BULGARIAN ECONOMIC REVIEW
According to incomplete data, 285001 Britons visited Bulgaria in January-August 2005, or 35.85 per cent up from the like period of last year. ...
A report which was presented on Monday said that in the early 2000s, employment expanded only in Sofia, and not in any other region. A similar guarantee has also been received on three projects for rehabilitation of Maritza East 3 TPP. According to Gegov, the major problems to be resolved are related to the modernization and reconstruction of the existing facilities and looking for opportunities to increase the amount of transited gas. According to him, current fees are absolutely acceptable on a short-term basis, but there is potential for their growth. According to incomplete data, 285,001 Britons visited Bulgaria in January-August 2005, or 35.85 per cent up from the like period of last year. According to Stanishev, this budget sends several clearmessages to Bulgarian business, to the public and to Bulgaria's foreign partners. According to the EU requirements, companies like Bulgargaz should be divided into two - a carrying and a trading company, Gegov said. After the Bulgarian Telecommunications Company, Bulgargaz owns the biggest optic line, Gegov said adding the operation of the line generated additional revenue. Alekperov said that 750 million US dollars will be invested in the Neftochim refinery in Bourgas by 2011, and another 250 million dollars will go into the LUKOIL chain of filling stations in Bulgaria. Ambassador Campagnola confirmed earlier indications that Italy's Enel wishes to share in the Belene nuclear power plant project in Bulgaria. Among Albena's rivals were hotels in Italy, Spain, Portugal, Mexico, Venezuela, Turkey, Tunisia and other countries, the press release adds. As to Austria, Sofia expects it to play a rather active role when it assumes the EU Presidency in January, Kalfin said. As to Bulgaria, the World Bank noted that recent reforms were easing the registration of companies and were likely to encourage new companies to enter, thus creating more jobs. At the political level, both France and the Netherlands fully support Bulgaria's membership. Average monthly revenues in the first ten months of 2005 exceeded those in 2004 by more than 100 million leva. Biodiversity loss in Bulgaria should stop by 2010, the plan for the next five years states. Bulgaria and Egypt are preparing to launch a joint Bulgarian-Egyptian economic commission from the beginning of 2006, Elmarassi added. Bulgaria has been allocated 1,323 million euros under the Competitiveness operative programme of the EU. Bulgaria has been allocated 148,640,00 euros for administrative capacity building. Bulgaria has been working under the SAPARD programme since the middle of 2001. Bulgaria is taking part in the prestigious tourist exhibition, which will be on until November 17, for the 25th time. Bulgarian Water Sector Needs EUR 6,900 Mln InvestmentVarna, on the Black Sea, November 17 - The investments necessary for the water sector in Bulgaria total 6,900 million euro, Sudipto Sarkar of the World Bank said Thursday in Varna. By the end of the third quarter of this year the users of pre-paid services numbered 1,441,720 while subscribers under a monthly contract were 714,542. Conformity with all European standards for fuel production is expected in early 2007. Construction should start in the spring of 2006 and be completed by the end of the year. Customers increased by 49.5 per cent up to 2,156,262 as from July - September 2004. Deputy Prime Minister and Foreign Minister Ivailo Kalfin attended the opening ceremony. Earlier on Wednesday, Stanishev and Alekperov inaugurated the new building of LUKOIL Bulgaria in Sofia. Elmarassi said that her country is preparing an Egypt Week in Bulgaria, which will be held in the fall of 2006. Existing water supply and sewage systems will also be reconstructed and rehabilitated under the project in order to reduce losses and connect waste waters to treatment plants. First of all these are macroeconomic stability and a sound financial policy that will not allow this country's financial destabilization and crises. For the first time since the beginning of its transition Bulgaria has a balanced budget with a zero deficit, the Prime Minister said, adding that budget expenditures will not exceed 40 per cent of the GDP. Franco Aprile, President of export promotion company Liguria International, said the Italian side has an interest in cooperating with Varna in the fields of mechanical engineering, electronics, and marine waste treatment. GloBul has signed roaming agreements with 278 operators in 127 countries. Great Britain is a target market for Bulgaria that has a considerable potential and consumer demand for variegated tourist products. Harold said the banks decided to set up the facility so as to prepare their partners for the challenges and opportunities which Bulgaria's membership in the EU will give them. Harold said this will realize the rule of the five Ps - preliminary preparation presupposes perfect presentation. He explained that broken down, the sum per capita amounts to 900 euro. He recalled that an optic line of 24 optic fibres had been laid down from the Romanian to the Turkish border. He said the cabinet appreciates the help of the banking sector in this respect. In 2004, Bulgaria had 259,092 British visitors, by 62.60 per cent up from the like period of the previous year. In addition to the EC financial commitment, Bulgaria provides national co-financing of the programme representing 25 per cent of the sum total of assistance, or 187 million leva. In Gegov's view, the pipeline can be built in about two years' time. In his words, even if the company splits into two, the second goal will not be attained. In January-September 2005, gas consumption rose by over 17 per cent compared with the like period of 2004: from 2,220 million cu m to 3,592 million cu m. In order to meet the January 1 deadline, initially the NRA will use the existing computer software of the tax administration and the National Social Security Institute. In some of the new member states of the European Union, as well as in some acceding countries such as Bulgaria, the unemployment rate tends to be in double digits". In the beginning of the year the government adopted a letter of support for the project, which will be implemented by US energy company AES Corporation. In the Commonwealth of Independent States countries, the jobs problem lies more in the quality of jobs, which are less productive and don't pay as much, the report says. In the period under review operational profits stood at 157 million leva, 57 per cent up as from the like period of the previous year, according to a report, drafted in line with the International Accounting Standards. Informatica Corporation Enters BulgariaSofia, November 15 - Informatica Corporation, which works in enterprise data integration, is about to enter Bulgaria, public relations and advertising agency APRA said. Informatica's clients include 83 of the world's top 100 companies, 37 of Europe's top 50 companies and 20 of the top 24 telcom operators in the world. Informatica's products for continuous database integration are used by over 2,200 companies worldwide, including leaders in finance, telecommunications, health care and state institutions. It also calls for steps to lower the cost of labour mobility by developing the housing and mortgage markets, as well as improving access to lifelong learning opportunities. It has 280 beds, a restaurant, a snack bar, a swimming pool with a park and a tennis court. It includes 157 concrete activities for whose implementation 119,015,000 leva are necessary. It is extremely important that the Code pass in Parliament by the end of this month, according to her. It urges the transition countries to boost their investment climates in ways that stimulate firms to invest and create productive jobs. It will have to contribute at least 25 per cent of this sum which means that 1,915 million euros will be spent on regional projects over this period. It will have to contribute co-financing amounting to 40 per cent of this sum. It won the award competing with 100 nominated hotels from all parts of the world. Italian Ambassador to Bulgaria Giovan Battista Campagnola said the two countries have a shared interest in developing European Corridor VIII. Its purpose is to regulate cooperation in banking supervision. Jose Manuel Silva Rodriguez, Director-General for Agriculture and Rural Development at the EC Directorate General in Brussels. Kalfin congratulated the two banks for being the first to open the initiative where financial institutions assist the business and local self-government in utilizing EU funds. Kalfin emphasized that the government's main task is to see thatBulgaria joins the EU on January 1, 2007. Kalfin presented HVB Bank Biochim and Hebros Bank Executive Director Peter Harold with a symbolic key "to open the door to EU funds". Liguria International will set up an office in Varna by March 2006, Aprile said. Long-term unemployment still is of particular concern - it accounts for 60 per cent of total unemployment, according to the report. Magnolia Hotel provides "all inclusive" services. Mourgina conceded that the transformation of the revenue administration may lead to an initial decline in proceeds, but she finds this normal for such a big reform. Mourgina is also Executive Director of the NRA, which is to start functioning on January 1, 2006, after five years of preparatory work. Mourgina said the NRA's creation will eliminate the conditions for corruption in the system. NCA revenues in January-October 2005 exceeded the January-October 2004 level by more than 1,000 million leva. Neckermann has established partnership with 650 hotels in a number of states. Neither condition is honoured in Bulgaria, Gegov said. October 2005 revenues included 33,945,788 leva in customs duty and fees, 439,450,226 leva in value added tax, 29,547,855 leva in excise duty, and 542,052 leva in penalties and fines. October Customs Revenues at BGN 503 MlnSofia, November 14 - The National Customs Agency (NCA) said on Monday it collected 503, 485, 921 leva in revenues in October 2005, 30.19 per cent up from a year earlier (the lev exchanges for 0.51 euros). Of an aggregate investment of some 70 million leva, 20 million will be committed in the first stage of construction. One of the problems is that the building of the NRA's information system has been delayed, she said. Ovcharov expressed satisfaction with the accommodation reached, as well as with the Russian oil company's plans to invest in Bulgaria. Over the seven year period Bulgaria will receive 5,286 million euros for the development of its agriculture and 48,880,000 euros for the development of its fisheries. Preparations are made for the building of a gas pipeline from Doupnitsa to Tsaribrod, which will be connected with Serbia's gas carrying system. Reforms to pension and social security systems are also required, as a way of lowering taxes on labour". Schenker to Invest 7.5 Million Euros in Construction of State-of-the-art Terminal in BulgariaSofia, November 17 - Schenker Bulgaria starts construction of a logistics terminal in Bulgaria. Seventy per cent of these are debt financing by CALYON, ING Bank, BNP Paribas and the European Bank for Reconstruction and Development. She pointed out that annual trade between the two countries reaches 40 million dollars, while this year is expected to see a growth of at least 20 per cent. She said a Tax and Social Insurance Procedure Code will definitely be adopted, but the process may be delayed. Signing the Memorandum, the supervisory authorities of Bulgaria and Austria express their desire and readiness for cooperation in the area of banking supervision based on mutual trust and understanding, BNB said in its press release. So far the Russian company has invested some 550 million dollars in the oil refinery, including the purchase price of the facility. Stoev pointed out that the EU expects Bulgaria to absorb 75 per cent of these funds but that according to him, Bulgaria will draft projects for a greater percentage of the funds extended by the EU. Such European Finance Centres of the banks in the HVB Group have already been opened in all new EU member states in Central and Eastern Europe. Sudipto Sarkar, Lead Specialist, joined the Bank as a Young Professional in 1993 and worked on a number of infrastructure and environment projects in many countries in the Europe and Central Asia (ECA) Region of the Bank. Ten per cent of the future investments in the refinery are earmarked for environmental protection, Alekperov added. The 2006 National Budget Bill, which Parliament is debating at the moment, makes provisions for the funds required to co-finance agriculture and rural development projects under SAPARD next year. The agreement was signed by Varna Region Vice Governor Alexander Farashev and by Federico Di Roberto, Diplomatic Adviser to Liguria Region President Claudio Burlando. The amount available under the agreements with ultimate beneficiaries covers 86 per cent of the sum total under the annual financial agreements with the EC and the national co-financing allocation. The amount of gas transited by Bulgaria to neighbouring countries increased from 10,668 million cu m in 2004 to 12,505 million cu m in 2005. The announcement was made during a scientific and practical conference on municipal management practices in pre-accession period for accelerated economic growth, presided over by Sarkar. The annual output of aluminium components will reach 5 million kilogrammes, and the presumable turnover will approximate 20 million euro. The Award is accompanied by a new certificate which will be added in the catalogue of the tour operator for the new season, the press release says. The Bulgarian Government, Rousse Municipality and Montupet S.A. The Centre will provide consultations to companies and local powers in the field of funding of projects under programmes of the EU and national funding programmes. The ceremony will be opened by Overgaz Executive Director Sasho Donchev. The club members are currently implementing projects worth 1,000 million euros in aggregate. The club will order and finance independent market studies in regions of investment interest to members of the organization. The company also views shipbuilding, port services and maritime insurance as very promising areas of future cooperation. The company is entering the Bulgarian market through its official representative Global Consulting Ltd. The construction of the NRA offices in Sofia has not been completed yet, due to a delay in the project's design and financing. The cut in social insurance contributions by 6 per cent as of 2006 "is expected to encourage job creation, improve contribution compliance and curtail the grey sector of the economy", the news release said. The deal for the purchase of the land is expected to be finalized by the end of the year. The document will be initialled by Rossitsa Vassileva, Vestitel BG Executive Director, and ZTE Executive Director for Southeast Europe James Wang. The Egyptian Ambassador explained that, in her opinion, there are greta opportunities for expanding cooperation between Bulgaria and Egypt in the field of tourism, the exchange of students and particularly in culture. The ensuing lifting of the borders with Romania and Greece will do away with hauliers permits and customs formalities which will shorten cargo transit times and reduce prices by 10 per cent. The EU has allocated Bulgaria 945 million euros under its Human Resources operative programme to which it will have to add 30 per cent of the sum. The European Finance Centre provides overall solutions for co-financing under the EU and consultations on project management. The experts working in the Centre can provide assistance for approval of additional loans for continuation of projects implemented under the EU, for investment loans, obtaining of bank guarantees, deposits and escrow accounts, among others. The funds Bulgaria fails to absorb will be extended to other countries. The funds will be received within the framework of eight programmes. The GloBul services covered 96 per cent of the country's territory and 99.4 per cent of its population. The government also discussed and approved a report on a National Biodiversity Preservation Plan for 1999-2004. The hotels were ranked by Neckermann's clients. The investment will therefore aggregate some 1,000 million dollars. The Maritza East 1 project includes the construction of a new substituting 670 MW unit and desulphurisation plants for more than 1,000 million euro. The Memorandum of Understanding is not the only one Bulgaria has signed with foreign supervisory institutions. The money should be used in three directions: one is to provide round-the-clock water supply in regions where such is lacking, Sarkar said and added that in his opinion 40 per cent of the sum will go for waste water. The new construction will involve building up of additional water sources and local reservoirs with view of ensuring adequate water quantity and pressure within the network. The new facility will absorb investments to the tune of 7.5 million leva, General Manager Minko Vasilevski told reporters on Thursday. The new institution will combine the administration of taxes and social security payments into a single body. The new offices are expected to be completed by the end of 2007. The number of new jobs created by the project will rise from 350 initially to 1,200-plus once construction is over. The ocean-going vessel, Swift Fortune, carrying 73 t of coal, arrived early on Wednesday morning. The other message is that this budget provides for sustainable economic growth and growing competitiveness of the Bulgarian economy, Stanishev said. The plan has been implemented thematically and financially, to the total cost of 44.355 million leva or 8.2 per cent more than planned. The plant will be completely finished in three years' time, with the various sectors being commissioned in stages. The problems before the development of the defence industry in Bulgaria were presented at the meeting as focus was laid on the problems that cannot be settled without government support. The project is financed under the Phare Programme, Financial Memorandum 2003. The proposed budget is in line with the priorities recently mapped out in the Government's Programme Declaration: economic growth, European integration and social responsibility, Prime Minister Sergei Stanishev said addressing Parliament. The remaining 30 per cent are own funds of the investor. The Russian company's President hopes that the LUKOIL Bulgaria chain of filling stations will increase from 120 to 292 in the coming years, giving it a 10 per cent market share. The terminal was built with financial support from the Japanese Government. The terminal will be on an area of 5 ha, 2,000 square meters of which will be taken up by a re-load facility and 3,000 square meters by warehouses and offices. The World Bank believes that if more and better jobs are to be created in Central and Eastern Europe, "it is essential to lower the costs of starting businesses, ease registration of property, and strengthen contract enforcement. The World Bank identified as an area of particular concern youth unemployment, since one out of close to four young people is unemployed. The World Bank representative underscored the dire need of rehabilitation in the water sector. There is clear political support for the NRA's launch on January 1, and the Code must be approved before that. There will be exhibitions, cultural collections, as well as films that will present the contemporary culture of Egypt. Therefore, in its early months the NRA will be housed in tax administration premises. They include the access to new technologies, scientific activity, keeping and extending markets and the training system in the sector. This will make the Rousse plant the largest in the Montupet group and its key production unit in Europe. Titled "Enhancing Job Opportunities in Eastern Europe and the Former Soviet Union", the report analyses employment outcomes in 27 transition countries in the last 15 years. Under the Environment and Transport operative programmes Bulgaria has been allocated 1,440 million euros (for each of the two programmes). Under the Regional Development operative programme Bulgaria has been allocated 1,440 million euros. Under the Tuesday agreement, the European Union undertakes to increase the 2004 money allocation for Bulgaria from 67,560,000 euros to 68,010,000 euros. Varna Signs Cooperative Agreement with Italy's Liguria RegionVarna, on the Black Sea, November 14 - Varna Region concluded a cooperative agreement with Italy's Liguria Region on Monday. Vasilevski said that the forthcoming membership of Bulgaria in the EU presents big challenges to the forwarding industry. Vasilevski said that the umbrella company - the Schenker concern, part of Deutsche Bahn, has okayed the construction of the terminal which will be equipped with the latest technologies in the field of logistics. Water fees should correspond to the costs, btu they should also be bearable for the population, Sarkar explained. Water supply and sewage systems are to be enhanced in 10 municipalities: Simitli, Razlog, Boboshevo, Dospat, Sevlievo, Dryanovo, Godech, Vurshets, Tsarevo and Veliko Turnovo. While the cargo of ship was being processed, the contractor for the extension of the port did all kinds of tests and adjustments before handing over the equipment to the Port of Bourgas for normal operation, says the press release. With the entry into force of the latest agreement, the amount of all financial agreements concluded under SAPARD will total 560 million leva. Youth unemployment in 2004 was 27 per cent.