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Bulgaria's tourism and construction were the first sectors hit by the global financial crisis. Word about downsizing of personnel, closures of hotels and outflow of foreign investments started spreading rapidly. What measures is Bulgaria's government preparing to avoid the looming bankruptcies in the building sector, The Standart asked Bulgarian Minister of Regional Development and Public Works, Assen Gagauzov.
- Mr. Gagauzov, how will the global financial crisis influence the construction sector in Bulgaria?
- The sector saw a rapid development over the past six or seven years, but now we expect a cool-down. Some construction projects taken up by foreign investors will remain unimplemented, but the construction of apartment buildings in Bulgaria's cities will keep its pace, although the buyers from West Europe may withdraw a little bit from the market, but the ebb will not be too significant. The investors in huge construction projects like malls and hotels at the seaside will be the most affected by the shrinking markets, because these entrepreneurs rely mostly on buyers from abroad. However, the financial crisis also has a positive effect - it will introduce some order in the now chaotic construction sector in Bulgaria.
- Do you expect a wave of bankruptcies and layoffs in the sector?
- No, I do not expect anything like that. The big construction companies will survive the unfavorable financial conditions.
Together with the Bulgarian Construction Chamber, we will try to compensate the crisis by entering foreign markets. For example, we expect Bulgarian companies to win projects for the construction of facilities for the winter Olympics in Sochi. We have also received construction offers from other countries, which we have to check out. We can make up for the ebb of foreign investments in Bulgaria's construction sector by efficient absorption of the funds allotted under the EU operative programs. For instance, last year we negotiated the implementation of construction projects worth over 1.2 b levs (1euro=1.95levs). The implementation of these projects starts at full steam in 2009, which means that a large part of the funds can be efficiently absorbed.
- Which foreign markets do you hope to make a breakthrough on?
- During my visit to Middle Asia I found out that the demand for constructors in Uzbekistan and Azerbaijan is really great, because these countries are unaffected by the mortgage crisis.
We also plan to take up construction projects not only in Sochi, but in the whole region of Krasnodar.
Also, big projects are to be launched in Bulgaria's energy sector. I mean the construction of NPP Belene and Bourgas-Alexandroupolis pipeline.
- When will Bulgaria see its first fully constructed highway?
- The construction of the Trakia and Maritsa highways will be first completed and these may be Bulgaria's first highways. I hope they will be opened in three years time.
Source: www. paper.standartnews. com Nataliya Malcheva

Bulgaria is set to make a comeback in the international property market next year, it has been claimed.
According to Property Wire, the country's winter sports destinations are set to become popular over the next 12 months, with a Daily Telegraph report noting that resorts such as Borovets are likely to be popular due to their affordability.
One such investor who purchased a property overseas is Samantha Emery from Watford, who bought it as an investment to help her purchase a home in the UK in the future.
"The property I bought at the Pirin Golf and Country Club in Bansko is an investment through which I gain my profit from renting," she was quoted as stating, adding that the five star development is one of the best ski resorts in the country.
UK property firm Miller Developments recently purchased a shopping centre in the Bulgarian city of Varna, an investment which chief executive of the company Keith Miller described as an "impressive addition" to its overseas portfolio.

Source: www.propertyshowrooms.com

Undeniably, the global financial crisis will have a negative effect on the building market in Bulgaria, but its consequences will be far from fatal. As the buyers developed a distinguished taste for high-quality buildings, the investors who fail to match these higher standards will be most affected by the crisis. The already financed projects and those which are almost implemented will hardly be directly affected by the negative tendencies on the world markets, but these which have been partially financed will definitely experience some difficulties, as the Western and the local banks have become more reserved to granting loans. Generally speaking, Bulgaria will overcome the global credit crunch almost unaffected, because a stable growth in the country's GDP is expected.
At the same time, the real property market in Bulgaria will cool down and the growth in the sector will become slower, following a decrease in the demand. The reason for the lower demand is that the access to house loans in the poorest EU member state has already become more difficult. The positive aspect of the slowdown in Bulgaria's construction sector caused by the global financial crisis is that the investors and municipal authorities will be able to catch up with the building of infrastructure and facilities. The new homers now pay more attention to the details - they tend to prefer high-quality engineering and friendly neighbors.

Source: www.paper.standartnews.com

The Bulgarian PC market continued to grow strongly in the third quarter of 2008, the number of units sold jumping 72.6 per cent and sales revenue 44.6 per cent higher than in the same period of 2007, the latest data from industry analysts IDC showed on November 19.
Notebooks posted the fastest growth in July-September, with shipments up 117.0 per cent year-on-year to account for 57.4 per cent of the total PC market, IDC said. The number of desktop computers sold in the country was 36 per cent higher, while deliveries of x86 servers added 15.8 per cent year-on-year.
"Although notebooks continue to drive the PC market, we registered increasing demand for desktop PCs by home users, and this means it will continue," IDC Bulgaria research analyst Evelin Stoev said. "The growth of ultra low-cost notebooks is the second important trend in the third quarter and, up to now, their increase has not been at the expense of traditional notebooks."
Asus, Acer, and HP were the leading manufacturers in Bulgaria, accounting for almost 40 per cent of total shipments.
"The financial crisis will have an impact on PC spending in Bulgaria in the fourth quarter," Stoev said. "However, it will mainly affect demand for commercial PCs from the financial, manufacturing, and construction sectors, while verticals like the Government and telecoms are unlikely to cut spending.
Source: sofiaecho.com

Bulgaria is actively joining the Global plan for cyber-security of the International Telecommunication Union, announced the State Agency on IT and Telecommunications. At the annual sitting of the Council of the Union taking place in Geneva from November 7 through 21 under the patronage of Bulgaria, cyber-security issues are a priority. The IMPACT project was launched for working out and introducing instruments for monitoring and actions in case of cyber-attacks. Within the framework of the project a regional center would be opened in Sofia for the purpose of cyber-security. It will service the countries of Southeast Europe and Russia.

Source: bnr.bg

Bulgaria will become a paradise to all who invest in solar energy, it transpired at a conference on alternative energy sources. With the adoption of the amendments in the new Energy Act, the contracts for purchase of produced electricity will be valid for a period of 25 years. This will guarantee not only returns for the investments but fair profit as well.
"In terms of competitiveness, we could surpass even Germany, where energy contracts last 20 years. We`ve got great potential to build renewable energy power plants," Deputy Minister of Economy and Energy Valentin Ivanov said.
He added that the conditions for solar power plants in Bulgaria are great as 1 sq. m of sun battery produces as much as 1,450-1,600 kW/h. "The future belongs to the sun because water is growing scarce and is used mainly for drinking, and wind in our country is inconstant," Ivanov said.

Source: news.guide-bulgaria.com

Bulgaria has the potential to become the most attractive country on the Balkans for conducting business, according to the U.S. Ambassador to Sofia Nancy McEldowney.
McEldowney spoke on Wednesday during a business luncheon organized by the American Chamber of Commerce in Bulgaria. The luncheon was held at the Sheraton Sofia Hotel Balkan.
The Ambassador, however, said that the Bulgarian Cabinet must undertake urgent measures to deal with the global financial crisis, despite numerous statements of local economists and politicians that Bulgaria would not suffer the effects of the crisis on the scale of other countries due to the level of development of the economy.
McEldowney pointed out that the U.S. were currently making significant efforts to fight the crisis, but the rest of the world should also establish more aggressive policies, adding that President-elect Barack Obama faced more difficulties than any of his predecessors.
The Ambassador defined three main strategies that would make Bulgaria the most attractive country on the Balkans for doing business - drawing more foreign investors, improving the economy and successfully dealing with corruption and organized crime.
"In order for my vision for Bulgaria to become reality there is a need of something more than just foreign investments; the economy must improve. There is, however, a third element - to put an end to corruption and organized crime. And I am not just talking about plans, work groups and public discussions; I am talking about real action. The oligarchs who behave like they are above the law, must be put behind bars," the Ambassador stated.
McEldowney concluded that she hoped to see Bulgaria well on its way to reforms - with an economy based on knowledge, with a public policy to generate new ideas, capabilities and decisions.

Source: www.novinite.com

Bansko will host the International festival of the Mountaineers Cinema, announced Natali Petrova, head of the festival. 75 films from five continents, taken from the sea bottom to the Himalayan peaks, will be presented in three halls.
The documentaries show the lifestyle, art and religion of the mountain people, as well as the ecology problems of the planet.
Some of the characters of those films will attend the festival. Among them are Gustavo Tony (Italy), Borge Ousland (Norway) and etc. They will leave some personal belongings and prints in Bansko for the future National Mountaineering Museum. The international jury, lead by Mariana Evstatieva – Biolcheva will determine the winners of the six prizes in the program.
The program also included art exhibitions, among which “Bulgaria in Antarktika”, marking the 20th anniversary of the Bulgarian science in the region of the South Pole and etc.
The audience will have the chance to watch six films – “The starts of the winter Olympics on the big screen”. The entrance for all shows is free.

Bulgaria is a good place for making business in 2009, PricewaterhouseCoopers maintains. Bulgaria is ranked 45th in the report "Business in 2009" which covers 181 countries. In 2008, Bulgaria occupied 44th place.
PricewaterhouseCoopers compiles a rating list based on the report of the World Bank (Doing Business 2009), examining 10 indices. The business climate in neighbouring Romania is good but the country lags behind Bulgaria occupying 47th place.
Bulgaria has significantly facilitated the company registration procedures, which pushes Bulgaria up by 22 places in the rating list for 2009 in this index - from 103rd position to 81st. Experts register a much tighter administrative control over business, which sends Bulgaria to 117th place according to this index.

Source: Anton Andonov, paper.standartnews.com

The main investor in the new Super Borovets mega ski resort is to apply for an EMAS (Eco-Management and Audit Scheme) eco certificate which guarantees that all work, products and services will be done in accordance with the highest European eco standards.
So far, Super Borovets is still only on the drawing board, as construction is yet to be given the go-ahead.
The Eco-Management and Audit Scheme is the EU voluntary instrument which acknowledges organisations that improve their environmental performance on a continuous basis. The system has been active since 2001.
EMAS-registered organisations are legally compliant, run an environmental management system and report on their environmental performance through the publication of an independently verified environmental statement. They are recognised by the EMAS logo, which guarantees the reliability of the information provided.
Until now, no Bulgarian company has been issued such a certificate. The planned construction, for instance, includes construction "revolutionary" for Bulgaria, such as "passive buildings" or buildings that are heated and cooled by themselves. They will be powered by "green infrastructure" or the production of electricity will come from recycled resources, advanced system for waste management and a "thorough conceptualisation for integrated tourism" director of Ecoest Georgi Krumov said, as quoted by Dnevnik daily. Super Borovets will cost about 750 million euro.
According to the investors, the decision for the new development for the ski resort will make it a very popular destination and it will increase its value drastically. Additionally, every existing hotel is going to be upgraded so that it receives "Eco marking". This label is in accordance to strict criteria mainly in regard to heat and water management, among other factors.
"We hope to create a positive image for Super Borovets so that all eco activists will be assured that we will develop the tourist facilities and services in such ways that the environment will not be harmed," said Julia Arabadzhieva, the director of the project.
There were many protests against the planned mega construction in the Rila Mountain and the subsequent clearance of a large section of the ancient forest where the hotels will stand. Because of Super Borovets, the zone Rila-Buffer has been left out of the Natura 2000 eco-network. The activists, however, say that they will continue their protests against the planned "disembowelment" of the mountain. They claim that regardless of what "labels" the construction firms acquire from Europe - be it Eco marking or EMAS - eventually the rules will be broken gradually and that pollution and destruction of the environment is all but inevitable.