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BULGARIA : ECONOMIC NEWSLETTER
Netherlands Embassy
Economic Department
15 Oborishte street
1504 Sofia, Bulgaria
Tel. + (359) (2) 816 0350
Fax + (359) (2) 816 0351
E-mail: [email protected]
www.netherlandsembassy.bg
October 2014
Content
 Economy and business climate
 Developments in various sectors
 Tenders / public procurement
 Exhibitions / seminars / events
 Sources of information
ECONOMY AND BUSINESS CLIMATE
Bulgaria and the Netherlands for the
avoidance of double taxation and the
prevention of fiscal evasion with respect to
taxes on income.
Source: BTA, 25/09/14
Bulgaria
ranks
38th
out
of
189
economies in the Doing Business 2015
report of the World Bank.
Bulgaria’s position in the ranking deteriorates
from place 36 in 2014 to the current level of
38, taking into account that the 2014
rankings have been adjusted and reflect data
corrections. Still, Bulgaria’s 2015 Doing
Business score is better than in the Czech
Republic (44), Romania (48), Hungary (54),
and Greece (61). Bulgaria’s weakest point
remains the ease of getting electricity, with
the country dropping from place 122 to place
125. A business entity in Bulgaria needs over
four months to get electricity. The world
leader by ease of getting electricity is South
Korea, where it takes 18 calendar days to get
the service, while the best performing
country in Europe is Germany, where the
connection to the power grid takes 28
calendar days and 3 procedures.
Source: Sega, 30/10/2014
DEVELOPMENTS IN VARIOUS SECTORS
AGRICULTURE AND FOOD
Agriculture
Minister,
Netherlands
Ambassador Sign Joint Declaration
on Cooperation in Agriculture
Agriculture and Food Minister Vassil Groudev
and Ambassador Tom J.M. van Oorschot
signed a joint declaration on cooperation in
agriculture between Bulgaria and the
Netherlands, the Ministry said. The key
priorities in the agreement are development
of greenhouse farming and setting up of
producer cooperatives in Bulgaria. Minister
said that right now both areas are of
exceptional
importance
to
Bulgarian
agricultural producers, who are sustaining
huge losses due to the Russian embargo.
Cooperation in the implementation of the
EU's Common Agricultural Policy is another
priority, both as regards the First and the
Second Pillar. The declaration also envisages
cooperation in animal husbandry, agricultural
science and education.
Source: BTA, 26/09/2014
Foreign direct investment in Bulgaria for
January - August 2014 increased
The Foreign direct investments in Bulgaria for
January - August 2014 are EUR 1221.4
million (3% of GDP), according to preliminary
data of the Bulgarian National Bank (BNB).
The biggest investor in the period from
January to August this year is the
Netherlands with 402.5 million euro.
Read more>>
BANKING AND FINANCE
Caretaker PM Tables Budget Update
Draft In Parliament
According to the draft, the budget deficit will
reach 4% of the country's GDP, or by more
than BGN 1 B above the initially provided.
New tax treaty between the Netherlands
and Bulgaria approved by CoM
At its regular meeting on Wednesday, 24
September the Council of Ministers approved
the draft of a new Convention between
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The other two parties in the tripartite council
– employers and trade unions - have
disagreed with the proposed deficit above 3%
of GDP and a new state debt.
Read more>>
Increasing Energy Efficiency and Renewable
Energy Use in Municipal and Government
Buildings and Local Heating Systems. The
program provides EUR 7.65 million for
projects. The second grant scheme is for
Production of Fuels from Biomass. Under it
will be funded projects for the production of
pellets, wood chips, briquettes, biogas from
farms and others. Beneficiaries are small and
medium enterprises. Budget is EUR 1.76
million.
Source: Standart
Bulgaria's
Central
Bank
Urges
Parliament to Set Up KTB Committee
BNB has called on the newly-convened
Parliament to create a temporary committee
on the crisis at Corporate Commercial Bank
(Corpbank or KTB).
Read more>>
There is currently no decrease in Bulgaria's
gas pipeline network pressure, or in the
delivered gas volumes from Russia, Deputy
Minister of Economy and Energy Anton Pavlov
said. He pointed out that Bulgaria properly
fulfills its obligations regarding the gas
transits
to
other
countries,
Bulgarian
Telegraph Agency reports. He, however,
pointed out significant delays in all gas
interconnections projects. The delays are of
three to five years, Pavlov said. The
Caretaker government is actively working for
the implementation of these projects - the OP
Competitiveness provides for a feasibility
study of the gas interconnection between
Bulgaria and Serbia, said Pavlov. He noted
that there are important archaeological sites
along the route and a solution is being
sought.
The
Bulgaria
–
Greece
interconnection is also actively developed, a
plan of its route near the town of Kardzhali is
to be approved, said Pavlov.
Source: Dnevnik
BUILDING AND CONSTRUCTION
Bulgaria and Romania are expected next
week to sign a memorandum launching the
preparation for construction of two new
bridges over the Danube - between Nikopol
and Turnu Magurele and between Silistra and
Calarasi,
said
Transport,
IT
and
Communications Minister Nikolina Angelkova.
The preparatory work will be financed under
the
Bulgaria-Romania
Cross
Border
Cooperation Programme 2014-2020. "After
the memorandum is signed and a joint
application form is filed, the design
development and cost-benefit analysis will be
drawn up so the two governments can
consider the details of building the two
bridges," said Angelkova. Public-private
partnership will most likely be sought, she
said.
Furthermore, the European Commission has
given permission to Bulgaria to award a
concession for the unfinished winter camp
harbour of the Executive Agency for
Exploration and Maintenance of the Danube
River,
built
under
an
EU-financed
programme.
The minister was in the city of Rousse to
inspect the construction of a river information
centre.
Source: BTA, 22/10/14
ENERGY, ENVIRONMENT AND WATER
INVESTMENTS
US
Progress
Software
Corporation
Acquires Telerik – a Bulgarian leading
provider of application development
tools, for $262.5 million.
For over 12 years, Telerik has been at the
forefront of enabling developers at 450 of the
Fortune 500 to deliver best-in-class web,
desktop and mobile applications.
Read more>>
Business will receive support for the
implementation of projects for the production
of eco-briquettes and biogas as part of the
programme Energy Efficiency and Renewable
Energy. Deputy Minister of Economy Anton
Pavlov announced the start of receipt of
proposals in the initiative. The program
budget is EUR 16 million, of which 85% (EUR
13.3 million) is grant. The initiative is
supported by the Financial Mechanism of the
European Economic Area on the basis of a
memorandum of understanding between
Bulgaria and Iceland, Liechtenstein and
Norway. The program includes four grant
schemes. The first grant scheme is
ITC
Bulgarian, Croatian, Macedonian Stock
Exchanges Apply for EBRD Financing for
Common IT Platform
SEE Link doo Skopje, established in 2014 by
the Macedonian Stock Exchange, Bulgarian
Stock Exchange and Zagreb Stock Exchange,
has applied for financing to the European
Bank for Reconstruction and Development
(EBRD) and intends to use part of the
proceeds to acquire an IT platform (ITP), the
Bulgarian Stock Exchange said Monday.
The proposed project, which has a total
estimated cost of 250,000 euro, will require
the procurement of an ITP, which would
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facilitate order-routing and straight through
processing of trades that would integrate the
three countries' stock exchanges.
Tendering is expected to begin in the fourth
quarter of 2014
Source: BTA, 28/10/2014
Glorient Investment opened a EUR 4 mln
warehouse, the first stage of the
development of Sofia East Ring logistics
park
The company intends to build another 12
buildings to complete the logistics park,
project manager Velizar Prodanov said. The
other buildings will be constructed in phases,
Todor Kavrakov, the investing company's real
estate manager, said. “If we have a normal
economic environment, [the construction of
the remaining 12 buildings] can happen
within 15 years,” according to Prodanov. The
total area of East Ring logistics park will
occupy 220 decares which allows for the
development of a total of 90,000 sq m of
warehouse and manufacturing facilities.
Source: Capital, 21/10/2014
Bulgaria is among the most preferred
outsourcing destinations in the world –
survey
of
analysis
company
A.T.
Kearney.
Bulgaria is at the ninth position among 51
countries in the world and climbs up eight
positions in the list since 2011, when the
previous survey was done.
According to Stefan Bumov, chairperson of
the
Bulgarian
Outsourcing
Association,
quoted by Mediapool.bg, this was an
important recognition of the efforts of
Bulgaria's outsourcing industry and its
contribution to the economy.
In Bumov's words, in 2013 the turnover of
Bulgaria's outsourcing sector has increased
by 60% in the past four years. The sector
hires 20 000 people and in the next few
years their number is expected to increase
four times.
Read more>>
TENDERS / PROCUREMENTS
 Development and upgrade of databases
and e-registers for the needs of the
Bulgarian Sustainable Energy
Development Agency
Read more>>
 Supply of items and services – Sofia
Water JSC (Sofiyska Voda AD)
Read more>>
 Municipal Infrastructure Development
Project (financed by World Bank)
Read more>>
 Second Trade and Transport Facilitation
Project (financed by World Bank)
Read more>>
 Wood Residue to Energy (financed by
World Bank)
Read more>>
 Varna Integrated Public Transport
project (EBRD)
Read more>>
 Energy Efficiency Rehabilitation at
Maritza East Mines (EBRD)
Read more>>
 Financing Sustainable Energy
Investments (financed by Raiffeisenbank
and EBRD)
Read more>>
 Biomashin to Purchase New Equipment
(Financed by EBRD)
Read more>>
 Bulgarian Metals Processor, Sofia Med,
Competes on Global Market (financed by
EBRD)
Read more>>
RETAIL
Russia’s Gazprom Neft to Build 20 New
Filling Stations in Bulgaria
Gazprom will build 20 new filling stations in
Bulgaria by end-2016, according to Ivan
Kostadinov, Genaral Mager of NIS Petrol
Bulgaria. NIS Petrol is 100%-owned by
Gazprom Neft's subsidiary Naftna Industrija
Srbije (NIS). NIS Petrol Bulgaria currently
controls a 2.5% stake on the local fuel retail
market and plans to expand its share to
10%.
Read more>>
TRANSPORT AND LOGISTICS
The board of directors of Bulgarian stateoperated Burgas Port, on the Black Sea
coast, will appoint a new executive director to
the company, the country’s transport
ministry said. The Bulgarian transport
ministry has relieved Argir Boyadzhiev of his
duties as an executive director of the Burgas
port operator. The ministry has also replaced
some of the members of the port’s
management
board,
it
added.
The
management changes made by the ministry
aim to optimise and improve the work of the
companies and agencies in its system. The
ministry of transport and communications
oversees 22 state companies.
Source: Dnevnik
More information on tenders:
http://www.worldbank.org
http://www.ebrd.com
http://ted.europa.eu
www.sofiyskavoda.bg
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EXHIBITIONS / SEMINARS / EVENTS
Calendar of events & large trade fairs in Bulgaria (incl. activities of the Embassy)

Interfood & Drink: Meatmania, The World of Milk, Bulpek, 5-9 November 2014, Inter Expo
Center, Sofia, www.food-exhibitions.bg

Sustainable business practices – Dutch seminar in Burgas, 27 November 2014, hotel
Primoretz

Bulgaria Economic Forum, 3-4 December 2014, www.biforum.bg

Bulgarian textile trade mission to The Netherlands, Amsterdam, 25-28 January 2015, link:
http://www.sme.government.bg/?p=25160

Save the Planet (Energy efficiency and RES, Smart Cities, Lift Balkans), 11-13 March 2015,
Sofia, www.viaexpo.com

AGRA Expo, 5 – 9 March 2015, Plovdiv, www.fair.bg
For more information on exhibitions & trade fairs in Bulgaria, please visit the following online
exhibitions catalogues:
•
International Plovdiv Fair: www.fair.bg
•
Inter Expo Centre, Sofia: www.bulgarreklama.com
•
Via Expo Ltd.: www.viaexpo.com
•
Dobrich Fair: www.dobrich-fair.com
SOURCES OF INFORMATION
Bulgarian National Bank, www.bnbank.org
Ministry of Finance, www.minfin.bg
National Statistical Institute, www.nsi.bg
BTA bulletin, http://www.bta.bg
Daily news, http://www.novinite.com/
Sofia globe, http://sofiaglobe.com
BCCI www.infobusiness.bcci.bg
Disclaimer: This Economic Newsletter has been prepared by the Economic Department of the Netherlands Embassy in Sofia on
the basis of publicly available information from various sources. It does not represent the opinion of the Embassy or any other
official body. No responsibility for factual accuracy can be taken.
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