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As one of Bulgaria's largest state-owned enterprises, Bulgarian State Railways had to vigorously implement measures to remedy its negative financial performance. The main objective of this project was to formulate specific recommendations and implementation plans for the following, taking into account EU regulations and directives: (i) rationalization of BDZ network and operations; including track access and charging policies, (ii) establishment of contracts between the Government and BDZ for PSO (public service obligations); and (iii) strengthening of BDZ commercial and marketing capability. PADECO was responsible for all tasks in this project.