29 November 2007 Newsletter

16% of the foreign investment flow in Bulgaria between 1998 and 2006 had been in the real property market

From 1998 to 2006 the share of direct foreign investment in Bulgarian real properties had been 16%. It was surmounted only by investments in industrial production – 25%, and in finances – 21%. Real property investments were bigger than investments in commerce (15%).

This data was presented last week by Vice-president P. Kovachev of the Bulgarian Investment Agency in his report on the country's investment environment.

The report indicates that real properties and tourism are the fastest growing sectors: in 2006 they attracted EUR 1.262 billion worth of investments. The potential objects of investment are shopping centres, business parks, closed-type housing complexes, convention centres, winter resorts, balneology and SPA tourism, rural tourism, golf tourism, luxury hotels.

A record size of 'green' foreign investment was registered in 2005, 2006 and the first half of 2007.

Bulgaria holds a leading position in Central and Eastern Europe by the ratio of direct foreign investment to the GDP: in 2006 it was 16.4%, the prognosis is for 14% in 2007.

Austria is the leader by the size of direct foreign investment (18%) in Bulgaria for the period 1992 – 2006, followed by the Netherlands (11%) and Turkey (10%).

Building & The City Weekly
By Eftika Georgieva
19 – 25 November 2007

Bansko hosts International Festival of Alpinist film

83 participants from 22 countries are expected to visit and stay in Bansko for this year's 7th edition of the International Festival for Alpinist films. The fest will start on November 29th and will continue for 4 days, the organizers informed.

Serious will be the participation of countries with highly developed cinema production like Italy, Germany, Switzerland, Austria and France.

No doubt the star in the festival will be the greatest mountain climber of all time; Reinhold Messner. He is a mountaineer and explorer from South Tyrol, Italy. Messner made the first solo ascents of Mount Everest without supplemental oxygen and is popular for being the first climber to ascend all fourteen "eight-thousanders" in the world.

For first time movies from South Africa, Mexico, Turkey, Norway, and Holland will be emitted on the Festival in Bansko.

The Alpinist film producers are always looking for the unexplored, trying to find different and exotic locations around the world. That is why they decided to go for Bulgaria's Bansko this year.

2007/2008 Ski Season Updates

All ski slopes in Bansko resort will be opened on December 1st, announced ski centre Manager Ivan Obreykov.

This season, 19 ski runs are to welcome ski and snowboard fans. The resort has been equipped with two new runs, a new four-seat chair lift and a new tow-lift. 160 machines will provide the resort with artificial snow.

Sofia News Agency
22 November, 2007

Bulgaria third fastest growing car market in EU

New car sales jumped 19.3% year-on-year in October, propelling Bulgaria to the No.3 spot among EU's biggest sales gainers. Data of the European Automobile Manufacturers Association (ACEA) shows Bulgaria trailing only after Lithuania (56.8%) and Slovenia (26.4%).

Local sales of automobiles, trucks, buses and motorcycles rose 25.5% to 42,703 units in January-October, shows data of the Association of Automobile Importers in Bulgaria (SVAB).

The truck segment posted a 50% gain to 2,350 units. Trucks in the 18-44 ton category drive 74% of the market.

According to SVAB, local car sales topped 40,211 units in January-October, including vans and light trucks. The year-on-year sales increase is over 24%. Compact cars (segment B) accounted for 23.4% of sales. Mid-size cars contributed 21.6%.

Dacia Logan was the top-selling model in January-October with 2,076 units.

The top brand was Toyota with 11.73% of the market and sales of 4,716 units, followed by Ford with 9.03% (3,633 units) and Peugeot with 8.62% (3,466 units). A year ago, Peugeot was in the lead ahead of Toyota and Ford.

24 Hours Daily
8 November, 2007

Bulgaria will receive EUR 41.5 million under the terms of nordic projects

By 2011 Bulgaria will be granted EUR 41.5 million under a program for cooperation with Norway and in accordance with the financial mechanism of the European Economic Space (EES). The news was announced last week at the official start of the two programs and in the presence of representatives of Bulgarian and Norwegian business companies, non-government organizations and social partners.

After Bulgaria's accession to the EU, the country automatically became a member of the European Economic Space, where it joined Norway, Iceland and Lichtenstein. The donor countries under the EES financial mechanism are Norway, Lichtenstein and Iceland. The allocated sum is EUR 21.5 million, of which EUR 20.24 million will be contributed by Norway. The spheres of priority funding are:

• Protection of the environment
• Enhancement of stable economic development
• Preservation of the European cultural heritage, including public transport and renovation of urban architecture / infrastructure
• Human resources development through high-quality education and training
• Health care and children protection

EUR 20 million will be granted to Bulgaria under the Norwegian program for Co-operation with the following spheres of priority funding:

Reduction of greenhouse gas emissions, including the common execution project under the Kyoto Protocol*

• Energy efficiency and restorative energy resources
• Enhancement of production stability, including certification and control
• Application of the Shengen law

*Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change.

Building & The City Weekly
19 – 25 November, 2007

EU-funded project to the approximate value of EUR 800 000 is starting soon

21 contracts to enhance trans-border cooperation between Bulgaria and Romania have been signed recently

21 contracts for free funding of small-scale projects to facilitate border area cooperation between Bulgaria and Romania have been signed at the Ministry of Regional Development and Public Works.

The total value of the projects is EUR 831 971, of which EUR 740 424 have been granted by the EU and EUR 91 547 have been contributed by the organizations involved in the project execution.

The small-scale projects will be executed in 8 districts which belong to the area bordering Romania: Vratsa (1 project), Montana (3 projects), Vidin (8 projects), Pleven (4 projects), Rousse (1 project), Silistra (2 projects) and Dobrich (1 project).

The projects are thematically oriented to different spheres: economic development, ecology, tourism, cultural exchange. This EU-funded project is part of the ambitious program for the integration of borderline regions and will be instrumental in preparing Bulgaria and Romania for the adoption of structural funds.

Building & The City Weekly
19 – 25 November 2007

Lufthansa to increase the number of flights to Bulgaria

German air carrier Lufthansa announced that it will add a third daily flight on the Frankfurt-Sofia route from next year.

Swiss International Airlines, a Lufthansa company, will also start operating daily flights between Sofia and Zurich from 2008.

Lufthansa company, which performs 42 flights weekly to and from Bulgaria, was happy to announce that local bookings are up 10% y/y and are expected to reach 300,000 by the end of 2007.

Dnevnik Daily
20 November, 2007

Bulgaria's unemployment rate drops to 6.73% in October

Bulgaria's unemployment rate was at 6.73% in October, down from 6.78% in September and a drop of 1.65% from the same month in 2006, the government said on Wednesday.

The total number of registered unemployed in October was 249,376. This was 1,715 fewer than in September and 60,993 fewer than in October 2006, the National Employment Agency said.

Last year the unemployment rate averaged 9.61%, down from 11.46% in 2005.

The Associated Press
21 November, 2007

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