The Bulgarian Railway Administration (BDJ) cancelled on Thursday a train car tender awarded to Turkish company, executives of the administration said.
The BDJ cancelled the tender for purchase of 30 sleeping coaches although it was included in a transportation cooperation protocol between Turkey and Bulgaria.
Turkish Wagon Industry Joint-Stock Company (TUVASAS) had won the tender.
Executives of the Bulgarian railways said the administration did not have enough money to purchase coaches and it did not need coaches either.
However, the BDJ opened a new tender under the same conditions.
TUVASAS' director general said that he had not officially received a letter regarding the cancellation of the tender.
"It is illegally impossible for the Bulgarian railways to make such a decision," TUVASAS' director general Ibrahim Ertiryaki told AA correspondent.
Ertiryaki said Turkish and Bulgarian transportation ministers had made reciprocal promises regarding the tender.
BDJ has said it will officially notify its decision to TUVASAS in the following week.
Bulgaria opened the tender for purchase of 30 new sleeping coaches on April 11, 2008 within the framework of the program to adjust its trains to European standards.
Offering 1 million Euro lower price per sleeping coach than its closest rival, TUVASAS won the tender.
According to tender specifications, the agreement was to be signed in a month. However, BDJ postponed the agreement by showing several pretexts.
The new government of Bulgaria, formed after June 2009 elections, changed BDJ management, however the new management has not signed the agreement despite warnings of TUVASAS.
The issue was also discussed during Bulgarian Prime Minister Boyko Borissov's visit to Turkey at the beginning of 2010, and it was included in the transportation cooperation protocol.
TUVASAS may file a compensation case against BDJ.