26 October 2007 Newsletter

EUR 700 million support by The European Investment Bank for operational programs

The European Investment Bank will support with EUR 700 million the implementation of projects under seven operational programs: Transport, Regional Development, Environment, Improvement of the Competitiveness of Bulgarian Economy, Human Resources Development, Administrative Capacity, and Technical Support. This is the main issue of the project for credit agreement between Bulgaria and the European Investment Bank which was approved by the Bulgarian government last week. Over the last 15 years the bank has invested more than EUR 1.2 billion in this country. It is among the international financial institutions which have facilitated the process of Bulgaria's accession to the EU. The money has been used for road construction, water purifying systems, consultancy services, etc. The whole sum of the credit will be utilized in 20 portions; the minimum amount of each portion will be EUR 30 million.

The resources will be used predominantly for financing strategic infrastructural projects of national importance under the operational programs Transport and Environment.

Building & the City weekly
15 – 21 October, 2007

The two rivals: Bulgaria is leading in tourism, Romania in the media market

A growing number of Romanian tourists choose Bulgaria as a holiday destination

Joint publications of the Romanian edition "Business Standard" and the Bulgarian daily "Dnevnik" show that last year's market of tourist services in Romania was to the value of EUR 1 billion, while in Bulgaria it amounted to EUR 2.2 billion. Romania's lagging behind is due to its underdeveloped infrastructure and the low quality of service.

According to representatives of Romania's tourist industry, Bulgaria owes its advanced position to the better promotion of its tourist product and to its success in attracting a good number of German tourists. The biggest problem of the Romanian tourist business lies in the fact that nearly all foreign tour operators have left the country.

This summer Romania was visited by 2.2 million foreign tourists, while the number of foreign visitors to Bulgaria for the period January – August grew by 7%, reaching 4 million people.

Two foreign tour operators to promote Bulgaria

Another two tour operators - from Italy and San Marino – have declared their interest in Bulgaria, says the Italian tourist edition "Aggenzia di Viaggi". The Piccione-based tour operator Old Map Travel Agency T.O. has presented its catalogue of group tourism, consisting of two sections - Italian and European. The European section contains offers for the three new destinations: Bulgaria, Romania and Scandinavia. Bulgaria and Romania are promoted as destinations for cultural, wine and ethnic tourism.

Last month the Italian tour operator Viaggi Delle Pleiadi announced its intentions to intensify the promotion of Bulgaria by issuing a catalogue of the country's holiday destinations.

Last week the tour operator chain GiraMondo Viaggi announced the opening of its first representative office in Sofia, Bulgaria.

Dnevnik Daily
11 October, 2007

The greatest part of them - about 540 000 - were Romanian. This is a growth of 120% on an yearly basis. At the same time the number of Bulgarian holidaymakers in Romania amounted to less than 4000 and they all preferred the country's winter resorts.

In 2006 the Romanian tourists abroad spent about EUR 1 billion, while the Bulgarian tourists spent EUR 700 000 in foreign destinations.

This year Romania's media market is expected to grow by 30% and reach the value of 500 million. The growth rate of Romania's media revenues and the number of new media is above the average level in Europe, including Bulgaria.

At the moment Romania boasts 260 TV channels in full operation, owned by 73 companies. In this respect Bulgaria is lagging behind. The most intense competition is between its three channels with national coverage. In both countries the printed press market is dominated by hybrid tabloids, trying to attract readers through DVDs and books promotions.

Dnevnik Daily
September, 2007

The last of the SAPARD projects for infrastructure rehabilitation in 134 small municipalities have been approved by the State Agricultural Fund.

Resources to the value of BGN 12.5 million have been allotted free to the municipalities in question. Each one of them will receive about BGN 100 000 for street rehabilitation, public lighting or for sewerage / water main repair. So far 280 SAPARD projects have been approved for the construction of town / village infrastructure and inter-town / village infrastructure, with subsidiaries exceeding BGN 284.5 million. Projects for the construction of town / village infrastructure are prevailing.

The investment value of the projects for renovation of farms and agricultural properties is calculated to be BGN 103 million, of which the government subsidy is BGN 47 million.

Since the start of the SAPARD program in 2003, 3493 projects have been approved, with total investment value exceeding BGN 2.785 million. The government subsidy for them has been BGN 1.387.

Statistics show that 1740 projects have been completed to date, the subsidies allocated for them being BGN 600 million.

Dnevnik Daily
16 October, 2007

Airport expansion wins top investment certificate

Fraport Twin Star Airport Management, a Fraport AG company, has received a First Class Investor certificate from Bulgaria's investment promotion authority for its project for the expansion of the Bourgas airport, Bulgarian Black Sea Coast. Fraport company has been operating it under a concession arrangement for the last year.

The company, which also operates the local Varna airport, will phase an investment of EUR 49.6 million through 2009, including EUR 32 million planned for a new passenger terminal. The conceptual design of the new 43,200 m² terminal was unveiled this week. It will have a capacity of 3 million passengers annually and will be manned by 100 staff.

Dnevnik Daily
18 October, 2007

Bulgaria agreed on Wednesday to a European Union proposal to invite two more partners to join the Nabucco gas pipeline project, which will carry natural gas from the Caspian Sea to western Europe, the government said. Economy and Energy Minister Petar Dimitrov said Bulgaria was ready to accept both Germany's RWE and Gaz de France as partners, instead of just one of the companies as originally proposed. He made the announcement after talks with Johannes van Aartsen, the European Commission project coordinator.

The cost of the Nabucco project - seen as key to Europe's efforts to lessen its dependence on Russian energy - is estimated at EUR 4.6 billion. It will provide a natural gas link between Iran and Azerbaijan and EU countries, and will run from Turkey through Romania, Bulgaria and Hungary to Austria. The consortium is owned by Austria's OMV, Hungary's MOL, Turkey's Botas, Bulgaria's Bulgargaz and Romania's Transgaz. Initially, the five partners had been looking for a sixth partner.

Talks on financing the project have been held with the World Bank and the European Bank for Reconstruction and Development. They had recommended seeking additional backing to raise the project's credibility. The 3,300-kilometer (2,050-mile) pipeline project is at a preparatory stage. Construction could begin as early as 2008, with operation starting in 2012. The pipeline's transit capacity is planned to be 30 billion cubic meters per year.

The Associated Press
17 October, 2007

Open 10am - 10pm seven days per week

Pearl Property Ltd Bg, 37 Marshall St, London, W1F 7EZ, UK.
Tel: +44 (0)800 047 0466 (freephone), Bulgaria: 00359(0)89 548 5171, Call Me Back
Fax: +44 (0)870 0940 765 | email: info@pearlproperty.net | Skype: marykarman