Bulgaria's Cabinet approved a new strategy for the development of the country's railways, meant to improve the quality and safety of the service to European Union standards, but at the same time made a big cut in the funding allocated to reach those goals.

The draft strategy was submitted by Transport Minister Petar Moutafchiev for Cabinet approval in October 2008 and envisioned 6.5 billion leva being spent by 2013. The figure was based on "detailed calculations" of how many new train engines, coaches and wagons needed to be bought, as well as the exact cost of repairing or replacing existing railway infrastructure, Moutafchiev said at the time.

"The goal of the new state railways development strategy is to guarantee their stable development by increasing their competitivity and technological capacity, modernise and develop the railways infrastructure and trasport technologies," the Cabinet said in a statement.

"This is the way to overcome the existing problems with infrastructure, the safety and telecommunications systems, the outdated engine and carts rolling stock."

In the final version passed by Cabinet, however, the figure was cut to 4.84 billion leva.

Instead of 3.94 billion leva for Bulgarian state railways operator BDZ, the Cabinet approved 2.56 billion, or an average 427 million leva a year. National Railways Infrastructure Company had its allocation slashed in half from 2.56 billion leva to 1.28 billion.

In 2009, the Cabinet plans to spend only 450 million leva, of which 200 million will go to the infrastructure company.

The bulk of the funds is expected to come from the state Budget, but 1.4 billion leva in European Union funds had been pencilled in as well, while 360 million leva are expected to come from a World Bank loan, Moutafchiev said October 2008.