Position on the concession procedure of Intermodal Terminal - Plovdiv

With regard to allegations of the MPs Dragomir Stoynev, Zhelyu Boychev and Georgi Svilenski, the Ministry of Transport, Information Technology and Communications shall provide the following information:

1. The feasibility study for the construction of Intermodal Terminal Plovdiv started in 2008 (by the Cabinet of Sergey Stanishev), where were set the guidelines for the implementation of the project, including the implementation of public-private partnership.

2. On 31.10.2013 (during the government of Plamen Oresharski) the Managing Authority of Operational Programme on "Transport" in MTITC approved the Application Form for financing the construction of IMT Plovdiv, with beneficiary NRIC. The project (financial aid) passed through notification of DG "Competition" of the European Commission and continuous correspondence between authorized state authorities to study the regime of state aid funding.

3. By letter dated 13.11.2014 (during the government of Boyko Borissov) DG "Competition" informed of the completion of the preliminary examination of the measure and that the provision of funding to NRIC does not constitute state aid under Article 107 TFEU (Treaty on the Functioning of the EU). The measure  does not include state aid as regards to the future concessionaire as well, since the state engaged on its selection in an open, equitable and non-discriminatory procedure that will not interfere in the Single market and that it will also operate under market principles.

With this act of the European Commission (DG "Competition") has actually been given the "green light" for the realization of the investment of NRIC in the construction of IMT Plovdiv and the project has been launched. As a commitment remained the granting of a concession of the basic infrastructure after its construction. In this direction are aimed all financial analyzes, plans and programs for the realization of the project.

4. By Decision 947/11.10.2016 of the Council of Ministers was opened the procedure for granting a concession of IMT Plovdiv. On that date the Cabinet of Prime Minister Boyko Borissov was not in resignation and the allegations of the MPs are untrue.

In order to facilitate the MPs Dragomir Stoynev, Zhelyu Boychev and Georgi Svilenski we provide the following information:

The payments which the selected concessionaire should carry out under the  Decision, adopted by the Council of Ministers, are as follows:

- A single concession payment amounting to 5000 (five thousand) BGN and the VAT due on that amount.

- Annual concession payments to the grantor composed of two elements - fixed and variable. The fixed portion is at the amount specified in the offer of the participant in the procedure, but not less than 50 000 (fifty thousand) BGN, VAT excluded. The variable part is at the amount equal to the rate specified in the offer of the participant selected as a concessionaire, but not less than 10 per cent (10%) of total net income from all operations for the relevant year related to use of the concession object, and the VAT due on that amount;

- The concessionaire will be required to make investment amounting to not less than 4 687 600 BGN, VAT excluded, for the duration of the concession, including - investment at an amount not less than 1 400 000 BGN, VAT excluded, for the first two years of the term of the concession.

In the procedure, open by Decision № 947/11.10.2016 of the Council of Ministers, are observed the fundamental principles, stipulated in the Concessions Act, on publicity, transparency, free and fair competition, equality and proportionality. In this regard remains vague the allegation of the MPs that the concession "will be granted to a large company from Plovdiv". The requirements to the participants, set in the procedure, do not include restrictive condition under a territorial principle for the participants in the procedure. On the contrary, the notice on the initiation of a concession sent to and published in the Official Journal under the requirements of Directive 2014/23/EC of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts, ensure greater openness and opportunity for a wide range of stakeholders to learn about and participate in it.