InvestBulgaria Agency · 2020. 4. 14. · electronic documents and / or scanned files again through the above system. Thank you for your understanding! page 2 fom 20 InvestBulgaria

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InvestBulgaria Agency (IBA), Vrabcha str. 23, Sofia 1000

Tel.: (+359 2) 985-5500

e-mail: [email protected], http://www.investbg.government.bg

issue 25 / march 2020 InvestBulgaria Agency

InvestBulgaria Agency

March 2020

Edition 25, year 7

Online edition

Bulgarian investment agency

Economic news

Sector analysis

Interview

Bulgarian chambers of commerce

Macroeconomic indicators

Upcoming events

INVESTBULGARIA AGENCY

OPERATIONAL MODE

InvestBulgaria Agency conducts online meetings and consultations in the event of an emergency In fulfillment of the declared state of emergency in the country by an act of the National Assembly of March 13, 2020 and in order to protect your health and that of the employees of the Agency, for the period from 16.03.2020 to 13.05.2020, we introduce the following mode of communication with citizens and businesses in connection with the administrative services we provide: 1. INVESTBULGARIA AGENCY (IBA) is restricting the meetings with citizens and business representatives, while remaining available in a convenient way for you from the following:

Online meeting platform „ZOOM“; Skype: live:.cid.fd540fb86f1ccf17; E-mail: [email protected]; Facebook /InvestBG/; Linkedin /InvestBulgaria Agency/; tel.: (+359 2) 985-5500. Instagram : investbulgariaagency

2. The administrative services provided by IBA will be accessible through the Secure Electronic Service (e-Service) system, which allows sending and / or receiving and storing electronic documents to / from public authorities, individuals as well as legal entities. This will replace the classic method - mail delivery. The system is available at: https://edelivery.egov.bg/. The access will be available after registration with your identification info (Qualified Electronic Signature (QES), NSSI PIK and others, adopted by a state act). For the period of the introduced state of emergency INVESTBULGARIA AGENCY will accept electronic documents, signed with QES and sent through the e-Handing System. This will be processed, and after the restraining measures abolished, they will be requested in paper form to comply with the regulatory requirements of the procedures. Applications and declarations are available at: https://iisda.government.bg/adm_services/services/from_central_administrations?search=1&subSectionId=935 Please send us the additional documents required for the provision of the respective administrative service, as electronic documents and / or scanned files again through the above system. Thank you for your understanding!

http://www.investbg.government.bg/

mailto:[email protected]

https://edelivery.egov.bg/

https://iisda.government.bg/adm_services/services/from_central_administrations?search=1&subSectionId=935

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ANALYSIS

THE “ECONOMY IN CRISIS” SEQUENCE

PART 1 We live in peculiar times, times in which the moment has come for us to deal with great problems, to deal with huge economic challenges and worldly tragedies. Times of fear and uncertainty. The major European economies are experiencing dislocations, which is potentially a great opportunity for Bulgaria as an investment destination. Many global manufacturers could choose Bulgaria as their destination for new investments, thanks to the lower costs they would incur to grow their businesses and escape the crisis. As the virus spreads and countries take respectable measures to limit to some extent production activity in their regional centers, we can offer competitive conditions for development and sustainability. As a result of a weak activity, the United Nations (UN) predicts that FDI flows may fall between 5 and 15 percent to their lowest levels since the 2008-2009 global financial crisis, and therefore for us it is so important to find the right approach to encourage investment in

Bulgaria. But let's look at the world and the country from which everything started. In China, the epicenter of the outbreak, officials announced billions in special-purpose loans to companies facing liquidity constraints as well as financial support to specific sectors such as aviation. In terms of coordinated action, on March 6, the G20 finance ministers and central bank governors pledged to take “appropriate” fiscal and monetary measures but made no specific commitments. China is the largest exporter of medical

devices to the United States, and about 80 percent of the active pharmaceutical ingredients in American drugs come from China and India. “Chinese pharmaceutical firms have captured 97 percent of the U.S. market for antibiotics and more than 90 percent of the market for vitamin C. In 2018 95 percent of ibuprofen, 91 percent of hydrocortisone, 70 percent of acetaminophen and 40–45 percent of [the blood thinner] heparin imported to the United States came from China. That has already forced India, the world’s leading supplier of generic drugs, to restrict its own exports of some commonly used medicines. Almost 70% of the APIs for medicines made in India come from China. If China’s pharmaceutical plants do not return to full capacity soon, severe global medicine shortages will become likely. But if big pharma doesn’t get back manufacturing on full capacity, there is a possibility of serious shortage of medicines. While much of the world’s attention is rightly focused on the human toll of COVID-19 – including the 1,4652 deaths reported as of 24 March – the economic fee of the outbreak also has potentially disastrous implications. A clarifying moment: COVID-19 has revealed cracks in Southeast Asia’s widely advertised growth models. Many countries in the region have leaned too heavily on external demand from their larger neighbour, and on China-centric supply chains. Compared with the SARS era, China’s economy now relies to a much larger extent on consumption and services. According to one government economist, that means the domestic economic impact of COVID-19 could be significantly bigger. Historical precedents, like the Genovese merchants who brought the Black Death home to Europe from Asia, suggest the spread of COVID-19 should halt trade with China. But in reality, boosting trade with the country may help both China as well as other economies better cope with its impact.


https://www.uscc.gov/sites/default/files/2020-03/March%202020%20Trade%20Bulletin.pdf

https://www.uscc.gov/sites/default/files/2020-03/March%202020%20Trade%20Bulletin.pdf

https://g20.org/en/media/Documents/G20%20Statement%20on%20COVID-19%20-%20English.pdf

https://www.reuters.com/article/us-health-coronavirus-india/global-supplier-india-curbs-drug-exports-as-coronavirus-fears-grow-idUSKBN20Q0ZZ

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It‘s important to remember that we are just entering the COVID-19 crisis and that the upcoming months will be both very difficult and very instructive. We are having the great chance to see and live in times when the history modern economy is being written. New technologies and processes will be born from this and many things will change. Let’s grow together.

In our new sequence “ECONOMY IN CRISIS” our team at IBA will upload each week one new article about this intersting economic reality we live in.

And dear readers, life, as Lennon said, is what happens while we make plans, so let's look at our here and now and work for a better tomorrow!

Sources:

Center for Strategic and International Studies (CSIS) - The Global Economic Impacts of

COVID-19;

The Wall Street Journal - China’s Coronavirus Response Toughens State Control and Weakens the

Private Market;

CNN Bisiness - Coronavirus devastates China's economy and the 'nightmare' is not over;

CNBC - The coronavirus outbreak may have a two-quarter hit on China’s economy.

And etc..

INTERESTING

ECONOMIC MEASURES TAKEN BY THE TURKISH GOVERNMENT TO DEAL WITH COVID-19

$ 15.4 billion economic package presented

Insurance payments in 11 sectors will be frozen for 6 months (including retail outlets, malls, metallurgy, automotive, logistics and textiles) Loan payments to affected companies will be suspended for 3 months Reduced VAT for domestic flights from 18% to 1%. Hotel accommodation tax (tourist tax) suspended until November (8 months) 7 billion TL in support of people with minimum wages 0% customs duty on imports of ethyl alcohol for the production of disinfectants.

Erdogan's package has come under fire for prioritizing companies and banks, while offering little to the working class and the poor who have to bear unemployment and income losses in the pandemic crisis. The biggest gesture to the workers was nothing more than the so-called partial payment of work from the Unemployment Insurance Fund to employees of companies forced to quit. To poors were promised a partial increase in existing social benefits, while citizens over 65 had to settle for free masks


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INVESTOR OF THE YEAR 2019 - WINNERS

„ Dundee Precious Metals Krumovgrad “ EAD is „Investor of the year“ 2019

For the 14th time, InvestBulgaria Agency (IBA) gave away the Oscars for investment. During the Investor of the Year 2019 ceremony BAI honored the most significant projects implemented in the country in the past year. The official event was held on February 27, 2020 in Hall 3 of the National Palace of Culture. The event was attended by Deputy Prime Minister Mariana Nikolova, Ministers Nikolina Angelkova, Petya Avramova, Deputy Minister Lachezar Borisov, Deputy Minister Zhecho Stankov, business representatives in Bulgaria. As well as many ambassadors, trade attaches to countries accredited by our representatives in Austria, Azerbaijan Republic,

Algeria, Argentina, Greece, United Kingdom, China, Pakistan, Poland, South Africa, USA, Slovakia, Ukraine, Egypt, Morocco, The Netherlands, journalists, many trade representatives, presidents of bilateral Chambers of commerce and industry.

"Bulgaria is currently the recipient of the 'Number One Investment in Central and Eastern Europe Award'. I thank you all for what you do for the Bulgarian economy, for


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investing in new technologies, for enabling the development of talents in Bulgaria so that they can operate on the global markets. Thank you all for showing Bulgaria as a serious investment destination.". With these words, the Executive Director of InvestBulgaria Agency Stamen Yanev, welcomed the guests at the ceremony.

During the nomination period, more than 80 applications were received from companies in all sectors of economy including automotive, information, technology and healthcare, all sent by regional administrations, municipalities and others. After discussions and evaluation by an objective methodology, the competent jury admitted to the final of the competition 19 companies that realized investment projects in 2019.

Mariana Nikolova, Deputy Prime Minister for Demographic and Economic Policy, presented the big award for Investor of the Year 2019 to Dundee Precious Metals Krumovgrad EAD.

The Golden Bull statuette made by the sculptor Seyfetin Shekerov and an honorary diploma was also received by: Voss Automotive Bulgaria EOOD., VMware Bulgaria EOOD, Coca-Cola Hellenic Bottling Company Bulgaria AD (KHBKK) and SE Bordnetze EOOD.

AWARDS I. The Golden Bull and an Honorary Diploma for “Investor of the Year” 2019 to Dundee Precious Metals Krumovgrad EAD Krumovgrad municipality It has been on the Bulgarian market since 2019. Total investment: BGN 56 million.

New jobs 243. Dundee Precious Metals EAD. is a Canadian based, international gold mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. Ada Tepe Mine is the first newly developed gold mine in Bulgaria in 40 years. The company officially opened its new mine and enrichment plant on 23.08.2019. Markets: Bulgaria, the European Union and third countries. Presenting the award: Mariana

Nikolova, Deputy Prime Minister for Demographic and Economic Policy. „We see many examples that investments in Bulgaria are increasing. The conditions for this are excellent, and this is evident in the analisis of credit rating agencies. 30 projects with a total value of BGN 400 million, which will create 3000 new jobs. Another 69 new projects with an estimated value of over BGN 2 billion are planned for this year. , which will create more than 6,000 jobs. In the fields of manufacturing, processing, automotive, healthcare and information technology“, Nikolova summarized. Received the award: Dr. Eng. Iliya Garkov – Vice president of Dundee Precious Metals Krumovgrad EAD and managing director for Bulgaria.

2. Investment in green field: „VOSS Automotive Bulgaria“ EOOD


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Village Bahovitsa, district Lovech. It has been on the Bulgarian market since June 2019. Total investment amount BGN 15 million. New Jobs: 183 Their product portfolio includes ready-to-install line modules with tubes, hoses, connecting elements, valves and sensors. VOSS Automotive is part of the German VOSS Group, a mechanical engineering corporation based in Viperfurth, Germany. Their product type is SCR lines and thermal control lines for cars. VOSS Automotive

is part of the German VOSS Group, a mechanical engineering corporation based in Viperfurth, Germany. Today VOSS presents in 56 countries, has over 6,000 employees and reaches over EUR 600 million in turnover. The company has many years of proven track record in the production of pipelines and components for combustion, cooling, pneumatic and exhaust systems for light and advanced systems. The presence and activity of the company in Bulgaria are of utmost importance as they develop not only business relations between Bulgaria and Germany, but also open up the opportunity for economic and social development of the region. Market place: The European Union. Presenting the award: Nikolina Angelkova, Minister of Tourism „Investors are extremely important factor for the Bulgarian economy and they go hand in hand with tourism - because they mean more jobs, tourists and development opportunities in Bulgaria.“. Received the award: Mr. Roland Weiss - CEO „I’d like to thank the government and InvestBulgaria Agency for this award. After only 6 months after our visit in Bulgaria we knew that this is the right place for our newest investment. In 2019 we started production and short after two large automotive concerns Volkswagen and Daimler approved our factory in Lovech for the delivery of various parts. Our international clients are impressed by the country, the people and the professional business here in Bulgaria”, praised Mr. Weiss. 3. Investment in human capital – "SE Bordnetze - Bulgaria" EOOD

City of Mezdra It has been on the Bulgarian market since 2006. Total investment over BGN 26 million. New Jobs: 467 Manufacturer of cable kits for cars. “SE Bordnetze Bulgaria” EOOD is a part of the large family of the SEBN Group, with 100% foreign ownership of the capital. The company creates, manufactures and supplies cable kits for leading car manufacturers in Europe. The Sumitomo Electric Bordnetze Group includes 41 locations


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in 14 countries around the world and creates approximately 39,000 jobs. The company has won a number of awards related to human resources, management and care. Actively participates in labor exchanges organized by the Labor Offices in Mezdra and the region, where they presents their activity and employment opportunities, this contributes to the development of the regional labor market and sustainable employment. Маrket place: European Union Presenting the award: Deputy Minister Lachezar Borisov The Deputy Economy Minister emphasized that our country is an excellent credit rating for the region and the conditions for investment in Bulgaria are very good, as evidenced by the positioning of Bulgaria in the international rating charts“. In this past year we have created an incredible investor team that is ready to respond in a second in any situation”, said Mr Borisov. Received the award: Ms. Desislava Yaneva, General Manager Human Resources Bulgaria. "In the last financial year, the company has hired more than 450 new employees at its plant in Mezdra. The main activity of the company is the supply of complete electrical cable systems for the automotive industry - the most complex component in every car. " , said Ms. Yaneva. 4. Investing in business expansion: Coca-Cola Hellenic Bottling Company AD

Town of Kostinbrod It has been on the Bulgarian market since 1965. Total investment amount BGN 40 million. New Jobs: 8. Production of soft drinks. This project is part of a long-term plan to increase the capacity of the Coca-Cola HBK plant in Kostinbrod and to position Bulgaria as a REGIONAL HUB for soft drinks production and export for countries such as Romania, Serbia, Greece. It involves the installation of a state-of-the-art high-speed production line, 25% more productive, up to 45,000 bottles per hour, as well as an innovative robotic format change system. The storage capacity has been significantly increased with modern, semi-automatic shelves for storage of finished products.


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The investment strengthens the company's environmental policies and helps to achieve a total of about 15% reduction in energy and 5% of water. Market place: The Coca Cola Hellenic Group operates in 28 countries. Presenting the award: Mrs. Petya Avramova, Minister of the Ministry of Regional Development and Public Works. "The high number of nominees in the category means that the business is finding a good partner in the face of the Bulgarian state. We continue our work - at the same pace and with even more effort and responsibility, in order to expand the opportunities for investment growth in Bulgaria, through good infrastructure and reduction of administrative burden,” said Minister Avramova. Received the award: Mr. Panche Ninowski, Technical Director "Bulgaria has always been special for Coca-Cola. 55 years ago, Bulgaria was the first Eastern European country to market Coca-Cola products. 20 years ago, we opened the factory in Kostinbrod, which today is also a major export hub. Currently, there are 2,800 people employed in the Coca-Cola system in Bulgaria, and we are very grateful for the support we have received over all these years, "said Mr. Panche Ninowski. 5. Investment in innovative business – „VMware Bulgaria“EOOD

Sofia city It has been on the Bulgarian market since 2007. Total investment of nearly BGN 37 million. New Jobs by the end of 2019: 195. VMware has been present in Bulgaria for 12 years. During this period the company has expanded its portfolio of extremely high value-added activities for VMware, making them a strategic global hub. It has made them a center for development and innovation in the field creating the first and only center for professional software integration services and custom solutions. In Bulgaria, VMware is working on a strategy to build a portfolio of products, solutions and services that generate $ 1

billion in annual revenue. VMware Bulgaria plays a key role in developing both the company's flagship products in the field of hybrid cloud infrastructure management, disaster data recovery, large data analytics, and edge computing, AI, IoT, block chain and others. Market place: World Market Presenting the award: Stamen Yanev, Executive Director IBA “I would like to congratulate VMware Bulgaria, because investing in this type of business is a pretty romantic affair, we have a serious investment here and a serious investment in talent development and global markets development,”Mr. Yanev addressed the winner. Received the award: Dimitar Kostov, Director of Information Technologies “We are actively working to retain Bulgarian talent in Bulgaria through programs that bring Bulgarians back here and the most important thing to do is to invest more in education”.

II. Crystal plaques Special award from IBA received the following cattegories:

Successful startup – „iRise Mechanics 357“


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iRise Mechanics 357 is a startup company that develops an innovative robotic tool for people with disabilities - OMNIBOT. The tool is an innovation for both the Bulgarian and the world markets. OMNIBOT is the first product in virtualization aids that implements an omnium motion system thanks to technology transfer from other sectors. OMNIBOT has unique functional advantages over everything offered so far. It is twice as light as other verticals, one-of-a-kind with 4x4 movement, compact and foldable for easier transportation. " Presenting the award: Lilyana Pavlova, Vice President of the European Investment Bank / EIB /

“I would like to thank the IBA for its efforts in attracting investors to Bulgaria and the EIB allocates EUR 360 million in support of innovation”, said Mrs. Pavlova. Received the award: Mr. Lyubomir Vassilev, founder and CEO

Municipality in Bulgaria with most investments: Stara Zagora Municipality

In Stara Zagora Municipality the first European type of modern industrial zone was created - a joint initiative between the Municipality and the State, represented by the Ministry of Economy. This is also a key moment for the development of the region as a whole. The Industrial Zone called “Zagore” will have pre-built infrastructure so that investors can build the necessary buildings and facilities themselves. Presenting the award: Antoinette Bares, Executive Director of National Industrial Zones EAD. „It is an honor for us to be a partner with

IBA and to work for a greater cause in Bulgaria to exist many new, innovative enterprises which choose our country. We have a joint project with Stara Zagora Municipality and we are already the first investor. And I wish other municipalities to follow these footsteps.” said Mrs. Antoinette Barres at the award ceremony. Received the award: Milena Zheleva, Deputy Mayor of Stara Zagora Municipality. "I believe that the steps we make hand in hand are good when the municipality, the state and the investors go together. The industrial area in the municipality is going very well, 70% of it is already a fact. The only thing that remains is for investors to wake up in 3 months and build their factories. In this way the young people remain in the country as well they create their own families", said the Deputy mayor.

Social Investment Award: Presented the award: Stamen Yanev, Executive Director of InvestBulgaria Agency Received the award: Krasimir Dachev, Chairman of the Board of Directors of Svilosa "The pursuit of investment is a disease, a drug that is indelible," said the businessman on receiving the award.


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III. Award of “24 chasa” newspaper for social investment Presented the award: Venelina Gocheva, Publisher of “24 chasa”. „24 hours, which is the main media partner for “Investor of the year” chose to give it’s personal award especially to GEOTECHMIN GROUP because of the social investment the company has made with a lasting effect on the local communities in different aspects of life - from education, support of talents and preservation of national and cultural identity to creation of material values - churches, cultural and historical monuments and infrastructure in the Bulgarian regions, ”said Ms. Gocheva. Received the award: Dominic Hammers, CEO of Geotechmin „This year the company turned 30 years. The implementation of socially responsible projects are very important, because they are investments in the present and future of Bulgaria. I would like to make a point of our investment in the field of education - scholarships for students, support for talents and assistance for schools and for the Bulgarian Red Cross, projects in our regions, where we give perspective to the future of the people who live there, "added Mr. Hammers. The winners and nominees of Investor of the Year 2019 were awarded the Golden Bull badge, a symbol of the outstanding contribution to the sustainable development of the Bulgarian economy. The main media partners of Investor of the Year 2019 are Bulgarian National Television, 24 Chasa and Investor.bg.

IBA TEAM


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CERTIFIED INVESTMENT PROJECTS - MARCH 2020

From the beginning of 2020 until now under the Investment Promotion Act (IPA), InvestBulgaria Agencies has prepared positive opinions and the Ministry of Economy (MI) has certified 10 projects worth a total of BGN 211.38 million and they have the potential to open 2218 new working places. The investments are mainly in the sectors: manufacturing, information technology, warehousing and storage, and healthcare and automotive.

N: Investor Certified investment projects i

realization (name, location, technical parameters

Size, (mln. lv) New Jobs

Sector Country

1 NIKVETZ OOD Development of TUIDA SPRINGS Resort

and SPA balneological resort in the village of Zlati Voivoda

13 50 Other human health

services Bulgaria

2

Commercial League – Global Pharma Center

AD

Heart and Brain center of Excellence Bourgas

9.3 200 Other human health

services Bulgaria

3 Scale Focus Growth in Focus, Sofia 2.779 300 IT Bulgaria

4 Private primary

school “The little prince” Ltd

Building own premises and facilities for innovative schools Varna

4.2 10 Education Bulgaria

5 Leila Real Estate

Bulgaria EOOD

Modern logistic base and training center, Bozhurishte

1.5 1 Warehousing and storage services

Germany

6 Bulgaria Air

maintenance

MAINTENANCE - Base for support, training, logistics, offices, hotel (for

Bulgarian Air crews and partners and passengers for delayed and canceled

flights), Sofia

134.952 Repair and maintenance services of aircraft and

spacecraft Bulgaria

7 Agroden OOD ENLARGING OF PRODUCTION OF ADHESIVES-Tzalapitza,Rhodopi

0.5 10 Production Turkey

8

Commercial League – Global Pharma Center

AD

Hospital services, accommodation services for students of dormitories of

boarding schools, hotel services, Pleven 10.3 150

Other human health services

Bulgaria

9 REISSWOLF Bulgaria AD

Expansion of the company's activity and construction of a new archive facility

2.1 4 Services Bulgaria/ Germany

10 LEONI Bulgaria

EOOD Electrical and electronic equipment for

motor vehicles,Pleven 32.745 1493

Мechanical engineering, Automotive

Germany

According to preliminary data, the net inflow of foreign direct investment in the country for January 2020, accounted for in accordance with the principle of the original investment direction, was positive at EUR 15 million (0.02% of GDP), an increase of 179.1 million, compared to January 2019 (negative flow of 164.1 million euro, 0.3% of GDP) The largest net direct investment flows in the country for January 2020 were from Israel (43.1 million euro) and the Netherlands (8.9 million).


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IBA NEWS

INVESTBULGARIA AGENCY WINS “THE BEST TEAM TO PROMOTE CENTRAL AND EASTERN EUROPE INVESTMENT” 2019

Investbulgaria Agency (IBA) won the Best Investment Promotion Team in CEE award in 2019. The award was awarded by the prestigious international business, economics and finance magazine CFI.co (Capital Finance International). The London-based magazine informs of everything important in the global economy. Combining the views of leading national organizations and some of the best minds in the world, the dedicated editorial team ensures that readers are informed of all the developments in the global economy. According to the CFI.co expert group tasked with identifying the best Central and Eastern European Investment Promotion Team

(CEE), the following findings are in support of IBA team: "Bulgaria is a successful place to do business, attracting investors with the lowest corporate tax in the EU, with access to markets in Asia, the Middle East and Russia, as well as skilled IT workforce. With the active support of Bulgarian Prime Minister Boyko Borisov and Emil Karanikolov - Minister of Economy, IBA is working successfully and maintains a high level of foreign direct investment (FDI). The Agency offers free assistance to investors in the development of their projects, support for their management at the pre-investment stage, providing information on FDI incentives, EU funds, free areas in industrial areas, a network of contacts and a wide range of information. Investors can benefit from legal advice, macroeconomic data and information. In addition, the IBAI team assists investors with visa applications and incentives, connects with key business partners and arranges site visits”.

IBA AND WAIPA WITH JOINT EMERGENCY WITH COVID-19

On March 23, 2020, WAIPA's Governing Board / Board of Directors/ held a videoconference on how to address the COVID-19 situation and its impact on the global economy. Stamen Yanev, Executive Director of InvestBulgaria Agency (IBA), took an active part and offered WAIPA Board of Directors to make a statement indicating the commitment that investment agencies are currently making at this difficult time, in which to be underlined their role, influence and positive impact on society, cities and nations for the economies of all countries around the world.

Stamen Yanev said that if investment agencies adapt to the current situation and continue to focus on the value created by each foreign direct investment project (FDI), unique in nature, we will be able to get out of the crisis stronger than before. Many agencies continue to engage investors responsibly, to provide the support, guidance and clarity needed to restore confidence in local economies. The investment agencies that are members of the WAIPA Board of Directors have unanimously decided that in 2020 WAIPA will set an example for global cooperation through:

Setting a new agenda for the future of foreign direct investment; Strengthen and expand WAIPA, its services, institutional role and global stability for the benefit of its

members; Develop a new WAIPA strategy and roadmap to guide the future of services, partnerships and

governance within the organization; Encourage regional and global partnerships to facilitate FDI in Sustainable Development Goals (SDGs)

projects; Develop and fund WAIPA member capacity building programs through the 2030 Investment Agencies

Program in partnership with the Hamdan Center for the Future of Investment (HCFI) with a focus on


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building the professional, institutional and market capacity needed for realizing over $ 15 trillion in FDI related to Sustainable Development Goals by 2030.;

During the videoconference, the WAIPA Board voted and approved the following items on the agenda: Rebuilding the WAIPA Headquarters in Geneva by the end of 2020 to be at the heart of decision-making and to reach all stakeholders who are seeking to achieve their vision and mission. The relocation of the headquarters will allow WAIPA to go one step higher and build on an organization that has a high image among government institutions, countries, permanent representatives of these institutions, the business community, and ultimately closer to its partners. This will lead to more projects where WAIPA will be the main unit for their implementation;

Developing a strategy; 201 Financial Report 2019; 2020 Budget for 2020/2021; Join UNWTO / World Tourism Organization as a new member of the WAIPA Advisory Committee;

TODAY WE PRESENT:

MUNICIPALITY STARA ZAGORA

Jivko Todorov

Tel.: 042 600 105

e-mail: [email protected]

Web site: www.starazagora.bg

"It was an extraordinary honor to receive the prize" Successful Municipality "at the Investor of the Year 2019 awards, organized by the Invest Bulgaria Agency!

This proves once again that we are heading in the right direction. We work to make Stara Zagora a modern, well-developed infrastructure, with opportunities for doing business, with a rich culture and developed sports activities. We have a city dedicated to education, evolving and dynamic, calm and tidy. This happens thanks to the good collaboration between the municipality, the state and the business - it gives us perspective, and it is important for all of us that people have opportunities for development”.


../../AppData/Local/Temp/Rar$DIa0.155/www.starazagora.bg

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Stara Zagora - Stara Zagora covers an area of 1 019,4 km2, covering parts of the picturesque Sredna Gora

Mountain and the Upper Thracian Plain. Stara Zagora is one of the most ancient cities in Europe. Already in the Stone Age (VII-VI millennium BC), favorable natural and geographical conditions stimulated the emergence of the first settlements associated with the development of agriculture and animal husbandry.

Territory: 1 019,4 кm2, Population – 177 722 permanent residents Born in 2019, with current address – 1380 people Unemployment rate –as of 01.12.2019. – 2,3% Economically active population – 33 555 people The unemployment rate - 2,5 %

Еconomy In the developing city the leading companies in the country and Southeast Europe have enterprises in the fields of mechanical engineering, food processing, wood processing, textile, automobile industry and others. The construction of the infrastructure of one of the most modern industrial zones in Bulgaria - “Zagore”, is actively


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working. Specialists in the district are adamant that because of its convenient location and some of the lowest local taxes and fees, compared to other major cities in the country, it will be an attractive center for the development and expansion of various types of industries and businesses. The Zagore Industrial Zone was created through a partnership between the state and local authorities. The municipality participates with an in-kind contribution - a plot of 115 acres in the eastern quarter of Zora, and the National Company Industrial Zones EAD is a shareholder with a capital of BGN 3.5 million. The area has convenient road access to the terrain and waiting parking for heavy trucks. An additional 140 acres are planned to be added to the original area. Investors can buy land for their businesses under clear rules and through tenders. Zagore Industrial Zone JSC has officially signed its first contract - a fast growing local company. The purchased plot is just over 12 acres, the investment, without the value of the land, is over BGN 2 million. “Zagore” is also suitable for high-tech industries , for electronics and electrical engineering companies, logistics companies and more. In addition to its communication advantage, Zagore will be attractive for its professional training, thanks to the developed educational infrastructure and the planned activities for the development of vocational schools. The municipality and the management of the industrial zone are committed to assist in the preparation of all necessary documents for the start-up of new investors.

Business environment

The International Credit Agency Standardrat & Poors confirmed the credit rating of Stara Zagora Municipality with BBB - Perspective stable. The key factors lie in the balanced management of the municipal budget. The rating is supported by the municipal management's commitment to controlling costs. Coupled with continued economic growth in the area, tight fiscal policy, good budget performance and low debt levels. The largest energy complex in the country, located near Stara Zagora, plays an important role for the regional economy, which enjoys low unemployment and high wages. Standard & Poor's predicts that Stara Zagora municipality will maintain a stable operating balance, supported by continued national economic growth, leading to increased state budget revenues and transfers.

Successful investors and investments

In the past year, the central city part was also overhauled, including the replacement of the main pedestrian boulevard and the square in front of the municipal building. New recreation and entertainment areas were created. The infrastructure, pavement and vegetation of the largest park of Stara Zagora – “Metropolitan Metodiy Kusev” have also been renovated. With the new look will be the Zoo, repair is under way. The project is worth BGN 4.2 million, of which BGN 2.5 million is financed under the Operational Program Regions for Growth. The artillery park, which has been expanded throughout the year, has been completely completed through additional territories. The state will also invest in the construction of a multifunctional hall with a capacity of more than 5 thousand seats. A complete replacement and extension of the overpass over the railway line, which provided the main car traffic, was carried out. Dozens of blocks, streets and sidewalks have been repaired and refined. 75 multi-family housing units have been rehabilitated under the National Energy Efficiency Program, with a total value of BGN 80 million. A comprehensive renovation of the Russian Market - a space for the sale of industrial goods is forthcoming. It will be transformed into an indoor bazaar with an innovative vision, 2,000 square meters and space for 140 trade booths Transport and Infrastructure Urban transport has been completely upgraded by creating new infrastructure and a traffic monitoring system. In 2015 and 2016 Stara Zagora upgraded public transport with 14 trolleybuses and 55 new buses, which have all the comforts for the people and are environmentally friendly. New 33 eco buses and charging stations are expected to be delivered to them. An online ticketing system for personal mobile devices is also in place. Surveillance of 37 intersections with intelligent congestion prevention system is implemented. A smart parking


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facility is also being implemented in the city's pay zone, which will make it clear where there are vacancies. The municipality is a strategic center in Bulgaria and on the Balkan Peninsula. The favorable transport and geographical position of the municipality of Stara Zagora and in particular of the city of Stara Zagora is one of the important advantages of the municipality and an important factor for its competitiveness. Through the built road and railway transport provides good opportunities for trade contacts with countries in Europe, the Middle and Middle East. Important highways, part of the republican road nerwork are passing through the territory of the municipality:

Trakia highway - 10 km south of Stara Zagora (with European rating E-80)); I-5 - Ruse - Svilengrad (with European categorization E-85), II-66 - Sofia - Burgas. The transport infrastructure is well established. The main thoroughfares are in very good condition. In the last four years a part of the municipal / IV-class / road network has been rehabilitated. Approximately 45% of the municipal roads (about 100 km) are in need of repair and rehabilitation, as they are not in good condition or without pavement (42.9 km).

Secondary and high schools There are 33 schools functioning in the territory of Stara Zagora municipality, incl. elementary - 3, secondary - 19, SU - 6, high schools - 3, sport’s school - 1, evening school - 1. The National Vocational High School of Computer Sciences and Mathematical Analysis is about to open in 2020. The total number of students in Stara Zagora municipality – 14 500 Trakia University, total number of active students - 5996, total number of doctoral students - 100

Faculties of TrU, affiliates and colleges Veterinary - medicl faculty, active students - 798 Medical Faculty, active students -1168 Pedagogical Faculty, active students -1303 Economic Faculty, active students - 469 Faculty „Technics nd Technologies“ – in Yambol, active students -742 Medical college- in Stara Zagora - active students -186 Trakia University Affiliate in Haskovo, active students – 231

INTERVIEW

ASSOCIATION FOR INNOVATION, BUSINESS EXCELLENCE, SERVICES AND TECHNOLOGY (AIBEST)

Association for innovation, business

excellence, services and technology,

previously Bulgarian Outsourcing

Association, is an independent industry

organization whose objective is developing

Bulgaria as a leader for knowledge-


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intensive products, services, solutions, and globally recognized (world-attractive) destination for educated talent.

Ilia Krastev is Chairman of AIBEST’s Managing Board.

Mr. Krastev, at the end of last year you changed the name of the Bulgarian Outsourcing Association to the

Association for Innovation, Business Services and Technology (AIBEST). What require this change?

Since the establishment of the Association for Innovation, Business Services and Technology (AIBEST) in 2012,

we have witnessed tremendous transformations in all sectors of the economy and social interaction.

Technologies have evolved to a whole new level of interaction with the digital consumer, and digital

transformation of businesses and economies is a necessity. Technologies have been able to automate

intermediate processes, which has drastically reduced the human resource needed to manage these processes. .

Essentially, the outsourced industry has led companies to understand and identify digital transformation as the

next growth phase decisive for their success, incorporating process, automation and technology solutions.

„Outsourcing“ is a term that hasn’t been accurately reflecting the business as well as products and services of

AIBEST members. There will always be a need for synergy between companies, and our sector has for years

been viewed as an equal partner by customers. In addition, we are at the heart of innovation in the business

processes we manage and the development of customer support technologies. Last but not least - the

companies in the sector are the engine of the value added economy and in the last 20 years the largest

university for highly qualified personnel, benefiting all industries in Bulgaria. We believe that what is new to the

Association reflects on the transformation of our members and business generally - a renewed understanding of

our role in the development and growth of businesses and the economy.

What is AIBEST's mission and what are your goals?

AIBEST's goals are related both to supporting the growth and development of the sector in Bulgaria, as well as

taking the lead in development of the industry for the region of Southeast Europe. The Association is committed

to create a business environment that encourages innovation and know-how on a company level and the

development of an economy knowledge in Bulgaria. We look for solutions to common sector-wide challenges

such as the transformation of education. . We work on several programs with the Ministry of Education, and we

support the Ministry of Labor and Social Policy.

Another important goal for the country's economy is the retention of young people in our country and the

attraction of Bulgarians abroad back to Bulgaria. The companies in the sector are in a position to provide

opportunities for this key for our country potential resource for career as well as professional development and

security, here in Bulgaria. More than 73,000 highly paid professionals are engaged in the sector, which we

believe has serious social and economic impact in the country and is a major part of the middle class and an

important element of the entrepreneurial ecosystem in Bulgaria.

Will the current crisis have an impact on your industry?

The COVID-19 pandemic has put the technology and business services companies in a state of emergency just

like all other businesses in the country. We face challenges and twists that could hardly be foreseen. However, I

believe that the sector has entered more preparedness than many others in this crisis, which, in addition to its

health and social consequences, will have a very serious negative economic impact. The restrictions imposed in

Bulgaria and in the world are already affecting the supply chain of some of the big companies, the speed of

business development and consumption and investment. Companies in the sector already carry a huge financial

burden, including insurance and tax, in an attempt to keep jobs intact. A similar crisis calls rethinking efficiency

and process optimization. The sustainability of companies' crisis plans is being tested in practice. The readiness

and ability of business, the state and society to work together to minimize the negative effects of the crisis in all

its dimensions has also been put to the test. What will be the real impact on the business is difficult to predict.


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At first, our companies closed their physical offices within hours and reorganized work from home. In the sector

we have the proven business processes, technologies and working culture to make such a transition. This is

further proof of the importance of digitalization and the need for digital skills in society across all social groups.

The situation will inevitably lead to the use of more technological products, innovative solutions and tools both

at company level and in the administration as well as life as we know it. We are currently witnessing accelerated

transformations and shock changes in many sectors of the economy and public relations. I am convinced that

we will emerge from this crisis with a digitalized and changed attitude and understanding of synergies between

people and technology.

Contacts AIBEST: tel.: +359 878 37 08 36

Е-mail: [email protected]

www.outsourcinginbg.com

ECONOMIC NEWS

STARTED PRODUCTION OF BULGARIAN MASKS, HELMETS AND GLASSES

Economy Minister Emil Karanikolov held a meeting

with Bulgarian manufacturers and scientists to

present samples of masks, helmets and goggles of

which production began. At the meeting, it became

clear that apricot kernel activated carbon filters have

been tested that do not pass on coronavirus-like

viruses. The filter can be used for reusable masks by

steam sterilization for reuse. This is what scientists

Stoyan Shishkov and Prof. Dr. Pavlinka Dolashka said

- the people who developed the new protective

device and showed the finished masks. There is

readiness to produce 30 - 40 thousand of these

masks a day, became clear during the meeting. The

msks have been tested in Virology at the Faculty of

Biology, Sofia University. Tests have shown that 50 hours are observed during which the virus cannot pass

through the mask. Minister Karanikolov stressed on the readiness of Bulgarian scientists and producers, with the

assistance of the state, to start production of these protective materials. Earlier in the day after a meeting at the

Ministry of Economy, it became clear that production of Bulgarian helmets and goggles has started. At least 5

companies start production with a capacity that can exceed 3,000 helmets per day. For goggles, technology is

being developed which will be ready within a week and will be put into production by companies in the

automotive cluster. It is envisaged that the quantities will be available not only for the Bulgarian market but also

for companies from all over Europe.

Source: Ministry of Economy

THE ELECTRIC VEHICLE FACTORY INVEST $ 200 MILLION


mailto:[email protected]

http://www.outsourcinginbg.com/

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A Memorandum of Intent to build an Electric Vehicle Plant was signed in the presence of Deputy Prime Minister for Economic and Demographic Policy Mariana Nikolova at the Council of Ministers. The document was initialed by the Executive Director of the Bulgarian Investment Agency Stamen Yanev and the heads of the Korean-Chinese company „SONGOU MOTORS“ and the Italian - „Hadid Holding“, informed the press service of the Cabinet. The two companies announced their intention to invest $ 200 million in Bulgaria to build a plant for the production of electric vehicles. "We accept the memorandum as a very

good assessment of the investment climate in Bulgaria and of the government's achievements in terms of business environment facilitation and development. Our country is on the investment map of Eastern Europe with proven benefits and high credit rating, "said Deputy Prime Minister Nikolova. SONGOU Motors CEO Yongbok Shin said his company was setting foot in Bulgaria for the first time and expressed confidence that the project would be finalized here. "For us, Bulgaria is a stable country and provides a guarantee for the future," said his partner Vincenzo Di Grandi, president of “Hadid Holding, which already has a subsidiary operating in Bulgaria. It is expected that around 2000 jobs will be created in the implementation of the stated investment intentions.


FRENCH COMPANY WILL INVEST OVER BGN 5.5 MILLION IN EXTENSION OF PRODUCTION TO AIRPLANE PARTS NEAR PLOVDIV Bulgaria is becoming an attractive investment destination not only for the production of auto parts, but also in another high-tech sector, such as aircraft manufacturing. This was announced by Deputy Minister of Economy Lachezar Borisov, who awarded a class A investor certificate to Latekoer Bulgaria for the investment project “Assembly of metal components for the nose of the AIRBUS A350 aircraft.". The investment in the certified

project is worth BGN 5, 574 mln. for the expansion of the production of the plant of the French company in the economic zone in Radinovo. With its implementation 35 new jobs will be created, with nearly 200 already orking in the production. The purpose of the investment project is to start assembling metal components for the nose of Airbus A350. Components are a new type of product for the company that has not been manufactured before. The Deputy Economy Minister stressed that our country has the highest credit rating in the Balkans, financial and macroeconomic stability, qualified personnel, which is a prerequisite for more and more investors in the sector.



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INCOMING EVENTS

11-12 JUNE 2020

GENEVA, Swiss

Global Investment Forum 2020

15-17 JUNE 2020

VANCOUVER,

Canada

The World Forum For FDI

24-25 JUNE 2020

AMSTERDAM,

NIderland

Impact Mobility: Europe 2020

10

SEPTEMBER 2020

SOFIQ,

Bulgaria

Career Show 2020

03-05

NOVERMBER 2020

COPENHAGEN,

Denmark

Innovation Roundtable Summit 2020

18-19

NOVEMBER 2020

LONDON,

United Kingdom

Global Innovation Forum

06-10

DECEMBER 2020

ABU DABI,

ОАЕ

World Investment Forum 2020


https://www.global-investment-forum.com/

https://www.worldforumforfdi.com/

https://events.impactconf.com/mobility-eu/

https://careershow.bg/en/home-en/

https://innovationroundtable.com/summit/

https://giflondon.com/#about

https://worldinvestmentforum.unctad.org/#/ms-1/2