불가리아 주요 경제 뉴스(29 FEBRUARY – 7 MARCH 2008 )

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT ( 29 FEBRUARY – 7 MARCH 2008 )

 

 

Sections/headline briefs:

 

 

MACROECONOMY:

 

 

·        Bulgaria January budget surplus soars to 440.4M leva

·        Brussels demands suspension of Phare payments

·        Car industry suppliers study investment opportunities in Bulgaria

·        Macedonia to join South Stream

·        Basic interest rate hits new record

·        Bulgaria exported 32 million liters of wine for EU in 2007

·        �166 M aid for Bulgarian vineyards

·        Bulgaria resumes electricity export

·        Bulgaria to export power for Kosovo

·        JBIC to Provide �226 M for Black Sea container ports

·        Furniture prices grow 20%

·        Market of low-cost carriers in Bulgaria cracks

·        Hillary and Obama promise to remove visas for Bulgarians

·        The battle for Lom Port concession

·        Bulgaria economy vulnerable to external shocks

·        Bulgaria may tie geographic dialing codes to economic zones

·        Switzerland grands �161 M to EU's poorest states Bulgaria and Romania

·        Expensive coal to trigger electricity price hike

·        Highly modern info center complex opens at Bulgaria's newest business center

·        Bulgarian day on CeBIT 2008 in Hanover

 

 

 

 

 

 

 

 

 

 

INVESTMENTS:

 

 

·        �125 M to be invested in ‘Industrial park Sofia – East’

·        Investing in wind parks in Bulgaria is still risky

·        Lewis Charles fund invests �45 M in Sofia property developments

·        Germany's Ixetic to invest �7 М in Plovdiv plant

·        European companies want to invest in Bulgarian State Railways

·        Varna power station to invest in gas-fired units

·        AES to begin work on Kavarna wind park by end of 2008

·        Bulgarian town of Konstinbrod hopes to attract �200 M in investments

 

 

COMPANIES:

 

 

·        Nissan's luxury brand lands in Bulgaria in October

·        Deutsche Bank to advise Glavbolgarstroy on Rila motorway project

·        Turkish company interested in Kremikovtzi steelmaker

·        M&S in JV to еxpand in Balkans

·        Siveco Romania buys Bulgarian IT company Latona

·        Bulgarian economy minister confers with senior executives of leading US companies

·        Nine firms to provide leasing for EU funds

 

 

ANALYSIS:

 

·        Post - independence business

·        Analysts say Bulgaria's position on Kosovo does not constitute good investment in future

·        �2.4 BN wanted for transport projects

·        State preassure on Kremikovtzi mill increases

 

 

 

Reported by:

Evgeni Mitev

Research Manager,

KOTRA Sofia

Korea Trade-Investment Promotion Agency

Commercial Section of the Embassy of the Republic of Korea                     07. 03. 2008

 

 

Articles:

 

 

MACROECONOMY:

 

Bulgaria January budget surplus soars to 440.4M leva

Bulgaria's consolidated budget surplus soared to 440.4 million leva in January 2008, more that four times higher than in the same month of the previous year, preliminary data from the Finance Ministry showed on March 4.In January 2007, the consolidated budget surplus was 103 million leva, according to the ministry's website.The budget revenue in the first month of 2008 was 2.08 billion leva, including 1.87 billion from tax collection. Total government spending was 1.57 billion leva, with social expenditures being the single biggest outlay at 610 million leva. Bulgaria's contribution to the European Union budget in January was 73.8 million leva.Last year, the consolidated budget surplus totalled 3.8 per cent of projected gross domestic product (GDP), exceeding the three per cent initial target. In 2008, the target is once again three per cent of GDP, as the Cabinet seeks to slow down current account deficit growth.In 2007, the current account gap rose to 21.6 per cent of GDP, from 15.7 per cent a year earlier.

Brussels demands suspension of Phare payments

Тhe European Commission (EC) has demanded suspension of payments under the Phare programme for projects managed by two implementing agencies. This concerns the Central Financing and Contracting Unit at the ministry of finance and the Phare Implementing Agency at the ministry of regional development and public works. EC's letter was discussed at a meeting last Friday. The finance ministry will present its stand to Brussels on the basis of additional information to be provided by the implementing agencies.

Car industry suppliers study investment opportunities in Bulgaria

Five or six European car industry suppliers are studying investment opportunities in Bulgaria and other countries in the region. They are planning to invest between 20 million and 30 million euro in future plants. BTA reports. This emerged at a news conference given by InvestBulgaria Agency Executive Director Stoyan Stalev on Thursday. A German car parts plant will be unveiled in the Rakovski industrial zone in early March, Stalev said. The InvestBulgaria Agency is considering some 30 greenfield investment projects. Almost all manufacturing investors seeking certificates from the agency are planning to export their output. The agency estimates that foreign direct investment in Bulgaria in 2007 amounted to more than 6,000 million euro. According to Stalev, Bulgaria has the potential to maintain the current size of investments, but the growth of foreign investments is expected to slow down. The foreign investments attracted in the last two years exceed the amount attracted in 1990-2005. The ratio of foreign direct investment to Bulgaria's gross domestic product was 20 per cent in 2007, which placed the country at the top of the table in the European Union.

 

Macedonia to join South Stream

Bulgaria's President Georgi Parvanov and his Macedonian counterpart Branko Crvenkovski discussed a possible participation of Macedonia in the South Stream pipeline project during their yesterday's meeting in the town of Sandanski (southern Bulgaria). The two Heads of State have also discussed the acceleration of the power transmission project Stip - Chervena Mogila and the construction of gas pipeline Petrich-Strumica and a gas station near Skopje. Parvanov and Crvenkovski also discussed the opening of new border checkpoints along the two countries' common border and a possible lifting of the visa regime.

Basic interest rate hits new record

The Bulgarian National Bank specified a record-breaking basic interest rate of 4.83 percent for March following this year's monthly upward trend. February basic interest rates hit 4.75 percent to merely continue the January rise to 4.68 percent. There has been quite a rapid upturn in the Bulgarian interest rates over the past year. The basic interest rate for March 2007 was 3.52 percent. This means that there has been a whole 1.31-point-growth over the past 12 months and an increase of 0.25 points for the beginning of 2008 alone.  Basic interest rate increases' deepest impact is on banks' demand of money as well as on their exchange of overnight deposits. The soaring interest rates in Bulgaria came as a result of the tendencies on the world markets, where interest rates heightened amid a liquidity crisis. Ultimately, the increase of the basic interest rate led to mounting loan and deposit interests in Bulgaria. 

Bulgaria exported 32 million liters of wine for EU in 2007

Bulgaria had exported 32 million liters of wine for EU state-members until November 2007. It is expected that the total quantity for last year to reach 35 million liters of wine. In Russia has been sold 81 million liters of Bulgarian wine for 2007. Almost 90% of the exported wine is bottled, informed Plamen Mollov, chairman of the Governing Council of National vine-wine chamber.The total quantity of produced wine in Bulgaria is round 200 million liters, and rakia - 50,000. In the same time Bulgaria has imported 17 million liters of wine last year. After Russia, Bulgaria is traditional exporter of wine to Poland, Germany and the Scandinavian countries.

 

�166 M aid for Bulgarian vineyards

 

The European Union will allot EUR 166 mln for 7 years in support of Bulgarian wine producers. The funds will be used for several purposes – promotion of Bulgarian wines on non-EU markets, diversification of vineyards, insurance of production and other measures for market support. Bulgaria has to present specific projects in order to use the aid. According to experts from the sector, EU reform is advantageous for our producers. Simplification and improvement of the labeling rules will be introduced. The vintage year and the vine brand will be mandatory on all labels, which will increase the competitiveness of Bulgarian wines. The current policy for the reinforcement of wines will be preserved. Instead of imposing a total ban on the use of sugar, the European MPs decided to adopt a marginal concentration of 1.5% for reinforcing wines in zone C. In extremely bad years the concentration of sugar might reach 2%, but only on specific regulations set by the Commission. According to data from the National Wine and Vine Chamber, there are 1.53 mln decares of vineyards in Bulgaria, but only 1.35 mln decares of them are actually being cultivated, Politika Weekly writes.

Bulgaria resumes electricity export

"As of March 1 our country has resumed exporting electricity," Bulgarian Deputy Minister of Economy and Energy Yordan Dimov said in an interview with the Bulgarian National Radio. Currently Bulgaria's power export amounts to 560 MW megawatts. About 300 MW goes to Greece, 115 mW is for Macedonia and 150 MW, to Serbia. Around 260-270 MW of Romanian power is transited through the Bulgarian power-grid to Greece and Serbia. on January 14 Bulgaria shut off its power export temporarily as ordered by Minister of Economy and Energy Petar Dimitrov. He made the decision amid fears of inability to sustain Bulgaria's internal energy balance due to freezing winter temperatures.  

Bulgaria to export power for Kosovo

 

Bulgaria can export electricity for Kosovo as latter has fallen into energy crisis, said for Darik radio the Executive Director of Bulgarian Electricity System Operator Ivan Aiolov.
The power stations in Bulgaria produce enough electricity to sell to the neighboring countries. Now the price of power is higher than it was before the export was suspended. only a serious system failure could break Bulgaria's energy balance, Aiolov added. Bulgarian business is already in Kosovo and I do not get the feeling that businessmen fear anything, said Yavor Kuiumdjiev, Deputy Minister of Economy and Energy.
Kosovo needs food and transport and construction companies to work there.

JBIC to Provide �226 M for Black Sea container ports

 

New container terminals will be constructed at the Black Sea ports of Varna and Bourgas with a loan from the Japanese Bank for International Cooperation (JBIC), the government's information service said. The Government mandated the Ministries of Transport and of Finance to hold talks with JBIC for an agreement on the projects.The credit will amount to up to 37,000 million yen, or around 226 million euro. The loan is for 25 years with a 7-year grace period. The APR will be 1.4 per cent.The Bulgarian state will co-finance the project, providing around 110 million euro.The project is expected to create around 450 jobs in Bourgas and 550 in Varna.

 

Furniture prices grow 20%

 

Although not all figures for 2007 have been presented yet, the Branch Chamber of Wood Processing and Furniture Industry reported a continuing growth of furniture production in the country. A research by the Bulgarian Industrial Association shows that sales revenues for the nine months of 2007 amount to BGN593MN. The amount also includes exports worth EUR148.53MN, while imports amount to EUR112.759MN. Considering the calculations based on sales, imports, and exports figures, about 50% of the revenues of companies in the sector come from the domestic market. The research also showed that in the past four years the furniture trade positive balance has fallen by 38 per cent. Bulgarian producers export mainly to USA, Great Britain, Germany, France, Italy, and the Balkans (Serbia, Macedonia, Croatia, and Slovenia). From January to September 2007, exports are up 30.1% compared to the same period of the previous year. According to the Bulgarian Chamber of Commerce and Industry, there are more than 2,500 Bulgarian furniture companies, whereas the branch chamber says their number is approximately 4,000. The sector development strategy stipulates that by 2013 95% of the companies meet the main European requirements for quality of the production. The number of people employed in the furniture industry is planned to grow from 45,000 to 50,000 by year-end. A hundred companies in the sector have been awarded ISO 9001 certificates so far, but their number is expected to double in the next five years.

 

Market of low-cost carriers in Bulgaria cracks

 

А redistribution of the market of low-cost airlines companies flying to and from Bulgaria has started, experts told the Pari daily. The boom during the first year after the opening of the skies has started to dwindle. The established low-cost airlines on the Bulgarian aviation market, such as Sky Europe and Wizz Air are increasing the number and the frequency of their flights to Sofia and Bulgaria's Black Sea resorts and it is difficult for new companies to set foot on the market. They rely mainly on seasonal flights to Varna and Bourgas. The airports in Varna and Bourgas may become aviation bases for low-cost companies after the setting up the new terminals at the two facilities. The development of the airport in Plovdiv is another option for attracting this type of air carriers. Not long ago Sky Europe launched the idea for the setting up of a powerful airline based at the Plovdiv airport, which may not be the classic type of air carrier. There are no Bulgarian investors willing to register low-cost companies in the country, according to Zahari Aleksiev, general director of Bulgaria's Civil Aviation Administration. There is also no interest in the setting up of conventional Bulgarian airlines.

Hillary and Obama promise to remove visas for Bulgarians

Both candidates from the democrats nominations on the president's elections in USA Hillary Clinton and Barack Obama promised to remove visas for Bulgarians, Romanians and Polish, if they win the vote. In a statement the lady candidate said that supports the attempts for abolishing the visa regime for US allies from Central and Eastern Europe. If I am chosen for president I will cooperate with the countries to increase the security of the States and to support those countries to acquire the same status as the rest state members of the European Union.Her rival Obama promised even before her statement to remove the visa regime for the states from Eastern and central Europe.According to the Congress resolution the visa regime may be removed only in countries, where the percentage of refused visas for USA is lower than 10%.In Bulgaria this percentage is 17.

The battle for Lom Port concession

Port Complex Lom is just days away from having a new owner. The concessionaire, who will run the second largest Bulgarian port on the Danube for the next 35 years, is to be made known today. Rumour has it, though, that the announcement of the tender results might be postponed for April 2. Surprisingly or not, Port Lom turned out to be a mouth-watering acquisition for Bulgaria's biggest business sharks. Vassil Bozhkov's Nove Holding, Krenmikovtsi Smelter owner Pramod Mittal, Kremokovtsi former Executive Director Valentin Zahariev, the energy magnate Hristo Kovachki, Progres M Enterprise in partnership with the German port operator Hamburg Port Consulting, Chimimport Plc, a Chinese and a Ukrainian companies comprise the list of candidates, vying to lay their hands on the harbour. And no wonder since Port Lom's geographic location is more strategic than that of Port Rousse.The town of Lom is a meeting point of two major European transport corridors: 4 and 7 . All the cargo intended for Macedonia from both Western and Eastern Europe passes through the small riverbank town. Lom is also the closest to Thessalonica river port and this has always been a reason for Greek companies to nurse hopes of turning it into a facility of their own on the route of Western cargo to Northern Greece and vice versa. Moreover, the entire export of Kremikovtsi and Stomana Industry SA Pernik to the EU markets passes through Lom, too. Thousands of tons of coal, cement and inert materials are exported as well as various machinery to be utilized by the Bulgarian industry is imported from Germany and Austria via Lom each year. The joint venture Progres-Hamburg, that is the only port operator among all the candidates, have already made their offer public. They are willing to pay 200 million levs (1 euro = 1.95 levs) as well as modernize the port's operation and facilities. Hamburg Port Consulting experts worked out a whole development strategy for the Port of Lom far back in 1999. Now the company intend to use it as a buffer port for cargo from Russia, Moldova and Ukraine to Western Europe and the other way round. Hamburg Port Consulting is the concessionaire over the port of Odessa for a concession period of 50 years, which obviously preconditions their interest in Port Lom.

 

Bulgaria economy vulnerable to external shocks

 

The Vienna Institute for International Economic Studies (WIIW) said the current turbulence on global financial markets will have no lasting effect on the economies of former communist countries, yet Bulgaria, Romania and the Baltic states remain vulnerable."The majority of the new EU member states have been enjoying a period of robust economic growth. The current turbulence on global financial markets is not going to hurt directly or seriously," reads WIIW report. It points out that unlike the other countries Bulgaria, Romania and the Baltic States remain vulnerable to external shocks because of their high current account deficits.The WIIW published a medium-term forecast of development in the countries of central and eastern Europe, setting Bulgaria's GDP growth in 2008 at 5.5% and expecting it to accelerate to 6% in 2009. Bulgaria's inflation is forecast to slow down to 10% this year and take a further dip in 2009, down to 6%. The country's year-on-year inflation stood at 12.5% at the end of January, 2008. The country's jobless rate will be sensationally reduced to no more than 6% in 2008 and 5.6% in 2009, according to WIIW. Unemployment in Bulgaria averaged an annual 7.75% last year, down by 1.86 % from 2006.

 

Bulgaria may tie geographic dialing codes to economic zones

New regulations on the designation of telephone number series may significantly reduce the number of fixed-line dialing codes in active use. According to a source from the Communications Regulation Commission (CRC), which is drafting the document in partnership with the State Agency for Information Technologies and Communications (DAITS), geographic codes could be reassigned to larger than the current territories to vacate a number resource that will be designated for use by the GSM, alternative and WiMAX operators. The new codes could be assigned to each of the government-defined economic development zones. Representatives of the telecom companies said there is a proposal to cut the number of geographic zones to just four. It is too early to say if the new ordinance will cut the number of geographic codes or not, said DAITS. The number of geographic dialing codes in active use will gradually diminish as BTC digitises its landline infrastructure, said Pavel Velchev, head of telecom regulations at telecom incumbent BTC. At the moment, many number series are in active use in the analogue network of the company. According to Velchev, BTC's fixed-line network will go 100% digital within the next 18 months. The CRC recently refused to grant Mobiltel, Bulgaria's dominant wireless telecom carrier, a new dialing code for wireless networks. The regulator said the request was rejected because Mobiltel, owned by Telekom Austria, had failed to fully utilise the resource it had been allotted. Under Bulgarian law, the operator is obliged to utilise at least 60% of its numbering resource before applying for a new dialing code. Mobiltel has argued that the shortage of number series will be resolved if BTC optimises the use of its number resource and vacates its idle number series.

Switzerland grands �161 M to EU's poorest states Bulgaria and Romania

The Switzerland government intends to support the European Union expansion and in particular the new EU members of Bulgaria and Romania. For the purpose the country plans to give to Sofia and Bucharest 257 million francs (161 million EUR) for a 5 years time limit.This was announced in a communique, published in the official site of the Federal Council.The sources will be purposed for projects which Switzerland will guarantee.The allowing should be approved by the parliament in a credit state that will be on the account of the Swiss common federal budget. In the dispersed official information was also said that Bulgaria and Romania are among the pооrest state members of the EU.

 

Expensive coal to trigger electricity price hike

 

Bulgaria's Maritsa Iztok Mines is pressing for higher coal prices, the chairman of the State Energy and Water Regulation Commission, Konstantin Shushulov, said. The company has requested an increase of at least 16% in order to be able to fulfil its investment plans for 2008. Most probably coal prices will rise from the beginning of April, he added.The more expensive coal will trigger an increase in the electricity prices of the four thermal power plants in the Maritsa basin by some 7 or 8%, Shushulov went on to say. That will inevitably affect end consumers. The electricity distribution utilities have already announced they will ask for a price revision of 9 to 12%.

                                                                                            

Highly modern info center complex opens at Bulgaria's newest business center

 

Tishman International and General Electric (GE) Real Estate opened Wednesday the highly modern Marketing Suite at Sofia Airport Center, Bulgaria's newest business and logistics park, which is still under construction.The Marketing Suite was opened by the general manager of Tishman for Bulgaria Julian Edwards, the Bulgarian Minister of European Affairs Gergana Grancharova, and the Deputy Mayor of Sofia for Investments and Construction Irina Savina.The Marking Suite complex is the first of its kind in Bulgaria, and with its total area of 480 square meters it will serve an information center and exhibition area for the Sofia Airport Center."The purpose of this area is to provide an interactive and convenient space where the tenants, brokers, and real estate company managers could see in advance the exceptional opportunities that are available at Sofia Airport Center, and take part in the critical aspects of choosing an object", Edwards explained at the opening.In his words, the Marketing Suite had been designed to illustrate the high standards of the planning and construction of the Sofia Airport Center, and to demonstrate the wide range of opportunities for space planning and interior design.The Sofia Airport Center, which is to be receive a LEEDS certification, is located 300 m away from the new Sofia airport, which has a capacity of 2,6 million passengers per year. After its completion, the Center will provide 180 000 square meters of logistics and commercial space.The Loss Angeles-based Tishman International Companies and GE Real Estate created a joint company for the construction of the Sofia Airport Center in the fall of 2007. Tishman's list of clients and partners includes Metropolitan Life, New York Life, Teachers Insurance, Bank of America, Grosvenor International, Citibank, American Express, Fidelity Investments, Lend Lease, HVB Real Estate. GE Real Estate is present in 28 countries in North America, Europe, Asia, and Australia, and has assets worth USD 62 B.

Bulgarian day on CeBIT 2008 in Hanover

Traditional day of Bulgarian information and communication technologies in the borders of world exposition CeBIT in Hanover, Germany will conduct today in hall 3B of Congress Center. It is organized by Bulgarian state agency for information technologies and communication (SAITC). SAITC chairman Plamen Vachkov will present the function of information and communication technologies as an instrument of creating and renovating applied researches in Bulgarian economics.The Bulgarian day will be attended by foreign firms and Bulgarian students who study in Germany. 11 companies will present Bulgaria on the common stand on the computer expo CeBIT 2008 in Hanover. Meanwhile from the agency announced, Bulgaria starts official reviews to enter the European Space Agency (ESA).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INVESTMENTS:

 

 

�125 M to be invested in ‘Industrial park Sofia – East’

125 million EUR will be the cost of one of the biggest investment projects for the year - ‘Industrial park Sofia - East', Alexander Gebov announced, director of ‘Paladin Property Development'. ‘Industrial park Sofia - East' is the first large scaled industrial and logistic project for Sofia area and is expected to be finished in 4 years. Last year the main deal for the land was finalized, as it was the biggest deal in the sector for the year, Gebov added.Park Sofia - East is located between 2 highways ‘Hemus' and ‘Trakia', 25 kilometers away from Sofia's center and 15 minutesaway from Sofia Airport. The logistic center will be gasified and wil have own infrastructure. The park will have storehouses and light production departments. The proper location will aid the logistic center to cover the needs of settlements on radius 150 km. The investment director Gebov also added, the planned transport link between the two highways will make 'Industrial park Sofia - East' even more attractive place for logistics.

Investing in wind parks in Bulgaria is still risky

The director of the association for bird protection Irina Mateeva stated that investments in wind parks in Bulgaria is quite risky, because the ecology damages caused by the wind powers is still not determined. Over 180 projects for construction of wind parks are realizing in the municipality of Kavarna in the area of ‘Kaliakra' reserve. According to Irina Mateeva's words is still not clear how deeply those utilities will harm the local biological species. In Germany was announced that 125 birds get killed every year from the work of only one wind plant.The investment is risky and for the investor himself, because as consequence the plants may be removed if are situated in a sensitive zone. Ecologists believe that the migrating storks will become the first victims of the wind parks. In November last year the European Commission issued severe requirements for ceasing the constructions of wind powers in ‘Kaliakra', Mateeva pointed out. For the moment Bulgarian government hasn't followed the European requirements.

 

Lewis Charles fund invests �45 M in Sofia property developments

Lewis Charles Sofia Property Fund, an investment company focused on investment in the Bulgarian residential property market, has a pipeline of eight residential schemes in Sofia with a combined price tag of over 45 mln euro, it emerged from a company announcement. The fund property portfolio has a total build area of 567,590 sq m and currently has a valuation of 83,852,536 euro. In the Bulgarian capital, the fund is developing gated communities in the Vitosha, Simeonovo and Krastova Vada boroughs. The first project was completed in 2007 while the other five are expected to be completed during 2009. one of these projects is still at foundation level. The build area for the six projects totals 95,382 sq m. The fund also owns a further 13,170 sq m of land in Sofia boroughs Dragalevtsi and 100,713 sq m in Kambanite.Lewis Charles has projects in progress in a number of other locations across the country. In 2006, the fund purchased a total of 121,420 sq m of agricultural land just outside the village of Banya (Razlog municipality) for 2.76 mln euro. The Banya project is expected to involve the building of a first-class holiday village consisting of chalets and upscale apartments.The portfolio spread further includes projects in Govedartsi, Bansko, Plovdiv, Veliko Tarnovo and Dolna Banya.

Germany's Ixetic to invest �7 М in Plovdiv plant

Ixetic, the German manufacturer of hydraulic and vacuum pumps for the automotive industry, said it will complete by the end of 2008 a 7 mln euro plant in Plovdiv, Bulgaria's second largest city. The plant, which will manufacture power steering pumps and vacuum pumps, will occupy 10,000 sq m in the city's Rakovski industrial zone. It will employ 30 workers initially. Ixetic currently has production operations in two locations in Germany and one each in the U.S. and Japan.

European companies want to invest in Bulgarian State Railways

There was applied interest for strategic partnerships between Bulgarian State Railways (BDZ) and European firms. This was informed by Premier Sergey Stanishev on Friday, after his participation in the discussion on project for manifests the European socialists' party.Bulgaria's PM shared his hopes that after accepting the changes in the law for concessions, which regulate the public-private partnerships, this interest will find practical realization.The practical side will be expressed in additional fresh investments in local rail infrastructure and new coaches.

 

Varna power station to invest in gas-fired units

The Varna thermal power plant, owned by Czech utility group CEZ, will build two 440MW gas-fuelled units by 2013 to comply with requirements for the reduction of greenhouse gas emissions, said Jan Vavera, chairman of the CEZ Bulgaria board. Vavera said the cost of the new units cannot be estimated before the company picks a contractor for the project. The Czech company will assume the full investment risk and will not seek a long-term arrangement for the purchase of the output of the new units CEZ Bulgaria country manager Lubos Pavlas complained about the unclear emission allowances for industrial operators. The company official said the greenhouse gas quotas are too low and that would force the Varna TPP to buy allocations from other operators which will increase the price of its electricity output. At the moment, Varna TPP operates six units. Three of them are in stand-by mode, two produce electricity for domestic consumption and one produces electricity for export. In 2007, CEZ Bulgaria asked the local power regulator to review a proposal for a price hike from 54 levs/MWh to 71 levs but did not receive a reply. Even that price hike no longer works for the company as costs have added 10 levs/MWh since while coal trades at 85 euro/t on the international markets, said Vavera.

AES to begin work on Kavarna wind park by end of 2008

AES Geo Energy, majority-owned by U.S. power company AES Corporation, will begin the construction of a 156MW wind park near coastal city Kavarna by the end of 2008, said the company's general manager Teodor Bobochikov. The investor plans to increase the capacity of the wind park to 200MW during the second phase of the project. The completed facility, with a cost estimated at 220-240 mln euro, will be producing over 450GWh annually, saving 500,000 tons in C2O emissions. AES, which is constructing here the 670 MW lignite-fired AES Maritsa East 1 power plant, last year received a First Class Investor certificate for the Kavarna wind project. The selected equipment vendor is Vestas. AES Geo Energy has already signed a preliminary agreement with power utility NEK to plug the wind park into the national grid. AES Geo Energy was created after AES bought two years ago a minority stake in Geo Power Ltd., a Bulgarian-German renewable energy development firm. At the time, AES said it will acquire a majority stake once the project is completed.

Bulgarian town of Konstinbrod hopes to attract �200 M in investments

 

The Bulgarian town of Konstinbrod hopes to attract 200 million euro ($306.6 million), mostly in foreign direct investments, in four years from now, town mayor Krasimir Kunchev said on Thursday. Konstinbrod, located just 15 kilometres north of the capital Sofia, has an industrial zone of 80 to 90 hectares. The world's second-biggest food and beverage company Kraft Foods and Greece's Coca-Cola Hellenic Bottling have their Bulgarian production units in Kostinbrod. "There are U.S., Spanish, Greek and Israeli investors which have already shown interest. The construction of at least three or four production facilities will start by the end of the year," Kunchev told SeeNews after the kick-off ceremony for a five million euro project for dry building mixtures production of Saint-Gobain Weber, the Bulgarian arm of French glass and building materials producer Saint-Gobain, in Konstinbrod. Some of the projects are already under way, Kunchev said and added that those most recently launched include the construction of a printing house, an aluminium profiles plant, warehouse and logistics centres and a furniture factory. "The land [for the projects] has already been bought, the designing of the projects is ongoing, the building permits are just to be issued," he said. Land consolidation and re-zoning of farmland into construction land plots in Kostinbrod are ongoing. The infrastructure of the industrial zone has yet to be designed, Kunchev said. "The municipality also is interesting as a residential area. We already have some proposals for closed-type residential developments," Kunchev said. According to unofficial estimates some 25,000 people live in the Kostinbrod municipality, he added.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPANIES:

 

 

Nissan's luxury brand lands in Bulgaria in October

 

Infinity, the high-end division of Japanese car maker Nissan, will set foothold in Bulgaria in October 2008, Dnevnik reported on February 28. The move is part of Infinity's two-year offensive on the European market. The brand, initially developed for the United States market, is now sold only in one European market - Russia. In Bulgaria, Infinity will be sold by car dealer Industrial Commerce, which imports of Hyundai cars into the country. Maiden sales in Bulgaria will occur concurrently with those in France, Spain, Italy, Belgium, the Netherlands, Switzerland, Poland and Greece. The second phase of Infinity's march onto European markets will start on January 2009 and will cover Sweden, Estonia, Latvia, Romania, Israel and the Czech Republic. Three months later, in April 2009, Nissan's luxury division is expected to have representative offices in Germany, the UK, Ireland, Lithuania, Finland and Slovakia. Infinity will offer four car models, all of which will be showcased at the car expo in Geneva in March. The second generation of the FX cross-over is expected to prove the biggest hit with experts and buyers.

 

Deutsche Bank to advise Glavbolgarstroy on Rila motorway project

Germany's Deutsche Bank said it will provide advisory services to Bulgarian construction company Glavbolgarstroy in the preparation and financial packaging of the Rila motorway project. According to the signed agreement, the financial institution will support Glavbolgarstroy in its preparation to bid for the construction of the motorway section which will connect the Hemus, Struma and Trakia motorways. The bank said will not be financially involved in the project at this stage. During a Deutsche Bank presentation last year, head of the local office Borislav Ivanov said that the bank is, in principle, interested in role on the financing side of the project. A tender procedure for the motorway section is yet to be launched. Glavbolgarstroy said it has the necessary capacity to complete the high-speed road section in three years. In its capacity as Glavbolgarstroy consultant on the project, Deutsche Bank may also participate actively in finding strategic partners for the Bulgarian company for the future construction and management of the motorway.

Turkish company interested in Kremikovtzi steelmaker

A Turkish company declared its wish February 28 to purchase the troubled Kremikovtzi steel mill in Sofia, Economy and Energy Minister Peter Dimitrov said in Parliament Friday. This is the fifth company interested in acquiring the steel mill and all five of them can definitely be described as strategic, said he.Among the prospective bidders are two Ukrainian companies, one from the United States, one from Russia and one from Turkey. The Economy Minister would not name them as he has made a commitment to confidentiality. He only commented that some of them are well-known corporations. The government expects the future buyer to implement a viability plan which has been approved for the period until 2011.The government, through its Ministry of Economy and Energy, still owns 25 per cent of Kremikovtzi which was built in the early 1960s as Bulgaria's largest metalworking company. The majority 75 per cent interest was privatized in 1999 and resold in 2005 to its current owner, Global Steel Holdings Limited of Pramod Mittal.In the past few months Kremikovtzi has been plagued by a myriad of problems, including unpaid dues to suppliers, workers' protests over unpaid wages and poor work conditions, and pressure from the government and the public over the environmental pollution caused by the company's outdated production facilities.Early in the year the sale of the troubled steel maker seemed imminent and Ukraine's Konstantyn Zhevago was tipped as a near-sure buyer but then owner Pramod Mittal made a surprise announcement that he had hired consultants to help him make a decision and one should not be expected before they are ready with their report. A couple of days ago Economy and Energy Minister Dimitrov said that the Kremikovtzi assets are being practically stripped through a scheme in which inputs are purchased at exorbitant prices, and suggested that a managerial agent be appointed. Economy Minister Dimitrov told Parliament on Friday that Bulgaria needs Kremikovtzi. "It is an issue that has implications for the company workers, for the export of this country, for the nation's Gross Domestic Product, for the operation of [Bulgarian State Railways] BDZ, the ports of Bourgas and Lom and hundreds of private companies which cater to the steel mill's needs," said the Economy Minister. "We would not allow a collapse of this most important structural unit of the Bulgarian economy."

 

M&S in JV to еxpand in Balkans

 

Marks & Spencer Group Plc, the largest UK clothing retailer, announced it has entered a joint venture with Marinopoulos Group to expand in the Balkans, Bloomberg agency reported.The retailer bought 50 % of Marks & Spencer Marinopoulos BV, which operates 38 Marks & Spencer stores under franchise across Greece, Romania, Bulgaria and also in Switzerland, for EUR 50 M, the London- based company said in a statement. "Our joint venture with Marinopoulos will mean we can really put M&S on the map in this part of the world,'' Carl Leaver, the retailer's director of international business, said in the statement, as cited by Bloomberg agency.Marks & Spencer is planning to boost its international business to between 15 percent and 20 percent of revenue over the next 5 years. The company said it will open 50 new stores in the region over "the next few years".

 

Siveco Romania buys Bulgarian IT company Latona

IT solutions developer Siveco Romania has taken over Bulgarian peer Latona in a deal worth 3 mln euro, Siveco said in a statement quoted by news agency Mediafax. Siveco paid 2 mln euro for the and undertook further investments of 1 mln euro in the Bulgarian company. Siveco and Latona previously collaborated on an integrated IT system for the Bulgarian Health Insurance Fund. The Latona deal makes sense because the Bulgarian market, valued at around 800 mln euro, has tremendous growth potential, the highest in the region together with that of Romania, Siveco CEO Irina Socol told the Romanian media. Siveco has budgeted 10 mln euro for 2-3 acquisition deals at home and abroad in 2008. Latona Bulgaria was set up in 1995. The company offers information technology and business consulting services. Latona posted a turnover of 1.6 mln euro in 2007. Siveco Romania eyes a turnover of $84 mln in 2008, up 20% over the $70 mln posted in 2007, said Mediafax. Siveco's majority shareholders are Siveco Netherlands (42.2%) and investment funds Polish Enterprise and Intel Capital (22.5% and 10%, respectively). The remaining stake is divided between several Romanian businessmen and Siveco Romania itself, said Mediafax.

 

Bulgarian economy minister confers with senior executives of leading US companies

Bulgarian Economy and Energy Minister Peter Dimitrov met in Washington, DC with senior executives of large US companies, potential investors on the Bulgarian market. Dimitrov has been in Washington since March 3 to take part in an international conference on renewable energy sources, BTA is reporting. The meeting took place at the head office of the ITT company. Leah Lackey, director for communications at ITT Defense, and Lou Dolive, president of the ITT division which engages in sea water desalination and waste water treatment systems, presented their company's investment plans. ITT Defense is a leading supplier of electronic equipment and systems for the US Army. It is taking part in a competitive bidding procedure of the Bulgarian Defense Ministry for a public procurement contract to build communication systems and interoperability. The company's representatives said their offer is a key to the interoperability of the Bulgarian Armed Forces, satisfies the direct goals of the offset deal and will involve the inclusion of indirect offset elements, such as the building of a multi-industry center in partnership with Bulgarian manufacturers and companies. ITT Defense believe that the program for building communication systems will generate long-term potential for creating jobs in the sector over the next 25 years. The ITT division, which is also considered a global leader in the building of water treatment and desalination systems, will begin to build a water treatment plant in Oreshak, Bulgaria, a month from now. The plant will be used as a model for further projects for the building of such installations. ITT said their business model for Bulgaria proves that defense spending can improve the social environment and raise living standards in the country in general. Furthermore, ITT's projects will help reduce the current trade deficit, introduce high environmental standards, and use Bulgaria as a base for expansion in Southeastern Europe. Dimitrov also met with representatives of Biotechnology Industry Organization, which is interested in mediating contacts between Bulgarian and US companies for investments in the fields of biofuels, the water sector and environmental protection.The Minister conferred with representatives of Westinghouse, which he described as a company with serious traditions in Bulgaria in the field of nuclear energy. He expressed the hope that Westinghouse will continue to play an important role in the future implementation of such projects. The Economy and Energy Minister also met with Honeywell Corporation Vice President Tim Keating. The company is among the world leaders in high technology, already active on the Bulgarian market. The meeting focused on cooperation prospects. The interest of US companies in investing in Bulgaria is due above all to the increased confidence after Bulgaria accepted US troops to use military facilities in its territory, BTA reported citing Dimitrov. Another important reason is the good investment climate and the tax environment in Bulgaria, he said.

 

Nine firms to provide leasing for EU funds

 

Ministry of Economy and Energy signed agreements with nine leasing companies that will work on operational program Competitiveness of Bulgarian Economy, Deputy Economy Minister Nina Radeva said yesterday. InterLease, Vanto Leasing, EuroLease Auto, EFG, Deutsche Leasing and Union Leasing are among them. The companies have already presented flexible leasing schemes for the purposes of the Programme. Beneficiaries will have the opportunity to use the service of these companies for renovation and purchase of modern equipment, Dnevnik Daily reads. These are similar agreements with 18 commercial banks on the Programme, Mrs. Radeva said. They would not only provide all the necessary application documents, but also would introduce easier crediting procedure. Under the agreement the banks are obliged to provide investment credits by issuing credit certificates or bank references to applicants for gratuitous aid on Competitiveness Programme. The banks will also open and manage specialized bank accounts to companies-beneficiaries for the purposes of the projects. These are special payment accounts. The appropriation of the funds will be strictly monitored by the bank that guarantees the expedience of the expenditures. “Cooperation between the banks and the state is a key factor for the fulfillment of Bulgaria’s engagements on the Programme. It will facilitate the access of small and medium business to the EU subsidies”, Mrs.Radeva added. Negotiations with European Investment Funds are expected to end by June. A specialized company that will manage the funds on Jeremie Programme will be established. The company will be a holding fund entirely under the governance of EIF.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS:

 

 

Post - independence business

Author: Spasena Baramova, The Sofia Echo

 

Twelve days into the existence of the youngest state in the world, Kosovo continues grabbing international headlines.With February 17 receding further and further into the past and the initial passion and fervour surrounding birth of the new country subsiding, more practical matters are beginning to occupy the minds of politicians, experts and media.The past week saw the logical shift of attention from the political side of the Kosovo issue to its business one. The time came to focus on the economic consequences of the political decisions. What impact would the secession of Kosovo have on the economy of the region? Would it shake the business environment by causing an ebb of investments? And how would the situation influence Bulgarian business? All these questions arose at a time of increasing political tension in Serbia. Incidents at the Serbian-Kosovar border, the large-scale "Kosovo is Serbia" rally resulting in an outburst of violence against foreign embassies and a number of casualties, Belgrade's insistence that the US revoke its decision to recognise Kosovo, as well as Serbia's enduring perseverance that it would never reconcile itself with losing part of its ancestral territory, even if this meant distancing itself from the European Union, all of these hinted strongly that the Kosovo issue would not be settled in the foreseeable future. Although the looming political crisis may, at first sight, seem to have only negative implications on the economy, a closer look at the situation reveals quite a different story. If one is to endeavour to overcome the initial, instinctive assumption that business would inevitably suffer from this tense political situation, they may find no detrimental consequences are anywhere in sight. What is more, they may find that resourceful entrepreneurs could even benefit from it. Signs that business would not be affected to a great extent are already there. In the first week after Kosovo's declaration of independence, the main index of the Belgrade stock exchange registered a drop of only 2.03 per cent, negligible considering the circumstances. By February 20, the indicies of the Serbian, Macedonian, Croatian and Romanian bourses has all managed to register their first increases after several days of dropping in the aftermath of Kosovo's secession. Conventional wisdom would have it that an unstable environment would drive investments away from the region, but the EU is already considering the prospect of organising an international donor conference to gather funds for Kosovo's economy.The conference is expected to be held in June 2008 and is bound to collect a considerable amount to aid the development of the young state. And this is only logical since the European powerhouses, who were quick to recognise Kosovo, were well aware that it would need help to start its independent existence. This influx of money to the Kosovar republic is expected to not go only to businesses in the country itself, but a big part of it will go to foreign companies that are bound to invest in Kosovo, be it in infrastructure, construction or import. Jan van der Oord, vice-president at management consulting company A.T. Kearney in South Eastern Europe, told Bulgarian private broadcaster bTV that he was optimistic about the region's economic development after Kosovo had declared independence. As he put it, any instability affected the business environment, but he believed in the Kosovo case the instability would be short-termed. Van der Oord added that the investment climate in the region was good in itself. If anything, Kosovo events would attract more attention to the region and the EU would invest as well, so countries like Bulgaria could play the role of a stabilising factor and benefit from this turn of events.As far as Bulgarian investments in Serbia are concerned, it seems most Bulgarian business people were not worried that the Kosovo crisis could have a negative impact on them. A number of Bulgarian business executives, polled by Pari daily, said they intended to expand to Serbia. Energy entrepreneur Hristo Kovachki and Atanas Bobokov, chairman of the managing board at Bulgarian battery manufacturer Monbat, both said they would keep investing and developing their businesses in Serbia. Executive director of Intertrust Holding, another Bulgarian company with substantial investments in Serbia, Roberto Mladenov said that Bulgarian investors in Serbia had a good reputation and that he saw no reason for Bulgaria`s vacillating stand on Kosovo`s independence to have a negative impact on Bulgarian companies doing business in Serbia.

Analysts say Bulgaria's position on Kosovo does not constitute good investment in future

Author: Profit.bg

 

 

"Bulgaria's official foreign policy towards Kosovo does not make a good investment in the foreseeable and longer term future," according to Chairman of the Governing Board of the Bulgarian Association for Foreign Policy (BAFP) Peter Andonov, who presented at a news conference Wednesday a declaration in which BAFP expressed its opinion on the matter. Andonov said that the politicians tend to forget the simple truth that Bulgaria's membership in NATO and the EU is not just an honor and privilege but also an obligation and a means to realize the Bulgarian national interests, BTA is reporting.
In the declaration BAFP voices its concern that for a long time now the official Bulgarian foreign policy has failed to formulate a clear position on the Kosovo issue and defend it, but has instead resorted to the tactics of waiting and "keeping of low profile" and "hiding behind commonplace phrases" typical for the recent past. BAFP's categorical position is that Bulgaria should recognize Kosovo's independence together with the first group of EU member states who do so. Andonov said that Bulgaria fails to come forward with clear interests in the region and based on them to formulate a position that is understandable to Serbia, among others. According to Andonov, this country's interests in the region are apparent: stability in Southeast Europe and quick integration of the Western Balkan countries in NATO and EU. He voiced his concern that Bulgaria has withdrawn from its leading position in the region which it had eight or nine years ago. Bulgaria's former ambassadors to Macedonia, Albania and Serbia, Angel Dimitrov, Bobbie Bobev and Yani Milachkov, members of BAFP, expressed similar opinions. Dimitrov argued that the left-wing forces in Bulgaria have gone back to keeping a low profile before the unknown so typical of the communist times. Bobev said Bulgaria is still behaving like a candidate EU country, and not like a full-fledged member. Former Foreign Ministry Spokesman Radko Vlaikov said that there is lack of coordination among the different institutions with regard to Kosovo.

 

 

 

 

 

 

 

 

 

 

 

 

 

�2.4 BN wanted for transport projects

Publication: Banker Daily

 

 

Sixty projects in the Bulgarian transport sector are in a process of development, including modernisation of the republican road network, railway infrastructure, public transportation ports and airports. This is what Peter Mutafchiev, Minister of Transport, announced at the end of a meeting of the Council for Coordination, Control and Implementation of Infrastructural Sites of National Importance held at the beginning of the week. The total value of the transport projects amounts to EUR3.515BN, but only EUR1.107BN (31.5% of the necessary amount) has been provided. However, the absorbed amount is even smaller - EUR901MN. The projects cover 24 sites of the republican road infrastructure. Investments amounting to EUR1.631BN are needed for their construction. The amount provided so far is EUR480.6MN, however, of which over 90% has been absorbed. Minister Mutafchiev explained that 38.7 km of the Trakya highway had been put in exploitation in 2007. A 36.3 km part of the section between Simitli and Razlog and 31 km of the road Sokolovtsi - Smolyan - Srednogortsi have been rehabilitated, he added. Besides, a total of 599 km have been renovated under the programmes Transit Roads III and Transit Roads IV. "The construction of the Struma highway is expected to begin soon, as the technical projects for the sections Dolna Dikanya - Dupnitsa (16.78 km) and Sandanski - Kulata (15 km) have already been prepared. The expropriation of estates along the Maritsa highway route is in course and there are technical projects for 67 km of the highway that have been completed. Tender procedures for construction and supervision of this project should begin in March", Minister Mutafchiev added. The Minister of Regional Development and Public Works, Assen Gagauzov, informed that the construction of the connection between Hemus highway and the northern arch of the Sofia ring road was about to begin. "I hope that by September we will be able to organise the Black Sea highway concession procedure, too", Gagauzov added. The ministers assured that the rehabilitation of the road sections Yambol - Elhovo (31 km), Chepelare - Sokolovtsi (14 km) and a 6 km by-road of Roudozem in the direction of Kurdjali - Podkova is ready to begin. A total number of 32 projects worth EUR1.375BN will modernise the railway infrastructure in the country. However, just 20% (EUR270MN) of the necessary funds have been provided so far. Railway infrastructure that was broken by the floods was repaired in 2007. The railway line between Karnobat and Sindel has been doubled and electrified. A 18.5 km railway line between the stations Roman - Kunino and Butovo - Pavlikeni has been renovated. The reconstruction and electrification of the railway Plovdiv - Svilengrad is going on and the route is being prepared for a speed of up to 160 km/hour. The sections Vidin - Sofia, Plovdiv - Bourgas, and Mezdra - Gorna Oryahovitsa are being prepared for modernisation. In the Environment sector, 116 projects worth EUR695MN are under implementation. "In 2007, purifying stations were built in Gorna Oryahovitsa, Dolna Oryahovitsa, Lyaskovets, Etropole, Veliki Preslav, Dulovo, Sredets, as well as basic sewer correctors for Blagoevgrad, Zlatograd, Troyan, Lom and Tvurditsa. The sewerage system in Pernik and Gurkovo was reconstructed as well. At present, waste water purifying stations are under construction in Stara Zagora, Dimitrovgrad, Haskovo, Blagoevgrad, Pazardjik, Sozopol, Bourgas - Meden Rudnik, Montana, Popovo, Sevlievo and Targovishte. Works continue on the water sector integrated projects in Balchik, Smolyan and Shoumen", Minister Djevdet Chakurov said.

 

 

 

State preassure on Kremikovtzi mill increases

Author: Elitsa Grancharova, The Sofia Echo

 

State-owned creditors of Bulgaria's biggest steel mill Kremikovtzi have started to gradually phase down deliveries of raw materials and services to the plant in retaliation for payment delays. The steelworks has paid about 70 per cent of the amount it owes to Bulgarian State Railways (BDZ), but it still has a debt of about 17 million leva, prompting BDZ to halt cargo deliveries to Kremikovtzi in mid-February. on February 22, Bulgargas followed suit and slashed its gas supplies to the steel mill. The reason? Kremikovtzi owes the gas distribution company six million leva. Power grid operator National Electricity Company (NEC) is also expected to reduce power supply to the plant. on top of all that, the National Agency for Post-Privatisation Control won its court action against Kremikovtzi's majority shareholder, to the tune of 239.3 million leva. Bulgarian-registered Finmetals, fully owned by India's Global Steel, had not met its investment commitments outlined in the privatisation contract, a Sofia court ruled. Kremikovtzi asked for a three-month grace period to re pay its debts to NEC and other state-run companies, but the Government refused to grant its request, making it clear that it wanted a new strategic investor for the steel mill.Global Steel said that it hoped to find a partner within three months, which would chip in to pay the debts. The steel mill ended last year 35.9 million leva in the red and only a fire-sale of assets prevented a bigger loss.Suppliers are not the only ones complaining of late payments. Kremikovtzi workers renewed their protests in front of the plant's main administrative building, demanding their salaries and shouting "Give us the money". They promised to go on with the protests, threatening to take them to Sofia downtown, until they receive their pay. Lyudmil Pavlov, from trade union bloc Podkrepa, said that Kremikovtzi's staff needed a clear statement of intent from the Cabinet about its plans for the steel mill. It was barely operating, as production had to be cut drastically because of the reduced gas supplies."It is obvious that (Indian owner Pramod) Mittal does not have money to invest and therefore the state has to look investor," Pavlov said, ivn the mill was not an option, according to the trade unions and the steel mill's employees.Kremikovtzi's former chief executive Alexander Tomov, replaced by Mittal last month, blamed the steelworks' woes on the global credit crunch. "Kremikovtzi's owner went through a small-scale financial crisis, which cut into the mill's cash flow and undermined any trust in him, and it was related to the global banking crisis," Tomov said on February 26, talking to private broadcaster Nova TV."The factory won the political battle and was not closed down," Tomov said, adding his voice to the request of Kremikovtzi's current managers for a little breathing space for investment bank Merrill Lynch to find a new investor. But he warned Mittal, who commissioned the bank, not to waste time with the search, saying that if it went on too long, that would only serve to anger Kremikovtzi's employees.Tomov, who is a former Socialist deputy prime minister, also laid some blame on the Cabinet and the ruling coalition, in which the Socialist party is the senior partner, for not subsidising Kremikovtzi operations."The state would not credit steel production in any way, so the only solution is a financial injection in the factory," he said. The names of the prospective investors were unimportant, as long as they were willing to pump in at least 100 million euro right away - 50 million to boost cash flow, 20 million for environmental upgrades and 30 million for the steel mill's development plan "Whoever meets these conditions could, and should, be Kremikovtzi's new investor," Tomov said. Until then, the Government should appoint a trustee to manage the steel mill's finances, which would offer an immediate return, as it would bolster investor confidence, he added.