Ministry of Transport, Information Technology and Communications

(summarized information for the period JUNE 2011 - DECEMBER 2011)

The impossibility for extension the funding deadline under ISPA/CF after the end of 2010 in relation to the continuous delays of already assigned construction contracts of Phase 1, Phase 2 and Systems lead to scope reduction of the preliminarily laid project under ISPA programme.

Splitting the project scope between ISPA and OPT

Scope under ISPA:

The change in the scope was defined on the basis of the physical implementation scope of the construction works envisaged to be completed till the final payment period (end of 2010) and the authorization that the project is functional (at the end of 2011).

-    Phase 1 – all the works

-    Phase 2 – all the works to Dimitrovgrad

-    Phase Systems – all the works to Dimitrovgrad

Scope under OPT:

-       From Dimitrovgrad station and all construction works to Svilengrad station, including Svilengrad station.

-       All additional works those are not included in any of the signed contracts under ISPA measure however necessary for the successful completion of the project.

They were prepared and submitted in the EC at the end of 2010.

- The proposal for the Financial Memorandum modification under the project, Measure №2001/BG/16/P/PA/003, amounting to 159.2 mln. Euro, aiming at justifying the scope of the measures co financed with funds under ISPA Programme (Regulation 1164/94) was approved by the EC on December 16^th.

  - An Application form for the project funding under OPT amounting to 207,4 mln. Euro, ensuring further financing of the remaining components of the works, so that the scope and the goals under the measure of the Financial Memorandum are met, approved with Decision of the EC from 22.12.2011.   

There was prepared tender documentation for the project “Reconstruction and electrification of the railway section Dimitrovgrad – Svilengrad”, as on March 11, 2011 started the procedure for public procurement assignment including the following three positions:

1. „Reconstruction and electrification of the railway section Dimitrovgrad – Harmanli (from km 231+560 to km 266+000)”;

2. „Reconstruction and electrification of the railway section Harmanli – Svilengrad (from km 266+000 to km 297+750) and railway section Svilengrad – Greek Border”;

3. Construction of new traction power substations in Simeonovgrad and Svilengrad as well as extension of the existing Dimitrovgrad substation”.

After the completion of the work of the evaluation committee, the Employer – NRIC has announced the selection of the Contractors for each of the three lots by Decision № 24/02.09.2011 of the Director General.

The Contracts with the selected participants for all three lots were signed on 19.01.2012.

In view of publicity of the completed construction works under the Plovdiv – Svilengrad project, the Beneficiary initiated making a film for the implementation of the Project “Plovdiv – Svilengrad Railway Electrification and Upgrading of Corridors IV & IX” financed under ISPA and OPT Programmes. The film has been shown during the 11^th meeting of the Monitoring Committee of the OPT (2007 – 2013) held on December 7 – 8^th, 2011.

Within the period December 16 – 18^th, 2011, NRIC initiated a Publicity Seminar for journalists with representatives of the Ministry of Transport, Information Technologies and Communications and PMIU. On December 17^th, 2011 the Minister of the Transport, Information Technologies and Communications, Mr. Moskovsky, together with the participants in the Seminar made an inspection of the works along the Plovdiv – Svilengrad line. The information about this event was included in the local and the central media.

After the tests for energizing the Catenary along the Krumovo – Parvomai section and the subsequent travelling tests during which a speed of 167.9 km/h, on December 22^nd, 2011, the Prime-minister Boiko Borisov and the Minister of Transport, Information Technologies and Communication, Mr. Moskovsky, travelled along the section in an electrical locomotive with the design speed of 160 km/h.      

І. Current status of contracts signed under the Project

At present the project is in its implementation phase with 3 work contracts (plus one contract for additional works: utilities), one contract for supervision of all works, and one contract for technical assistance to the PMIU for the whole project management function.

1. Civil, track and electrification works contract , Phase І: Krumovo – Parvomai

Contractor: - TERNA S.A.

Contract amount as amended by Addendum 1:  - 88 728 832 Euro

(Addendum N 1/24.07.2008)

Contract amount as amended by Addendum 2: - 96 131 026.00 Euro

(Addendum N 2/20.08.2010)

Contract amount as amended by Addendum 3: - 99 792 441.00 Euro

(Addendum N 3/03.12.2010)

After the negotiations procedure held under the conditions of the Bulgarian Public Procurement Act, the issue related to the additional works (utilities) was resolved. On 24^th of July 2008 a Contract for “Additional works under the Contract EUROPEAID/117495/D/W/BG "Plovdiv-Svilengrad Railway Electrification and Upgrading, Civil, Track and Electrification of Phase 1: Kroumovo-Parvomai section". The contract comprises the implementation of additional works (utilities). The Contract amount is 3 475 978 euro. The term of the Contract is 6 months.

Contract details:

Contractor: - TERNA S.A.

Contract amount: - 3 475 978 Euro

Contract is already completed and it would be closed with the whole package of documents – As Built Drawings, signed Acts under Ordinance No 3 of the Territorial Arrangement Act;

Within the reported period as per the Contract with Interim Payment Certificate № 4 payment of half of the retention money amounting to 260 698,35 Euro was carried out.

• On 24 July 2008 Addendum No1 under the Contract EUROPEAID/117495/D/W/BG was signed for extension of time for completion with 9 months and increasing of the value of the Contract with 3 000 000 euro.

• In order the problems on the Contract implementation and the submitted claims to be resolved a new Addendum 2 was signed on 20.08.2010. The Addendum 2 includes the extension of Time for Completion up to December 26th 2010 as well as the increased contracted price increasing by 7,402194.00 Euro.
  

• In order the definitive solving of all Contractors claims and unresolved problems an Addendum No 3 was signed increasing the contracted price by 3 661 415.00 Euro.

Act Form 15 for ascertainment of the usability of the construction site was signed on December 21^st, 2011.

As at December 31^st, 2011 the works under the Contract have been completed.  Only activities remain, related to the removal of the remarks of the Committee for the ascertainment of the usability of the construction site, appointed by Order of the Director General of NRIC № 1514/13.12.2011. The maintenance and operational manuals of the Taken-over elements, approved by the Engineer, have been submitted by the Beneficiary.   

Extension of Time – At the moment an Addendum is being prepared in order to solve all the unsolved questions under the Contract.

In relation to finalizing Addendum № 4 the Minister of TITC ordered a commission on 22th November 2011 and it is expected the Addendum to be ready by the end of January 2012.

2.Technical Assistance to the NRIC PMIU for the overall project management function (LTTA)

Consultant: ADO (Athens Development Office) S.A. and WSP International Sweden

Contract amount: 1 819 700 euro

Contract amount as amended by Addendum 4: 2 594 590.00 Euro

(Addendum N 4/29.12.2010)

Contract implementation is in progress.

The Consultant performs his obligations under the contract. At the present stage a re-distribution of the budget of the existing Contract is made to ensure the team leader involvement till the end of 2010 having in mind the Project transferring to the OPT.

Given the fact that the Plovdiv-Svilengrad Project is going to be a bridge project an Addendum 4 to the Contract is in process of preparation till the Project completion within the Program period to 2015.

3. Technical Assistance for the Supervision of the Works for the Whole Line

Consultant: TYPSA S.A., Louis Berger SAS, Systra S.A., TRADEMCO S.A. аnd Rubicon

Contract amount: 12 577 350 euro

Contract amount as amended by Addendum 4: - 18 866 025.00 Euro

(Addendum N 4/30.12.2010)

• The Consultant performs his obligations under the works contract being the FIDIC Engineer.
• On a regular basis the Consultant participated actively and coordinated Interface meetings between all the three contractors.

Given the fact that the Plovdiv-Svilengrad Project will be transferred to Operational Programme on Transport at the present stage are undertaken actions for the preparation and signing of Addendum to the Contract till the Project completion within the Program period to 2015.

4. Civil, Track and Electrification Works contract, Phase 2: Parvomai – borders

Contractor:  Astaldi (Italy)

Contract amount: 162 537 388 euro

Contract amount as amended by Addendum 1: 68 000 000.00 Euro

(Addendum N 1/29.11.2010)

Act Form 15 for ascertainment of the usability of the construction site was signed on December 21^st, 2011.

As at December 31^st, 2011 the works under the Contract have been completed.  Only activities remain, related to the removal of the remarks of the Committee for the ascertainment of the usability of the construction site, appointed by Order of the Director General of NRIC № 1514/13.12.2011.

Extension of Time – The Employer approved a Determination on 22^nd July 2011, issued by the Engineer, for Extension of Time for Completion until 9^th November 2011.

On 15^th November 2011 in relation to this, the Employer has issued a Notice of Claim № 1 under Sub-Clause 2.5 in relation to Sub-Clause 8.7 of the General Conditions of the Contract for failure to complete the Works by the expiry of the Time for Completion. The Employer considers himself to be entitled to recover the Delay Damages for the Works in accordance with Sub-Clause 8.7 of the General Conditions of Contract at a rate specified in the Contract.

5. Signalling, Telecommunication and SCADA Systems Works for the Whole Line

Contractor: Thales Rail Signalling Solutions and Alcatel Lucent

Contract amount:  35 557 047 euro

Contract amount as amended by Addendum 1: 38 615 986.66 Euro

(Addendum N 1/15.12.2011)

The works in relation to the implementation of the Contracts within the scope of the construction contracts, financed under IPSA Programmee are in process of completion.

Act Form 17 was signed for completed 72 hour Trial Operation for telecommunication and the signalling system for Katunitsa and Popovitsa Station. It is envisaged testing for the Parvomai, Karadzhalovo and Yabalkovo Stations, CTC Plovdiv and the SCADA System for the section Parvomai – Dimitrovgrad.

On September 1^st, 2011, NRIC received a Decision № 829 dated 18.08.2011 of the Commission for Communications Regulation for providing to MTITC the mobile network codes. This resource is given for a period of 6 months for usage of individually specified limited resource – spectrum.

On December 15^th, 2011 was issued new temporary six-month frequencies License, which comes into force on January 22^nd, 2012. Thus it is guaranteed that the GSM-R system along the Plovdiv – Dimitrovgrad section is in normal operation during the year 2012 whilst in parallel the final transfer of the GSM-R frequencies band to NRIC will be arranged. 

At the present stage the Systems Contractor performs working design of signalling and telecom systems and SCADA as well for the whole line. Construction Permit covering all Systems works was issued on 8 September 2009. Act 2a for opening the construction site is signed and the installation works have been started.

The present contract implementation is the most influenced by the construction contracts implementation. In relation to the selected Contractors for Dimitrovgrad – Svilengrad section, the Systems contracts should be extended.

Extension of Time – On September 19^th, 2011 the Employer in a letter to the Engineer gave a specific approval for an interim extension of time for completion till March 31^st, 2012. This interim extension does not apply for the additional expenditures related to the extension of time for completion of the works.   

On November 29^th, 2011, the Contractor with respect to delayed interim payment №24 due at November 15^th, 2011, submitted a notice of claim in accordance to Sub-clause 16.1 of the entitlement of the Contractor to suspend work or reduce the rate of work and demands evidence for the financial state of the Employer, in accordance with Sub-clause 2.4 that sufficient funding is available or will became available to cover the Contract Price including Addendum № 1.

On December 20^th, 2011 the Employer provided to the Contractor information that the financing which will cover the Contract Price is ensured and evidence for the financial availability of the Employer. 

ІІ. Current status of contracts funded through the Bulgarian State Budget (beyond ISPA Eligible Costs)

Contract for preservation of the Archeological heritage sites affected by the construction works for the project

• Contract for supervision of sites, not originally foreseen in the 2004 contract to be done by archaeologists during construction works was signed on 16^th May 2008.
• Contract for preparation and implementation of rescue archaeological diggings at objects No 9 and 12 was signed on 4^th December 2010. On 22.07.2010 was signed an Annex to the Contract for construction works monitoring in the central part of object № 12. On 17.11.2010 was signed a second Annex to the Contract construction works monitoring within the object № 12 servitude borders.
• At the present stage the archeological excavations are completed along Parvomai-Dimitrovgrad section as a team from the National Archeological Institute and Museum of the Bulgarian Academy of Science performs the monitoring of construction within the limits of object № 12 in Krum village.
• The supervision of the archeological heritage discovered during the archaeological seasons will be performed in parallel to the works.

III.  Administrative capacity of PMIU in NRIC

The Managing Authority performs regularly quality assessments of the PMIU, as the analyses of the assessments are recorded in assessment reports, issued by the MA.

IV. Forthcoming activities

• Phase 1 contract – finalization of signing of Addendum №4, removal of the remarks of the Committee for the ascertainment of the usability of the construction site and legalization of the procedures for Phase 1;
• Phase 2 contract – removal of the remarks of the Committee for the ascertainment of the usability of the construction site and legalization of the procedures for Phase 2;
• Systems contract – Testing of Parvomai, Karadzhalovo, Yabalkovo Stations and CTC Plovdiv, as well as testing of SCADA System for the section Parvomai – Dimitrovgrad;
• Finalization of the Phase 1 land acquisition procedures;
• Launching the implementation for the reconstruction and electrification of Dimitrovgrad – Svilengrad railway line by OPT funding.
• Launching and carrying out a procedure for Contractors selection for additional works along Plovdiv – Svilengrad – Turkish/Greek border railway line by OPT funding (after the AF is being approved) – 4 procedures.