Business Projects Bulgaria

A whole new district with a residential complex and a business project will be erected in the capital, next to the future Sofia Ring Mall near Bulgaria‘s sole IKEA store. Greek investors Fourlis and Danaos plan to invest EUR 70 M in a residential complex and a further EUR 50 M in a business project, both part of the EUR 300 M Sofia Ring Development. Sofia Ring Development is scheduled to be fully completed in 2019. Sofia Ring Mall, which is to become Bulgaria‘s largest retail and entertainment destination together with the closely located store of IKEA Bulgaria, will be the first building to be unveiled in the mega complex in about a year. The shopping center will provide to its customers views towards the city and Vitosha Mountain and a lot of green areas. It will feature a tenant mix of over 200 stores, including fashion and sport stores, entertainment facilities, a 10-screen cinema multiplex.

Bulgaria Sees EU’s Largest Annual Industrial Production Increase January 2013

Bulgaria‘s industrial production increased by 8.0% in January 2013 compared with January 2012, according to Eurostat. Bulgaria and Lithuania registered the highest growth among all EU member states for which data are available (+8.0%), followed by Estonia (+5.5%). In January 2013 compared with January 2012, production of durable consumer goods fell by 5.5% in the euro area and by 4.3% in the EU27.Intermediate goods dropped by 3.1% and 3.4% respectively. Capital goods decreased by 2.6% in both zones. Production of energy increased by 0.9% in the euro area and remained stable in the EU27. Non-durable consumer goods rose by 3.1% and 2.2% respectively. Among the Member States for which data are available, industrial production fell in eleven and rose in seven.

China’s Yutong Bus Mulls Opening Factory in Bulgaria

China’s Yutong Bus company considers opening a bus factory in Bulgaria, Bulgarian media have reported. A Yutong delegation headed by Roger Zhou, Sales Manager of the company’s European and North American Division, visited the Bulgarian Black Sea city of Burgas on Wednesday, according to Darik radio. The delegation was welcomed by local officials, including Deputy Mayor Krasimir Stoychev. The Yutong representatives are said to be satisfied with the local infrastructure in Bulgaria.

Valentin Nikolov, CEO of the Kozloduy NPP, has said that the project for the construction of a seventh unit at the plant has attracted the interest of companies based in the US, Japan, and China.

Nikolov adds, however, that there is a lack of experience in decommissioning activities on a global scale and Bulgaria is still learning.

The construction of a seventh unit, of 1000 MW, at the Kozloduy NPP instead of building two 2000 MW units in Belene, and the extension of the lives of the two running Kozloduy reactors has been touted by Bulgaria‘s rulers GERB as a key solution for the nation’s energy issues.

The results of the January 27 referendum on the development of nuclear energy in Bulgaria through the construction of a new nuclear power plant showed that the issue would be conclusively decided by Bulgaria‘s Parliament.

EBRD Improves Bulgaria Economic Growth Forecast

The European Bank for Reconstruction and Development has revised upwards its forecast for Bulgaria‘s economic growth in 2013 from 1.7% to 1.9%.

“Recovery is expected to continue to be modest in Bulgaria into 2012, due mainly to sluggish export demand. Growth in 2012 is likely to have ended up at around 1% only, with a modest forecast increase in 2013 to between 1 and 2%,” EBRD latest Regional Economic Prospects report said.

EBRD praised Bulgaria‘s government for its fiscal performance, saying it remains very good, with only a very small deficit recorded in 2012.

“There was also a successful Eurobond issue in July 2012; the five-year EUR 950 M bond issue was heavily oversubscribed and achieved an impressively low coupon of 4.25%. As a result, Bulgaria has significant fiscal and monetary buffers to help the country withstand further shocks,” EBRD report points out.

Earlier this month the World Bank revised downwards its forecasts for Bulgaria‘s economy, estimating it is to expand by 1.8% in 2013, down from its earlier forecast at 2.5%.

Bulgaria Expects Tourism Growth of over 3% in 2013

Bulgaria expects a growth of at least 3% in tourism in 2013, according to Ivo Marinov, Deputy Minister of Economy, Energy, and Tourism.

Marinov visited Wednesday the northern city of Veliko Tarnovo to present a tourist guide titled “Get to Know Your Homeland” which includes 17 sites from the region.

He told journalists that more accurate forecasts about the trends in tourism could be made after the tourism expos in Berlin, Moscow, and Kiev.

Marinov, as cited by Darik radio, went on to say that the Bulgarian government would spend around BGN 24 M on promotional activities for tourism in 2013, with BGN 8 M to be secured from the state budget and BGN 16 M to be provided under the Regional Development Operational Program.

Bulgaria‘s Deputy Tourism Minister made clear that the priority markets would be destinations where Bulgaria enjoyed strong positions like Germany and Russia, Balkan states, and countries like India, Japan, and China.

He reminded that Bulgaria had achieved a growth of 5% in the summer of 2012.

Marinov specified that December statistics would be clear by January 27, after which the results in the tourism sector for the entire 2012 would be published.

Forecast for Bulgaria 2013

The European Bank for Reconstruction and Development has revised upwards its forecast for Bulgaria‘s economic growth in 2013 from 1.7% to 1.9%.

“Recovery is expected to continue to be modest in Bulgaria into 2012, due mainly to sluggish export demand. Growth in 2012 is likely to have ended up at around 1% only, with a modest forecast increase in 2013 to between 1 and 2%,”

EBRD praised Bulgaria‘s government for its fiscal performance, saying it remains very good, with only a very small deficit recorded in 2012.

“There was also a successful Eurobond issue in July 2012; the five-year EUR 950 M bond issue was heavily oversubscribed and achieved an impressively low coupon of 4.25%. As a result, Bulgaria has significant fiscal and monetary buffers to help the country withstand further shocks,”

Earlier this month the World Bank revised downwards its forecasts for Bulgaria‘s economy, estimating it is to expand by 1.8% in 2013, down from its earlier forecast at 2.5%.

Bulgaria‘s budget has set it at 1.9%.

The latest version of the twice-yearly Global Economic Prospects report describes a “dramatic” easing of financial conditions around the world, stemming in part from policy changes to soothe the bond markets in Europe. Still, it warns that global growth will continue to be sluggish for years to come.

Wall Street Legend Jim Rogers Mulls Investing in Bulgaria

Wall Street legend and highly successful international investor, author and commodities expert, Jim Rogers has said he is considering investing in Bulgaria.

Bulgaria is among the few countries, in which he is considering investing right now, since they have made the most improvement since his latest trip around the world, the billionaire, currently based in Singapore, said in an interview for Gold Radio Café.

He joined the broadcast for a brief discussion on his new book “Street Smarts: Adventures on the Road and in the Markets”.

The Balkans are in terrible conditions, but Bulgaria is a place, which is working towards changes.

“I am thinking about investing in Bulgaria. I keep my eyes on those areas to see what may happen, but at the moment I am not really doing anything other than Bulgaria.”

Bulgaria

Johns Hopkins economist Steve Hanke, who designed the currency board in Bulgaria in the 1990s, has praised the country as a star pupil in terms of fiscal discipline.

“The prize should go to Bulgaria.”

“Bulgaria was completely bankrupt by the end of 1996 and had hyper-inflation that peaked with a monthly inflation rate of 242%, in February 1997, wiping out the banks and the country.”

He pointed out that Bulgarian banks’ marginal reserve requirement went up to 12% in the last boom and now it has already been lower than 7%.

“Right now Bulgarian banks capital adequacy is running at 16.7, which is way above normal levels. They provision for non-performing loans in a rigorous way and require that the provisioning occur almost automatically. But the banks have a lot of capital and they can provision. The thing is solid as a rock.”

Bulgaria and euro zone

“Bulgaria has a system, which is working perfectly right now. Why do you want to fix something that’s not broken?  I don’t think you should be in the euro zone, period,” the Johns Hopkins economist, who designed the currency board in Bulgaria and in several other east European countries in the 1990s, said.

“Bulgaria’s monetary arrangement is much better than Europe’s monetary arrangement. You have monetary sovereignty; you have control over your money. What if the euro blows off? Bulgaria can just switch to the US dollar!”

Bulgaria‘s currency board has forced its government to control spending, as the central bank is not free to print money to support government borrowing.

According to Hanke adoption of the euro would trigger “a real mess” in Bulgaria.

He firmly denied allegations that the rigidity of the currency board system prevents economic development and ruled out the need for Bulgaria to phase out its currency board

Bulgaria today would not only meet the Maastricht Treaty’s criteria for joining the euro zone – it would be one of its star members, a point that Hanke stressed upon.

Public support for Bulgaria‘s eurozone membership has been seriously dented over the last year and a half following the troubling developments in the monetary union.

While at the end of 2010 the Bulgarian society was cut in two over calls for immediate introduction of the European single currency, recent surveys have found out that those who oppose euro adoption now are a huge majority.

According to analysts the Currency Board regime enjoys great public support in Bulgaria and is one of the few and most trusted institutions.

Bulgaria‘s EconMin Speaks Out in Favor of New Ski Tracks in Bansko

Bulgaria‘s Economy Minister Delyan Dobrev has declared that new ski track developments in the largest Bulgarian mountain resort of Bansko will boost the local economy.

Earlier on Tuesday, Bulgaria‘s Economy Minister Dobrev had talks with Bansko Mayor Georgi Ikonomov to discuss the “demands of the people in the resort for the construction of new facilities and ski tracks”, the report says.

The project for new ski tracks in Bansko will be discussed at a meeting of the so called Supreme Environmental Expert Council, a government and NGO body, before it can be referred to the Bulgarian Cabinet.

Dobrev is tackling the issue with the new ski projects in Bansko and the Pirin Mountain at the order of Bulgarian Prime Minister Boyko Borisov after in December the latter received a petition from the Mayor of Bansko and local residents in favor of new developments.

Bulgaria‘s GDP to growth

The head of a Bulgarian think-tank has predicted a 1.5% GDP growth in the country in 2013, echoing the forecast of the International Monetary Fund.

“Our forecast is for the real GDP growth of Bulgaria to continue slowly growing by up to 1.5% in 2013 on the back of weak domestic demand and foreign investments,” Georgi Prohaski, head of the Center for Economic Development, told 24 Hours daily.

The Bulgaria‘s unemployment rate is expected to remain unchanged at 12% and even 13%.

Bulgaria‘s gross domestic product is expected to mark a total growth of around 1% for 2012, according to Minister of Economy and Energy Delyan Dobrev, way below the forecast 2.9% in the state budget.

Dobrev pinned the slow growth on Bulgaria‘s failure to significantly increase its exports, something he explained with the lingering eurozone crisis.

Dobrev argued that Bulgaria must steep up efforts to expand trade with markets outside the EU, especially in East Asia, and in particular China.

Bulgaria‘s economy expanded by 1.7% in 2011.

Bulgarian Tourism Optimistic for Winter Season 2012 – 2013

Bulgaria expects a large increase of visitors at winter resorts mainly from the important Russian and Great Britain markets, according to  Economy, Energy and Tourism Minister, Delyan Dobrev.

Speaking for the BTA news agency, Dobrev noted that early reservations of tour operators show an increase of 9% for Russian tourists, while the percentage would end up being even higher due to the trend of last minute bookings.

The increase for tourists from Great Britain is 5%, again according to early reservations and planned charter flights for the airports in the Bulgaria capital Sofia and the second largest city of Plovdiv. There is also an expected increase of visitors from Poland and Denmark, while Bulgaria remains an attractive winter destination for neighboring Serbia, Macedonia, Romania and Turkey.

“Bulgaria continues to successfully establish and maintain its international ski destination image. A recent study in consumer centers in 27 European and North American resorts shows that Bansko has leading positions as an affordable location for winter vacations, which gives us reasons for optimism for winter season 2012 – 2013,” says Dobrev.

Regarding the 2013 summer tourist season, the Bulgarian Minister stressed the country would stay an attractive destination for foreign travelers, offering quality and variety of services.

Bulgaria‘s Bansko resort is known as an affordable location for winter vacations, the sector minister inists.

China’s BYD Moves to Build Auto Assembly Plant in Bulgaria

China’s electric-vehicle maker BYD Co Ltd signed a joint-venture agreement on Tuesday with a Bulgarian partner to build an auto assembly plant in the country.

The 50/50 joint venture will largely manufacture electric cars and buses, said Alexander Usachev, chief executive officer of Bulgarian energy company Bulmineral Ltd, as cited by Xinhua.

Located in the Southwestern Bulgarian town of Breznik, the plant is to churn out 40 to 60 buses per month when it is rolled out in February 2013, Usachev has revealed.

He added production will be expanded further by including the entire product line of BYD such as batteries and LED lights.

Bulgarian Economy Minister Delyan Dobrev recently revealed that Chinese investors are planning to build three factories for the production of buses in the country.

The Minister said that the battery-power bus plant he mentioned will be based in Breznik, the investment being worth EUR 135 M. He added that he was unable to provide more specific details about the two other Chinese investments in bus-manufacturing plants in Bulgaria.

Bulgaria industry investments

Chinese investors are planning to build three factories for the production of buses in Bulgaria, Bulgarian Economy Minister revealed

According to him, two of the future bus factories will be for electric buses, and one – for gas-power buses.

The advantage of the first type is that they allow for a greater distance to be travelled, while the second type are charged much faster, the Bulgarian Economy Minister told reporters.

“These three projects are a prerequisite for future development for both the development of the Institute of Electrochemistry and Energy Systems at the Bulgarian Academy of Sciences, and the realization of the young people in this field,”

The battery-power bus plant worth EUR 135 M, the minister said, adding that he is unable to provide more specific details about the two other Chinese investments in bus-manufacturing plants in Bulgaria.

“The reason for these investments to happen in Bulgaria, and not in some other country, is that Bulgaria has good R & D units.

Brits Should Bet on Bulgaria for Best Bargain Ski Breaks – Survey

For the second year in a row, a respected cost comparison survey has picked Bulgaria as the best value deal for British skiers.

The Bulgarian ski resort of Bansko offered the least-expensive winter sports holiday, setting the traveller back a total of GBP 265.

Accor, MHQ Launch ‘Novotel Sofia’ in Bulgaria‘s Capital

The first Novotel Sofia, a high-class accommodation and office venue, has been opened in the Bulgarian capital.

Novotel Sofia is part of the world’s leading hotel operator Accor, and is said to be providing its customers with the same high level of comfort as everywhere in the world.

The Bulgarian investment company MHQ Ltd. is Accor’s partner for the project, the organizers said. The building combines two uses – hotel accommodation and office.

” We trust that its excellent location will be a valuable asset for the business society in Bulgaria and that the hotel will become the preferred choice for foreigners to stay, dine and work while visiting the country”, said the General Manager.

Markan is one of the top rated construction companies in Bulgaria.

Bulgaria industry

Four to five auto-mobile industry factories are going to open in Bulgaria soon, according to the Executive Director of the Bulgarian Agency for Investments, Borislav Stefanov.

He informed that Bulgarian Agency for Investments has worked in 2012 on 10 car-maker projects, and at least 4-5 of them will materialize.

The CEO forecasted an increase of 20% of investments in Bulgarian economy in 2012, compared to 2011.

He added that the share of investments in the production sector is going up.

Stefanov further informed that in 2013, the expectations are for a German company, making parts and air conditioners for luxury cars, to build a factory in Bulgaria with 500 jobs.

The other two interested auto-mobile industry companies are also German and the forecast is for them to hire about 3 000 Bulgarian workers, according to him.

Bulgarian Agency for Investments has also talked to 4 – 5 businesses that plan to outsource in Bulgaria their accounting units such as a large producer of non-alcoholic beverages. In addition, there were several projects in the chemical and medical tourism industry.

Stefanov noted that many businessmen across the globe are still unaware of the huge advantages of Bulgaria, combining EU membership with microeconomic and political stability and low business costs.

 FinMin Touts Taxes Yet Again as Bulgaria‘s Competitive Advantage

Bulgarian Finance Minister Simeon Djankov has dismissed warnings about Bulgaria‘s worsening international economic competitiveness vis-a-vis nations experiencing debt crisis that are therefore forced to make drastic reforms.

Djankov backed his position with a Monday’s article in The Financial Times which points out that Greece will be imposing a 45% tax on income beyond EUR 26 000 annually.

“At the same time, the taxes in Bulgaria will retain their flat 10% rate, and it is even possible that some tax rates might even be reduced further in the future,” he stated, apparently referring to VAT and some excise duties.

Bulgaria’s Finance Minister called for crucial reforms in three key sectors – energy, healthcare, and security, with only the reform in the energy sector being able to boost Bulgaria‘s GDP by 2-3%, in his words.

 Modest FDI Increase Registered in Bulgaria in SeptEMBER Y/Y

Direct investments in Bulgaria for the January – September 2012 period amounted to EUR 971.8 M, compared to EUR 711.9 for the same period in 2011.

Despite the annual increase, September 2012 had been critical when it came to direct foreign investments with an exodus of EUR 167 M attributed to payments of debts to parent companies, the Bulgarian “Sega” (Now) daily writes.

EUR 88 M have been invested in real estate in Bulgaria both for finished and planned properties.

The largest foreign investments in Bulgaria came from the Netherlands,  Russia  and Switzerland.

Rating of Bulgaria’s Sofia

On November 5, 2012, the agency increased Sofia’s credit rating from BBB- to BBB with a stable perspective, equal to the rating of the Republic of Bulgaria.

“This is the rating of the Bulgarian state as well. The city cannot have a higher rating than the state so for the time being we have reached the maximum,” Fandakova said, as cited by Focus news agency.

She has underscored some of Standard and Poor’s arguments for improving Bulgaria‘s Sofia credit rating – such as the strict fiscal discipline, its ambitious capital investment program funded with increased collectability of revenues, and the co-funding of EU funded projects.

Bulgaria’s Sofia Set to Boast 1st ‘Skyscrapers’ Despite Crisis

Regardless of the ongoing economic hardship in Bulgaria, its capital appears set to feature soon its first skyscrapers, considering the local scale.

The Capital Fort project on the Tsarigradsko Shose Blvd, and Millenium Center in downtown Sofia, Bulgaria, which are still under construction, are scheduled for completion in 2013-2014, reaching 126 meters and 112 meters respective, the Sega daily writes in a report.

The daily emphasizes that these two projects will demonstrate whether tall buildings have a future in the Bulgarian capital Sofia as a business model, adding that given the large amount of unoccupied office space already in existence in the city, the skyscraper candidates may also end up with empty offices.

The report notes, however, that the investors in Sofia’s future skyscrapers are optimistic about the development of business and the economy in Bulgaria, regardless of admitting that the management of these new projects will be a challenge.

Capital Fort is a project of UK firm Atkins, the investor is Fort Knox. The 126-meter building will be completed in mid-2014, and will be tallest than Sofia’s tallest building at present – the Rodina Hotel, which stands at 104 meters. Its office space will total 80 000 square meters.

Bulgaria Sees 7.3% Increase of Hotel Nights Jan-Sept 2012 Y/Y

The number of nights spent in Bulgaria‘s hotels and other accommodation establishments increased by 7.3 % year on year in the period January-September 2012, according to the country’s National Statistical Institute.

The nights spent by foreign residents increased by 8.1% and by Bulgarian residents – by 5.4%.

The total number of the nights spent in all accommodation establishments amounted to 2 255.8 thousands as 648.4 thousands by them were spent by Bulgarian residents and 1 607.4 thousands – by foreigners in Bulgaria.

Investments in Bulgaria

Bulgarian Minister of Economy, Energy and Tourism Delyan Dobrev has boasted about growing investment activity in Bulgaria.

Dobrev awarded Friday an A Class Investor Certificate to Iva Properties EOOD for the construction of Multiprofile Hospital for Active Treatment and Women’s’ Health Nadezhda in Sofia.

The hospital is to be ready by end-2012 and the investment in the project amounts to BGN 8 M.

Dobrev said that the awarding of the certificate was proof that foreign investors were not given priority treatment by the state.

“By end-August 2012, foreign investments were almost EUR 900 M, compared to around EUR 500 M for the same period of 2011, which shows that we have strengthened investment activity this year and we are attracting foreign investments more and more actively,” Bulgaria‘s Economy Minister declared, as cited by Darik radio.

He also made clear that Bulgaria‘s Ministry of Economy, Energy and Tourism had awarded 7 A and B Class Investor Certificates since the beginning of 2012 and the investments in these projects amounted to over BGN 500 M.

 Bulgaria Presented in 2013 Catalogue of REWE Touristik

Bulgaria is described as an attractive tourist destination in a newly published 90-page catalogue for 2013 issued by German tour operator REWE Touristik.

The summer catalogue of REWE Touristik was presented at an expo in Salzburg.

The catalogue was prepared in cooperation with the Bulgarian Ministry of Economy, Energy and Tourism (MIET) and is devoted entirely to Bulgaria.

This is the first of its kind edition of REWE for Bulgaria and it dwells in detail on the potential of Bulgaria’s Black Sea coast, according to MIET’s press office.

The catalogue includes cultural tours by cities, wine and SPA routes, and information about Bulgaria as an emerging golf destination.

Bulgaria participates for the first time in the presentation of the summer catalogue of REWE Touristik, which includes its three brands, ITS, Jahn Reisen andTjaereborg.

At the expo Bulgaria had its own pavilion located in the “Southeastern Europe” sector.

The pavilion brought together representatives of MIET, the Bulgarian office of the German tour operator, and 20 tourist companies operating mainly on the northern and southern Black Sea coast.

The Bulgarian delegation consisted of overt 50 people, who gave over 20 interviews for different media outlets and the bulletin of the expo according to MIET’s press office.

Bulgarian Machinery Manufacturers Gear Up for Indian Industrial Expo

Bulgarian machine and food processing industry equipment manufacturers will participate in India’s largest international engineering sourcing show opening on March 14-16 in Mumbai.

Bulgaria‘s participation in India Engineering Sourcing Show 2013 was agreed during the meeting of Bulgarian Economy and Energy Minister Delyan Dobrev with India’s Minister of State for Commerce and Industries, Jyotiraditya Scindia in New Delhi, according to a media statement of Bulgaria‘s Ministry of Economy, Energy and Tourism (MIET).

During the forum, Bulgaria‘s Economy and Energy Minister invited Indian companies to participate in the summer and autumn Plovdiv Fairs.

At the next session of the Bulgarian-Indian Intergovernmental Joint Committee on Scientific and Technical Cooperation scheduled to take place in Sofia, Minister Scindia is expected to be accompanied by a business delegation, according to MIET’s press office.

India’s Minister of State for Commerce and Industries said she was impressed with the excellent conditions Bulgaria offered to foreign investors, including the favorable taxation policy and the investment incentives.

He pointed out that Bulgaria was a bridge for Asian investors to the entire EU market, adding that this was great potential for Indian companies.

The MoU aims to stimulate business contacts between small and medium-sized enterprises of the two countries, as well as the implementation of joint Bulgarian-Indian projects.

Energy Bulgaria

Power distributor Energo-Pro Bulgaria is looking to buy hydropower plant Energia Holding, according to reports of the Commission on Protection of Competition (CPC).

Citing a statement of the CPC, Bulgarian Capital daily notes that the Bulgarian unit of Czech energy group Energo-Pro has applied for permission by the Bulgarian anti-trust watchdog to acquire 100% of hydropower plant Energia Holding.

Hydropower plant Energia Holding is controlled by controversial Bulgarian businessman Grisha Ganchev, who will quit the energy business if the transaction is completed, while Energo-Pro will become the biggest private owner of hydropower plants in the country, according to the newspaper.

The Bulgarian business daily says that neither Grisha Ganchev nor Energo Pro could be reached for comment on the matter.

Energo-Pro Bulgaria owns and operates eight hydropower plants united in three cascades – Sandanska Bistritsa Cascade, Koprinka Cascade and Petrohan Cascade.

In end-June, Energo-Pro bought the power distribution business of E.ON Bulgaria in northeastern Bulgaria.

 New ‘Industrial Revolution’ for Europe and Bulgaria

European Commission Vice-President Antonio Tajani revealed plans for a re-industrialization and moving away from financial and other services across the EU.

The plan’s chief target is achieving 20% of Europe’s GDP to be contributed from industry by 2020.

“We cannot continue to let our industry leave Europe. ”

Bulgaria Sees EU’s Highest Y/Y Production Prices Increase Aug 2012

Bulgaria observed EU’s largest increase in the total industrial production price index in August 2012 compared with August 2011 (+7.1%).

Bulgaria  was followed by Greece (+6.8%) and Cyprus (+6.7%), while the smallest increases were registered in Malta and Slovenia (both +0.8%) and Austria (+1.1%).