불가리아 주요 경제뉴스 (30 March – 6 April 2012)

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT (30 March – 6 April 2012)

 

Sections/headline briefs:

 

MACROECONOMY:

Ø  Bulgaria’s industrial PPI slows 4.6% y/y in Feb 2012

Ø  Bulgarian economy to grow by 1.4% n 2012 - President Plevneliev

Ø  Bulgaria takes 70 position in global ITC usage ranking

 

 

INVESTMENTS:

Ø  IFC, UniCredit and OPIC lend 155M euro for building of SunEdison solar power plant in Bulgaria

Ø  Greek companies to invest over EUR 120mn in new trade centre in Sofia

Ø  Bulgaria Courts Austrian Investors for Danube Ports Concessions

Ø  More than a third of German-Bulgarian chamber member companies will not reinvest in Bulgaria, poll says

 

 

COMPANIES AND INDUSTRIES:

Ø  US SunEdison completes construction of 60.4 MW solar park in Bulgaria

Ø  Bulgartabac Plans to Increase Exports to Middle East

Ø  Construction of LOT 4 of Struma motorway kicks off

Ø  Bulgarian Rose-Sevtopolis Plans To Invest $1.2 Mln in Upgrades, New Equipment in 2012

Ø  Molson Coors Buying Bulgaria's Kamenitza, StarBev Breweries

Ø  Turkcell to win competition for sale of 94% of Bulgaria's BTC - report

 

 

 

 

Articles:

 

MACROECONOMY:

Bulgaria’s industrial PPI slows 4.6% y/y in Feb 2012

The industrial producer price index (PPI) increased by 4.6% y/y in February, decelerating from 5.3% y/y in January thus returning to the downward trend that prevailed in H2 2011, statistics office data shows. In monthly terms, producer prices edged up by 0.4% after rising by 1.7% m/m in Jan. Тhe lower inflationary pressure in Feb was due to deceleration of the price increase in the manufacturing industry (up by 5% y/y in Feb as compared to 6.3% y/y in Jan). Following upward corrections of natural gas prices as of Jan 1, the utilities sector continued to exert inflationary pressure. Prices increase in the sector stepped up to 5.7% y/y in Feb from 5.1% y/y in Jan. At the same time, the prices of the mining industry declined by 3.5% y/y and the drop accelerated from 3.4% y/y in Jan. The broader index including export sales also slowed down to 3.6% y/y in Feb as compared to 4.8% y/y in the previous month. 

 

Bulgarian economy to grow by 1.4% n 2012 - President Plevneliev

The economy will grow by only around 1.4% in 2012 due to weak consumption and investments, newly elected President Rosen Plevneliev said in his first speech before the national assembly yesterday, April 5. Export turned into a new growth driver for Bulgarian economy, indicating higher competitiveness and quality of domestic products. Although currently weak, investments are a key growth driver, so the government should continue to create incentives for foreign investors and improve the investment environment. Support to SME's, coupled with legislative changes, such as introduction of one desk service, were voiced as immediate actions to be taken. on an industry level, increasing energy efficiency and achieving diversification of energy sources will be priorities in 2012. The central bank sees 2012 economic growth at 0.7%, central bank governor, Ivan Iskrov, said earlier this week. In 2011, GDP grew by 1.7%. 

 

Bulgaria takes 70 position in global ITC usage ranking.

Bulgaria has ranked 70 among 142 countries in the Networked Readiness Index (NRI) designed by the World Economic Forum to measure the degree to which economies across the world leverage ICT for enhanced competitiveness. The NRI is part of the Forum's 2012 Global Information Technology Report, which was published on its website. The ICT development in Bulgaria has been favored by the EU integration and the positive actions carried out under the Digital Agenda initiative of the EC. However, the government is seen as lagging behind in drawing a clear vision and development plan for ICT. The overall political and regulatory environment also affects the development of privately led economic activity in general, and the birth and growth capacity of any innovation-related business in particular, the report noted. Bulgaria ranked behind all central European countries - Czech Republic (42), Hungary (43), Poland (49), Slovakia (64), Romania (67). 

 

 

 

 

 

INVESTMENTS:

IFC, UniCredit and OPIC lend 155M euro for building of SunEdison solar power plant in Bulgaria

IFC, a member of the World Bank Group, UniCredit Bank Austria and the Overseas Private Investment Corporation, OPIC, are lending about 155 million euro to SunEdison to finance construction of the 60,4 MWp Karadzhalovo solar power plant. The lenders said that by doing so, they were supporting Bulgaria’s strategy to increase its renewable energy production. IFC, OPIC and UniCredit jointly arranged financing of this project. IFC provided 46.1 million euro and mobilised a further 41.1 million euro from UniCredit through a syndication loan, while OPIC provided a 50 million euro parallel loan. UniCredit Bulbank acted as the Bulgarian local bank and provided a local currency VAT facility worth about 30 million euro (58.7 million leva). The value of the transaction totals the equivalent of 155 million euro. US-based SunEdison is a leading global solar power system developer, a media statement said. The Karadzhalovo plant is in southern Bulgaria, close Plovdiv in the municipality of Purvomai, and will be among the largest solar installations in Europe. The new solar plant will support Bulgaria in its development of renewable energy capacity, and demonstrate the country’s ability to attract large investments. This project is being implemented in a time of considerable global economic uncertainty, the statement said. Tomasz Telma, IFC director for Europe and Central Asia, said, "IFC’s support for renewable energy is an important part of our work to address climate change. This is our second renewable energy investment in Bulgaria, following the financing of the St. Nikola wind farm in 2008. The investment in Karadzhalovo is our largest single solar financing to date". Gianni Franco Papa, deputy CEO and head of CEE Division at UniCredit Bank Austria, said, "We are contributing to the establishment of Karadzhalovo solar power plant by SunEdison with our comprehensive expertise in arranging complex loans. Together with SunEdison and supranational institutions IFC and OPIC, we put this flagship project in renewable energy on a financially sound and competitive foundation". Elizabeth Littlefield, OPIC president and chief executive, said, "OPIC is partnering with IFC, SunEdison and UniCredit to support a solar solution for Bulgaria’s growing demand for energy. These types of public-private collaborations – using development finance to leverage private sector investment in state-of-the-art technologies – point the way to ever-increasing use of renewable energy sources in developing regions around the world".

 

Greek companies to invest over EUR 120mn in new trade centre in Sofia

Cost of Sofia South Ring Mall, a joint project of Greece’s Danaos Development and Fourlis, will exceed EUR 120mn, investor.bg reported citing project's management. The trade centre will be located on the city ring road, close to the first IKEA hypermarket, which opened in September 2011. The trade centre will have 70,000 sqm rentable area and will host 200 shops, cinema complex, supermarket, etc. Some 40% of the area has been already pre-leased. The project should be completed in 2013. 

 

Bulgaria Courts Austrian Investors for Danube Ports Concessions

Bulgaria expects to lure Austrian investors into becoming concessionaires of a number of Bulgarian ports on the Danube, according to Ivaylo Moskovski, Minister of Transport, Information Technology and Communications. "We have so far enjoyed a very good cooperation with Austrian investors and I hope that their interest in interest in our country will deepen in the future," Moskovski said Wednesday during the Vienna Economic Forum held in Sofia on April 3-4. The Transport Minister illustrated his point with the projects for the modernization of the Septemvri – Plovdiv and Dimitrovgrad – Svilengrad railway lines, specifying thatAustrian companies were contractors on certain sections of the tracks. "We are now working on the concession contracts for a number of Danube ports, among which Ruse, Vidin, Lom, Nikopol and Tutrakan. Considering the huge importance of the Danube for Austria, we are hoping that these sites will attract investments on their part," he added. "Attracting foreign investments is one of the key priorities of our government," Moskovski stressed. "Our ultimate goal is to make sure that Bulgaria has a modern and competitive transport sector. In cases where this is possible, we work actively for the absorption of EU funds, but where no money has been earmarked for the development of the sites, we need to look for other funding opportunities. Such a mechanism is public-private partnership, and concession contracts in particular," the Transport Ministerannounced. He argued that concessions were a very good option for Bulgarian ports and airports because they guaranteed a long-term partnership while the state retained ownership of the site. Moskovski assured that Bulgaria was using all instruments available to encourage interest in sites eligible to be granted under concession. As an example of the results achieved through Bulgaria's activities he cited Qatar's interest in the Bulgaria's Black Sea town of Balchik. "We have all reasons to believe that it will lead to a long-term partnership which will turn Balchik in an airport of national and regional significance," the Transport Minister concluded.

 

More than a third of German-Bulgarian chamber member companies will not reinvest in Bulgaria, poll says

More than a third of the companies affiliated to the German-Bulgarian Industrial Chamber of Commerce would not invest again in Bulgaria, according to the results of a survey among members of the chamber. This year, 35 per cent of firms indicated that they would not invest again in the country, while last year, far fewer – 21.5 per cent – had said so, according to chamber managing director Mitko Vassilev, Mediapool reported on April 3 2012. Only 12 per cent of the companies surveyed had a positive view of the current economic situation, Vassilev said. He cited data from central Bulgarian National Bank, according to which last year German investments decreased by a net 54 million euro. Cumulative 2000 to 2011 German investments in Bulgaria add up to 1.8 billion euro. Businesses complained mainly of insufficiently effective administration, lack of legal certainty and transparency in public procurement, corruption and poor infrastructure, although in this area business people recognise the efforts being made by the Government. About 40 per cent of companies said that they would be recruiting employees, while 15 per cent intended to make cuts, according to the survey, the results of which are to be presented to the Government.

 

COMPANIES AND INDUSTRIES:

 

US SunEdison completes construction of 60.4 MW solar park in Bulgaria

Karadzhalovo 60.4 MW solar park, in southern Bulgaria, has been completed and operational since March, Capital Daily reported. The investor in the EUR 181.4mn project is US SunEdison. Totally 155mn have been provided by IFC (EUR 46.1mn), Unicredit Group (EUR 41.1mn) and Overseas Private Investment Corporation (OPIC-EUR50mn) for the project. UniCredit Bulbank has also participated in the financing. The construction of the park has been performed by Bulgarian company Sienit. Plamen Panchev, Sienit's manager commented that Karadzhalovo is the largest solar park on the Balkans. 

 

Bulgartabac Plans to Increase Exports to Middle East

Bulgaria's largest cigarette maker Bulgartabac plans to export a total of 15.5 billion cigarettes to the Middle Eastern market this year and achieve a further 7% export growth to the region in 2013. The company has pointed out in a statement that it has achieved a double digit growth in its exports to the Middle East since 2008 – by 45% in 2008 and 2009, by 115% in 2010 and by a further 25% in 2011. Bulgartabac recently took part in the World Tobacco Middle East event in Dubai together with some 100 other producers. The event attracted visitors from over 30 countries including the United Arab Emirates, Iran, Egypt, Bahrain, Jordan, Saudi Arabia, Greece, Turkey, Qatar, India, Pakistan and Yemen. In one of the controversial Bulgarian privatization deals, Bulgartabac was sold by the Bulgarian government to a subsidiary of the Russian bank VTB for EUR 100.1 M in September 2011. The company completed 2011 with a net profit of BGN 31.3 M.

 

Construction of LOT 4 of Struma motorway kicks off

 Bulgarian Minister of Regional Development and Public Works Lilyana Pavlova and Minister of Transport, Information Technologies and Communications Ivaylo Moskovski will launch the construction works on LOT 4 of the Struma motorway, which covers the Sandanski-Kulata section, the press office of the Ministry of Regional Development and Public Works announced. The groundbreaking ceremony will be held at 12 p.m. LOT 4 is 15-kilometer long, while the deadline for projects realisation is 23 months. The contract for LOT 4’s construction was signed on March 19. The project is worth BGN 55,980,000 (VAT not included).

 

Bulgarian Rose-Sevtopolis Plans To Invest $1.2 Mln in Upgrades, New Equipment in 2012

Bulgarian pharmaceuticals producer Bulgarian Rose-Sevtopolis said it plans to raise its total investments to 1.78 million levs ($1.2 million/910,610 million euro) this year from 1.55 million levs in 2011. The money will be spent on upgrades and new equipment, Bulgarian Rose-Sevtopolis said in a bourse filing last week. The company plans to raise its net profit by 60.5% to 1.4 million levs in 2012. Its sales revenue is projected at 18.6 million levs, up from 15.5 million levs in 2011.

 

Molson Coors Buying Bulgaria's Kamenitza, StarBev Breweries

Denver-based Molson Coors said it will purchase StarBev and its nine breweries in central and eastern Europe, including Bulgaria, as it expands its operations further. The price of the deal is EUR 2.65 B (USD 3.54 B). "The central and eastern European beer market is attractive, with strong historical trends and upside potential as the region returns to its pre-economic-crisis growth rates," President and CEO Peter Swinburn commented. The deal comes less than three years after Anheuser-Busch InBev, later renamedStarBev, completed the sale of its operations in Central Europe and the Balkans to private-equity firm CVC Capital Partners. The deal was valued at USD 2.23 B in cash, bonds and minority shares. StarBev had sales of about billion last year, brewing more than 11 million barrels of beer. The company, which brews Bergenbier, Ozusko and Borsodi beers, is owned by funds advised by CVC Capital Partners Ltd. and StarBev management. A deal for StarBev would help Molson Coors put its brands, such as Carling, into the hands of beer drinkers in central and Eastern Europe. Bulgaria is one of nine breweries in Central and Eastern Europe, where StarBev is divesting its operations. StarBev has 4,100 workers and brewing operations in the Czech Republic, Serbia, Croatia, Romania, Bulgaria, Hungary and Montenegro. StarBev, is also a distributor of brands such as Stella Artois, Beck's, Hoegaarden, Lowenbrau and Leffe, and sells in Slovakia and Bosnia-Herzegovina as well. Kamenitza AD, which was first privatized in 1995 by Belgium's Interbrew, later renamed to InBev after the merger of Interbrew and AmBev and then toStarBev, is the second biggest brewery in Bulgaria. Its diverse brand portfolio includes international Stella Artois, Staropramen and Becks and local Kamenitza, Astika, Burgasko, Pleven, Slavena.

 

Turkcell to win competition for sale of 94% of Bulgaria's BTC - report

Turkey's cell-phone operator Turkcell is the likely winner in the competition for the sale of 94% of Bulgaria's telecom operator BTC, Capital daily reported, citing industry sources familiar with the talks. Creditors are expected to begin exclusive talks with the operator, which has around 90% chance of success as opposed to the other three bidders, the daily informs. In the beginning of March, Turkcell submitted a binding offer to acquire BTC, traded as Vivacom. Turkcell was also the only strategic investor interested in the operator. Three financial investors have also participated in the bidding. These are Russia's VTB Bank in partnership with local businessman Tsvetan Vasilev, CEO of country's seventh largest in terms of assets lender, Corporate Commercial Bank, a company related to Iceland's billionaire Thor Bjorgolfsson, who sold majority stake in BTC to AIG Capital Partners in 2007, and a company from the Pamplona Group. The offer of the Russians reportedly amounts to EUR 800-900mn. Last year, the creditors of BTC asked Morgan Stanley to raise bids for BTC by end-March 2012. BTC is owned by Cayman Island-based Bridge Partners after the company's previous owner, insurer AIG, agreed to sell parts of its asset management and investment advisory business to Bridge Partners in December 2009. 

 

 

 

 

Reported by:

Georgi Iliev

KOTRA Sofia

Korea Trade-Investment Promotion Agency

Commercial Section of the Embassy of the Republic of Korea