Bulgaria: railway network renewed with cohesion funds

Thanks to EU cohesion funds, Bulgaria is activating and completing numerous projects to renew its railway network. However, the shadow of corruption looms over the works and the possibility that, in the past, part of the funds may have been used improperly

In recent weeks, two press releases from the European Commission have taken stock of the recent news on the use of funds from the Union's cohesion policy intended for Bulgaria. Cohesion policy aims to combat economic, social and territorial disparities between the different regions of the EU by allocating financial resources to achieve various objectives. The main beneficiaries of these resources are the least developed countries and regions, including Bulgaria.

For the current seven-year period (2021-2027), the European Commission has planned an investment of 11 billion Euros for Sofia, intended, among other things, for the modernisation of the infrastructure system in the country.

The renewed attention to Bulgarian railway infrastructure also derives from the need to adapt to the efficiency levels of the European transport system, increasing the speed of travel in the country.

The objective is twofold: on the one hand, to make the 4,700 kilometres of railway network that cross Bulgaria safer; on the other hand, to move closer to the objective of climate neutrality by 2050, the year by which all the modernisation and construction works on the railway network in the EU territories must be completed.

The new railway works

The two press releases mentioned previously fit into this line of investments. At the end of October, work was inaugurated to modernise the railway line connecting Sofia and Plovdiv in the section between Elin Pelin, a city located about thirty kilometres east of the capital, and Kostenets, in the middle of the country.

Sofia and Plovdiv are the two most active cities in Bulgaria, and the works on the Elin Pelin-Kostenets route will play a key role in stimulating economic growth in the country by facilitating the movement of people and goods. A project of this scale also aims to align the Bulgarian railway system with European standards, for example by installing cutting-edge signalling systems and building or renovating 24 bridges and viaducts.
The opening ceremony, held on 30 October in Ihtiman, saw the participation of representatives of the Bulgarian government and railway authority, and of the various subjects involved in the implementation of the project.

In the same sector, the EU also financed the renovation of the Stara Zagora train station, located 230 kilometres from Sofia. The intervention involved the complete renovation of the station, from its architectural structure to the replacement of the electrical, water and sewage systems. In addition to improving travel conditions for passengers and working conditions for employees, the interventions co-financed with cohesion funds have contributed to improving the image of the Bulgarian railway system, introducing more efficient space management from an energy standpoint and with renewed attention also to the accessibility of facilities for disadvantaged people and people with disabilities.

The shadow of corruption

For a few months, Bulgaria has been at the centre of investigations conducted by the Chief Prosecutor of the European Public Prosecutor's Office Laura Codruța Kövesi on the alleged improper use of cohesion funds allocated in the current seven-year period for projects linked both to the modernisation of the railway system and to the country's energy efficiency.

The investigation, carried out together with the European Anti-Fraud Office , was launched due to alleged irregularities in a railway infrastructure project, specifically in the procedures for the procurement and implementation of the projects.

The news of new investigations into the possible misappropriation of European funds in the country came after years of complaints from Bulgarian civil society: in 2020 the Center for Democracy Studies in Sofia stated that 15% of European funds destined for Bulgaria were systematically embezzled.

The European Public Prosecutor's Office is carrying out a wide-ranging investigation and estimates damages for around 492 million Euros and is also investigating alleged acts of money laundering and fake money transfers, which then resulted in the withdrawal of more than 2.5 million Euros in cash by individuals with criminal records.

Corruption is unfortunately not a new phenomenon in Bulgaria: according to Transparency International , in 2021 19% of those interviewed had paid a bribe to use public services, and 48% of those interviewed perceived an increase in the country's levels of corruption.