr. ILIYA PASTUSHANSKY

To your number 04-04-? ? -12/16.01.03

DEAR MR. PASTUSHANSKY

Regarding to your letter, No 04-04-? ? -12/16.01.03, I would like to inform you, that the

National Border Police Service expresses its support to the implementation of the PHARE

CBC Bulgaria – Greece project “Modernization the safety and telecommunication

installations on the Blagoevgrad Kulata railway line”. The activities envisaged in this project

will contribute to reduction of the waiting time over the border transition Kulata –

Promahonnas as well as are the precondition for improvement the passport and visa

control, performed by the Border Police officials.

For future contacts in order to solve the concrete project issues, please feel free tocontact Mrs. Nataliya Kolikova, tel. 02/9823419 and Mrs. Margarita Andreeva, tel.02/9823564

SINCERELY YOURS,

DIRECTORNATIONAL BORDER POLICE SERVICE

(Stamp and Signature)

VALERY GRIGOROV

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Annex 7 – Statistics and Budgeting

At this moment, the statistics of the traffic between the Republic of Bulgaria and the Republic of Greece ispresented below.

Passenger Traffic, based on the Timetable 2003

Daily(trains)

Year 2003(trains)

TOTAL 2003(trains)

Sofia -Kulata

Kulata -Sofia

Sofia –Kulata

Kulata -Sofia

bothdirections

Passenger 2 2 672 672 1344Intercity 3 3 1008 1008 2016International 1 1 336 336 672Total 6 6 2016 2016 4032

Freight Traffic, based on the data from 15.12.2002 to 15.01.2003

BDZ - CH CH - BDZ Totaltrains wagon Trains wagons trains wagons

commercial* 60 834 61 946 121 1780KFOR 2 48 3 77 5 125Total 62 882 64 1023 126 1905

* The biggest traffic flow of freights from Bulgaria to Greece is generated from the Steel industry - 462 wagons per month.

Note :The time for cross-border procedures per freight train at this moment is 2 hours at Kulata common borderstation.The time for cross-border procedures per passenger train at this moment is 1 hour per railway administration.

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The Supply Contract will include the activities with the respective budget, as follows: In MEUR

Phare Support Activities Investme

nt Support

Institution

Building

TotalPhare(=I+IB)

NationalCo-financing

IFI TOTAL

Delivery and construction of the signaling systems forthe stations : Kulata, General Todorov, Petrich andDamjanitsa

1,85 1,85 0,65 2,50

Delivery and construction of the block system withoutgate signals and with axle counters at the base of thesupplied safety systems, for the sections Promahonas –Kulata, Kulata – General Todorov, General Todorov –Petrich, General Todorov – Damjanitsa and Damjanitsa– Sandanski.

0,04 0,04 0,02 0,06

Delivery and equipment of the 3 existing level-crossingswith the automatic systems

0,03 0,03 0,01 0,04

Delivery and construction of the 1 mode optic cable onthe catenary systems between Dupnitsa and Kulata

1,40 1,40 0,60 2,00

Delivery and construction of the data transfer systemSTM4 along the Dupnitsa-Kulata railway line includingstations: Dupnitsa, Boboshevo, Kocherinovo,Blagoevgrad, Simitli, Cherniche, Peyo Yavorov, StaraKresna, Kresna, Strumjani, Sandanski, Damjanitsa,General Todorov, Kulata and Petrich

0,33 0,33 0,12 0,45

Renewal and extension of the existing 2 pulse centraltelephone systems with new ATC in the stationsBlagoevgrad and Kulata.

0,05 0,05 0,02 0,07

Delivery of Multyplecssors and Repartitors 0,11 0,11 0,04 0,15 Delivery of equipment for disabled passengers for thestations of this section

0,10 0,10 0,04 0,14

Personnel training for operation the new equipment andinstallations.

0,10 0,10 0,10

Delivery and construction of the TETRA systemcomponents for the needs of the National BorderPolice Service.

0,15 0,15 0,15

TOTAL 3,91 0,25 4,16 1,50 5,66

The Works Contract will include the activities with the respective budget, as follows: In MEUR

Phare Support Activities Investme

nt Support

Institution

Building

TotalPhare(=I+IB)

NationalCo-financing

IFI TOTAL

Repair, rearrangement and furniture of the technicalrooms for the safety and telecommunication installationin the stations: General Todorov, Petrich andDamjanitsa, as well as the rooms for the traffic managerand the border authorities at the Kulata railway station.Introduction of new visual information system in Kulatarailway station;

0,14 0,14 0,06 0,20

TOTAL 0,14 0,14 0,06 0,20