SOFIA (Bulgaria), March 9 (SeeNews) – Chinese rolling stock manufacturer CRRC has proposed to invest 300 million euro ($316.6 million) under a project for strategic partnership with Bulgaria’s indebted state-owned railways operator BDZ, the Bulgarian transport ministry said on Thursday.
A total of 130 million euro will be used to re-finance BDZ’s outstanding debt, while the remainder of 170 million euro is intended for the purchase of new electric and diesel multiple-unit trains, the transport ministry said in a statement.
The investment proposal submitted by China Railway Rolling Stock Corporation (CRRC) to Bulgarian caretaker transport minister Hristo Alexiev also envisages the delivery of new rolling stock to meet BDZ's most urgent needs, according to the statement.
In addition, the company is proposing to invest in a new plant for assembly of electric and diesel multiple-unit trains.
The new plant will be built on BDZ-owned property.
The next step in the development of the strategic partnership will be the establishment of a joint committee comprising representatives of BDZ, CRRC, the Bulgarian transport ministry and Chinese financial institutions, which should decide on the details of the implementation of the investment proposal.
CRRC’s activities include design, manufacture, testing, commissioning and maintenance of locomotives and rolling stock, including electric, diesel-electric and diesel-hydraulic locomotives. Headquartered in Beijing, CRRC has 46 subsidiaries and 186,963 employees.
($ = 0.9475 euro)