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BULGARIA

Content

Bulgaria INTRODUCTION • • • • •

Prime Minister Committed to Transparency and Security Government Determined to Fighting Crime Building the Foundations for Sustainable Growth Dynamic Chamber Spurring on Economic Growth Bulgaria’s Fact File

4 5 6 8 10

• Widespread Healthcare Reforms Underway • Spa and Health Resorts Attracting More International Travellers

• Specialised Rehabilitation Hospitals

36 37 37

CITY OF SOFIA

• Sofia Mayor Working to Improve Quality of Life, Tourism

BUSINESS & INVESTMENT OPPORTUNITIES • • • •

Key Ministry’s Priorities: Energy, Tourism and Innovation Investment Agency Serves as Gateway to Bulgarian Market Netherlands Ambassador Cites Investment Opportunities ING Commercial Banking

12 13 14 15

Appeal

• Capital of Culture, Business and Tourism

AGRICULTURE & FOOD INDUSTRY

• High Potential Agriculture Sector Offers Significant Opportunities Producers

• Supporting Implementation of EU Funds a Priority for 17

• Bulgaria among EU’s Top Eight Countries in Agriculture

18 19 20 21

• Sofia Mel EAD • Bella Bulgaria

Revenues

• Stock Exchange Adopting Proactive Strategies to Attract Investors

• AmCham Forging Stronger Ties Between US and Bulgaria • Bulgarian Swiss Chamber Promoting Bilateral Partnerships • Alpha Bank

• Protecting the Interests of Bulgaria’s Agricultural

FINANCE & BANKING World Bank

39 40

43 44 46 47

TOURISM

• Association Promoting World Class Standards in Tourism

TRADE & INDUSTRY • • • • • •

Strong Advocate for Bulgaria’s Business Sector Vast Potential to Boost Foreign Trade Radomir Metal Industries Toyota Balkans K&K Electronics KCM 2000 AD

Industry 23 24 26 26 27 28

EDUCATION

• Bringing Educational System Up to International Standards 31 • New Legislation Bringing Positive Change to Education Sector

• A Natural for Upscale Cultural and Alternative Tourism • Festa Hotels • Association Building the Right Foundations for Tourism • • • • • • • •

Development Penguin Travel Vitosha Park Hotel Outstanding Attractions throughout the Country Hotel Sveta Sofia CarRent Metropolitan Hotel Sofia Apartment House Sofia Hotel Downtown

49 50 52 54 55 56 57 58 58 60 62 63

HEALTH

• Modernisation of Healthcare System Creating Partnership Opportunities

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BULGARIA

Prime Minister Committed to Transparency and Security Bulgaria has recently received positive evaluations from the World Bank and the EU Commission, proving that the country is building the foundations for sustainable economic development. The EU has even unfrozen funds for Bulgaria which had been blocked because the country had failed to meet certain EU criteria.

The Prime Minister notes that his government has established special teams within the police force, the secret services and the country’s prosecutors to fight crime and corruption, and these efforts are bearing fruit. He adds, “My government believes that it is vital to secure the safety of the Bulgarian people in two ways: first, to ensure their physical safety, which involves fighting organised crime, and secondly to ensure their financial security. We have significantly increased the level of safety in Bulgaria, and we have managed not to reduce pensions and salaries.”

Lowest corporate tax rate in the EU Boyko Borissov points out that Bulgaria has remained stable in spite of the recent cabinet change and the effects of the global economic crisis. He says, “The day the previous cabinet left office, it significantly increased pension funding, and we have had to work with this. At the same time, Bulgaria has not raised its tax rates, which are currently the lowest in the EU.” Bulgaria offers a flat taxation rate of 7% for businesses, with a 20% value added tax.

Boyko Borissov, Bulgaria’s Prime Minister, explains, “These positive reports on Bulgaria’s progress are a result of well organised political initiatives as well as our strong commitment to fighting corruption and organised crime. In addition, Bulgaria has significantly improved transparency throughout its economy. We took very seriously the criticisms we received from the EU Commission when it blocked funding to Bulgaria, and we have managed to make great progress in dealing with the issues the commission pointed out.”

Sofia

The Prime Minister’s mission for the two four year terms he will serve is to “turn Bulgaria from a developing country and the poorest in the EU into an average member of the EU community.” Boyko Borissov concludes, “I have taken severe measures against corruption on every level. I want Brussels to be aware that I am not going to let even one euro be stolen from the European taxpayer here in Bulgaria. My cabinet will lead the way in promoting transparency and will continue to fight against corruption in our country.”

Introduction

Government Determined to Fighting Crime Bulgaria is now safer than it has been in 20 years thanks to the committed efforts of the current government to fight crime and corruption and to promote transparency. Tsvetan Tsvetanov, Deputy Prime Minister and Minister of Interior (the ministry leading Bulgaria’s crime fighting efforts) points out that one major accomplishment for the government was to capture an organised crime group dubbed “The Killers”, which had been responsible for several assassinations. In addition, the government has made significant progress in its efforts to halt the illegal arms trade in Bulgaria and recently confiscated a large cache of weapons as well as neutralised an illegal arms distribution network. Controlling illegal drug trafficking is another priority for the government, which recently seized several major drug shipments and arrested members of a drug ring. Tsvetan Tsvetanov explains, “The government’s efforts have created a safe environment in Bulgaria. We have even changed laws, including laws on prosecution, in order to fight crime. For the first time in the 20 year transition period in Bulgaria, we are actively prosecuting corrupt government officials.”

Earning the trust of the Bulgarian people and the EU Commission The current government’s efforts have inspired the trust of the Bulgarian people in the Ministry of the Interior and in the government in general. Tsvetan Tsvetanov explains, “Prime Minister Borissov and myself are now the most admired politicians in Bulgaria. We have also gained a lot of enemies in the organised crime world.” Bulgaria has also earned the confidence of the EU Commission thanks to its progress in fighting crime and in achieving transparency, and the Ministry of the Interior is currently partnering with the German government, Interpol, and its counterparts

Tsvetan Tsvetanov, Deputy Prime Minister and Minister of Interior

in Spain, France, Italy and Holland in various anti crime initiatives. “Our government’s main mission is to ensure transparency in the absorption and allocation of EU funds and to continue our war against corruption and organised crime. For international investors, Bulgaria has great potential in tourism, agriculture, infrastructure, energy and other sectors. We aim to guarantee safety and security, a transparent government, no corruption, and a stable investment environment,” Tsvetan Tsvetanov emphasises. The Deputy Prime Minister predicts that Bulgaria will continue to improve and offer high potential investment attractions as the government pursues its ambitious programmes. He concludes, “I ask everyone to believe in Bulgaria, and I ask Bulgarians to believe in our country and in everything we can accomplish.”

BULGARIA

Building the Foundations for Sustainable Growth Bulgaria, strategically located in South-eastern Europe bordering the Black Sea, has served for 13 centuries as a key link between East and West. Sharing its borders with Greece, Macedonia, Romania, Serbia and Turkey, Bulgaria has always been a cultural melting pot and a coveted base for international trade.

High potential sectors Bulgaria has rugged mountains, pristine forests, many rivers, an unspoiled coastline, a wide range of historical sites, and a rich cultural heritage, all of which combine to make the tourism industry one of the country’s fastest growing sectors. Bulgaria also has a strategic location for international trade, an agricultural sector with strong development prospects, and signiﬁcant potential in renewable energy.

Key turning points: joining NATO and the EU Bulgaria, a parliamentary republic, became an associate member of the EU in 1992 and signed an economic stabilisation and reform agreement with the International Monetary Fund and the World Bank in 1997. Bulgaria joined NATO in 2004 and the EU in 2007. Bulgaria’s GDP averaged more than 6% annual growth from 2004 to 2008, driven by massive foreign direct investment and rising domestic consumption. Bulgaria’s economy suffered from the effects of the global economic crisis, however, and experienced sharply reduced domestic demand, exports, capital inflows and industrial production. GDP contracted by approximately 5% in 2009 and stagnated in 2010, despite a significant recovery in exports.

Bachkovo monastery

Renewed GDP growth anticipated in 2011 Under the leadership of a committed government, Bulgaria is expected to achieve economic growth once again this year. The current government has taken a strong stand against the problems that have plagued Bulgaria and inhibited its growth and foreign direct investment in the past, including corruption in the public administration, a weak judiciary, and the presence of organised crime. After the EU froze funding for Bulgaria in 2008, the Bulgarian government stepped up its efforts to ensure transparency throughout the economy and to ﬁght corruption and crime. Thanks to this commitment, Bulgaria has received positive evaluations from the World Bank and the EU Commission, and EU funds have once again been made available to the country.

Introduction

North Black sea coast at Yalata reserve

projects in the country. The funds will be provided to privately owned companies that are taking up sustainable energy investments. This new initiative is part of the EBRD’s Bulgarian Energy Efﬁciency and Renewable Energy Credit Line programme, through which the EBRD has already granted €137.5 million in credit lines to Bulgarian banks for more than 140 small energy efﬁciency and renewable energy projects.

Attracting foreign investors Bulgaria needs foreign investment to keep its economic development moving forward, and the government is creating more incentives to attract investors. Bulgaria offers a strategic location, an attractive tax structure, low labour costs, and growth prospects in a wide range of sectors for investors looking to get in on the ground ﬂoor.

The Bulgarian economy received an important vote of confidence on May 4 this year when global rating agency Moody’s announced that it had put Bulgaria’s Baa3 rating on review for a possible upgrade. The current rating reflects Bulgaria’s stable government finances and moderate economic strength. Moody’s said it would “most probably” upgrade the rating in July. Moody’s further explained that it expects Bulgaria’s budget deficit to fall below the Maastricht criteria of 3% and its macroeconomic policy framework to remain stable in 2011. Moody’s first expressed its positive assessment of Bulgaria’s fiscal position in early 2010, when it revised the country’s outlook from “stable” to “positive”.

Invest Bulgaria within the Ministry of Economy, Energy and Tourism serves as the gateway to Bulgaria for foreign investors. It provides information on potential projects, helps set up links with local partners, and offers support for new businesses. Invest Bulgaria reports that around 90% of foreign investors in Bulgaria to date are from the EU, although other international investors are beginning to target the country. Investment trends have been evolving, from an initial focus on the property market to increasing interest in renewable energy. Invest Bulgaria notes that investments in manufacturing, information technology and services projects in Bulgaria have averaged around €1.5 billion per year.

Signiﬁcant EBRD support for energy projects

German investors have been particularly active in Bulgaria, and this year German discount retailer Lidl added three stores to its Bulgarian network, bringing the total number of its outlets in the country to 37. Lidl, which opened its ﬁrst stores in Bulgaria last year, plans to expand its network in the country to 40 stores by the end of 2011. This investment is just one sign of international conﬁdence in Bulgaria’s economic potential.

In another sign of conﬁdence in Bulgaria’s leadership and in the long term prospects of the country’s private sector, in April this year the European Bank for Reconstruction and Development (EBRD) agreed to extend a €10 million credit line to Bulgarian DSK Bank to support energy efﬁciency and renewable energy

BULGARIA

Dynamic Chamber Spurring on Economic Growth The Bulgarian Chamber of Commerce and Industry (BCCI) plays an essential role in Bulgaria’s economic development through providing high quality services for companies and serving as a liaison between the private sector and the government. Tsvetan Simeonov, President, explains, “We are in touch with thousands of companies and we work with more than 200 governmental and public-private bodies - advisory councils, working groups and supervisory committees. When we make proposals regarding the business sector, the government knows that we know what we are talking about. In recognition of its impressive work, the BCCI was made a member of the EU Chamber of Commerce even before Bulgaria was admitted to the EU.”

Tsvetan Simeonov, President Chamber of Commerce and Industry

One of the BCCI’s strong points is that it keeps abreast of local conditions through its contacts with all types of companies as well as local ofﬁcials all over the country. “We work closely with 28 regions and we aim to deal with local issues instead of only general issues. We are collecting information that would otherwise not be available to potential investors,” Tsvetan Simeonov points out. Along with its research efforts, the BCCI can provide legal advice and has helped to implement an arbitration system based on the UNCITRAL model.

Positioning Sofia as ideal business base The BCCI is helping to position Sofia and Bulgaria in general as an excellent business base in the Balkans. As Tsvetan Simeonov explains, Sofia is increasingly being seen as the best place for international organisations and companies to establish their regional headquarters. “Bulgaria is recognised as a source of stability in

the region, since we get along with all our neighbours,” he says. Looking to the future, Tsvetan Simeonov says that Bulgaria needs to step up the pace of development (for example through faster absorption of EU funding), streamline certain procedures, provide immediate payment for companies involved in government projects, punish those involved in corrup-

tion, achieve more transparency (for example concerning energy prices) and better manage government spending. As Bulgaria develops its economy, the BCCI will continue to enhance the country’s attractions as an investment target. As Tsvetan Simeonov points out, Bulgaria offers a strategic location, stability (including the lowest rates in the EU of the corporate

tax and the personal income tax, an unchanged value added tax) and many high potential sectors, such as IT services, pharmacy, light industry and tourism. Urging potential investors to consider Bulgaria, he concludes, “The BCCI welcomes foreign investors, especially those who can bring in high technology and innovation. We would like to attract investors from all over the world, not only the EU.”

BULGARIA

Introduction

Bulgaria’s Fact File

Three equal horizontal bands of white (top), green, and red. The pan-Slavic white-blue-red colors were modified by substituting a green band (representing freedom) for the blue.

Location:

Southeastern Europe, bordering the Black Sea, between Romania and Turkey

Area:

Total: 110,879 sq km Land: 108,489 sq km Water: 2,390 sq km

Religions:

1,808 km

Languages:

Greece 494 km, Macedonia 148 km, Romania 608 km, Serbia 318 km, Turkey 240 km

Bulgarian (ofﬁcial) 84.5%, Turkish 9.6%, Roma 4.1%, other and unspeciﬁed 1.8% (2001 census)

Government:

Parliamentary democracy

Land boundaries: Border countries:

Capital:

Soﬁa

Climate:

Temperate; cold, damp winters; hot, dry summers

Terrain:

Mostly mountains with lowlands in north and southeast

Elevation extremes: Natural resources: Age structure:

Population:

Lowest point: Black Sea 0 m Highest point: Musala 2,925 m Bauxite, copper, lead, zinc, coal, timber, arable land 0-14 years: 13.9% (male 506,403/female 480,935) 15-64 years: 67.9% (male 2,367,680/female 2,446,799) 65 years and over: 18.2% (male 522,343/female 769,475) (2011 est.) 7,093,635 (July 2011 est.) Soﬁa: 1.192 million (2009)

Ethnic groups:

Bulgarian 83.9%, Turk 9.4%, Roma 4.7%, other 2% (including Macedonian, Armenian, Tatar, Circassian) (2001 census) Bulgarian Orthodox 82.6%, Muslim 12.2%, other Christian 1.2%, other 4% (2001 census)

National holiday: Liberation Day, 3 March (1878) GDP (ppp*):

€64.5 billion (2010 est.)

Exports:

€13.66 billion (2010 est.)

• Commodities:

Clothing, footwear, iron and steel, machinery and equipment, fuels

• Partners:

Germany 11.21%, Greece 9.43%, Italy 9.24%, Romania 8.52%, Turkey 7.33%, Belgium 5.61%, France 4.44% (2009)

Imports:

€16.08 billion (2010 est.)

• Commodities:

Machinery and equipment; metals and ores; chemicals and plastics; fuels, minerals, and raw materials

• Partners:

Russia 13.14%, Germany 12.23%, Italy 7.78%, Greece 6.17%, Romania 5.65%, Turkey 5.48%, Ukraine 4.81%, Austria 4.08% (2009)

* Purchasing power parity

• Key Ministry’s Priorities: Energy, Tourism and Innovation • Investment Agency Serves as Gateway to Bulgarian Market • Netherlands Ambassador Cites Investment Opportunities

Business & Investment Opportunities

“Bulgaria’s cultural attractions are among the richest in the world. We have architectural landmarks and artifacts from Byzantium, Roman and Thracian times. Our main goal is to add value to Bulgaria’s tourism offerings.” Traycho Traykov, Minister of Economy, Energy and Tourism

BULGARIA

Key Ministry’s Priorities: Energy, Tourism and Innovation The Ministry of Economy, Energy and Tourism is working hard to ensure Bulgaria’s sustainable development. The tourism industry is a top priority for the ministry, which will use some of the EU funding Bulgaria has received to promote Bulgarian tourism in global markets.

resources and varied landscapes that we would like to preserve. We can only handle so many tourists, so our idea is to offer them a richer experience and encourage them to stay longer.”

Traycho Traykov, Minister of Economy, Energy and Tourism

Traycho Traykov, Minister of Economy, Energy and Tourism, explains that Bulgaria concentrated on mass tourism in the past but the ministry’s new tourism strategic plan promotes sustainable cultural and alternative tourism as well. He says, “Bulgaria’s cultural attractions are among the richest in the world. We have architectural landmarks and artifacts from Byzantium, Roman and Thracian times. Our main goal is to add value to Bulgaria’s tourism offerings.” Spa and wellness tourism is another growth area for Bulgaria, Minister Traikov believes. He says, “Bulgaria has around 600 hot springs, and around 140 of them already have tourism infrastructure. We are preparing spa packages and we see spa tourism as a good match with our cultural and alternative tourism.”

Focus on quality rather than quantity The ministry is going for quality instead of quantity. Traycho Traykov says, “Bulgaria is a relatively small country with limited natural

In the energy sector, the ministry’s priorities are to reduce Bulgaria’s CO2 emissions, make better use of the country’s natural energy resources, and boost energy efficiency. “Our only domestic energy resource is coal, so we are developing a pilot programme for clean coal energy,” Minister Traykov points out. He notes that Bulgaria has made excellent progress in reducing its emissions and in increasing its energy reserves, in spite of the fact that the country was required to close four of its nuclear plants as a condition of joining the EU. Now the ministry is pushing forward full liberalisation of Bulgaria’s energy sector and is setting up new international tenders in energy projects. “We have unbundled electricity distribution, we are on track for full energy sector liberalisation, and we have made the tender process transparent,” Traycho Traykov says. The ministry is working hard to attract more international investment. Traycho Traykov concludes, “We would especially like to see investment in innovative activities and sectors. Bulgaria has low costs of doing business, notable attractive tax rates and is decreasing the administrative burden. We have ambitious plans for the future.”

Business & Investment Opportunities

Investment Agency Serves as Gateway to Bulgarian Market Invest Bulgaria has positioned itself as the ideal gateway to the Bulgarian market for foreign investors. Invest Bulgaria is an agency within the Ministry of Economy, Energy and Tourism, and it has partnered with all the major foreign investors that have entered the Bulgarian market as well as with a large number of smaller and medium sized enterprises. Invest Bulgaria is currently working with around 250 client companies and welcomes the chance to serve new investors.

Around 90% of foreign investors in Bulgaria are from the EU, mainly Austria, Greece, Germany, Hungary and Italy. Invest Bulgaria would like to draw more EU investors as well as attract investors worldwide. Borislav Stefanov says, “Concerning Bulgaria’s international image, the problem is not that it is negative but rather that there is no image. We are trying to inform investors in new markets, for example in China, that Bulgaria offers low labour costs as well as microeconomic and macroeconomic stability and tremendous growth opportunities in many sectors.”

Investment trends are evolving Trends in foreign investments in Bulgaria are evolving, according to Borislav Stefanov, who says that in 2007 and 2008, most investments in Bulgaria were in real estate whereas over the past two years there has been

Invest Bulgaria’s mission is to offer professional assistance to foreign investors planning to establish or expand business operations in Bulgaria. Borislav Stefanov, Executive Director, says, “We provide all information, support services and on the ground assistance that businesses require for their projects, from inception to completion. We provide essential information to potential investors, for instance concerning the costs of doing business in Bulgaria, and we help set up local contacts in the public and private sectors as well as coordinate investment projects. We are happy to be the ﬁrst point of contact for many foreign investors in Bulgaria.”

a surge of investment in renewable energy projects. “Investments in manufacturing, information technology and services have been stable for some time, totalling around €1.5 billion per year. No major foreign investor in Bulgaria has left the country to date,” he points out. Invest Bulgaria maintains a comprehensive web site which provides essential networking opportunities for investors in Bulgaria as well as a wealth of information for potential investors. The agency will continue to work to attract more FDI. Borislav Stefanov concludes, “I would like to invite everyone who is interested in doing business in Bulgaria to get in touch with us!”

BULGARIA

Netherlands Ambassador Cites Investment Opportunities Karel van Kesteren, the Netherlands’ Ambassador to Bulgaria, praises Bulgaria’s current government for its committed efforts to fight crime and corruption, promote transparency, and ensure a supportive environment for business and investment. He says, “The government has taken action on many fronts, more than the previous government, and now, while the economic situation in Bulgaria is far from ideal, it is definitely moving in the right direction. However, more efforts are still needed.”

Karel van Kesteren, the Netherlands’ Ambassador to Bulgaria

The Netherlands Embassy in Bulgaria is partnering with the Bulgarian government in its reform programmes, particularly its efforts to become a productive member of the EU and to achieve a stable, secure business climate. “We are helping Bulgaria in its drive to meet EU standards,” Karel van Kesteren says. The embassy also promotes foreign investment in Bulgaria and serves as a partner for Dutch investors there. The embassy regularly organises meetings with potential investors in the Netherlands to point out high potential opportunities in Bulgaria, and the Ambassador cites agriculture, tourism, green technologies, waste management and wastewater treatment as a few of the areas in which Bulgaria offers interesting investment prospects. Karel van Kesteren says, “Agriculture and tourism are particularly promising sectors here. Bulgaria is tremendously behind other EU countries and is working to catch up. Things have changed for the better over the last 10 years and Bulgarians are encouraged by this.”

Supporting the ongoing reform process Karel van Kesteren particularly praises the efforts of Bulgaria’s Prime Minister and his cabinet to deal with the issues that provoked international criticism

Business & Investment Opportunities

History museum in the ancient city centre of Plovdiv

and a funding freeze by the EU Commission, but he calls for even more widespread reform initiatives in the future. “The reforms in the area of justice and home affairs are going in the right direction. Now Bulgaria needs even more than crime fighting; it needs administrative reform, better regulation as well as structural reforms in the pension system, education and healthcare. In other words, much deeper reforms are needed and they need to be undertaken in a new way,” he believes. Reaching EU criteria is crucial for Bulgaria’s future and the Ambassador strongly supports taking an EU perspective in both the Netherlands and Bulgaria. “Dutch people should think of the EU as their country, and they should look at Bulgaria as home as well,” he says. He adds that Bulgarians need to continue to work on welcoming foreign investors, regarding them not as competition but rather as an opportunity. He concludes, “Bulgarians were not familiar with the market economy before, but their attitudes are steadily changing.”

ING Commercial Banking

Commercial Bank with 17 Years of Presence in Bulgaria ING Bulgaria, part of the global ING Bank N.V. headquartered in The Netherlands, has built up a loyal customer following. ING started its banking operation in Bulgaria in 1994, launched pension activities there in 2001, and began to offer life insurance in 2006. The goal of ING Bulgaria is footed on the global ING’s strategy to become the preferred bank for its customers. Arkadiy Gerasenko, CEO, explains that ING Bulgaria has been growing rapidly thanks to its stellar reputation for customer service. He says, “In ﬁnancial services, everything centres on people and conﬁdence. Only by acting with professionalism and integrity as well as behaving with prudence and skill, can we maintain stakeholders’ trust. Customer centricity is key to the way we do business.”

Arkadiy Gerasenko, CEO

ING Bulgaria is also an excellent corporate citizen, offering support for a number of community service projects including the recent example of promoting the national project of Bulgaria in Miniature, which features the most striking examples of the Bulgarian cultural heritage. The bank will continue to provide its customers with exceptional service and the best possible returns.

ING Commercial Banking 49B Bulgaria Blvd 1404 Soﬁa Bulgaria Tel.: +359 2 917 6601 www.ing.bg

• Stock Exchange Adopting Proactive Strategies to Attract Investors • AmCham Forging Stronger Ties Between US and Bulgaria • Bulgarian Swiss Chamber Promoting Bilateral Partnerships

Finance & Banking

“The government is beginning to think ahead to 2014, and it must continue to demonstrate the commitment it has shown during the last year.” Markus Repnik, Country Manager World Bank

Finance & Banking

Supporting Implementation of EU Funds a Priority for World Bank The World Bank is playing a crucial role in spurring on Bulgaria’s economic development. A key task for the bank is to help Bulgaria leverage the €11 billion in EU funding it would receive through 2013. “We always work in partnership with the government. We offer a full package of support: knowledge, technical assistance, and financing. But taking into consideration the availability of significant EU grant resources, the World Bank’s financing role in Bulgaria is limited and complementary to EU funds. An important aspect of our partnership is to support policies and institutions enabling increased absorption of EU funds,” explains Country Manager Markus Repnik.

Markus Repnik, Country Manager World Bank

Providing new knowledge to help Bulgaria keep its development process on track and further foster EU integration is a priority for the World Bank, which recently presented an analysis of the country’s education sector – a critical sector to strengthen Bulgaria’s competitiveness. Markus Repnik explains that Bulgaria has gotten through the global ﬁnancial crisis with its ﬁnancial sector still strong, and that it needs to continue its focus on sustainable economic growth.

Infrastructure a priority One of the bank’s priorities is to support improvements in Bulgaria’s road, rail and water infrastructure. The bank is currently providing support to upgrade the country’s roads. The World Bank ﬁnances institutional development, maintenance and road safety systems. “The key factor is to best use the EU

funds for this and other infrastructure projects,” Markus Repnik says. He adds that the World Bank Group works closely not only with Bulgaria’s government but also through the International Finance Corporation IFC with the private sector. In December 2010, the World Bank announced that it had signed a memorandum of understanding with the government to support reforms of Bulgaria’s railway sector aiming at establishing a ﬁnancially sustainable railway sector that is aligned with EU standards and policies and in line with its prudent ﬁscal policy. In spite of the challenges, the World Bank believes that Bulgaria is on the right track. Markus Repnik says, “The government is beginning to think ahead to 2014, and it must continue to demonstrate the commitment it has shown during the last year.”

BULGARIA

Stock Exchange Adopting Proactive Strategies to Attract Investors The Bulgarian Stock Exchange (BSE), established in 1991, offers fully electronic trading and meets all EU standards. It is continually being upgraded to keep pace with new EU regulations and is overseen by the Bulgarian Financial Supervision Commission. The BSE currently lists around 350 companies, around 200 of which were part of the government’s major privatisation campaign in 1997. Ivan Takev, CEO, explains, “We operate only a cash market, and do not trade in derivatives, options or futures. We handle corporate bond issues but not government bonds, which are handled by the Central Bank.” When Bulgaria joined the EU in 2007, the BSE experienced the best year in its history, but the global ﬁnancial crisis then took its toll. After massive growth in 2007, the market declined by 80% between 2008 and 2009. Now the market is beginning to recover and the BSE is trying to bring back individual investors and foreign institutional investors. “We are trying to be proactive and in March 2010 we adopted a new strategy for the stock exchange that provides numerous mechanisms and measures for future development,” Ivan Takev says.

New privatisation programmes set to boost trading The government is also trying to support the BSE by privatising more large companies, including EON Bulgaria. “We are relying on the government to feed us new companies in

the interest of investors,” Ivan Takev says. As for the future, he says, “We want to see a full operational clearing house here in Bulgaria so that we can launch several additional services to facilitate short selling and so on. We also want to enable cross-border clearing and settlement so that we can attract companies from other EU countries to list on the BSE.” Bulgaria offers a number of advantages for investors, including favourable taxation, no taxes on capital gains, corporate tax of only 10% (one of the lowest in Europe), and a 5% tax on dividends, also one of the lowest in Europe. Thanks to these investment attractions, Ivan Takev is very positive about BSE’s future. He says, “If BSE demonstrates potential, I am sure that foreign investors will come back to us. Our ﬁnance minister is absolutely convinced that

Ivan Takev, CEO Bulgarian Stock Exchange

we are nearing the end of the crisis. Eventually we will start feeling the renewal of the Bulgarian economy, and since the BSE is a mirror of the economy, I am sure BSE will experience renewal as well.”

AmCham Forging Stronger Ties Between US and Bulgaria Bulgaria is not yet on the radar for most US investors, but the American Chamber of Commerce in Bulgaria (AmCham Bulgaria) is working to change that. “We are helping to expand bilateral agreements between the US and Bulgaria and we are making the local business environment more friendly to American investors. We already have several American companies operating here, but Bulgaria is still new on the global scene, having joined the EU and NATO relatively recently,” explains Valentin Georgiev, Executive Director. AmCham Bulgaria, established in 1994, now has more than 300 member companies from Bulgaria, the US and other countries; its members collectively account for more than half of Bulgaria’s GDP. AmCham’s key mission in Bulgaria is to strengthen economic relations between US and Bulgarian com-

mercial enterprises and to further improve Bulgaria’s business climate. AmCham Bulgaria is an afﬁliate of the US Chamber of Commerce and a member of the European Council of American Chambers of Commerce (ECACC). AmCham Bulgaria organises networking events, lobbies for the private sector, and provides essential advice and information for business leaders and investors.

Positioning Bulgaria as reliable EU partner To ensure Bulgaria’s sustainable economic development, AmCham advocates positioning the country as a reliable EU partner and focusing on promoting key sectors, including energy. “Bulgaria now has only one energy supplier, Russia, and we need to change that. Also, this country needs to be more energy efﬁcient, and we need investment in renewable energies,” Valentin Georgiev says. Information technology is another key investment opportunity in Bulgaria, AmCham believes. Valentin

Georgiev explains, “Bulgaria fell behind in the Soviet years, and now the country needs to improve its information technology human resources and provide better IT support for companies operating here.” Biotechnology also offers excellent potential in Bulgaria, according to AmCham. “We would like the government to create more incentives for biotech investment, particularly in export oriented enterprises,” Valentin Georgiev says. AmCham is ready to serve all foreign investors in Bulgaria. “Since AmCham is active all over the world, we have an international perspective as well as an in depth understanding of the Bulgarian market,” Valentin Georgiev explains. He notes that AmCham partners with the Bulgarian Investment Agency, whose services he praises. He concludes, “International investors should view Bulgaria as a high potential partner in the EU, and American investors in particular should explore the possibilities of trans-Atlantic cooperation with this country.”

BULGARIA

Bulgarian Swiss Chamber Promoting Bilateral Partnerships The Bulgarian Swiss Chamber of Commerce (BSCC) was established in Sofia in 2004 to provide information, contacts and services to companies and individuals in both countries, and its member companies represent a wide range of sectors in both Switzerland and Bulgaria. The BSCC regularly organises theme-based and networking events for its members and offers a range of services, including legal assistance, setting up potential partnerships, and advice on entering new markets. Boni Bonev, Chairman of the Bulgarian Swiss Chamber of Commerce explains, “Bulgaria is a young democracy, without the experience other countries have in business and politics. What is needed here is a strong and established rule of law, including a closely monitored code of ethics for the business sector. The non respect of rules and regulations has discouraged foreign direct investment in Bulgaria in the past and has created a negative image of the country internationally. Investors are also looking for more transparency, particularly in public tenders. Prime Minister Borissov’s government is working in the right direction, which is very positive for Bulgaria.”

Steady progress towards sustainable growth Boni Bonev adds that while some Bulgarian business leaders have been disappointed with the pace of change in the country in recent years, the current government is achieving slow but sustainable progress in creating the foundations for long term economic prosperity. “This steady pace is more beneﬁcial for a country lacking experience with a market economy than rapid change would be,” he believes, noting that the global economic crisis proved an advantage for Bulgaria in some ways by driving out weaker enterprises. The BSCC is offering assistance for Bulgaria’s ongoing development efforts in many ways, including providing, through Swiss Government Assistance

Boni Bonev, Chairman Bulgarian Swiss Chamber of Commerce

Programs, experts and consultants to help Bulgarian firms in all fields of business activity (including but not limited to procurements, marketing, sales, finances, strategic planning, logistics, etc.). Boni Bonev points out, “The Chamber is giving this service for free to Bulgarian businesses, which do not have to join our chamber to benefit. We are providing this assistance as part of our support for Bulgaria’s economic evolution.” Boni Bonev urges international investors to look into opportunities in Bulgaria. He concludes, “Bulgaria is full of potential, and even though there are still some risks, these risk factors are being taken care of. Foreign investors should really consider targeting Bulgaria. This country deserves your attention!”

Finance & Banking

Alpha Bank

Top Greek Banking Group Earns Clients’ Trust in Bulgaria The Alpha Bank Group, Greece’s top private banking entity, was founded in 1879 and now has more than 1,000 branches worldwide. Alpha Bank has been active in the Bulgarian market for 15 years and has been expanding particularly rapidly there over the past three years. At the end of 2009, the bank had over 120 branches in Bulgaria, including 31 in Soﬁa. It is currently building new headquarters near Bulgaria’s international airport and is steadily gaining market share. “We consider Bulgaria to be a key market for us. We understand the area and the people, and we are stepping up our investment here in a very proactive way,” explains Evangelos Lytras, Country Manager. Alpha Bank offers a full range of banking services in Bulgaria. Serving international investors is a top priority for the bank, which is working with a number of companies from Greece, as well as Israel and other countries. The bank welcomes the chance to serve more international investors, including Fortune 500 companies.

In depth understanding of local market Alpha Bank has a stellar track record in Bulgaria. “The latest research shows that Alpha Bank inspires the most trust of any other bank here. I believe that is because we not only have a strong ﬁnancial situation but we are also much closer to our Bulgarian customers and we understand the country and the region better because we are part of the region,” Evangelos Lytras points out. He adds that the high quality of the bank’s staff is another reason for Alpha Bank’s competitive edge. “A large company needs a reliable partner with an established international presence, strong capital base and an equally deep knowledge of the Balkan market and furthermore of the particularities of Bulgaria. It needs a partner that can guide him properly in regards to the economic and social conditions in the area, and whom it can call for all its ﬁnancial needs. A partner that has proven its stability, consistency and integrity. This partner is Alpha Bank,” Evangelos Lytras says.

Evangelos Lytras, Country Manager

Alpha Bank enjoys the financial support and international reach of the Alpha Bank Group while also offering its customers in depth understanding of the Bulgarian market, including its investment potential. Evangelos Lytras believes that Bulgaria has significant investment appeal; he cites the 10% corporate tax as one advantage. Alpha Bank aims to continue to upgrade its services in Bulgaria and to expand its branch network. It is also preparing to handle the EU funding flowing into Bulgaria by setting up a special department designed specifically to utilise and absorb these funds. The bank is committed to supporting Bulgaria’s economic growth and to providing the best possible services to its customers. Evangelos Lytras concludes, “Our clients tend to trust us and want to do business with us. We are the optimum banking solution here in Bulgaria.”

Tel.: +359 800 19 222 - www.alphabank.bg

• Vast Potential to Boost Foreign Trade

Trade & Industry

“We believe that as long as Bulgaria retains its autonomy, the stronger the EU’s influence on Bulgaria is, the better it will be for business.” Bojidar Danev, Chairman Bulgarian Industrial Association

Trade & Industry

Strong Advocate for Bulgaria’s Business Sector The Bulgarian Industrial Association (BIA) has long been a pioneer in Bulgaria’s business sector, having been founded in 1979 as the first non-government business organisation in a socialist block. “The BIA was launched to provide an alternate vision to the ‘party’ one. BIA has set up more than 600 small firms. Some of these member companies are still operating today,” explains Bojidar Danev, the BIA’s elected Chairman for the past 15 years. The BIA has steadily grown since those early years and now has 43,000 member companies; these enterprises account for 65% of Bulgaria’s GDP. Of Bulgaria’s top 300 companies, 263 are BIA members, as are all companies registered on the Bulgarian stock exchange. Exceptionally, the BIA’s membership even includes universities and the Bulgarian Academy of Science, reﬂecting the BIA’s focus on creating stronger ties between scientiﬁc research centres and the business sector. The BIA itself is a member of BUSINESSEUROPE and promotes the highest international standards in Bulgarian business. It serves as an umbrella organisation for large and small private companies operating in all sectors and acts as a liaison between the government and the private sector as well as between Bulgaria and other countries in the EU and beyond.

Bojidar Danev, Chairman Bulgarian Industrial Association

The BIA is currently working with government leaders to ﬁnd the best solutions for coping with the global economic crisis and its impact on the Bulgarian economy.

Strengthening ties with the EU A priority for the BIA is to promote innovation and the implementation of new technologies in Bulgaria. Another key goal is to help small and medium sized Bulgarian companies succeed in EU markets. Bojidar Danev points out, “Some of our members are now working at EU bodies and working groups. We are a part of the larger European family. We believe that as long as Bulgaria

retains its autonomy, the stronger the EU’s inﬂuence on Bulgaria is, the better it will be for business.” For potential investors, the BIA is a reliable source of in depth information about business activities in Bulgaria. It has assembled a database and provides transparent statistics and other information about business results and key events of interest to business leaders. The BIA has even created free software that it has installed in regional business centres to help it offer up to date information. Bojidar Danev concludes, “Our main objective is to promote the development of business in Bulgaria.”

BULGARIA

Port of Varna

Vast Potential to Boost Foreign Trade With its EU membership, ports on the Black Sea and the Danube, rapidly improving transport infrastructure and strategic location, Bulgaria definitely has the potential to become a successful trade hub, and it has made progress in boosting its foreign trade in recent years. Before World War II, around 90% of Bulgaria’s exports (mainly agricultural and food products) went to European markets, but during the Soviet years, Bulgaria’s trade was limited almost exclusively to CIS countries. Today, in contrast, the EU is Bulgaria’s leading trade partner by far.

Bulgaria’s top 15 trade partners (in descending order based on total trade) are Greece, Germany, Turkey, Italy, Romania, Belgium, France, Serbia, Russia, Macedonia, Spain, the UK, Austria, Poland and the US. In 2008, 27% of Bulgaria’s exports were to the EU, with Balkan countries accounting for 17%, Asia 10%, non EU European countries 6%, the US 3%, and other countries 4%. Bulgaria’s main sources of imports are Germany, Italy and Ukraine. Along with expanding its trade markets, Bulgaria has also diversiﬁed its export portfolio to include apparel, reﬁned petroleum and chemicals products, non-ferrous metals, machinery, agricultural products, drinks, food and tobacco.

Trade & Industry the Bulgarian economy through enhancing the export capacity of Bulgarian companies,” mainly by providing education and training for entrepreneurs involved in trade. As of 2010, Bulgaria had around 13,000 companies involved in exports, and the BIFT is committed to adding to that list.

Upgrading transport infrastructure Bulgaria is in the process of signiﬁcantly upgrading its transport infrastructure with the support of EU funds, and these upgrades are expected to help attract more trade oriented investments. Bulgaria must realise €990 million in EU funded projects by 2013, and between 2014 and 2020, the country will receive an additional €1.3 billion in EU ﬁnancing. Over 20 Austrian companies have expressed strong interest in participating in the upgrading of Bulgaria’s road and railroad infrastructure, according to Austria’s Ambassador to Bulgaria, Gerhard Reiweger.

Strong potential to boost exports The global economic crisis had a severe effect on Bulgaria’s foreign trade, yet it is beginning to pick up again and has strong growth potential, according to the Bulgarian Institute for Foreign Trade (BIFT), established in 2007. According to the BIFT, “Bulgarian companies have signiﬁcant and underutilised potential for exports and more active involvement in international markets. There are missed opportunities for all of us in Bulgaria.” The BIFT’s mission is to “contribute to the competitiveness of

Bulgaria’s Ministry of Regional Development is currently modernising and repairing the country’s road system, placing a priority on upgrading connections with pan European and international routes. Projects include a new road connection between Varna and Burgas (Bulgaria’s two main Black Sea ports) and motorways between Sofia and Kulata on the Greek border and between Plovdiv and Kapitan Andreevo on the Turkish border. Railway connections between Sofia and the Black Sea are also being upgraded, and in 2009 new storage and processing facilities were installed at the Bulgarian port of Svishtov on the Danube. Bulgaria’s main airport is Sofia International, for which a concession was announced in April; the Ministry of Transport expects the airport to be in private hands by early 2012. The government has also announced concession procedures for Shtrak-

levo Airport near the Danube city of Ruse, the cargo terminal of Plovdiv Airport, and Gorna Oryahovitsa Airport in central Bulgaria. A German-Bulgarian consortium recently won the €13 million concession for the airports of Varna and Burgas on the Black Sea.

Port of Varna seeing growth in traffic Meanwhile there are clear signs that Bulgaria’s trade activities are recovering from the global crisis. Bulgaria’s port at Varna achieved a 12% growth in trade volume in 2010, according to Port of Varna CEO Danail Papazov. He explains that the port handled 8 million tonnes of goods and cargo in 2010 compared to 6.7 million tonnes in 2009. The port ended 2010 with a net profit of €2 million, almost triple the 2009 total. The Port of Varna invested €1.5 million in its facilities in 2010, and plans to invest another €1.5 million to €2.5 million in facilities and equipment this year. One reason for the port’s increase in traffic is a growth in production in the chemicals and cement plants located in the Devnya industrial complex near the port. “These plants have returned to their export levels registered in 2008 before the crisis,” Danail Papazov explains. The Port of Burgas, Bulgaria’s other top port, has also been the target of projects to upgrade facilities and services and has received financial support from the Japan Fund for Reconstruction and Development and the US Trade and Development Agency. The Bulgarian government recently announced that a concession will be awarded for the port’s Terminal East 2 to help bring it up to EU standards. As Bulgaria continues to improve its transport infrastructure, it is becoming even more attractive as a target for investment in trade oriented enterprises.

BULGARIA

Radomir Metal Industries

Metal Industry Leader Implementing Cutting Edge Technologies

Plamen Bonev, CEO and Chairman of the Board, explains, “Our investment policy focuses on continuously upgrading our equipment and acquiring new machines and technologies for machinery and steel production. We have installed grinding machines from Herkules (Germany) and an electro-slag remelting plant from Inteco (Austria). We have managed to weather the economic crisis thanks to our investments and the fact that we work for most companies in Europe, Asia, the US, etc.” The company has its own electrical power station and Plamen Bonev, CEO and Chairman is in the process of develof the Board oping its own €120 million solar power facility. It fully complies with all EU environmental regulations. Projects in the works include implementing new technologies developed by NASA and building a new electro-slag remelting furnace. “We have many orders for projects for our established and new clients,” Plamen Bonev says. Radomir Metal Industries’ partners include Rolls Royce, Kobe Steel, General Electric, Arcelor Mittal, United States Steel, Thyssen Krupp AG, etc.”

Toyota Balkans

Auto Firm’s Mindset Makes it a Leader “Toyota Balkans’ leadership status is not an achievement, it is a mindset,” says Velko Lazov, Managing Director of Toyota Balkans. He explains, “As a market leader, we are very proactive in anything we do.” Toyota Balkans has grown since 1996 to achieve a 10.5% market share in Bulgaria, one of the biggest market shares among Toyota/ Lexus operations in Europe. Toyota Balkans represents Toyota/Lexus in Bulgaria, Macedonia and Albania. Velko Lazov handles distribution & retail sales in Bulgaria, Macedonia and Albania. Toyota Balkans is known for its corporate citizenship and for its ecologically friendly practices. In Bulgaria, the company sponsors a tree planting initiative, ‘green’ driving practices and the ‘green mindset thinking’ program, among others. “The British Ambassador to Bulgaria chose a Toyota Prius hybrid as his ofﬁcial car,” says Velko Lazov proudly. He adds, “Toyota is also one of the safest cars in the world.”

Radomir Metal Industries serves clients in a wide range of sectors, including the ship building, cement, mining, nuclear power, steel manufacturing and metals sectors, and it exports around 97% of its production. To potential partners, Plamen Bonev says, “Come to Bulgaria and work with us!”

Toyota is a major fleet player in Bulgaria. Several Bulgarian government officials and a number of major local companies have chosen their fleets from the Toyota models, among which Vivacom, Berlin Chemie, Carlsberg, Coca-Cola HBC and about 90% of the country’s pharmaceuticals enterprises. Velko Lazov concludes, “We give our customers as many reasons as we can to prove that together we are going to change the world, especially in Bulgaria. This country is a great place to invest.”

Radomir Metal Industries Triadica Housing Estate, 9 Pozitano St. entr. B, ﬂ.3, Soﬁa Address for correspondence: Industrial Zone, 2400 Radomir, Tel.: +359 777 80 489 RMIndustries@mbox.contact.bg

Toyota Balkans S.A. 163, Tzarigradsko schosse Blvd. 1784 Soﬁa, Bulgaria Tel.: + 359 2 48 97 100 www.toyota.bg

Trade & Industry

K&K Electronics

Innovative Electronics Retailer Outpaces the Competition When Nikolay Kitov and a friend founded K&K Electronics two decades ago at the very beginning of Bulgaria’s drive to develop a market oriented economy, they were taking a big chance on their country’s future. They survived the crisis of 1996-1997, built a warehouse and opened their first shop in 1999. Today, their company – which began as two men buying and selling products on the street – has grown to become a thriving private sector benchmark in Bulgaria and beyond. K&K is not only Bulgaria’s leading electronics retailer but it has also developed a strong presence through its subsidiaries and associated companies in Serbia, Kosovo, Croatia, Bosnia, Macedonia, Romania and other markets. Even during the height of the most recent economic crisis in 2009, K&K achieved around €320 million in turnover in Bulgaria alone, and it is still growing fast. K&K triumphs over its competitors through a winning combination of high quality products and exceptional customer service. “K&K always exceeds its clients’ expectations,” Nikolay Kitov says confidently. K&K is also a trendsetter: it was the first company in Bulgaria to sell electronics products online. Now it is benefiting from EU funds to upgrade its professional knowledge organising training programs and courses for its staff. The company has established an expanding network of Technomarket and Demo stores and has developed its own highly successful Neo brand of home appliances which are well known in Bulgaria and throughout the region. K&K has also attracted the attention of foreign investors, including UK based investment group Trans Balkans Investments Limited (TBIL).

Partner of choice for major hypermarket chains Major international hypermarket groups like Metro and Carrefour have chosen to partner with K&K.

“Expand the market as much as possible: this is what we like to do. We will always ﬁnd a way to cooperate,” Nikolay Kitov says. He welcomes more foreign investment in Bulgaria’s retail sector. Nikolay Kitov is conﬁdent that eventually Internet sales will account for a much larger share of K&K’s total sales revenues. He explains, “Bulgaria is still very old fashioned; most people still pay for their purchases with cash. In fact, cash purchases account for 70% of sales in Bulgaria while in Croatia, 80% of sales are by credit card. We aim to stimulate the Internet market here in Bulgaria.” Given K&K’s track record, the company is sure to singlehandedly boost Internet sales in Bulgaria while also continuing to grow and bring innovative new products to the market.

K&K Electronics Tsarigradsko Chaussee 361 1138 Soﬁa - Bulgaria Tel.: +359 2 9421 124 info_technomarket@kkelectronics.com www.technomarket.bg

BULGARIA

KCM 2000 AD

KCM 2000 AD Celebrates 50 Years of Dynamic Growth KCM 2000 AD is celebrating 50 years of promoting Bulgaria’s sustainable development. The fully privatised company, one of Bulgaria’s biggest industrial groups, is the only producer of zinc, lead, silver and gold in South-East Europe. CEO Dr. Nikola Dobrev says that KCM 2000 AD’s total production value per year has reached around €270 € million, 94% of which is exported. “Just as an example, we produce around 60 tons of silver every year,” he says. KCM 2000 AD has proved its strength and adaptability by surviving every major change in Bulgaria over the past half century while also maintaining its independence. “Sometimes it’s better to be alone. As a Bulgarian company, we solve our problems here from beginning to end using our own funds,” Dr. Nikola Dobrev points out.

Efﬁciency, environmental awareness, social responsibility

Dr. Nikola Dobrev, CEO

Efficiency, respect for the environment and a commitment to corporate social responsibility are KCM 2000 AD’s guiding principles. “Our management excels at making rapid decisions ad hoc to keep the ship afloat even between the rocks!” Dr. Nikola Dobrev explains. In addition, KCM 2000 AD was the first enterprise in Bulgaria to adopt EU Environment Policy and Planning criteria and it has launched a number of community service projects in Kuklen, its home base.

To maintain its competitive edge, KCM 2000 AD will continue to invest in its personnel, market its products effectively using the latest techniques, including the Internet, and expand its client base. The company mainly serves battery producers in Turkey, Romania, Serbia, Macedonia, Italy and Spain, and it now aims to work with new clients in Germany and France as well as Central Europe. Dr. Nikola Dobrev concludes, “KCM 2000 AD promotes stable development.”

KCM 2000 AD Assenovgradsko Shosse St. 4009 Plovdiv - Bulgaria - Tel.: +359 32 623 542 - ofﬁce@kcm.bg - www.kcm2000.bg

Innovations and Investments for Ecological Future

KCM 2000 AD Assenovgradsko Shosse St. - 4009 Plovdiv - Bulgaria - Tel.: +359 32 623 542 - office@kcm.bg - www.kcm2000.bg

• New Legislation Bringing Positive Change to Education Sector

Education

“We want to focus on developing each student’s individuality, which cannot be done in a teacher oriented system.” Sergei Ignatov, Minister of Education

Education

Bringing Educational System Up to International Standards Bulgaria has been steadily upgrading its educational system since 1989 in spite of a number of challenges, and the government’s Europe 2020 strategy sets ambitious goals for Bulgarian education. Sergei Ignatov, Minister of Education, explains that one hurdle the country’s educators have to overcome is a widening gap between computer savvy young people and an older generation which has little or no experience with new technologies. In addition, changes in Bulgaria have been so pronounced in so many areas over the past few years that many people are not yet ready for changes in the educational system as well. Minister Ignatov says, “Our educational system is at a medium level compared to the EU. We still need to modernise many things, including changing people’s attitudes. We need to conduct a dialogue with the population to convince people that the old way was not better.” The Ministry of Education is in the process of modernising the educational system at every level, from preschool to university. A guiding principle is to make the system more student centred. “We want to focus on developing each student’s individuality, which cannot be done in a teacher oriented system. We need to change practices, attitudes and textbooks. Children need textbooks adapted to their age group and they need to feel they have acquired the necessary skills to develop themselves in the future,” Sergei Ignatov believes.

Sergei Ignatov, Minister of Education

Stepping up pace of reforms

Another priority is to adapt educational programmes to the evolving needs of the job market. “Unless we change our system, Bulgaria will experience a brain drain,” the minister believes. He adds that another focus for the Ministry of Education is to change the process for certifying teachers to ensure the highest quality professionals in the classroom.

In spite of the problems, Bulgarian students have won many international competitions in math and science, and medical training in Bulgaria has reached EU standards. Reforms are still needed, however, and the pace of reforms needs to be stepped up: Sergei Ignatov points out that some reforms agreed on in the 1990s were only introduced this year.

The Ministry of Education has organised a number of “round tables” on Bulgaria’s educational system, inviting participation from teachers and the general public in discussions of textbooks and other issues. “This has had a very positive effect because it has created more awareness of the educational system and the need for changes,” Sergei Ignatov says.

BULGARIA

New Legislation Bringing Positive Change to Education Sector Bulgaria’s education system, which is overseen by the Ministry of Education and Science, is undergoing a significant transformation, according to Sergei Ignatov, Minister of Education. At a conference held in London in March 2011, he said, “We are lagging behind in terms of higher education modernisation in Bulgaria, but, like the UK, we are facing high competition from the US and East Asia. We all need to change if we want to survive.” Minister Ignatov notes that change in education does not come easily. Concerning recent decisions in the UK to raise tuition prices, the minister comments, “I think that UK universities are right in restructuring the sector to meet the future. No academic institution can afford to look only to the past, even though in Bulgaria, as in the EU in general, the Anglo-Saxon model does not always sit comfortably with citizens’ expectations, because people are not used to thinking about its rising costs.” Minister Ignatov, a former rector of the New Bulgarian University, explains that in his view, a successful university must “have a clear strategy towards research and innovation, a dynamic structure and high academic

standards.” He adds, “I think Bulgarian universities can do more to sharpen their academic proﬁle and to connect with each other through a clear national strategy. We need to know what are we best at and how can we deliver it to our young people.”

New Higher Education Act To reach these goals, Bulgaria has implemented new regulations on education, including a Higher Education Act which will allow Bulgarian universities to bestow academic titles for the ﬁrst time rather than going through an outside commission. “It was high time the state stopped interfering with the work of universities and academia,” Sergei Ignatov comments, noting that the changes to

Do the best! 23 “Sv. Sv. Kiril i Metodiy” str., Pernik, Bulgaria Tel.: +359 76 60 52 07 ofﬁce@epu.bg - www.epu.bg

Education Bulgaria’s higher education system will boost the “competitive spirit” of Bulgarian universities. He says, “The newly appointed associate professors will not be required to have a certain period of work experience. Instead, they will be asked to present a certain number of academic publications.”

Adhering to Bologna Process criteria The Minister believes the new regulations will give a career boost to Bulgaria’s young and promising scholars as well as help improve education in Bulgaria in general. In its education reform efforts, Bulgaria is particularly concentrating on adhering to the criteria of the Bologna Process, the Europe wide harmonisation effort designed to standardise academic degree standards and quality assurance standards throughout the EU. Bulgaria’s education system includes both public and private Bulgarian institutions as well as private international schools. Basic education is free. Bulgaria’s universities now include

“Thanks to our more than 130 years of international experience and our innovative approach we make our students use the new language from the very first day. Our Bulgarian customers appreciate our quality and effectiveness.” Language Training Centres, Berlitz

Berlitz Language Centres Bulgaria and Romania www.berlitz.bg, www.berlitz.ro Sofia, Plovdiv, Varna, Stara Zagora Bucharest, Timisoara

institutions dedicated to liberal arts, arts, music, medicine, engineering, law, food technologies, transport, economics, architecture and construction, chemical technologies and metallurgy, forestry and other ﬁelds, and universities operate all over the country. European Polytechnical University (EPU) offers European educational traditions blended with the American style and closely related to the needs of business and the marketplace. The private, English language American University in Bulgaria in Blagoevgrad, which is accredited in both the US and Bulgaria, is Bulgaria’s most prominent international school.

Educational reforms began in 1989 Bulgaria actually began to reform its educational system in 1989, long before the country joined the EU, in order to replace the former Soviet system with one geared to preparing Bulgarian students to play productive roles in the EU and global economy and help contribute to Bulgaria’s economic development. As a result of these reforms, Bulgaria significantly improved its educational offerings at all levels, but experts agree that more change is still needed. The government currently spends only around 3% of the country’s GDP directly on education, a low percentage among EU countries. Support from the EU, the US and other sources has helped to take up the slack to fund improvements in schools and universities, but more funding is needed. Challenges for the educational system include a high ratio of drop-outs in the 18 to 24 years of age range, a need for more adult education services, and a lack of sufficient investment in scientific research; funding for research is expected to rise as Bulgaria aims for the 3% target set in the Europe 2020 strategy. Uneven education results are another problem, with more students in Sofia and surrounding areas attending university than in other parts of the country.

Identifying investment priorities Since government funding is limited and cannot cover everything that is needed, Bulgaria is working to identify priorities for investment in education. Making primary and secondary school curricula more oriented toward skills development rather than theory is one possibility. Concerning higher education, key targets include boosting the number of students attending university and creating more adult education opportunities. EU studies on education show that increasing the number of people with university degrees in a country can have widespread positive effects, including higher GDP, greater job satisfaction and more competitive scientiﬁc research. Bulgaria welcomes more international partnerships and investment in its education sector to help it achieve its goals.

“The quality of education is what brings value to International University College. We push on the world’s best quality standards in what we offer to our students to help them be most competitive for jobs in the best companies.” International University College

International University College University of Portsmouth Programme Tsarigradsko shose 149, Building B Soﬁa 1784 Tel.: +359 2 421 9595

• Widespread Healthcare Reforms Underway • Spa and Health Resorts Attracting More International Travellers

Health

“We want the people of Bulgaria to be confident that the funds they contribute to the healthcare system will bring them benefits.” Dr. Stefan Konstantinov, Minister of Health

Health

Modernisation of Healthcare System Creating Partnership Opportunities Solidarity – ensuring that everyone has access to high quality healthcare – is the guiding principle of Bulgaria’s healthcare system. The Ministry of Health is “not trying to change the system but rather to improve it,” according to Dr. Stefan Konstantinov, Minister of Health. He adds, “We want the people of Bulgaria to be confident that the funds they contribute to the healthcare system will bring them benefits.”

offer a variety of services, including services which are also provided by specialised hospitals. The state does not need to fund both.”

Opportunities for foreign investors and suppliers

Dr. Stefan Konstantinov, Minister of Health

The Ministry of Health is currently working to provide better healthcare services for the country’s elderly residents and also to provide more rapid access to specialist physicians. “We have a system whereby general practitioners serve as the ‘gatekeepers’ in the system; patients must see a general practitioner before being referred to a specialist. We are instituting a stimulus system to ensure faster service,” Minister Konstantinov says. Bulgaria’s public healthcare system is ﬁnanced by the National Health Insurance Fund (NHIF) and the Ministry of Health. As of 2010, 352 public hospitals throughout the country were afﬁliated with the NHIF, but while some of these hospitals (such as a specialised cardiology hospital) are thriving, others are not. To achieve better balance, the Ministry of Health aims to eliminate duplicated services. Dr. Stefan Konstantinov explains, “Some hospitals

While a healthcare system cannot be changed overnight, the Ministry of Health is steadily making progress in upgrading facilities, technologies and services in Bulgaria’s hospitals. For example, Bulgaria has already implemented the cutting edge Da Vinci robotic surgery system. Dr. Stefan Konstantinov says that the ministry has earmarked €147 million for upgrading oncology equipment in Bulgaria’s hospitals and is currently looking for suppliers in the EU. The ministry also welcomes EU partnerships concerning e-health services. Dr. Stefan Konstantinov points out that Bulgaria still needs to implement EU funds for healthcare development and that this process is creating new investment opportunities. The Ministry of Health welcomes more private investment in the healthcare sector, particularly as it works to attract more patients, including health tourists, from outside Bulgaria. Minister Konstantinov says, “We already have too many hospitals and do not need new ones; we need to modernise the existing ones and make them more transparent. The Ministry of Health is open to forming public private partnerships for healthcare projects.”

BULGARIA

Widespread Healthcare Reforms Underway Bulgaria has been actively reforming its healthcare system since 2009, closing hospitals that were operating below capacity, introducing a new health insurance system with both mandatory and voluntary elements, and encouraging the growth of public and private insurance services.

Dr. Stefan Konstantinov, Minister of Health, notes that Bulgaria welcomes private investment in its healthcare sector, and that EU funding for healthcare projects is creating new opportunities for foreign investors while also ﬁnancing major improvements in the healthcare system. The ministry’s priority is to upgrade existing healthcare facilities by making them more transparent and by implementing new equipment, facilities and services. As in all countries, funding public healthcare services remains a challenge. Bulgaria has both public and private healthcare; public healthcare services in Bulgaria are free, although, because of perceived deﬁciencies in the public system in the past, consumer spending on private healthcare has been growing, rising by 21.4% in real terms between 2004 and 2009. In fact, in 2009, Bulgarians devoted 4.1% of their consumer spending to healthcare, compared to an EU average of 3.7%. Health insurance coverage is minimal in Bulgaria; as of January 2010, an estimated 1.7 million Bulgarians had no health insurance.

Progress steadily being made While the challenges are great, progress is steadily being made. A change in regulations in 2009 ended the widespread practice of pharmacies selling prescription medicines as over the counter (OTC) products, and stricter pharmaceuticals controls have been implemented. In addition, a national health portal was launched in March 2009 as part of an e-health programme, allowing for patient records to be accessed online by health professionals. The government plans further e-health tools to be introduced this year and in 2012. New equipment has been installed in many hospitals, and inefficient or understaffed healthcare facilities have been closed down. In April this year, Minister Stefan Konstantinov announced he would introduce a new system of public healthcare payments next year; it will follow a model of diagnostics related groups which has been functioning well in Australia for many years. The new model will cover the cost of treatment of 700 different conditions, while the current one covers only 298. Also, the medical treatment of grave illnesses and critical conditions will be ﬁnanced with priority. Reforms like these are geared to making the system more efﬁcient and transparent while also upgrading the quality of healthcare in Bulgaria.

Health

Spa and Health Resorts Attracting More International Travellers

Specialised Rehabilitation Hospitals

Specialised Hospitals Seeking EU Partners

Spetzializirani Bolnitzi za Rehabilitatzija Natzionalen Kompleks, Bulgaria’s National Complex of Specialised Rehabilitation Hospitals, can serve as a reliable partner for investors in Bulgaria’s rapidly developing healthcare sector.

Spa and health tourism offers excellent growth potential in Bulgaria thanks to the country’s combination of diverse cultural and natural attractions as well as many health spas. Bulgaria currently has 58 balneotherapy and spa resorts and is ranked second in Europe after Iceland in the number of natural hot springs which can be developed as spas. According to Bulgaria’s National Association for Spa Tourism, more than 128,000 tourists visited Bulgarian spa hotels last year. The country’s three most popular spa resorts are Velingrad, Sandanski and Hisaria, but other spa resorts around the country have the potential to greatly increase their visitor numbers once they are more fully developed; the association cites Vyrshetz as one example. Velingrad saw its visitor numbers rise 35% after it upgraded its spa resort infrastructure. The Bulgarian Tourist Agency reports that more than 18% of foreign visitors to Bulgaria and more than 13% of Bulgarian travellers visit spa resorts on their holidays in Bulgaria. Bulgaria is well placed to beneﬁt from the growing European trend to travel to spas not only for health reasons but for relaxation and pleasure, and Bulgarian tourism ofﬁcials are stepping up their marketing efforts to attract more spa visitors.

Dr. Aleksander Semkov, Executive Director, explains that the organisation operates 13 hospitals in spa resorts throughout the country, and that these hospitals (with a total of around 2,000 beds) serve around 50,000 to 60,000 patients each year. He explains, “We have been accredAleksander Semkov, ited by the Ministry of Health and Executive Director we can be a very convenient partner concerning the absorption of EU funds for Bulgaria’s healthcare sector.” In 2010, the Rehabilitation Complex successfully participated in the European Program for Development of the Human resources. It is open for new partnerships with the European Union. It is a key player in Bulgaria’s ongoing reforms of its healthcare sector. “Our top priority is to meet EU standards. We would like to attract more patients from the EU as well as continue to serve Bulgarian patients,” Dr. Aleksander Semkov says. Citing the reasons EU partners should target Specialised Rehabilitation Hospitals, Dr. Aleksander Semkov explains, “Our organisation is completely transparent and legal, and it has stable revenues. In addition, our hospitals are located in well established spa locations so we are well placed to help spur on medical tourism in Bulgaria.”

Specialised Rehabilitation Hospitals 54, Vassil Levski Blvd.1142 Soﬁa Tel.: +359 2980 3552 sbrnk@rehabilitation.bg, www.rehabilitation.bg

• Capital of Culture, Business and Tourism

City of Sofia

“Sofia is one of the oldest cities in Europe, and we want to make sure that it is a very attractive choice for international business and leisure travellers.” Jordanka Fandakova, Mayor of Sofia

Aleksander Nevski Church

Sofia Mayor Working to Improve Quality of Life, Tourism Appeal Jordanka Fandakova, Mayor of Sofia, strongly supports the efforts of Prime Minister Borissov to develop Bulgaria’s economy, fight crime and corruption, and promote international investment. She says, “I was elected at the same time as the Borissov government was inaugurated, and it is very important to me to support the Prime Minister’s efforts to ensure sustainable development for Bulgaria and for Sofia.” The Mayor points out that widespread improvements are currently underway throughout Sofia that will support the city’s economy and ensure better quality of life for its residents. Jordanka Fandakova says, “All areas are equally important. We are working hard on improving Sofia’s infrastructure, including upgrading roads and the metro (underground) system, rebuilding bridges, creating new transportation connections, modernising the city’s water and sewerage systems, and cleaning up Sofia in general through our ‘green city’ initiatives.” Improving Sofia’s educational system is also a top priority for the mayor, who formerly served as Bulgaria’s Minister of Education. She says that 11 new kindergartens have been opened this year in Sofia and four more are planned, along with several new children’s playgrounds.

Attracting tourism visitors Promoting Sofia as a tourism destination is another focus for Mayor Fandakova, who points out that new hotels are being built in Sofia and that urban beautification projects, including a one km long flower garden, have proved very popular among the city’s residents. “Sofia is one of the oldest cities in Europe, and we want to make sure that it is a very attractive choice for international business and leisure travellers,” she says. Significant progress has already been made in Sofia over the past year. Around 45% of a new underground line has been completed, and a major museum is being built; 16,000 sq m of it will be open air while the remainder will be housed within the underground system. The EU has provided funding for excavation efforts for this project, and archeologists and transport specialists are working together to make sure the project meets the highest international standards. Jordanka Fandakova explains, “We have changed the route of our underground system four times as part of our commitment to preserving Sofia’s archeological heritage.” Sofia will continue to upgrade its facilities and services with the support of EU funding and advisors. Mayor Jordanka Fandakova concludes, “EU experts have been here from the beginning and we are continuing to move forward with their help.”

BULGARIA

Rila monastery

Capital of Culture, Business and Tourism Bulgaria’s cosmopolitan capital, Sofia, is a dynamic blend of past and present. Home of the country’s government, many of its leading universities, and of several multinationals operating in Bulgaria, Sofia, with a population of 2 million, is the country’s leading hub for business, tourism and culture. Founded more than 7,000 years ago as a strategic trade and cultural link between Europe, Asia and the Middle East, Bulgaria’s capital testifies to the country’s eternal bond between past and present. Over 250 historic monuments from Sofia’s rich Thracian, Roman, Bulgur and Ottoman history stand next to modern office buildings and shops. For tourist visitors, Sofia offers architectural wonders, many parks and gardens, several prestigious museums, interesting boutiques, a growing choice of hotel options and much more. Sofia is also within easy access of ski facilities on nearby Vitosha mountain in winter and nature reserves to explore the rest of the year, as well as Bulgaria’s spa resorts, tranquil Rila Monastery, and many other attractions.

EU funded urban development programme Soﬁa’s Mayor, Jordanka Fandakova, is overseeing a comprehensive programme to upgrade the city’s facilities and services with the help of EU funding and

advisors. Projects underway in the programme, which began in 2008 and is set for completion by 2013, include expanding the public transport system, building new roads and bridges, modernising the city’s water and sewerage systems, and making the city greener through cleanup campaigns, installation of new parks and gardens, and much more. Sofia welcomes international investment and regularly announces tenders for participation in major construction and other types of projects in its urban development initiative. In addition, the city’s privatisation programme is creating new opportunities. As the municipality’s web site, www.sofia.bg, points out, the Sofia Municipal Privatisation Agency is currently offering city owned property and businesses to private investors; these offerings range from small workshops to shops, restaurants and entire buildings. City services from transport to heating facilities are also being privatised; a private German-Bulgarian consortium is now handling cleanup operations in the city. Sofia offers significant investment attractions, particularly now that Bulgaria has joined the EU. It is a dynamic and modern European city with a youthful population, an international airport, a business friendly municipal government, a strategic location, developed infrastructure, and highly qualified human resources. “As Sofia’s mayor, I welcome foreign investors to our city. You can count on our support,” Jordanka Fandakova promises.

• High Potential Agriculture Sector Offers Signiﬁcant Opportunities • Protecting the Interests of Bulgaria’s Agricultural Producers • Bulgaria among EU’s Top Eight Countries in Agriculture Revenues

Agriculture & Food Industry

“We have a great diversity of nature, great resources, and high quality products. Bulgaria will continue to fight to become more transparent and open.” Dr. Miroslav Naydenov, Minister of Agriculture

BULGARIA

High Potential Agriculture Sector Offers Significant Opportunities Bulgaria’s Ministry of Agriculture is helping to implement the EU’s Common Agricultural Policy, which aims to provide farmers with a reasonable standard of living, to ensure high quality food and good prices for consumers, and to preserve rural heritage and environment. Dr. Miroslav Naydenov, Minister of Agriculture, explains that current priorities for his ministry include implementing the European Agricultural Fund for Rural Development and Bulgaria’s National Strategy Plan for Fisheries and Aquaculture as well as the SAPARD programme to provide ﬁnancing for agriculture and rural development. “Finally, we are seeing growth in the ﬁeld of organic farming, which we feel is very important for Bulgaria,” he explains.

The Minister of Agriculture is also repairing the damage to the reputation of Bulgaria’s agriculture sector caused by corruption in the previous government, which led to an EU freeze on funding. Dr. Miroslav Naydenov says, “There were many issues of corruption with the former government, and things were not done transparently. Many representatives from the previous government, including from this ministry, are currently being prosecuted. Now there is a new government, with multilingual, energetic ministers, many of whom come from the private sector. We are results oriented.” The minister recently sacked a number of agriculture ofﬁcials for illegal practices.

Vast expanses of fertile farmland Bulgaria’s agriculture sector has signiﬁcant potential and has grown even during the global economic

Dr. Miroslav Naydenov, Minister of Agriculture

downturn, providing many opportunities for foreign investors. The minister says, “Much of Bulgaria’s territory is covered by very fertile farmland, and we also have extensive forests with a very diverse ecology. Bulgaria produces unique bacteria found in much of the world’s yoghurt, and we also have very high quality honey. Bulgarian wine makes up 2% of the world’s market share, and is also of very high quality.” Bulgaria’s agriculture sector needs modernisation and investment to make the most of its potential, the minister points out. He says, “We need modern equipment to make our farms more competitive and efficient. This will also lead to lower prices.” The Minister of Agriculture urges European investors to seek out projects in Bulgaria. He concludes, “Bulgaria has a lot of opportunities, and many of these lie within the agricultural sector. There are opportunities in wine and beer production, food processing, fisheries, and organic farming. We have a great diversity of nature, great resources, and high quality products. Bulgaria will continue to fight to become more transparent and open.”

Agriculture & Food Industry

Protecting the Interests of Bulgaria’s Agricultural Producers The Bulgarian Association of Agricultural Producers (BAAP), a non profit organisation established in 2004 before Bulgaria joined the EU, was launched to serve as a reliable source of information and support for Bulgaria’s agriculture sector as it met the challenges of the country’s EU membership. “We work actively with the Ministry of Agriculture and the State Fund for Agriculture, and we contributed to forming Bulgaria’s National Strategic Plan for Rural Development for the period 2007 to 2013,” explains Ivailo Todorov, General Secretary. BAAP is committed to protecting its members’ interests, offering assistance for agricultural enterprises, resolving problems in Bulgaria’s agriculture sector, and helping members meet EU standards and achieve success in European markets as well as in Bulgaria. BAAP’s team of experts provides members with up to date information on EU regulations via an information bulletin, the association’s web page, and specialised seminars. BAAP has 12 representatives throughout the country to offer direct support for producers in all agricultural regions.

Ivailo Todorov, General Secretary Bulgarian Association of Agricultural Producers

Members lead the agriculture sector

Many of the association’s members are oriented towards cutting edge agricultural projects, including bio technologies, renewable energies and organic farming. “Our agricultural producers are willing to try the latest approaches,” Ivailo Todorov says.

BAAP’s members are the leaders in the Bulgarian agriculture sector, and many were the ﬁrst to beneﬁt from the country’s rural development programme. BAAP continues to promote transparency in the implementation of this programme’s initiatives.

Ivailo Todorov adds that the association’s former executive director, Svetlana Boyanova, is now Bulgaria’s Deputy Minister of Agriculture and Food. “She comes from outside the government and she knows the problems of our sector ﬁrst hand,” he explains.

“We have members from all parts of the Bulgarian agriculture sector, and of all sizes, including wineries and other enterprises. Our members range from the biggest players in the market to smaller agricultural associations,” Ivailo Todorov points out. Several members, including some of Bulgaria’s leading wineries, participate regularly in international conferences and professional fairs, bringing the world’s attention to the potential of Bulgarian agriculture.

BAAP organises annual round tables in which its members have the opportunity to present and discuss issues of interest with government leaders, and it participates in a number of national and international projects related to agriculture and rural development. As BAAP’s mission statement explains, “Representatives of BAAP possess the necessary expertise and experience to protect the interests not only of the association’s members, but also of all agricultural producers.”

BULGARIA

Bulgaria among EU’s Top Eight Countries in Agriculture Revenues Bulgaria’s agriculture sector offers significant investment potential, and Invest Bulgaria, the country’s official investment promotion organisation, welcomes the chance to assist international investors in agricultural projects, including accessing EU funding for agriculture.

Bulgaria has around 4.9 million hectares of agricultural land, or around 44% of the country’s land area, and its climate is favourable for the production of a variety of crops. Agriculture has always been a leading economic sector in Bulgaria, which means that local skills are available as well as well developed animal breeding and crop production systems. Bulgaria’s agricultural schools train skilled workers, and labour costs are low. While

Agriculture & Food Industry

foreigners ofﬁcially cannot own land in Bulgaria, the country’s Foreign Investment Law allows locally registered companies with foreign participation to acquire agricultural land.

24% growth in value of agricultural exports in 2010 Bulgaria’s agriculture sector achieved impressive performance in 2010, including a 24% growth in export value. A report published in April this year by the Ministry of Agriculture and the National Statistical Institute notes that Bulgaria’s agricultural exports reached a total value of €2.29 billion in 2010 compared to €1.8 billion in 2009, and the agriculture sector’s trade balance reached a positive €636.2 million over the year, up from 2009’s positive €259.5 million. As the Ministry of Agriculture points out, “The proactive export policies of the state have led to increasing the export potential of Bulgarian agricultural products.” Around 72% of Bulgarian agricultural exports are to other EU countries; other important markets are Russia, Ukraine, Turkey, and the Middle East. Agricultural products accounted for 17% of Bulgaria’s total exports in 2010. While the agriculture sector’s contribution to Bulgaria’s GDP was only 5.2% in 2010, the sector’s gross added value grew by 10.9% over the year and accounted for 6% of total gross added value generated by the Bulgarian economy for the year. In addition, the agriculture sector grew faster than any other sector in Bulgaria last year, with a 23% growth in overall revenues (following 12.3% growth in 2009), making Bulgaria one of the top eight EU member states in average revenues from agriculture. The Ministry of Agriculture notes, “Bulgaria’s agriculture sector growth has surpassed the growth rates in older EU member states such as Germany, Spain, the UK, Greece, and Portugal.” The sector has grown by a total 54.2% since 2005, compared with a 10% average EU agriculture sector growth rate over the same period.

Rapidly increasing investments in agriculture Investors are taking advantage of this success story. Around 36% of total funding for Bulgarian agriculture through the EU Rural Development Programme has already been contracted, with 19.7% already paid out, making agriculture the sector with the highest rate of absorption of EU funds in Bulgaria. Processing projects have been particularly targeted by investors.

The Ministry has asked the European Commission for changes in the programme in order to provide more beneﬁts for animal breeding, which made up 30.9% of Bulgaria’s agriculture sector in 2010, up 4.6% from 2009. Income from cattle breeding alone grew by 36.5% over the year. Bulgaria’s main agricultural crops are tomatoes, peppers, tobacco, grapes, wheat, maize, beans, potatoes, sunﬂowers, peaches, apricots, apples, melons, and nuts. The country also has a long tradition of raising sheep, pigs, cattle and poultry, and is renowned for its high quality honey and dairy products. Bulgaria’s top agricultural exports at present are grapes, tobacco, tomatoes and apricots.

Investing in the full value chain Invest Bulgaria points out that investment opportunities in Bulgarian agriculture include “the creation of total production chains through a combination of selected companies in clusters covering the primary sector, processing, sales and distribution.” Concerning food production, Bulgaria has a well developed system of food research and development institutions. Bulgaria also has a strong tradition in the production and processing of vegetables and fruits, but needs investment in modern marketing, crop production, processing and distribution systems. Bulgaria now has around 200 food processing plants producing canned vegetables, fruit products, juices, fresh and dried mushrooms, herbs and other products. The dairy sector is another investment opportunity. Bulgaria’s dairy products made from cow, sheep and goat’s milk are highly prized, and the country now has almost 500 dairy production facilities, most of them newly established. Bulgaria is well known regionally for its yoghurt and for its kashkaval and feta cheeses. Meat production is another investment opportunity singled out by Invest Bulgaria, which notes that the country needs more farms to fatten animals as well as slaughterhouses and feed production facilities. The wine sector also has investment appeal in Bulgaria, which has been a major wine producer for many years and exports wine all over the world. Addressing potential investors in Bulgarian agriculture, Invest Bulgaria says, “Our work for you will be professional, ethical and completely transparent. Contact us to see how our expertise can beneﬁt you.”

Agriculture & Food Industry

Bella Bulgaria

Your Ideal Partner in Bulgaria “The key to a successful business is long-term planning, which is not based only on profits, but on sustainable growth. Eco projects are the new essential element,” said Ventsislav Georgiev, Chairman of the Board of Directors of Bella Bulgaria. Bella Bulgaria is the leading organisation in the FMCG sector in the country. The company employs 3,500 people and reached a turnover of €130 million in 2009. Creator of the No 1 food brand in Bulgaria and awarded with the Best Company Ventsislav Georgiev, Chairman prize by the European Business of the Board of Directors Assembly, Oxford, Bella Bulgaria has strengthened its image of an innovative partner, seeking for new challenges. The latest international recognition of a global business comes from Madrid with the company’s admission to the Trade Leaders Club. Bella Bulgaria owns nine manufacturing facilities, specialised in meat and milk processing, oil and fats, agricultural products processing and pastries, operating with the most powerful and sophisticated machinery equipment. High-tech monitoring of the processes is applied in each of them, since the company has implemented a system for quality management ISO 9001:2000 and IFS. The information ﬂow is managed by a modern ERP system by the world renowned supplier Oracle.

Bella Bulgaria is an ofﬁcial partner of Danish Crown and distributes Hochland and Miltex in Bulgaria. The company has developed its own subsidiary in Romania and plans entrance on the Greek market. Currently it exports to the US, Australia, Spain, Turkey, Slovenia, Greece, Dubai, etc. An important part of Bella Bulgaria’s structure is Fresh Logic, its Logistics Center, which is the biggest one of its kind on the Balkans, with capacity to handle loads equal to approximately 30% of the total volume of chilled and frozen food products distribution in the country. Social responsibility is the trademark of Bella Bulgaria. The company is well known for various social activities which have earned respect and appreciation both from its customers and the governing authorities. Bella continuously constructs playgrounds throughout the country and supports the reforestation of burnt forests in the Rhodope Mountains. To preserve natural balance, the company implements clean production technologies, including construction of treatment plants, utilisation of biomass from agriculture and search for alternative energy from renewable sources. The corporate vision and the shareholders’ strong intentions for continuous growth make Bella Bulgaria the undisputable best business partner in the country.

Due to an excellent business strategy, implementation of the world’s know-how in various ﬁelds of the activity and the company’s ﬁnancial stability, Bella Bulgaria is acknowledged with one of the highest credit ratings in the country and abroad. The company’s image as an ethical and socially responsible organisation is an additional guarantee for success in any business operation. Bella is a key player on the Bulgarian market. The company covers directly, with its own distribution network, more than 12,000 outlets and all retail chains in the country. It also covers most of the A.F.H. (away from home) business.

Bella Bulgaria 37 Nestor Abadzhiev Str., Plovdiv 4023 Republic of Bulgaria, P.O. Box 57 Tel.: +359 (0) 32 606 303, Fax: +359 (0) 32 606 444 ofﬁce@bella.bg, www.bella.bg

• A Natural for Upscale Cultural and Alternative Tourism • Association Building the Right Foundations for Tourism Development • Outstanding Attractions throughout the Country

Tourism

“One of the key strong points in Bulgaria’s tourism sector is that this country has still not been discovered and exploited as a tourism destination, yet it offers rich cultural tourism attractions and much more.” Irena Georgieva, Chairman Association of Bulgarian Tour Operators and Travel Agents

Tourism

Association Promoting World Class Standards in Tourism Industry The Association of Bulgarian Tour Operators and Travel Agents is playing a key role in Bulgaria’s tourism development. Irena Georgieva, Chairman, explains, “We are an association of International Air Transport Association (IATA) accredited agencies, which was created to defend the interests of tour agencies using IATA. However, we realised that airline tickets are just one part of the whole tourism picture, and in 2006 we changed our name and broadened our scope to cover the entire tourism spectrum.” Today, the Association of Bulgarian Tour Operators and Travel Agents has become Bulgaria’s most prominent professional tourism association. It has 103 tour agencies on its membership list, around 80 of which have IATA accreditation. “We have very strict principles and are very strong in overseeing our members, particularly concerning compliance with the regulations of Bulgaria’s Tourism Board. Our members are companies of all sizes but all of them are the best on the market,” Irena Georgieva says conﬁdently.

Creating strong tourism regulatory environment Bulgaria’s tourism regulatory environment is still evolving and the association is contributing to its development. Irena Georgieva explains, “We believe that Bulgar-

Irena Georgieva, Chairman Association of Bulgarian Tour Operators and Travel Agents

ia’s tourism law needs to include regulation of tourism services presented on the Internet. A lack of regulation of Internet space is creating obstacles for consumers and for travel agencies. Our association feels that protecting the rights of travel agencies goes hand in hand with protecting the rights of consumers.” Another goal for the association is to make sure that Bulgaria implements EU regulations for VAT charges in the tourism sector and keeps pace with evolving EU directives on this issue. “This is a very practical task. It is a part of our efforts to harmonise Bulgarian VAT with European levels,” Irena Georgieva says.

The Association of Bulgarian Tour Operators and Travel Agents aims to promote Bulgaria as an undiscovered gem on the global tourism circuit. Irena Georgieva explains, “One of the key strong points in Bulgaria’s tourism sector is that this country has still not been discovered and exploited as a tourism destination, yet it offers rich cultural tourism attractions and much more. Our Thracian artifacts are particularly rare, and we are working to bring them to the world’s attention. Bulgaria has excellent potential for cultural tourism as well as for spa holidays. We welcome international travellers to discover everything that Bulgaria has to offer.”

BULGARIA

A Natural for Upscale Cultural and Alternative Tourism

Black Sea

Bulgaria is currently reorienting its tourism industry to focus on quality rather than quantity, and it welcomes foreign investment in world class tourism projects, including hotels, resorts, and tourism infrastructure.

Arrivals up in 2010 Bulgaria’s tourism industry is on a growth curve. Traycho Traykov, Minister of Economy, Energy and Tourism, explains, “This year and last year our tourism sector performed quite well, and we saw an increase in tourism arrivals in 2010 compared to the previous year. Bulgaria has traditionally concentrated on mass tourism, both in the summer and in the winter. Tourism has grown explosively, but not in a sustainable way. Now our focus is on alternative and cultural tourism.” He adds that Bulgaria’s tourism leaders aim to offer a “richer experience” for foreign visitors and encourage them to stay longer.

Tourism

Bulgaria has everything it takes to become a top European travel destination: rich cultural artefacts, unspoiled nature, a number of spas, a strategic location in Europe, and support from the EU to develop its tourism infrastructure. This small country in south-eastern Europe on the Balkan Peninsula offers great tourism diversity, from beach resorts along the Black Sea to skiing in the mountains, all kinds of adventure and sports opportunities, ecotourism and cultural tours, and a very international capital city.

Cultural melting pot Located at the crossroads of East and West, Bulgaria has been home to many civilisations – Thracian, Hellenistic, Roman, Byzantine, Slavic, Proto-Bulgarian and Ottoman – which have given the country its rich heritage of architectural landmarks as well as its colourful traditional culture. Bulgaria is an undiscovered gem for travellers seeking off the beaten track cultural attractions. Bulgaria’s capital, Sofia, has a population of around 2 million and is the country’s largest city as well as the 12th largest city by population in the EU. With its international airport, it is the gateway to Bulgaria for most international travellers and serves as Bulgaria’s administrative, cultural, economic, and educational centre. Many multinationals have opened operations there, and the city’s residents are welcoming to foreigners. Founded as a Thracian stronghold in the 7th century BC and inhabited ever since, Sofia is filled with historic landmarks, yet offers modern facilities and services.

Balkan mountain

and more travellers are discovering. Options include cycling, bird watching, bear and wolf watching, hiking, mountain climbing and rock climbing, ﬁshing, equestrian holidays, and much more. Bulgaria’s Sreburna Reserve, a biosphere reserve in the Danube valley, and Pirin National Park in the mountains, a popular ecotourism destination, are both listed on the UNESCO World Heritage list of natural sites.

UNESCO Natural and Cultural Heritage Sites

World class hotels and resorts

Beyond Sofia, Bulgaria has several UNESCO Natural and Cultural Heritage sites; these include the Thracian Kazanluk Tomb, dating from around the 4th century BC, which is known for its vivid murals; the Ivanovo Rock Churches, carved into the hillsides near the city of Rouse in Rousenski Lom Nature Park; Boyana Church just outside Sofia, featuring murals painted in 1259 which are considered among the masterpieces of European mural art; the Madara Horseman, carved out of a cliff in the early Middle Ages; Rila Monastery, founded in the 10th century and considered the most significant religious site for the Bulgarian people; ancient Nessebur on the Black Sea coast, known for its architectural landmarks from the 5th to the 17th centuries; and Sveshtari Tomb, a 3rd century BC Thracian tomb with a lavishly decorated burial chamber.

For business travellers, Bulgaria has a number of top class hotels and conference facilities and aims to build more every year. Executive travellers will ﬁnd up-to-date services in Soﬁa and in the main cities of Varna, Burgas, Plovdiv, Rousse, Stara Zagora and Pleven.

Variety of ecotourism possibilities With its unspoiled natural areas, Bulgaria also offers outstanding ecotourism development potential, as more

New hotels geared to pleasing international travellers are opening in Soﬁa and in cities and rural locations throughout Bulgaria. Bulgaria’s tourism ofﬁcials are currently stepping up their global marketing efforts to help make the world more aware of Bulgaria’s exceptional tourism attractions. Recent television ads with the slogan “Discover Bulgaria: Magic Lives Here” were shown on Euronews, Eurosport, National Geographic Television and the Discovery Channel, and were watched by some 137 million visitors, according to the Ministry of Economy, Energy and Tourism. Bulgaria is certain to see continued growth in its tourism arrivals in 2011 and beyond.

BULGARIA

Association Building the Right Foundations for Tourism Development The Bulgarian Association of Alternative Tourism (BAAT) aims to position Bulgaria as a unique, environmentally friendly tourism destination for the 21st century. Its innovative approach to tourism development includes focusing on Bulgaria’s authentic traditions and culture as well as its “green” appeal. Bulgarian tourism is still in its early stages, and BAAT is committed to establishing sustainable foundations for tourism growth. Lubomir Popiordanov, Chairman, explains, “We are currently creating the culture of Bulgarian tourism. We aim to highlight the country’s heritage and we have developed the ‘Green lodge association certiﬁcation’ scheme to help people recognise green tourism development, for example through our new ‘Green lodge’ poster. We want to encourage a responsible attitude towards nature and the scenery here in Bulgaria. We believe that if institutions change their attitudes, people will follow.” BAAT is partnering with the Bulgarian government in various green initiatives, including efforts to promote a greater sense of responsibility in the Bulgarian people concerning protecting the environment and keeping their cities clean. “We are trying to develop a community spirit here in Bulgaria,” Lubomir Popiordanov says. He praises the current government for its support of BAAT’s environmental initiatives and notes that the state is beginning to take a more proactive approach to Bulgaria’s tourism industry. “The government is starting to look into making Bulgaria a more competitive tourism destination,” he says.

Vast potential for developing diverse attractions Lubomir Popiordanov believes that Bulgaria’s tourism sector can be “proﬁtable, supportive of the country’s culture, and innovative.” He cites Bulgaria’s vast potential for developing a wide range of tourism attrac-

Lubomir Popiordanov, Chairman Bulgarian Association of Alternative Tourism

tions, from ecotourism to sports and adventure travel as well as cultural tours. Bulgaria is already drawing travellers from all over the world. “We are seeing a lot of interest, particularly among Japanese visitors, in our beautiful Rose Valley, and US visitors are particularly attracted to our cultural sites. Over the past year we have seen more visitors from the Mediterranean region,” Lubomir Popiordanov says. Priorities for BAAT include encouraging more airlines to offer direct ﬂights to Bulgaria and promoting the country’s attractions in global markets. Lubomir Popiordanov explains, “We currently have a branding and communication problem. We need to market Bulgaria more via the Internet. Basically, we have a very cool tourism product but we are not successful in selling it at the right price. We have not yet become very effective in promoting the uniqueness of Bulgaria, but we aim to change that.” For more information, visit www.baatbg.org

Tourism

Penguin Travel

Leading Travel Company Specialises in Tailor-Made Tours and Adventure Penguin Travel has a mission: to make the world more aware of Bulgaria’s myriad tourism attractions by offering top quality, tailor-made tours that showcase the country’s diversity. Penguin Travel has been operating for more than 17 years and is a recognised specialist in providing hiking, cycling, horseback riding, snowshoeing and bird watching tours, among many other creative travel options. The company is known for its professional services, local knowledge and flexibility. CEO Elitsa Simeonova explains, “Our company was established in Denmark where we have an ofﬁce in Copenhagen, but the owner is Bulgarian. We specialise in alternative tourism rather than the standard mass market tours. We help our guests enjoy everything Bulgaria has to offer. Bulgaria is much more than Black Sea beaches; it has mountains, valleys, picturesque villages, rivers, mineral water springs and wonderful nature that we can show to our guests. Bulgaria also has a rich cultural heritage waiting to be discovered.” Penguin Travel favours small groups of 15 people or less in order to provide personalised attention to every traveller.

World class car hire services Penguin Travel also provides world class car hire services to add to its options for travellers. “Concerning car hire, we have a user friendly policy on terms of use and services,

and we follow European standards because that is what our customers expect,” Elitsa Simeonova says. Penguin Travel works with agencies in Holland, Germany and Russia and is always looking for new partners in other markets. The company primarily serves foreign travellers, many from Scandinavia, Germany, USA, Australia, Italy, Israel and Holland. It also regularly organises special interest tours. Elitsa Simeonova says that she aims to organise special team building tours for corporate clients that involve interesting adventure travel throughout Bulgaria. She explains, “We want to expand into new markets. We are creating a web site that will be available in seven languages so that we can reach people all over the world.”

Urging travellers in Europe to make Bulgaria their next destination, Elitsa Simeonova concludes, “Many visitors to Bulgaria stay only in Soﬁa, but we want them to see the other side of Bulgaria as well. Bulgaria is a paradise on Earth, waiting to be explored!”

Penguin Travel is also promoting its services in the domestic market, encouraging more Bulgarians to discover their country in new ways, such as by bike or on horseback.

Penguin Travel Group 2 Javorets Street 1421 Soﬁa - Bulgaria Tel: +359 2 4001051 Fax: +359 2 4001049 info@penguin.bg www.penguin.dk

BULGARIA

Vitosha Park Hotel

Four-Star Service for Leisure and Business Travellers The four-star Vitosha Park Hotel offers upscale facilities and services for business and leisure travellers in Sofia. The hotel has 173 comfortable rooms and suites, including top floor VIP apartments with private terraces overlooking the city and picturesque Vitosha Mountain. All rooms are equipped with direct dial telephone service, satellite/cable TV, WiFi Internet access, a minibar, and a kitchenette with a sink, fridge and microwave. The hotel is ideally located in Soﬁa’s university district just 15 minutes from the city centre and 10 km from the international airport. General Manager Borislav Avramov explains that the hotel’s amenities

also has a large swimming pool where guests can take swimming classes or relax in water aerobics classes. Other services at the hotel include tennis courts, table tennis facilities, a beauty parlour and a coiffeur.

Borislav Avramov, General Manager

include room service, laundry and dry cleaning service, car hire, free breakfast, free use of the hotel’s swimming pool or ﬁtness centre, a car park, and much more. The Vitosha Park Hotel has a choice of restaurants and bars (including a piano bar, a lobby bar and a pool bar), each with its own special atmosphere and menu. “We put the emphasis on popular Bulgarian, European and Mediterranean cuisine and we often offer theme menus. We cater to all dining needs. We serve breakfast, lunch, dinner and light brunches, and we provide professional catering for corporate and private parties,” Borislav Avramov points out.

For corporate guests, Vitosha Park Hotel has a fully equipped conference centre with diverse facilities to accommodate all types of events. The centre has ﬁve meeting rooms for up to 30 guests each, three adaptable conference rooms with different capacities up to 150 guests, and a VIP hall with seating for 15 people. All meeting rooms are equipped with the latest technologies, and the hotel’s events staff can help organise any type of gathering. The Conference Bar, which serves drinks and lunches, adjoins the conference centre and adds to the hotel’s attractions as a location for business meetings. Whether travellers come to Soﬁa for leisure or business, the Vitosha Park Hotel is a world class choice as a place to stay.

World class wellness centre The hotel’s world class wellness centre has personal trainers and diet counselors on staff. Guests can choose from over 10 types of massages and pamper themselves in the centre’s steam room, sauna and solarium. The centre

Vitosha Park Hotel 1, Rosario Str. Soﬁa 1700 - Bulgaria Tel.: +359 2 816 88 88 +359 2 816 88 02, +359 2 816 88 00 www.vitoshaparkhotel.com

Tourism

Outstanding Attractions throughout the Country Travellers to Bulgaria will find much to see and do anywhere in the country, but a few destinations are on the “don’t miss” list. Here are a few standouts.

Soﬁa, sophisticated capital city

Bulgaria’s capital, Sofia, with a history dating back 13 centuries, is a lively mix of old and new. Filled with historic landmarks, it also offers excellent hotels and restaurants, diverse shopping options, a dynamic cultural scene, universities, art galleries and many prestigious museums. The city’s best known landmarks reflect Bulgaria’s long, multicultural history and include the Church of Saint Sofia, Banya Bashi Mosque, Saint George Rotunda, and Boyana Church, a UNESCO World Heritage site.

Beach resorts on the Black Sea Bulgaria’s Black Sea coast has long attracted European travellers. Sunny Beach has a wide, sandy beach where visitors can try out all kinds of water sports, including water polo and water scooters. The resort town is also known for its restaurants, many of them catering to families, and for its vibrant nightlife. For travellers seeking a quiet and relaxing beach holiday, the port town of Balchik is the perfect place.

Varna, historic trade hub Varna, one of Bulgaria’s main ports on the Black Sea, has been a key international trade hub and cultural melting pot for centuries. Its landmarks date from the Roman, Byzantine, Greek and Thracian periods, and local museums showcase the city’s rich cultural heritage. Varna is also known for its restaurants, parks and shopping centres.

Spas for “wellness” holidays Bulgaria has hundreds of natural hot springs, and spa resorts have been developed around many of them. They include Velingrad, Sandanski and Hisaria (the

most visited spas in 2010), Vyrshetz, Pomorie on the Black Sea (known for its special mud with healing properties), and many others.

Top class ski resorts Bulgaria has long been known among insiders as an excellent choice for a skiing holiday thanks to reliable snow, modern facilities and services, and very attractive prices. Bulgaria’s most popular ski resorts are at Bansko, Borovets, Pamporovo and Chepelare.

UNESCO World Heritage Sites Bulgaria has seven UNESCO World Heritage cultural sites, which are Nessebar, Boyana Church, Madara Rider, Rila Monastery, the Rock-Hewn Churches of Ivanovo, and the Thracian tombs of Kazanlak and Sveshtari. Two of Bulgaria’s natural parks are on UNESCO’s World Heritage list of natural sites: Pirin National Park and Srebarna Nature Reserve. Bulgaria also has 13 sites on UNESCO’s tentative World Heritage list.

BULGARIA

Hotel Sveta Sofia

Four-Star Hotel Property in the Heart of Sofia The elegant four-star Hotel Sveta Sofia, located on a quiet pedestrian street in the heart of the city, is an excellent base for visitors to Bulgaria’s capital. Boriana Stratieva, Marketing Manager, explains, “Hotel Sveta Sofia is a high quality hotel which is privately owned, giving it a more personal touch. We attract individual leisure travellers as well as groups and corporate clients. We offer very fair prices and welcome many travellers from Germany, the UK, Italy and the Balkans region.” The hotel is located in a landmark property dating from the end of the 18th century and was completely renovated in 2002. Its amenities include a convivial lobby bar, wireless Internet connections throughout

service, restaurant reservations, tours of the city and surroundings, a ﬁtness centre and much more.

Boriana Stratieva, Marketing Manager

the hotel, personalised service, and an ideal location just steps from most of Sofia’s luxury boutiques, business centres and cultural attractions. Sofia Synagogue, Banya Bashi Mosque, the Archeology Museum, the National Art Gallery, the Ethnographic Museum, the National Theatre, St. Sofia Church, Alexander Nevski Cathedral, the National Assembly, Sofia University and the National Stadium are among the sites that are just a short walk from the hotel.

Range of world class services The Sveta Soﬁa has 68 rooms and suites, including large luxury suites. All rooms are non smoking and equipped for guests with special needs, and all have wireless Internet access. The hotel’s restaurant features ﬁne Bulgarian, continental and vegetarian specialties and serves breakfast. The hotel’s additional services include airport pickup, message and sauna facilities, a 24 hour front desk, 12 hour room

To serve business travellers, the hotel has a wide range of meeting rooms which can accommodate events of all sizes, from small groups up to meetings for 130 guests. The multipurpose rooms can be arranged in different configurations to meet guests’ needs. All feature the latest technologies, ergonomically designed chairs and tables, and Internet connectivity for sending and receiving e-mails. The hotel’s professional meetings staff can help organise any type of event, and the hotel’s catering service can provide high quality meals and snacks. The Sveta Sofia is ready to serve foreign visitors and regularly offers a number of special promotions at very advantageous prices. Welcoming guests to the Sveta Sofia, Boriana Stratieva says, “I want people to discover everything that our hotel has to offer, and also everything that Sofia has to offer.”

Hotel Sveta Sofia 18, Pirotska str. - Sofia - Bulgaria Tel.: +359 2 981 2634 +359 2 983 5033, +359 2 983 1723 reservations@svetasofia-alexanders.com www.hotelsvetasofia.com

CarRent is a local car rental company with years of experience in offering a range of cars, vans and limousines with and without a driver. We operate in Sofia, Varna and Burgas, at all international airports and deliver our cars throughout Bulgaria. CarRent is committed to providing quality service and uncompromised professionalism of its staff. CarRent will be honored to become your reliable partner for business and leisure. CarRent is looking for an associate partner to be able to expand the business. Contact Information: HQ Sofia 1592, 13 Iskarsko shosse str. Tel. +359 2 9601408, +359 888221600 Varna +359 884 352910 Burgas + 359 884 135550

BULGARIA

Metropolitan Hotel Sofia

Luxury Hotel a Favourite Among Business Travellers The Metropolitan Hotel Sofia rolls out the welcome mat for visitors. The locally owned hotel, which contains 201 rooms and suites, opened in 2008 and has already become a favourite among local and international travellers. It is ideally located near the airport and Sofia’s city centre. Deliana Moneva, General Manager, explains, “We focus on business travellers. We meet our guests at the airport and provide a free shuttle service. We have Internet everywhere in the hotel free of charge, as well as a free mini bar in each room, laundry and room service that are available 24 hours a day.” All guest rooms are equipped with individually controlled air conditioning, a safe, ﬂat screen television and a telephone line with a message service. For extended stays, the Metropolitan can provide a special rate for its 16 suites.

State of the art conference facilities The Metropolitan has eight conference rooms, the largest of which can accommodate up to 250 people, while the smallest is designed for around eight guests. “Not a lot of hotels in Soﬁa can offer this many meeting rooms with this variety,” Deliana Moneva explains. The hotel’s luxurious amenities include a ﬁtness centre, a spa and a Jacuzzi, holistic massage service,

the convivial Met Bar, and an award winning restaurant, the Metropolitan. The head chef, Andrey Stoilov, has won numerous prizes for his cuisine, including the gold medal in the 2008 Cooking Olympics held in Germany, and the Metropolitan’s chef Tanya Vitanova achieved second place in the recent Chef of Bulgaria 2009 contest. The Metropolitan also regularly offers special packages, including a current golf package which includes a night at the hotel and a round of golf on the 18 hole championship course at the Pirin Golf and Country Club.

biggest international ﬁve star chain hotels in the city centre concerning our size and the services we offer. We differentiate ourselves from these hotels by providing an excellent product for a very good price.” The Metropolitan also stands out from other hotels because of its staff’s commitment to making the hotel a success. As Deliana Moneva points out, “The people we have working here are the hotel’s best feature. It is our mission to continue to maintain the highest standards and to surpass our guests’ expectations.”

Focus on added value Commenting on the Metropolitan’s competitive edge, Deliana Moneva says, “We are comparable to the 64, Tsarigradsko shose Blvd. Sofia 1784 Bulgaria Tel.: +359 (0)2 419 19 00 Fax: +359 (0) 2 419 19 09 Reservations@ metropolitanhotelsofia.com www.metropolitanhotelsofia.com

BULGARIA

Apartment House Sofia

Home Away from Home in Sofia Apartment House Sofia offers modern, elegantly decorated full service apartments for guests seeking a true home away from home in Bulgaria’s capital city. The apartments range from 56 sq m to 200 sq m, and each has its own unique décor. Every apartment is equipped with a private bathroom and a fully equipped kitchen, a separate bedroom, air conditioning, large screen plasma TV/LCD, a wired Internet connection and a minibar. All apartments benefit from a daily cleaning service, and non-smoking and two bedroom “family” apartments (in which each bedroom has its own bathroom) are an excellent option for families and colleagues on a business trip. Apartment House Sofia has its own outdoor terrace and enjoys an ideal location in the quiet Lozenets residential area overlooking the Vitosha mountains and within walking distance of Sofia’s downtown.

A personal touch “We offer a personal touch that sets us apart from other accommodations in the city,” says Iliyana Spirova, Manager. She adds that Apartment House Sofia has a reception desk open around the clock with staff available to help guests at any time, and that she is also ready to offer assistance. She says, “I am here to help make our guests’ stay as easy and enjoyable as possible. Our guests know that they can rely on me for nearly everything.” Apartment House Sofia’s customers include both short term and long term tenants; one family has lived in the apartment complex for the past six years. “We have a lot of experience working with foreign embassies and representatives of foreign companies here in Sofia. We also work with actors who have productions going on in Bulgaria. We have had very good experiences working with film production companies, such as New Boyana Films, which always contacts us for accommodations for their actors,” Iliyana Spirova explains. Facilities at Apartment House Sofia include a restaurant which serves breakfast either in the dining room or in guests’ apartments on request; a bar; a laundry

room; a safe deposit box at the front desk; fax and other business services; tourist information; underground parking as well as car hire services; and an airport shuttle. Iliyana Spirova is ready to welcome visitors to Sofia and anticipates high occupancy rates for Apartment House Sofia; for example, she expects to have many new clients this year who have come to Bulgaria for film productions or on business. To prospective visitors, she concludes, “We are your home abroad!”

Apartment House Sofia 2-4 Golo Bardo, Lozenets - 1407 Sofia Tel.: +359 2 960 28 88 info@aphouse-sofia.com www.aphouse-sofia.com

Tourism

Hotel Downtown

City Centre Business Hotel Makes Guests Feel at Home Hotel Downtown has been providing top quality services to executive travellers for almost a decade. With only 59 guest rooms, this boutique hotel makes personalised services a priority, and even the most demanding guests keep coming back again and again.

The hotel offers a fully equipped business centre as well as 2 conference rooms for up to 50 guests. “When booking an event at our meeting rooms you will benefit from the following: an executive meeting specialist familiar with all your details will be at your side throughout your event, ready to help with anything you and your guests may need.”

“Many famous people from all over the world – singers, musicians, ballet dancers, writers – have been guests of the Downtown hotel,” says Liana Melik-Pachaeva, the hotel’s young owner. Hotel Downtown has 41 standard rooms, four deluxe rooms and 14 spacious suites, all elegantly furnished. Every room has its own style, but all are equipped with individually controlled air conditioning, satellite/pay TV, a minibar, LAN and wireless Internet connections, an in room safe, soundproof windows, an electronic lock system, and an en suite bathroom with a bathtub, hairdryer and telephone. The suites have separate work areas.

Ideal city location The Hotel Downtown is ideally located in the centre of Sofia across the street from the British Ambassador’s residence and within walking distance of all the city’s top financial institutions, cultural sights and entertainment.

Liana Melik-Pachaeva, Owner

The hotel’s facilities include a gourmet restaurant, a lobby bar which serves drinks and snacks, and a fitness centre with a sauna, solarium and massage services. Business travellers make up around 99% of the hotel’s clientele, Deputy General Manager Mihaela Manolova adds. “Our aim is to provide excellent service and make every guest feel comfortable. We reach out to corporate clients with this kind of personal care that big hotels are not able to provide. Transportation from and to the airport, free wireless internet and conference facilities which our partners can sometimes use for free are other ways to attract more business.

“We regularly organise wine tastings and often invite our repeat clients who appreciate fine wines. These wine tastings give our guests the chance to try new wines that might be added to the restaurant’s wine list as well as just have a good time among friends. In case guests wish to learn about whisky and whiskey, the right place is our lobby bar, offering more than 300 malts of superior and proved brands,” General Manager Lubomir Parmakov said.

hotel@hoteldowntown.net www.hotel-downtown.net

With special thanks to:

Where Hospitality is a Standard 27, Vassil Levski Blvd. - 1040 Sofia - Bulgaria Tel.: +359 2 9305 200 hotel@hotel-downtown.net www.hotel-downtown.net