Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 1 Ministry of Transport & World Bank Workshop on Road User Charging Systems ROAD USER CHARGING in BULGARIA Dr. Max Herry, HERRY Consult, Vienna Warsaw, June 2007

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 2 Time related user charge system was introduced in Bulgaria since April 1, 2004 with the amendment of the Roads Act and respective by-laws: Regulation on vignette system and Tariff # 14 on the charges collected in Ministry of Regional Development and Public Works system.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 3 The system was introduced in two steps: April 1, 2004for freight vehicles and buses with more than 8+1 seats and January 1,2005for all vehicles, including the passenger cars. In April – December 2004 only paper vignettes containing the registered vehicle license plate number were issued. Since January 1, 2005 vignette stickers are in place.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 4 The current vignette network coincides at large extend with the National Road Net-work (NRN), the total length of the latest being 19,276 km. Exempted of vignette charges are the NRN sections in residential areas, suburbs of some of the cities and by-pass roads, as well as the Sofia Ring Road.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 5 Subject of vignette charge are: both Bulgarian and foreign vehicles using the above vignette network. They are classified into three categories, as follows:

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 6 I.All vehicles with more than 2 axles designated for trans- portation of freight and all other vehicles not covered by category II or III with more than two axles. II.Vehicles for passenger transport with more than 8 seats (excluding the driver’s seat), normally busses, regardless the number of axles; and all other vehicles not covered in the category I or III with 2 axles III.Vehicles for passenger transport up to 8 seats (without driver seat) with 4 or more wheels, but without regard to the number of axles; normally passenger cars, mini- busses, and motor homes, but no motorcycles.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 7 For (almost) all above vehicle categories the same set of vignettes are offered: DAILY VIGNETTE (not for cars) WEEKLY VIGNETTE good for 7 days in a row including the day of issuing; MONTHLY VIGNETTE valid until the same day in the following month. If this day is non-existing, the vignette is good until the last day of the following month; ANNUAL VIGNETTE covering the time between January 1 through January 31 of the following year (13 month). According to the Roads Act daily vignettes for (almost) all vehicle categories has been introduced from January 1, 2007.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 8 The vignette stickers distribution system comprises almost 2,500 outlets, as follows: 1,300 post offices 1,138 DZI Trans offices, incl. OMV and Petrol fuel stations and 50 regional and border offices of Roads Executive Agency (REA). Vignette stickers for foreign vehicles, which differ from those for vehicles registered in Bulgaria (different price and thus different shape) could be bought form the 23 REA border offices only.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 9 However, because of the gradual price alignment schedule agreed with the EC, after January 1, 2007 the vignette charges for domestic and foreign shall be equal. Because of this the foreigners shall have the right to buy vignette stickers not only at the borders but inside the country as well.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 10 VIGNETTE PRICES According to the commitment taken by the Bulgarian government from of January 1, 2007 the vignette prices for domestic and foreign vehicles shall be equal.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 11 According to our forecast 2005, revenues were estimated at BGN 154 million and the real ones were some 145 million. Nevertheless, the (new) REA top management complains of the low level of revenues, especially having in mind that the general road network condition is worse than ever.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 12

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 13 Some conclusive remarks!

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 14 Application of the EUROVIGNETTE Directive 2006/38/EC

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 15 Application  underestimated! Just a few examples:

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 16 Measures set due to this Directive should be: Non discriminating Appropriate

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 17 For instance: Price relationship for HGV DAILY and YEARLY vignette should be about 1 : 100.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 18 Maximum Principle:  Tolling CARS + TRUCKS must not be more than IS costs! But, RP for cars and trucks will be taken arbitrary, often.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 19 But, there is a strong relationship: 1. IS costs 2. Allocation of (IS-)costs 3. That is the Maximum for RP of cars AND trucks all together!

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 20 But, this principle can be used as a solution of difficulties, as the Car-Truck-Difficulty in PL: 1. Total IS costs 2. Division of these IS costs for the Vignette IS part and the Toll IS part 3. IS cost allocation to each of the vehicle group as a Maximum of RP depending on the traffic on the different IS parts!

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 21 The problem is, if using this “Rule”, -that after setting the RP the traffic is changing, -so, that the allocation has to be done again, and so on. BUT, this algorithm is converging! The converging solution is the final solution!

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 22 Politicians, especially in the new EU countries regards the (RP) revenues “as his own” - regardless: -of the economic power or -the WTP of the economy respectively the private sector. RP has – in this case – one function, only: “create” money!

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 23 So, for example in BG.

Herry-Warsaw-Presentation – ppt MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, June 2007 Folie 24 Thank You, Thank You, For Your Attention! For Your Attention!