PUBLISHED BY PLOVDIV MUNICIPALITY

Contact: invest@plovdiv.bg

IN PARTNERSHIP WITH INDUSTRY WATCH GROUP LTD.

Contact: bpo@iwatchbulgaria.com

COPYRIGHT 2017 PLOVDIV MUNICIPALITY

INVESTMENT DESTINATION PLOVDIV

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WELCOME TO PLOVDIV!

THIS MAY BE YOUR FIRST ENCOUNTER WITH PLOVDIV OR YOU MAY UPDATE PREVIOUSLY KNOWN FACTS AND DATA ABOUT THE REGION. IN ALL CASES, IT IS JUST THE FIRST STEP IN A JOURNEY THAT MY TEAM AND I WILL JOIN YOU IN. PLEASE MAKE SURE YOU TAKE ADVANTAGE OF MUNICIPALITY OF PLOVDIV’S DEPARTMENT FOR BUSINESS DEVELOPMENT WITH MAIN PURPOSE PROVIDING USEFUL AND PRECISE INFORMATION TO EXISTING AND NEW INVESTORS IN PLOVDIV.

ENG. IVAN TOTEV MAYOR OF PLOVDIV

AS A MAYOR OF PLOVDIV, I AM PROUD AND PRIVILEGED TO OPEN THE 2017 EDITION OF THE “INVESTMENT DESTINATION PLOVDIV” CATALOG. THIS BOOKLET IS INTENDED TO SERVE INVESTORS’ INTEREST IN BULGARIA AND ITS SECOND BIGGEST CITY, ANSWERING QUESTIONS ABOUT BUSINESS CLIMATE, LOCAL ECONOMY, LABOUR FORCE, COSTS OF EMPLOYMENT, PROPERTY MARKET, ETC.

WITH SOME 70 000 JOBS IN THE MANUFACTURING SECTOR PLOVDIV IS THE “INDUSTRIAL CAPITAL” OF BULGARIA. BUT ITS ECONOMY IS QUITE DYNAMIC, OPEN TO DEVELOPMENT TOWARDS HIGHER-END PRODUCTIONS. TRAKIA ECONOMIC ZONE – UNDOUBTEDLY THE BIGGEST ORGANIZED AND SERVED INDUSTRIAL ZONE IN THE COUNTRY - MAKES THE WIDER PLOVDIV REGION THE PREFERRED HOME FOR ABOUT 90 MULTINATIONAL COMPANIES.

THE CITY’S VIBRANT START-UP ECOSYSTEM, COMBINED WITH ITS “HIPSTER” CULTURE, MAKES IT A PREFERRED PLACE TO LIVE, WORK AND EXPERIMENT FOR MANY YOUNG PEOPLE. THE CITY HAS A POSITIVE MIGRATION BALANCE, WITH MORE YOUNG PEOPLE STAYING HERE OR COMING FROM ELSEWHERE. WITH OVER 40 000 STUDENTS, PLOVDIV OFFERS GREAT GROUND FOR FURTHER EXPANSION OF THE IT AND OUTSOURCING INDUSTRIES.

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TABLE OF CONTENT

DOING BUSINESS IN BULGARIA 3 LOCATION & CONNECTIVITY 5 Plovdiv on the map 5 Climate & geography 7 POPULATION 8 LABOR FORCE 9 Wages by segment 10 EDUCATION 12 LAND & PROPERTY MARKET 13 Business property prices 13 Office and industrial facilities rents 14 Construction activity 15 Available land for business 15 ACCESS TO UTILITIES 16 Electricity 16 Natural gas 17 Water and sewage 17 CONSTRUCTION PERMIT 18 LOCAL TAXES & FEES 20 General tax policy 20 Property tax 20 Waste fee 21 LOCAL ECONOMY 22 Manufacturing 23 Business services 24 MAJOR INVESTORS 25 SPECIAL FOCUS 27 IT&BPO 27 Machine building and R&D 27 Automotive 28 Transport & logistics 28 INDUSTRIAL ZONES 29 Trakia Economic Zone 29 Industrial Park Markovo 29 CULTURE & TOURISM 30 The world’s sixth oldest city 30 Sports & recreation 31 Arts & city events 32

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46689

101114151517181819192020212323232425262728303030313132323233333435

DOING BUSINESS IN BULGARIA

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As a parliamentary republic with a functioning market economy, Bulgaria joined NATO in 2004 and EU in 2007. The laws and regulations in almost all spheres of life were harmonized with EU legislation.A currency board establishes a fixed exchange rate (to EUR) regime under which the Central Bank cannot finance the government or the commercial banks. Bulgaria will keep the fixed rate until the adoption of the Euro which is part of its EU accession agreement. Since 1997, all governments maintained a conservative fiscal policy, with low deficits or even surpluses. The public debt went down from over 100% of GDP to about 29% at present.The third lowest ratio in EU of government debt-to-GDP was recorded in Bulgaria (28.7%) next only to Estonia's and Luxembourg’s according to Eurostat’s 2016 report. The euro area’s total public debt stands at about 90.1% of Eurozone's GDP.Government spending in Bulgaria was the 6th lowest in EU - 40.7% of GDP, compared to 48.5% in the entire Euro area according to Eurostat’s 2015 report. In addition, Bulgaria’s 10% corporate and personal income tax rates are the lowest flat rates in EU and one of the lowest in the world according to Eurostat’s 2015 report. In comparison, Romania holds 16% corporate and personal income tax rates, Serbia - 15%, and the Czech Republic respectively 19% and 15%.Since 2005, The World Economic Forum in Davos (www.weforum.org) has based its competitiveness analysis on the Global Competitiveness Index (GCI), a

comprehensive tool that measures the microeconomic and macroeconomic foundations of national competitiveness. In the 2016-2017 GCI, Bulgaria ranks 50th overall (out of 138) as compared to Serbia (90th), Romania (62th), Greece (86th), Turkey (55th), and Poland (36th). This is a positive trend since the country took 62nd place in the 2012-2013 edition and 74th place in the 2011-2012 edition. Bulgaria scores best in “Technological readiness” (38th) and “Macroeconomic environment” (42th).

LAWS AND REGULATIONS WERE HARMONIZED WITH EU LEGISLATION AS THE COUNTRY JOINED EU IN 2007

BULGARIA’S 10% CORPORATE AND PERSONAL INCOME TAX RATES ARE THE LOWEST FLAT RATES IN EU

IN THE 2016 EDITION OF THE ECONOMIC FREEDOM OF THE WORLD INDEX, BULGARIA RANKS 45TH (OUT OF 159 COUNTRIES)

IN THE 2017 EDITION OF THE DOING BUSINESS INDEX, BULGARIA RANKS 39TH (OUT OF 190 COUNTRIES)

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Since 2003, the World Bank has prepared the Doing Business Report (www.doingbusiness.org). It objectively assesses regulations affecting domestic firms in 190 economies and ranks the economies in 10 areas of regulation. The report provides quantitative measures of regulations affecting areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. In the 2017 edition Bulgaria ranks 39th out of 190 countries as compared to Hungary (41st) and Greece (61st). The best scores that Bulgaria receives are in "Protecting Minority Investors" (13th), "Trading across Borders” (21th), and "Getting Credit" (32rd).

Since 1996, the index published in Economic Freedom of the World Report (www.freetheworld.com) by the Fraser Institute (Vancouver, Canada) has been measuring the degree to which the policies and institutions of countries are supportive of economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of privately owned property. 42 variables are used to construct a summary index and to measure the degree of economic freedom in five broad areas - size of government, legal system and property rights, sound money, freedom to trade internationally, regulations. In the 2016 edition of the Index Bulgaria ranks 45th (out of 159). The best scores are in "Sound money", "Freedom to trade internationally" and “Regulations”.

INDICATOR RANK SOURCE YEAR

GOVERNMENT DEBT (% OF GDP)

3rd lowest in the EU (28.7%) Eurostat 2016

PERSONAL AND CORPORATE INCOME FLAT TAX RATES

1st lowest in the EU (10%) Eurostat 2016

DOING BUSINESS INDEX

39th (out of 190) World Bank 2017

ECONOMIC FREEDOM OF THE WORLD INDEX

45th (out of 159)

Fraser Institute

2016 (calculating the index in

the 2016 edition with data from 2014)

GLOBAL COMPETITIVENESS INDEX (GCI)

50th (out of 138)

World Economic

Forum2016-2017

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LOCATION & CONNECTIVITY Plovdiv on the map

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Plovdiv is a major link in the chain of the transport routes connecting Europe and Anatolia (Asia Minor) and an intersection point of three Pan-European corridors: Corridor IV (Dresden–Bucharest–Sofia-Plovdiv- Istanbul), Corridor VIII (Durrës-Sofia-Plovdiv-Varna/Burgas) and Corridor X (Salzburg–Belgrade-Plovdiv-Istanbul). Two highways connect Plovdiv with Istanbul and Black Sea ports to the east, and to Sofia and Europe to the west - Trakia Motorway and Maritza Motorway. First class roads connect Plovdiv with the main cities in the region. The nearest port – Burgas Port, located 280 km away from the region, is easily reachable through highway, first class roads or railway. The second nearest port is the Thessaloniki Port in Greece, 330 km away from the region. Plovdiv Airport Transfer serves Plovdiv airport and the other nearby towns, ski and sea resorts in Bulgaria and offers transfers to Thessaloniki and Istanbul Ataturk airports.

HIGHWAY CONNECTION TO CENTRAL AND WEST EUROPE

WELL DEVELOPED RAIL NETWORK OFFERS CONNECTION TO NEAREST PORT

A ROAD INTERSECTION POINT OF THREE PAN-EUROPEAN CORRIDORS (IV, VIII, AND X)

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The Bulgarian capital’s airport – Sofia Airport is at a 140 km distance from the region. Plovdiv station has a strategic location in the national railway system with the capacity of handling 32 trains daily and unloading 2000 wagons per day. 18 transport companies have been issued licenses by the Bulgarian "Railway Administration" Executive Agency for providing transport services of cargo. The intermodal terminal at T. Kableshkov railway station constructed in 2015 is a part of Plovdiv railway junction. The terminal is 15 minutes away from Maritza Commercial and Industrial Zone, 25 minutes away from Kuklen Industrial Zone, and 30 minutes away from Rakovski Industrial Zone.The intermodal terminal creates conditions for a higher quality of freight transport services offering combination of different transport types. Built over an area of 71,450 m² the terminal has sites for TR operations, two rows containers storage site, area for damaged containers and equipment, special locations for refrigerating loading units, administrative building for serving customers, section for customs control and customs storehouse, parking lots for loading vehicles and cars, and control checkpoint. The capacity of the terminal is 80 000 intermodal transport units (UTI). In November 2016 tender for granting a 27-year concession of the intermodal terminal was launched. Plovdiv has a duty-free zone, a customs terminal and extensive public transport system and well developed infrastructure which link the region with cities and towns all over the country and many European countries.

DISTANCE TO: KM MILES

Thessaloniki 334 208

Bucharest 392 244

Istanbul 413 257

Belgrade 541 336

Athens 834 518

Budapest 914 568

Vienna 1 154 717

Kiev 1 281 796

Prague 1 438 894

Munich 1 475 917

Milan 1 558 968

Berlin 1 786 1 109

Warsaw 1 787 1 110

Moscow 2 133 1 325

Brussels 2 265 1 408

Rotterdam 2 269 1 410

Paris 2 318 1 440

London 2 581 1 604

Madrid 3 128 1 943

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Climate & geography

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Plovdiv is situated on the bank of Maritza River. The wider Plovdiv region consists of vast flat terrains with no natural borders all the way to the Black Sea and Turkey. Most of the region’s territory is situated in the Upper Thracian Plain – a fertile agricultural region. Its average elevation is 160 meters. The region consists mostly of plains.Natural advantages of the region include also close proximity to main Mountain Chains - Rhodopes and Balkan - as well as to the rich in ores Sredna Gora Mountain.Plovdiv is located in a close proximity to two of the major ski resorts in Bulgaria - Borovetz and Pamporovo - about an hour and a half drive from each. The city is connected by highway to the Black Sea coast - to some of the most developed seaside resorts one may reach in about 2.5 hours by car. Also a few hours drive away is located the North shore of the Greek Sea. The Rose Valleys in the footsteps of Balkan are world famous among tourists.

The region offers one of the best conditions for vineyards and wine making has a long tradition here. One of the best spa resorts Hissar is located just about 40 minutes away from Plovdiv.The climate is moderately continental with traces of a mountainous climate in the highland areas. The region is characterized with warm summer (maximum average reaching 31 degrees Celsius, 88 degrees Fahrenheit, in June-August) and relatively tolerable winter (average lows just a bit below 0 degrees Celsius, 32 degrees Fahrenheit, in December-February). The mean monthly sunshine hours are 2,445. Climate is accommodating for both industrial and construction activities. Winters normally bring no major disruption of transportation with average depth of snow cover about 2 to 4 cm.Temperatures and precipitation rates are favorable for construction activities, which normally take place throughout the year without big interruptions, industrial processes and transportation services.

-10 °C

0 °C

10 °C

20 °C

30 °C

40 °C

Jan

Feb

Mar Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Average low Average high

Source: stringmeteo.com

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TEMPERATURES AND PRECIPITATION RATES ARE

FAVORABLE FOR CONSTRUCTION ACTIVITIES

THE WIDER PLOVDIV REGION CONSISTS OF VAST FLAT

TERRAINS ALL THE WAY TO THE BLACK SEA AND TURKEY

THE MEAN MONTHLY SUNSHINE HOURS ARE 2,445

POPULATION

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Approximately 534 000 people live in the city of Plovdiv and in the closest settlements. The total population in wider Plovdiv region, including people living in commutable distance to the city (up to 45 minutes by car in one direction), is 783 000 people. 477 000 of them are in the age 20-64 years. Out of those living in the wider Plovdiv region, 78% are located in the Plovdiv district, while the rest live in the Pazardzhik and Stara Zagora districts. For the period 2011-2015, Plovdiv district has a trend for a positive net migration rate (difference of immigrants and emigrants per 1 000 inhabitants). As of 2015, its net migration rate is 1.4‰, while that of Bulgaria on average is a negative number – -0.6‰. In 2015, 11 408 people have immigrated in Plovdiv district, against 10 436 emigrants. The age group 0-19 years (incl. persons entering working age) has the biggest positive net migration rate – 3.4‰. Plovdiv district has a coefficient of demographic replacement (ratio of the

number of people in the age group 15-19 to the number of people aged 60-64 years) of 66.5%, which is one of the highest in the country. Taking into consideration children aged 5-9, in 2025 this coefficient is expected to rise up to 73.3% (without taking into account the net migration rate, which is also a positive number).

783 000 PEOPLE LIVE IN COMMUTABLE DISTANCE

TREND FOR POSITIVE NET MIGRATION RATE

AGE (YEARS)

NUMBER (‘000)

SHARE OF TOTAL

Under 20 125 19%

20 – 44 229 34%

45 – 64 183 27%

65 – 74 77 11%

75 + 59 9%

POPULATION STRUCTURE IN WIDER PLOVDIV REGION (distance 45 min.)

Source: NSI (data on district level)

PLOVDIV

30 min. from

Downtown

0.5 million

0.8 million

45 min. from

Industrial Zones

POPULATION WIDER PLOVDIV REGION

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LABOR FORCE

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Companies that choose Plovdiv as their investment destination have access to human capital, consisting of well prepared workers and specialists who can create value for various manufacturing and service sectors.The labor market in Plovdiv has been more robust than most other regions in Bulgaria since the onset of the global economic crisis. Plovdiv district has an activity rate for 2015 (ratio of the number of the labor force aged 15-64 to the number of people in the same age group) of 68.8% or a rise of 2.7 p.p. since 2008. The unemployment rate fell with 3.5 p.p. since 2014. However, in the age group 15 – 64 there are still 30 000 registered as unemployed, as well as 138 000 people who are currently economically inactive.

There are approximately 70 000 jobs in the manufacturing sector or 34% of all employed in the Plovdiv district. Plovdiv is also the district with most people working in the manufacturing sector in Bulgaria. In addition to the production of food, drinks and cigarettes (20% of all manufacturing jobs) and textile, apparel & leather (20% of industrial jobs), Plovdiv has specialized in the production of metals and metal parts, chemical products, automotive, machinery and equipment. Plovdiv has a long-lasting tradition in producing computer, optical, electronic and electrical equipment, which employ almost 6 200 people or 9% of all employed in the manufacturing sector. Plovdiv also has competitive edge in furniture, paper and wood manufacturing, whose exports from Bulgaria surged in the post-crisis period.

477 000 PEOPLE IN WORKING AGE LIVE IN COMMUTABLE DISTANCE

70 000 PEOPLE WORK IN THE MANUFACTURING SECTOR

LABOR COSTS FOR ENTRY LEVEL PRODUCTION ASSEMBLY WORKERS WILL BE ABOUT €520 PER MONTH IN 2018

POPULATION IN WORKING AGE

PLOVDIV

30 min. from

Downtown

477 000

45 min. from

Industrial Zones

332 000

Source: NSI (data on district level)

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Wages by segment

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Plovdiv has a well-developed service sector, which complements the local manufacturing cluster. The service sector in Plovdiv is closely linked to the local industry and provides all the high-quality services a manufacturing company might need. About 33 000 employees are working in retail, but there are also 10 000 construction workers and more than 13 000 transport and logistics specialists. Plovdiv has also one of the best developed business service sectors in Bulgaria. The labor force in Plovdiv is very diverse according to the qualification of employees. Plovdiv employs 26 500 skilled industrial workers and 17 300 technicians. The labor force is specialized but nevertheless readily adaptable and can easily work in different segments of industrial production.

NUMBER OF INDUSTRY-COMPATIBLE EMPLOYEES

0

8,500

17,000

25,500

34,000

machine operatorsskilled industrial workerstechnicians

17,31726,50133,678

Source: NSI (data on district level)

machine operators

skilled industrial workers

technicians

In services, wages on average are highest in information technology, one of the fastest growing industries in recent years, providing opportunities for highly skilled labor. Hiring labor for the “light industries” such as manufacturing of food and beverages as well as clothing and shoes is on average cheaper than employing a worker in the “heavy” industries, which typically require more specialized skills and knowledge, such as manufacturing of machines and equipment or metal parts. By occupations, wages for specialists, incl. engineers, are two times higher than those for skilled workers.

0

35

70

105

140

Administrative personnelMachine operators Skilled workersTechnicians

1361008790

LABOR COST LEVELS IN PLOVDIV BY QUALIFICATION

(Skilled workers = Index 100)

Administrative personnel

Machine operators

Skilled workers

Technicians

Source: Industry Watch based on data from NSI

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IT Outstaffing Company

www.programista.bg

office@programista.pro

Typically, customers turn to us when they need:

Talent

ProcessManagement

Scale

Reliable Service VisibilityQuality

+359 32 396 428

1, “11-ti Avgust“ Street, Plovdiv 4000, Bulgaria

15, “Henrik Ibsen“ Street, Sofia 1000, Bulgaria

1, August 11 Str., Plovdiv, 4000, Bulgaria

17, Henrik Ibsen Str., Sofia, 1407, Bulgaria

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Wages in manufacturing, both in Plovdiv district and Bulgaria in general, typically have a slightly higher growth rate than the average. Even though Plovdiv has one of the highest wage growth rates in manufacturing (7.9% per year), wages in absolute terms are still lower than those in Sofia, Varna, Burgas and Stara Zagora. The total cost of labor includes the salary of the worker and the contributions to the state budget which both the employee and the employer have to make. In 2018 the labor costs in manufacturing are expected to be still one of the most competitive in Europe. The total cost of hiring an entry level production assembly worker will be about €520 per month. Labor cost for workers without qualification will start from €430, while those for the administrative positions will start from €650 and will typically increase up to €900 for skilled administrative staff.

0

0.02

0.04

0.06

0.08

AverageManufacturingAverageManufacturingAverageManufacturing

6.7%7.4%

7.9%

6.3%6.6%7%

Average Manufacturing

ANNUAL WAGE GROWTH

Plovdiv Sofia Bulgaria

Source: NSI (data on district level)

EXPECTED TOTAL LABOR COSTS IN MANUFACTURING IN 2018 (EUR per month)

Source: Industry Watch based on survey among HR companies & industrial employers

Other qualified workers

Production assembly workers

CNC machine operators

First-line managers, supervisors, technicians

Natural sciences specialists

Electrical engineers

Engineers - constructors

Engineers - industrial machines and systems

0 400 800 1,2001,100

1,150

890

830

1,050

760

680

810

790

780

690

570

720

550

520

600

Entry level Skilled workers

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EDUCATION

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Plovdiv is a leading university center of national significance, second in Bulgaria, behind only to capital city Sofia. The educational system is well developed, preparing many students in technical and applied disciplines, which has contributed to establishing the region as a prominent industrial center. Plovdiv is home to one of the biggest universities in Bulgaria – the Plovdiv University Paisiy Hilendarski with 16 743 students. The university offers degrees in fields such as Mathematics and Informatics (2043 enrolled in the program), Natural sciences (1788 students enrolled), and Economics (2097 students enrolled). Plovdiv branch of Technical University Sofia offers programs in 2 faculties: Faculty of Electronics and Automation (545 students), where Industrial Engineering is being taught in English, and Faculty of Mechanical Engineering and Instrument Engineering. Over 443 students are enrolled in Communications and Computer technologies.

There are also two agricultural universities both providing education currently to 7 000 students and the University of Food Technology, which provides specialists for the vibrant food industry with 4 345 students enrolled in different programs.

ABOUT 8 000 UNIVERSITY STUDENTS GRADUATE EACH YEAR AND ARE READY TO JOIN THE LABOR FORCE

0

2,007.5

4,015

6,022.5

8,030

Vocational high school graduatesGeneral high school graduatesUniversity and college graduates

8,0302,1881,997University

and college graduates

General high school

graduates

Vocational high school graduates

Source: NSI (data on district level for 2015)

40 519 students in universities

10 639 pupils in vocational

schools

29 vocational high schools

9 universities

82 vocational education centers

Source: NSI; Ministry of Education and Science, Plovdiv Regional Office; NAVET (data on district level for 2016/2017)

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LAND & PROPERTY MARKET Business property prices

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The office market in Plovdiv expanded significantly during 2007-2015, as many new office projects were started during that period. Currently there is new supply of modern office space which can be modified to meet the specific requirements of each business. There are offices located both in the city center and the industrial zones in the city. Despite the noticeable improvement in quality, buying business space in Plovdiv remains very affordable. There is a selection of quality office properties for sale, with asking prices of €700 per sq. m. There is land for industrial use for sale located both in the city itself and the industrial zones in the region. Prices of industrial land range from €25 to €40 per sq. m. in the industrial zones Maritza, Rakovski and Kuklen.

The prices for office and industrial space in Plovdiv are relatively low compared both to other major Bulgarian cities as well as other countries in Central and Eastern Europe.

AFFORDABLE LAND STARTING FROM EUR 250,000 PER HECTARE

AMONG THE LOWEST RENT OF OFFICE AND INDUSTRIAL SPACE IN EASTERN EUROPE

3300 HECTARES FOR BUSINESS DEVELOPMENT

PRICE OF BUSINESS PROPERTIES in the region of Plovdiv

RENTS OF BUSINESS PROPERTIES in the region of Plovdiv

EUR PER SQ.M.

land in organized industrial zone

25 - 40

price of office in the city 700 - 1 200

EUR PER SQ.M. MONTHLY

ORGANIZED INDUSTRIAL

ZONESCITY OF PLOVDIV

rent of warehouse 4.25 4-5

rent of office (class A) - 9-10

Source: Real estate agencies

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Office and industrial facilities rents

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Renting office space (Class A) costs on average €9 per sq. m. for premium business properties currently available in Plovdiv. There is also substantial supply of non-premium office space which could be rented for €4 to €6 per sq. m. monthly. Renting office in Plovdiv is on average 30% cheaper than renting similar office space in the capital Sofia. Having an office in Plovdiv is more affordable compared to many other locations in Central and Eastern Europe. Premium office rents in Plovdiv are 2 times lower compared to rental rates for high-end office space in Prague (Czech Republic), Budapest (Hungary) and Bucharest (Romania).

Renting a warehouse costs on average €4.25 monthly per sq. m. in the industrial zones Maritza and Rakovski. The rents of warehouses in the city range between €4 and €5 monthly per sq. m. Rents of industrial space in Plovdiv are at least 25% lower than rents of similar properties in the capital city Sofia.Renting a warehouse in Plovdiv costs less compared to other locations in Central and Eastern Europe. Rents of industrial space in Plovdiv are 10% lower than rents in Warsaw (Poland), and 22% lower than rents in Belgrade (Serbia), Budapest (Hungary) and Prague (Czech Republic). The relatively low rents of industrial space and the low operational costs altogether allow Plovdiv-based companies to achieve cost competitiveness which could hardly be matched by enterprises operating in other regions in Central and Eastern Europe.

RENTS OF PRIME OFFICE SPACE in selected locations in Central and

Eastern Europe

Warsaw / Poland

Belgrade / Serbia

Bucharest / Romania

Prague / Czech Rep.

Budapest / Hungary

Zagreb / Croatia

Sofia / Bulgaria

Plovdiv / Bulgaria

€/sq m/month0 5.5 11 16.5 22

913.5

15.51819.518

1722

RENTS OF PRIME WAREHOUSES in selected locations in Central and

Eastern Europe

Source: Colliers, Plovdiv Municipality

Source: Colliers, Plovdiv Municipality

Moscow / Russia

Zagreb / Croatia

Belgrade / Serbia

Warsaw / Poland

Kyiv / Ukraine

Prague / Czech Rep.

Budapest / Hungary

Bucharest / Romania

Plovdiv / Bulgaria

€/sq m/month0 1.5 3 4.5 6

4.24.2

54

3.9555.5

5

17

Construction activity

Available land for business

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Construction activity has been steadily increasing in the region of Plovdiv over the last 5 years. Building permits for 540,000 sq. m. of non-residential properties (office, industrial, logistics, agricultural, hospitality and commercial space) were granted in 2016 alone. The district of Plovdiv has been ranked first in approved non-residential construction since 2012, well ahead of all other areas in Bulgaria, including the capital city Sofia. During 2012-2016 construction permits for business properties in Plovdiv were 18% of all permits issued in Bulgaria.

The construction of business properties with total built-up area of 2.2 million sq. m. has been permitted since 2012. New construction projects in the region of Plovdiv consist largely of industrial space and warehouses, which enhance the rapid development of Plovdiv as manufacturing leader and transportation hub.

There are over 3300 hectares of land for business development in the region of Plovdiv. The current city master plans of Plovdiv and the adjacent municipalities increased substantially the availability of industrial land which will stimulate the business activity in the region. About 745 hectares (or 22% of the land for industrial development) are located in organized industrial zones, close to 1400 hectares in the city of Plovdiv and 1200 hectares in neighboring municipalities. The city master plans of the municipalities of both Plovdiv and Maritza envisage the development of mixed multifunctional industrial areas and modern industrial space which achieve the right balance between industrial growth and sustainable development.

745 HECTARES IN ORGANIZED INDUSTRIAL ZONES

1400 HECTARES IN THE CITY OF PLOVDIV

1200 HECTARES IN NEIGHBORING

MUNICIPALITIES

18

ACCESS TO UTILITIES Electricity

�16

The entire Plovdiv region has a modern power distribution infrastructure. All towns and villages in the region have access to electricity. Since 2005, power supply and distribution in the South-East Bulgaria has been privatized to EVN Bulgaria (part of EVN AG – Austria). The company has invested over BGN 1.5 billion (appr. EUR 770 million) during the last 12 years to improve the electricity grid as major customer services. The investment activities in the distribution grid in Plovdiv region alone has come to BGN 341 million (EUR 174 million) since 2005. In 2011, the company launched a brand new 110/20 kV electrical substation in Tsaratsovo (worth EUR 2.8 million) with a capacity of 32.5 MVA with plans running for two additional substations in Plovdiv industrial zones.EVN also operates the Plovdiv district heating company providing secure heat supply to both private and industrial users. In 2011 the company built a brand new high-efficient cogeneration plant which two years later helped it launch a cooling service for business users during the summer months. Industrial users can benefit from the fast expanding liberalized market of electricity, purchasing from registered power traders or even directly from the generation plants in some cases. In case of a greenfield investment (i.e. new facility construction) there is a streamlined process of several quick steps to get connected to the power grid. These include in particular a verification of available capacity, a study of the specific terms and conditions for connection to the distribution grid or an offer with preliminary connection contract.

All these steps take up to 30 days after application. New users pay fees for the connection services according to a fixed and government regulated tariff rate.

EXCELLENT ACCESS TO ELECTRICITY IN ALL LOCATIONS

HEAT SUPPLY AND COOLING SERVICE FOR BUSINESS USERS

MAJOR GAS TRANSIT PIPELINES THROUGH THE REGION WHICH PROVIDES EASY ACCESS FOR LARGE INDUSTRIAL CONSUMERS

WATER SUPPLY AVAILABLE IN ALL URBANIZED TERRITORIES

Source: NSI

ANNUAL CONSUMPTION IN

mWh, UP TO:FINAL PRICE incl

VAT, EUR/kWh

20 0.131

500 0.114

2 000 0.095

20 000 0.084

70 000 0.075

150 000 0.069

over 150 000 0.069

19

Natural gas

Water and sewage

�17

The region of Plovdiv benefits from the fact that it is on the route of both an international transit (Russia-Greece-Macedonia) and a national transit gas pipeline. Several of the municipalities have access to the pipeline which constitutes the Southern Transit Half-Ring. There are 8 automatic gas-regulating stations (i.e. exit points of the transit network) in the Plovdiv region, which make the connection of large industrial gas consumers to the transit grid possible. Companies can benefit from the emerging liberalized gas market and wholesale prices. The available capacity is sufficient for a considerable increase in gas consumption.Small quantity users and households can be connected to the gas distribution grid of City Gas (part of the Italian Gruppo Societa’ Gas Rimini s.p.a) which was granted a license to provide gas in 12 of the municipalities in the region (including the city of Plovdiv), or Overgas – for the municipalities of Parvomay and

Asenovgrad. Consumers which are connected to the distribution network have to pay according to regulated prices, updated quarterly.Getting connected to the transit grid (for large consumers) starts with an application which is reviewed in up to 30 days. Following this the consumer receives the proposed terms and conditions of access, including the available capacity and recommended point of access to the grid. Similar process is used for getting connected to the gas distribution network.

A state-owned utility company – Water & Sewage SJSCo, Plovdiv - is in charge of water supply, sewage and waste water treatment in most of the municipalities in the region of Plovdiv. The network services 14 towns and 201 villages, or a total of about 700 thousand customers. The fresh water supply covers 100% of the populated areas, while sewage is available to about 75% of the customers. The utility company runs 3 waste water treatment plants in the region.New users have to apply to the utility company which in turn ensures that all

necessary conditions for connection to the supply and sewage infrastructure are met. The process is part of the overall procedure for new construction development. The investor pays for any additional costs for new construction and expansion of the water supply and sewage network, including new pipes, etc.Combined price of water and sewage for industrial users starts from EUR 0.93 per m3 and can go up to EUR 1.38 per m3 depending on the degree of contamination.

Source: NSI

ANNUAL CONSUMPTION IN GJ

FINAL PRICE incl VAT, EUR/GJ

1 000 7.828

10 000 7.199

100 000 6.401

1 000 000 5.000

4 000 000 4.550

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CONSTRUCTION PERMIT

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Although it is one of the most burdensome and costly administrative procedure in Bulgaria and throughout Europe, the municipality of Plovdiv is providing a clear and relatively short workflow in terms of both number of procedures and timeframe of execution.The municipality is steadily improving the regimes and providing investors with assistance and guidance in dealing with other authorities involved in the process. Beside the municipality administration, the following institutions are involved in the process of getting construction permit and thereafter: Power company, Water company, Cadastre Agency, Environmental Agency.In certain special cases and bigger projects there would be other institutions involved as well such as: National Construction Control Agency, Fire Department, Road Agency.

It would take 105 days from the moment of applying for certificate for project planning (step 1 in the workflow) to the moment of getting a certificate of operational building (final step). The total administratively imposed cost would be EUR 35,846. The biggest part (78%) of this being remuneration for construction supervision company. That cost does not include cost of connection to the power and water grids.

There would be 16 steps in dealing with the whole process, which includes also the process of dealing with the Power Company. A comparison of the World Bank has shown that the average number of steps in OECD is 12, and in Eastern Europe and Central Asia is 15.The process takes substantially less time in Plovdiv than in the average destination from Eastern Europe and Central Asia, and even less than the developed economies of OECD.

A CLEAR WORKFLOW THAT TAKES UP TO 105 DAYS

SHORTER TIMELINE THAT OECD AVERAGE

MUNICIPALITY ASSISTS INVESTORS IN DEALING WITH OTHER INSTITUTIONS

THE FOLLOWING TYPICAL CASE illustrates the process:

• a construction of a warehouse or assembly production building with a total floorage of 4000 sq. meters (approximately 43,000 sq. feet).

• a total cost of construction EUR 1.2 mln excluding VAT.

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PLOVDIV EASTERN EUROPE & CENTRAL ASIA OECD

number of procedures 16 15.1 12.1

time (days) 105 160.7 152.1

Source: The World Bank, Industry Watch

DRAFT INVESTMENT PROJECT

Certificate for project planning

Preliminary contract with Power company Assessment by Water company Assessment by Environmental Agency

14 days

30 days

COMPLETE INVESTMENT PROJECT

Approval of investment project by municipality 7 days

Issue of construction permit 14 days

INVESTOR APPROVES COMPLETION OF STAGE 1

Contract with Power company Contract with Water company Building mapped on Cadastre

30 days

INVESTOR APPROVES COMPLETION OF STAGE 2

Municipal stamp on technical passport of building 3 days

Certificate for operational building 7 days

ТOTAL: 105 days

WORKFLOW OF DEALING WITH CONSTRUCTION PERMIT

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LOCAL TAXES & FEES General tax policy

Property tax

�20

The biggest share of the tax burden in Bulgaria is centrally imposed, i.e. the municipality has no authority in most of the taxes and fees. However, there is a tendency for somewhat fiscal decentralization, meaning that in the long run the municipality might gain more power with respect to the taxes and fees. With respect to nationally adopted tax rates, Bulgaria has one of the lowest corporate and personal income tax rates in Europe (10%). Corporate income from production activities in high unemployment regions is tax exempt. Costs of fixed intangible assets created through research and development are also deductible. In addition, Bulgaria applies EU customs legislation and has signed double tax treaties with 68 countries. Income tax rates are noticeably higher in other CEE countries. For example, in Romania personal income is taxed at 16%, while Central European countries such as Poland, Hungary and Czech Republic apply tax rates which vary from 15 to 18%.

With respect to local taxes, currently there are two important rates that are decided by the municipality and affect business across the board - one is property tax, and the other is waste fee. A blink on those two gives idea on the locally imposed tax burden as well as to the municipal policy intentions in the long run.

STABLE AND PREDICTABLE POLICY WITH RESPECT TO TAX RATES

A TREND TO LOWER RATES OF WASTE FEES

OPTION TO PAY ACCORDING TO QUANTITIES OF WASTE

The tax on property is annually 0.18% of the tax valuation of the property. The rate has not been changed for the past eight years. The tax valuation of the property is the other component in the estimation of the nominal tax. It is subject to general rules that also do not tend to change frequently. The tax valuation of production

facilities in Plovdiv may vary according to location and type of buildings, however it would not exceed 193 EUR/sq. m. That means that a premises of 4500 sq. m. would be estimated to be worth up to EUR 868,500 for tax purposes. The annual property tax for such property would be approximately EUR 1563.

%

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Waste fee

�21

The other administrative burden that affect every business in the municipality is the waste fee (or tax). Business pay such fee regardless of the fact if they are producers or service providers, as long as they have a physical presence (office, warehouse, etc.) in the city. So the waste fee is entirely different from the industrial waste management costs, and applies to every building and property of households and businesses.Businesses have two options to deal with the municipal waste fee. The first option is to pay according to quantities of waste by contracting one of the waste-container options with the municipality.A bigger container would imply a fee of EUR 1366 per year, and the smaller container would cost EUR 425 per year. The number of containers depends on the quantity of waste. In addition, the company pays a fee of 0.3% of the tax valuation of the property.

The second option is to pay according to the tax valuation of the property (which is the default regime, i.e. that one applies in the company has not applied to a number and type of containers). The tax valuation of the property is here applied as well. The waste fee is currently 0.53% of the tax valuation of the property. Thus for a property of 4500 sq. m. for which the tax valuation is up to EUR 868,500 the waste fee would be up to some EUR 4600.

THE WASTE FEE IS CURRENTLY 0.53% OF THE TAX VALUATION

OF THE PROPERTY.

THE CITY FOLLOWS A POLICY OF REDUCTION OF WASTE FEE RATE

IN THE PAST 10 YEARS.

YEAR WASTE FEE (% of tax valuation)

2005 2.00

2006 0.90

2007 0.70

2008 0.60

2009 0.60

2010 0.55

2011 0.55

2012 0.55

2013 0.53

2014 0.53

2015 0.53

2016 0.53

2017 0.53

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LOCAL ECONOMYThe Plovdiv region is one Bulgaria’s most vibrant and competitive, as local economic growth reached two-digit figures in some of the recent years. The local non-financial sector produced output for €7.3 billion in 2015 and contributed value added equivalent to €2.2 billion. The rise of productivity is ensured by abundant capital investment. Expenditures on acquisition of land, machinery and equipment exceeded €900 million in 2015.The region of Plovdiv is a preferred investment destination by renowned global companies, seeking to profitably expand their operations and increase their presence in the global marketplace. Cumulative foreign direct investment in the real sector in the area reached €1.6 billion as of end-2015. Total foreign capital deployed in the Plovdiv region almost doubled between 2007 and 2011 and additional €330 million were invested in the local economy between 2012 and 2015. FDI in the region has grown at 11.7% annually for more than a decade.

DIVERSIFIED AND VIBRANT LOCAL ECONOMY WITH AN ANNUAL OUTPUT OF €7.3 BILLION

FDI IN THE REGION HAVE GROWN AT 11.7% ANNUALLY FOR MORE THAN A DECADE

LEADING REGION IN NON-HOUSING CONSTRUCTION WITH 2.2 MILLION SQ. M. PERMITTED SINCE 2012

LOCAL ECONOMY STRUCTURE (by employment)

Source: Industry Watch based on data from NSI, data on district level for 2015

Manufacturing 33.6%

Business Services 21.6%

Public Services & Regulated Markets 20.1%

Consumer Services 16.9%

Construction 5.0%

Farming 2.5%

Mining 0.4%

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Manufacturing Plovdiv is the national champion with regard to industrial production and manufacturing in particular. Manufacturing companies generated revenues exceeding €4 billion in 2015, adding value equivalent to €863 million and providing jobs to more than 70 000 employees. Manufacturing constitutes one third of the revenues of the non-financial economy in the Plovdiv region. What is more, manufacturing contributes almost 40% of the value added by the real economy by employing one third of all employees and making 30% of all capital spending in the region.The industry in the region of Plovdiv is well diversified. The local companies are fully integrated in the global supply chain, serving both industrial and consumer users not only in Europe but also in emerging

markets around the world. The region of Plovdiv has undergone noticeable industrial development over the last few years, resulting in more productive labor force and improved business profitability. Productivity gains are guaranteed by capital investments and process optimization. In addition to the food and metal manufacturing, other sectors that enjoy high investment activity are the production of machinery and equipment, paper, beverages, rubber, plastics and chemicals. These capital investments are mostly used to finance the purchase of state-of-the-art machinery and equipment, which improve the enterprises’ competitive position.

10 BIGGEST INDUSTRIAL SECTORS (% of value added in manufacturing)

Source: Industry Watch based on data from NSI, data on district level for 2015

Metal products

Food

Machinery and equipment

Rubber and plastic

Electrical equipment

Apparel

Paper

Chemicals

Beverages

Basic metals 0% 5% 10% 15%

4.1%

4.7%

5%

6.3%

6.4%

7%

7.7%

9.5%

13.4%

14%

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Business services Business services in Plovdiv are rapidly evolving, taking advantage of the region’s strategic geographic location, excellent transportation links and advanced industrial development. Business-to-business (B2B) services generated €5.3 billion in revenues in 2015, of which 14% is value added, while employing 55.6 thousand people and making investments worth €360 million.

Plovdiv is a transportation and logistics hub. This is why transportation and storage are the biggest business services in the region, providing 1/5 of the value added and 24.1% of the jobs in business services. Due to its central location and excellent transport connections, Plovdiv has burgeoning wholesale trade which is the second most important business

service sector with 23.7% of jobs and 29% of value added. The region of Plovdiv has competitive companies providing professional and administrative services, which together employ 20% of all people working in B2B services. Modern business services have been enjoying rapid expansion over the last few years, as Plovdiv has become IT & BPO center preferred by domestic and foreign investors alike. IT and telecom companies employed 6% of people working in business services in 2015 and generated 9% of the value added in B2B services.

STRUCTURE OF BUSINESS SERVICES (% of employment)

Source: Industry Watch based on data from NSI, data on district level for 2015

12%

34%

24%

30%

Wholesale tradeLand transportIT, Telecom & B2B ServicesOthers

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MAJOR INVESTORS

INDUSTRY SUPPLIERS MACHINE BUILDING

ABB Bulgaria Agria S.A. Assenova Krepost JCS Bulsafil Bulltek Ltd. Drujba Glassworks SA Dunapack Rodina Filkab Gotmar Ltd. HMC Holcim Hik 91 Hus Ltd. Insa Ltd. Intercomplex Ltd. ITD Ltd KCM 2000 AD Kaskada Ltd. Kast Futura BG Ltd Linde Bulgaria Mondi Stambolijski Osram Profilink Schatti Schneider Electric Bulgaria Shell Gas Bulgaria S.A. Steka Elektronik Bulgaria Ltd. TMT Elkom Ltd Viking Watts Industries Weiss Profil Yuriy Gagarin S.A. Zinc Galvanizing Plant

Aiger Engineering Apex 11 Ataro Klima Biomashin BTL Industries EAD Dimex Lift Index 6 Ltd Intrama Liebherr Hausgeraete Marica Ltd. Milara International Tomika Metal

Accumalux Autoelectric Bulgaria Ltd BRSP Autoelectronica Kemmler Electronic Liebherr Transportation Systems Magna Powertrain Malmar Mecalit Bulgaria Sensata Technologies SKF Bearings SMC Techno Aktas Bulgaria Willi Elbe Group William Hughes Bulgaria Wurth Elektronik IBE BG Tretek Ltd Viko Ltd

AUTOMOTIVE

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SERVICES IT & BPO

Alex Trade 2010 Ltd. Astral Holidays International AD Ceramic Group EVN Bulgaria EAD Galaxy Investment Group Ltd. GBS – Plovdiv AD Maxlogistic Omnicar Auto Ltd. Primex AVG Ltd. Rozhen 1 Ltd. Strom Ltd. Vanichi 2008 Ltd. Vedena Ltd.

Agri Bulgaria Agromill Bulgaria AD Bella Bulgaria Brezovo AD Delikates 2 Ltd. Dimitar Madzharov 2 Feinjersey Bulgaria Fermata Jumbo Bulgaria Kaufland Bulgaria Kuminiano Fruit Ltd. KT International EAD Leader 96 MaxEurope Mexon Ltd. Nova Trade Ltd. Parvomay BT AD Philicon-97 S.A. Simid Socotab Ltd. Ted Bed United Milk Company Vinprom Peshtera SA VP Brands International Unibel AD Zobele Bulgaria

60K Aii Data Pro ASIC Depot Bulpros Enigma Software Group Fast Comet Javelin Group/Part of Accenture Kodar m+w Media Networks MentorMate Novarto Ltd. Opticentre Orak Engineering Programista Proxiad Reward Gateway SBTech Global Limited ScaleFocus Seeburger SelMatic Ltd. Sibiz SiteGround Speedflow Communications TeleTech Telus International Viscomp

Alpetrans Bulgaria Ltd. Ani 93 – G. Petkov 06 Ltd. AIT International Transport Eurofrio Fresh Logic EAD Hager Transport Bulgaria Hebar EAD Pimk Ltd Petko Angelov BG Ltd. Schenker Logistics Bulgaria Truck Ferry Ltd. Traykov Trans Ltd.

CONSUMER GOODS

TRANSPORT & LOGISTICS

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SPECIAL FOCUS IT&BPO

Machine building and R&D

Plovdiv is the second most important city in Bulgaria, according to its demographics, and a second outsourcing destination after Sofia with over 5000 employees in the IT&BPO industries. In 2017 the city got a new recognition reaching the top four in the category “Emerging City of the year – CEE”, as part of the “CEE Shared Services and Outsourcing Awards”.A highly developed educational system of nation-wide renowned high schools and universities serves as a good sourcing pool for the IT&BPO industry. Moreover, the education system is getting more adaptive and open to cooperation with business, introducing joint courses, internships and industry-oriented programs. The fairly

recent process of emerging favorable ecosystem for IT&BPO has been recognized by the local authorities as a major development path for the city.Compared to the capital, as in other outsourcing destination countries, the second biggest city offers a number of advantages. Most importantly, Sofia concentrates most of the higher-end jobs in state administration, finance, and B2B services, which is a factor for a tight competition on the labor demand. In contrast, Plovdiv’s labor market is not characterized by such a strong competition for talents, as well as for the middle-skillset employees.

The machine building sector is rapidly growing, attracting renowned international holdings, as well as many niche Bulgarian companies. Some of the major machine building companies in the region generated total revenues reaching € 350 million and provided work for over 4 000 people in 2015. The share of the export-oriented production is bigger compared to that of the “light industries”.Targeting niche market segments is an opportunity that the Bulgarian companies seem to use more and more rationally. Some of the companies specialize in producing tailor-made, high-capacity

products, equipped with SCADA control systems. This includes producing machines for the food & drinks, pharmaceutical and tobacco industries. Many of them have integrated new technologies in the production process, which allows them to raise their productivity. In 2015 some of the biggest companies in the sector have an average labor productivity per person of € 89 000 per year or about 7 times higher than the national average.

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Automotive

Transport & logistics

A number of companies in the region specialize in producing automotive parts for Volkswagen Group, Volvo, General Motors, BMW, Honda, Daimler, Fiat and others. Most of them are part of renowned international holdings, such as Magna Powertrain, Sensata Technologies, SKF Group and Aktas Holding. The biggest automotive parts producers have generated total revenues of over

€ 355 million and provided work for 4 100 people in 2015. As with the machine building companies, they have a high average labor productivity of € 86 000 per person per year. During recent years there is a steady upward increase in the number of foreign companies establishing production lines in Plovdiv region. The production is entirely export oriented and meets all of the high standards of the automotive market leaders.

Expansion of the industrial zones around Plovdiv, infrastructural improvement and region’s strategic geographical position led to the rapid development of the transport and logistics sector. The intermodal terminal creates conditions for a higher quality of freight transport services offering combination of different transport types.PIMK Holding Group, the market transport leader, has entered in 2016 the rail freight business by establishing PIMK Rail, Bulgaria’s newest rail freight

operator. The new rail freight operator will run company trains, aiming to take part of its containerised cargo off the road and shift it to rail.Other major companies in the sector are Schenker Logistics Bulgaria, AIT International Transport, Fresh Logic, Еurofrio, Hager Transport Bulgaria among others.

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INDUSTRIAL ZONES Trakia Economic Zone

Industrial Park Markovo Industrial Park Markovo is located on the ring road of Plovdiv. The plot area of the zone is 158 000 sq.m. There is a possibility of separating and merging of plots in relation with the potential expansion of the industrial projects. Infrastructure of the area – electricity and ready option for gasification. Sewage system and internal road network are under construction.

Trakia Economic Zone (TEZ) is one of the biggest economic projects in Bulgaria, a public-private partnership that includes six major industrial zones in the region of Plovdiv. Together the zones in TEZ have attracted over 1.2 billion euro of fixed-capital investments. The total area of TEZ is 1070 hectares, of which 330 hectares are already occupied.From the start of the 1st industrial zone Maritza in 1995 some 120 investors located their sites in the region, of which 90 multinational, opening over 15 000 jobs. Quick start of operation - thanks to the finished spatial planning of the territory. Professional support and project management contribute to the fast project implementation. The Zone has ready production, logistic, commercial facilities to offer.

• Convenient geographic location - on important railway routes and European transport corridors, connecting Europe, Asia and Africa

• Infrastructure secured - transport, electricity, gas, water, sewerage, telecommunications

• Specialized administrative unit provides additional services, accelerated procedures

• Qualified work force, 9 universities with technical and economics disciplines, more than 77 schools, language and specialized high schools

• Some 70 000 employees in the manufacturing sectors

1. MARITZA COMMERCIAL AND INDUSTRIAL ZONE 2. RAKOVSKI INDUSTRIAL ZONE 3. KUKLEN INDUSTRIAL ZONE 4. ЕUROPEAN-CHINESE ECONOMIC DEVELOPMENT ZONE

(ECEDZ) 5. AGRO CENTRE KALOYANOVO 6. EDUCATION AND HI-TECH PARK IN THE CITY OF PLOVDIV 7. INDUSTRIAL PARK MARKOVO

1

6

52

4

37

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CULTURE & TOURISM The world’s sixth oldest city The city is built upon layers of towns and cultures and is picturesquely situated in the Thracian lowlands, just 100 miles east of Sofia. Plovdiv has been recognized as the oldest continuously inhabited city in Europe and the sixth oldest in the world where one can go back in time 6000 years. Originally settled by the Thracians who established their fortification Eumolpias during the Neolithic period, it was Philip II of Macedon (father of Alexander the Great) who in 343 B.C conquered Eumolpias as a result of a great military expedition north against the Scythians. He renamed it Philippopolis and made it the most important city in Thrace. Later, under Roman (72 B.C) and Ottoman rule (1371), the city of Trimontium and then Filibe expanded greatly due to its strategic geographical location and was described

as a beautiful and flourishing city influenced politically and culturally by both the East and the West, yet preserving its unique cultural identity.

THE CITY OFFERS A WORLD OF POSSIBILITIES FOR INDOORS AND OUTDOORS RECREATIONAL ACTIVITIES

IN 2019 PLOVDIV WILL BE THE EUROPEAN CAPITAL OF CULTURE

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Sports & recreation Plovdiv offers a world of possibilities for both indoors and outdoors recreational activities. Among a number of sports and fitness facilities located in the city, Plovdiv hosts one of the biggest sports centers in Bulgaria with the largest artificial water channel, indoors swimming pools, soccer fields and tennis courts. Multifunctional sports hall Kolodruma annually hosts vast range of sports and cultural events. Additionally, the three highest hills in the city are protected as park areas, perfectly suitable for hikes, jogging and bike rides. The Tsar Simeon’s Garden located in the very centre of the city is also a perfect place for recreation with its magnificent Singing Fountains, the fountain of Goddess Demeter, the Viennese pavilion and flowers that turn the park into a paradise garden.

There are also children’s playgrounds and, happily, rollerblading and biking is allowed.Plovdiv has a strategic location when it comes to sports and recreation. The city is not only in a close proximity to two major ski resorts in Bulgaria - Borovetz and Pamporovo (about an hour and a half drive), but also connected by highway to the Black Sea coast – to some of the most developed seaside resorts (about two and a half hours by car). Additionally, one of the best spa resorts Hissar is located just about 40 minutes away from Plovdiv and the North shore of the Greek Sea – just a few hours drive away.

Being older than Rome and Athens, the city of the seven hills has an astonishing historic and cultural heritage to share with its visitors. The Old Town, included in the UNESCO World Heritage tentative list, was built in the 18th and 19th centuries and became an essential economic and cultural centre during the Bulgarian National Revival period. Along steep cobblestone lanes and behind stone walls, one glimpses at verdure and flowers surrounding ancient monuments such as a well-preserved and still functioning Roman Amphitheatre and architecturally

emblematic houses with their iron-studded heavy oak gates, painted facades, oriels and jetties and grid windows. The charming Ethnographical and Archaeological museums, the fabulous amphitheatre built during the time of Emperor Trajan (98-117), the 2nd century Roman forum and stadium, a beautifully painted church (1832 – 1836) and a 15th century mosque, one of the oldest in Europe, are just few of the breathtaking places in Plovdiv.

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Arts & city events With its ancient, medieval and modern images and its rich spiritual life, Plovdiv has deservedly become a world cultural centre. In 2019 Plovdiv will be the European capital of culture – an EU initiative that gives the chosen city the opportunity to boost tourism and local economy, raise its international profile and enhance its image through a year-long diverse and rich cultural program.There are a lot of things to do in Plovdiv. For art lovers, there are over 50 art galleries, housing valuable pieces of modern Bulgarian paintings and regular international art, photography, sculpture, and graphic art exhibitions. Furthermore, the city hosts a bundle of festivals, which attract international artists and visitors from all over the country. Moreover, those events create additional revenues for the local economy, as well many other indirect economic impacts. A recent study shows that the economic effect of the free-entry Night/Plovdiv festival is about €0.7 Million.

The largest and oldest fair in all of the Southeastern Europe, the Plovdiv International Fair, is also held in here since 1892 and attracts visitors from around the world. Plovdiv is well-known for its vibrant night life. Concentration of unique pubs, restaurants, clubs, art and craft studios one may find in the central Kapana district. It has emerged as a spontaneous hub for new art endeavours and the Municipality of Plovdiv has prioritised Kapana as a creative-industry district. In 2016 Plovdiv received the prestigious award "Golden Apple" of the World Federation of Journalists and Writers in tourism, as well as the Balkan Leader in Tourism award. The city is also one of the top 10 cities to visit in 2015 according to Lonely Planet’s “Best in Travel 2015”.

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АТ THE 4TH ANNUAL BUSINESS FORUM

IN PLOVDIV

MEET US IN SEPTEMBER 2017

PLOVDIV MUNICIPALITY

plovdiv2019.eu

visitplovdiv.com

PLOVDIV MUNICIPALITY Bulgaria, 4000 Plovdiv, 1 Stefan Stambolov Sq. tel.: +359 32 656 727 | fax: +359 32 656 703

mayor@plovdiv.bg | plovdiv.bg

IN PARTNERSHIP WITH

invest.plovdiv.bg

CREATING A BUSINESS-FRIENDLY CITY