site.btaSofia-Elin Pelin Railway Modernization Contract Terminated

The National Railway Infrastructure Company (NRIC) has terminated the contract for the modernization of the railway line from Sofia to Elin Pelin with contractor KELET AB, the press centre of the Ministry of Transport and Communications said on Wednesday.

The contract with the Bulgarian-Hungarian consortium, worth BGN 120 million without VAT, includes design, construction and supply of materials for the 23-kilometre railway section. The initial deadlines for the completion of the site were until the end of 2020. Since the start of the contract, the contractor has mainly delivered materials, and the real physical progress for construction activities is only at 43%, said the Ministry of Transport and Communications.

In the short term, NRIC will announce a new procedure for the construction of the railway line with transparent conditions, which will enable the participation of a wide range of Bulgarian and foreign companies.

The Ministry of Transport and Communications and NRIC conducted inspections of all contracts for rehabilitation of railway lines in the country. Their results show very low levels of physical performance for most of the contracts signed from 2019 to the end of 2021.

By order of Minister Nikolay Sabev, NRIC will strengthen the control of construction activities and the quality of execution of sites. The company will not approve received requests for updating the values ​​of already concluded construction contracts as a result of public procurement. In case the contractor declares inability to fulfil their contractual relations, the option for its termination will be considered.