COMPETITIVENESS OF THE BULGARIAN ECONOMY AND ENERGY Petar Dimitrov Minister of Economy and Energy June 2008 FINANCIAL STABILITY Currency Board since 1st July 1997 Bulgarian currency rate fixed to the Euro Foreign reserves of € 12 936.8 million of the Bulgarian National Bank up to 30 April 2008 Resources of € 4 135.4 million for the Fiscal budget, calculated on the basis of programmed currency rates as of 31 March 2008 Budget surplus of € 547 million as of 31 March 2008 2 MACROECONOMIC ENVIRONMENT Real GDP Growth (%) 7.0 6.6 6.2 6.5 6.2 6.1 6.2 5.4 5.0 % 5.0 4.5 4.1 3.9 2.9 3.0 2.8 2.4 2.0 2.4 2.4 1.7 1.2 1.3 1.0 2000 2001 2002 2003 2004 EU-25 2005 2006 2007 2008f 2009f Bulgaria Source: NSI, EUROSTAT, Ministry of Finance High and constantly rising economic growth Bulgaria is among the leaders of CEE countries The main contributor to the GDP growth is the industrial sector 3 MACROECONOMIC ENVIRONMENT Low levels of unemployment rate (under 7%) 18% 18.0% 17.9% 16.3% 15% 13.5% 12% 12.2% 10.7% 9.1% 9% 6.9% 6.5% 2007 2008 F 6% 2000 2001 2002 2003 2004 2005 2006 Source: National Employment Agency • Decrease of the unemployment rate by 5.25 % compared to the end of 2004 • Financial backing of Euro 1.2 bln for investments in human resources under the “Human Resources Development” Operational Program 4 INTERNATIONAL POSITION OF BULGARIA Business conditions – classification of the World Bank Country 2006 2007 2008 BULAGRIA 59 54 46 Romania 71 55 48 Slovenia 56 53 55 Turkey 84 65 57 Macedonia 94 95 75 Serbia 95 84 86 Croatia 134 120 97 Greece 111 95 100 Approx. for the Balkans 91 86 82 Source: World bank – Doing Business Now Bulgaria is ranked: • 46th among 178 countries in terms of business conditions according to the World Bank Doing Business Report • 39th in terms of competitiveness out of 55 top economies, according to the International Institute for Management Development (IMD) • 79th among 131 countries in terms of competitiveness according to the World 5 Economic Forum, Davos CREDIT RATING Moody's Standart& Poors Fitch Aaa AAA ... … … … A3 A A A Baa1 A- A- A- 27.06.2007 Baa2 BBB+ BBB+ BBB+ 31.01.2008 Baa3 BBB BBB BBB 26.11.2007 Ba1 BBB- BBB- BBB- 23.02.2007 Ba2 BB+ BB+ BB+ Ba3 BB BB BB Latest credit rating assigned B1 BB- BB- BB- B2 B+ B+ B+ 27.09.1996 B3 B B B First credit rating assigned ... … … … C D D D Subinvestment Investment rating rating AAA Japan Credit Rating Agency AAA Fitch has confirmed the long-term credit rating of Bulgaria, however the long-term credits perspective has been lowered from stable to negative. Fitch has revised the Region outlook due to the change of macroeconomic conditions. Source: Ministry of finance • An investment rating was assigned to Bulgaria for the first time in 2004. Since 2005 the international credit rating agencies have increased Bulgaria’s credit rating 13 6 times. FOREIGN TRADE , (USD bn) 32.0 Export(fob) 29.9 Import (fob) 28.0 23.0 24.0 20.0 18.4 18.3 15.0 16.0 11.8 12.0 8.4 8.0 6.2 5.5 4.0 4.0 5.4 3.8 0.0 1999 2005 2006 2007 03/2007 03/2008 Source: BNB The Bulgarian exports increased more than three times since 1999 and in 2007 г. amounted to USD 18.4 bn 7 EXPORT Major export destinations 2006/2007 (USD million) Turkey Germany Italy Greece Belgium Serbia Romania France Russia 425 228 0 426 733 888 200 448 400 627 579 600 631 800 2007 825 982 1 638 1 882 1 000 2006 1 150 1 200 1 334 1 400 1 513 1 600 1 735 1 800 1 448 2 000 1 920 2 116 2 200 USA Source: NSI 8 BILATERAL TRADE TURNOVER WITH USA Export 2006 2007 2003 2004 84.7 66.3 323.1 2005 356.6 273.2 330.5 172.2 270.5 2002 424.8 2001 425.7 464.0 2000 190.8 190.7 1999 189.5 1998 Export 454.3 0 193.8 100 146.6 200 111.2 194.5 300 284.7 400 313.5 439.5 500 03/2008 Import Source: NSI • In 2007 Bulgarian export for the USA came up to USD 424.8 million and decreased by 0.2% as compared to the year 2006. The import from the USA amounted to USD 323.1 million, or decreased by 30.4% as compared to the same period of the year 2006 . The trade balance is positive for Bulgaria and amounts to USD 101.7 million. 9 STRUCTURE OF TRADE TURNOVER WITH USA BY SECTORS FOR 2007 Export from Bulgaria Import from USA (%) (%) Petrol oils and oils from bituminous minerals, other than crude ones 35.2 Mineral products 40.5 Products from food processing industry 11.2 Machine and Machinery 26.3 Textiles 10.6 Transport facilities 8.4 Machines and Equipment 10.2 Products from chemical industry 4.8 Optical and photographer’s instruments 4.2 Products from chemical industry 8.0 Optical and photographer’s instruments 4.2 Products from food processing industry 3.9 Base metals and articles 2.8 Base metals and articles 2.9 Live animals 2.7 Plastic articles 2.2 Plaster and cement articles 2.2 Textiles 1.1 Other 5.8 Other 12.8 Source: MEE 10 FAVORABLE BUSINESS CLIMATE Bulgaria is ranked 2nd in the Business climate rating for EU-27 (after Denmark) Source: Association of European Industrial Chambers 11 FAVORABLE BUSINESS CLIMATE According to the World Bank Report Bulgaria is ranked 1st among 178 countries in successful implementation of tax reforms for the period 2006-2007 • 10% corporate tax since 2007 (34.3% in 1999) • 0% corporate tax in 138 municipalities with unemployment rate higher than the average level • 0% capital gains tax • 5% dividend tax from January 1, 2008 • Lower social security burden with 6 percentage points in 2006 and by other 3 percentage points since October 1, 2007 • 10% “flat tax” of incomes of physical persons since 2008 12 CORPORATE TAX FOR 2008 (%) 40,0% 35% 32,5% 33%33,3% 29,5% 30% 30,0% 27,5%28% 26% 25%25% 25% 25%25,5% 21% 21% 20,0% 22% 19% 19% 15% 15% 15% 16% 16% 12,5% Source: EU Taxation Database, World Wide Taxes - www.worldwide-tax.com Malta France Belgium Spain Great Britan Luxembourg Sweden Italy Finland Netherlands Denmark Austria Portugal Greece Slovenia Estonia Czech Rep. Poland Slovakia Hungary Romania Germany Latvia Lithuania Ireland Cyprus 0,0% 10% 10% Bulgaria 10,0% 13 PERSONAL INCOME TAX FOR 2008 (MAXIMUM RATE %) 60,0% 59% 56% 52% 50% 50% 50,0% 40% 40% 40% 40% 40,0% 41% 41% 42% 43% 43% 45% 38% 35% 30% 30,0% 24% 20,0% 19% 36% 31,5% 25% 21% 15% 16% Source: EU Taxation Database, World Wide Taxes - www.worldwide-tax.com Denmark Sweden Netherlands Belgium Austria Germany Spain Italy Portugal Slovenia Ireland France Great Britain Greece Poland Luxembourg Hungary Malta Finland Cyprus Lithuania Latvia Estonia Slovakia Romania Czech Rep. 0,0% 10% Bulgaria 10,0% 14 SOCIAL INSURANCES SOCIAL INSURANCES PAID BY THE EMPLOYER IN 2006 (% of total employer’s expenses, incl. salaries, insurances, compensations, tuition’s expenses ,etc) Sweden 30.6% Belgium 30.3% Litva 28.2% Hungary 26.9% Romania 26.1% Czech.rep. 26.1% Estonia 25.1% Spain 24.9% Slovakia 24.6% Austria 23.5% Germany 23.3% Portugal 21.2% Bulgaria 20.9% Finland 20.8% Latvia 20.6% Luxemburg 15.2% Cyprus 15.1% Slovenia Source:Eurostat 0% * 13.4% 5% 10% 15% 20% 25% 30% 35% *Note: In 2007 social security burden paid by the employer is reduced by 2.5% 15 LABOR COST AVERAGE MONTHLY EXPENDITURES FOR THE EMLOYERS IN 2006 (incl. salaries, insurances, compensations, etc) Luxemburg 4625 Sweden 4518 France 4382 Belgium 4047 Germany 3868 Austria 3827 Finland 3685 Spain 2203 Cyprus 2091 Slovenia 1673 Portugal 1618 Malta 1445 Czech.rep 1028 Hungary 947 Poland 889 Estonia 840 Slovakia 775 Litva 646 Latvia 532 Romania 414 Bulgaria 243 0 Source: Eurostat 1000 2000 euro per month 3000 4000 5000 16 Source: Eurostat 0.055 Litva 0.081 0.084 0.086 0.088 0.090 0.092 0.093 0.095 0.095 0.096 Hungary Romania Portugal Belgium Malta The Netherlands Slovakia Germany England Luxemburg Ireland 0.113 0.105 0.081 Spain Cyprus 0.079 Austria 0.103 0.078 Czech.rep. 0.060 Italy 0.075 0.070 Slovenia Greece 0.064 0.054 Finland Denmark 0.054 Poland 0.063 0.054 France Sweden 0.053 Estonia 0.047 0.000 Bulgaria 0.020 0.044 0.082 0.040 Latvia EU 27 ELECTRICITY PRICES IN 2007 FOR FINAL INDUSTRIAL CONSUMERS (EURO/ kWh) 0.120 0.100 0.080 17 2.0 Source: Eurostat 7.8 8.0 8.4 Poland Finland France Portugal Slovakia The Netherlands Italy Austria 12.2 11.1 Sweden Germany 10.6 6.0 England 9.9 7.6 Slovenia Luxemburg 7.6 Romania 9.5 7.3 Spain Hungary 7.3 7.5 8.9 7.1 8.5 6.9 6.0 Litva Belgium 5.8 Denmark 6.6 5.3 Latvia Czech.rep. 5.2 0.0 Bulgaria 3.7 8.9 4.0 Estonia EU27 NATURAL GAS PRICES IN 2007 FOR FINAL INDUSTRIAL CONSUMERS (EURO/GJ) 14.0 12.0 10.0 8.0 18 INVESTMENT CLIMATE Bulgaria Slovakia 3.16 2.79 1.04 1.04 1.56 1.79 Estonia 2.44 0.96 2.2 Czech Republic 2.43 1.1 2.05 Latvia 2.64 0.91 Poland 2.59 1.17 Hungary 2.54 0.95 1.98 Lithuania 2.6 0.83 1.98 Romania Russia Ukraine Financial Score 2.88 2.61 2.79 People Score 2 0.87 1.38 0.98 1.79 1.53 1.16 1.09 Environmental Score Source: A.T. Kearney 2007 Global Services Location Index • According to the report of A.T. Kearney from 2007 Bulgaria is ranked 9th in the World and 1st in Central and Eastern Europe as most attractive country for business; • According to UNCTAD Bulgaria takes 7th place as the most attractive investment destination. Bulgaria has moved up in this rating by 14 places in comparison with the 2005 report. 19 FOREIGN DIRECT INVESTMENTS 25 FDI, 2007 (% of GDP) 21.1 20 15 11.7 10 7.9 5 5.8 5.2 5.0 4.2 4.0 3.8 3.0 2.5 1.9 1.1 Source: BNB and Bank Austria Creditanstalt FDI IN BULGARIA (mln euro) 7 000 5 961 6 000 6 109 ia Au st r y It al an y G er m ve ni a Sl o va ki a Sl o y H un ga r nd Po la Li t hu an ia . ic ep ub l Cz ec h. r om an ia R La tv ia ni a Es to Bu lg ar ia 0 6 500 5 000 4 000 2 736 3 000 2 000 3 152 1 851 1 000 0 2003 Source: BNB 2004 2005 2006 2007 Preliminary data 2007 expectations 20 BULGARIA LEADS CEE COUNTRIES IN TERMS OF FDI TO GDP INDICATOR 3.6 TURKEY SLOVENIA 5.0 3.0 1.7 4.0 SLOVAKIA 7.5 5.3 SERBIA 14.2 7.1 UKRAINE 5.4 6.0 ROMANIA 9.3 4.5 POLAND 5.5 8.1 8.3 LATVIA HUNGARY CZECH REP 2.6 6.3 4.7 4.2 21.1 BULGARIA 23.6 2006 2007 F 21 FDI STOCK BY SECTORS, 1998 – 2007, Total for the period 24 266 Euro mln. 19 17 21 19 4619.8 4679 5 6 1259 1459.1 er h t O E 6 7 5112.4 Value in EUR m % of Total 4019.1 1515.6 1602.4 m er on o t i t c c le wa u r e d T st n n a s Co a g , ity c i tr c le e d a Tr ce n a in F M ac f u an g in r tu al e R e at t es 22 INVESTMENT PROMOTION LAW • Focusing on the following sectors of economic activities: Industrial Sector Processing industry; Power generation from renewable energy resources. Services sector High tech activities in the field of computer technologies; Research and development activities; Education; Healthcare. • Two classes of investment „А” and „B” • Minimum amount of investments in a single project for class А – 70 mln BGN (~56 mln USD) for class B – 40 mln BGN (~32 mln USD) 23 INVESTMENT PROMOTION LAW CLASSIFICATION OF INVESTMENTS DEPENDING ON THE REGION In municipalities with unemployment rate of 35% or higher than the national, the minimum required amount is: for class A - 35 mln BGN (~28 mln USD) for class B - 20 mln BGN (~16 mln USD) In municipalities with unemployment rate of up to 35% higher than the national, the minimum required amount is: for class А - 45 mln BGN (~ 36 mln USD) for class B - 25 mln BGN (~ 20 mln USD) DEPENDING ON THE ECONOMIC SECTOR Minimum amount of investments in high tech production - two times lower: for class А - 35 mln BGN (~28 mln USD) for class B - 20 mln BGN (~16 mln USD) The minimum required amount in high tech activities in the services sector is three times lower: for class А - 24 mln BGN (~19 mln USD) for class B - 14 mln BGN (~11 mln USD) 24 INVESTMENT PROMOTION LAW ENCOURAGEMENT MEASURES 1. Shorter terms of administrative service (for class А or class B) 2. Individual administrative service (for class А) – the measure is implemented by the Invest Bulgaria Agency before central authorities of the executive power and in the rest of the cases by the territorial authorities of the executive power; 3. Acquisition of property rights or establishment of limited rights to real estate – private state or municipal property” (for class А or class B); 4. Financial assistance for construction of public infrastructure for class A and for accomplishment of two or more certified investment projects in the boundaries of an industrial zone; implementation of the two classes in certain conditions. The accent is posed on the industrial; 5. Financial assistance for training for acquiring professional qualification to persons 29 years old or younger, including trainees from Bulgarian universities employed as new recruits in the investment project. 25 US DIRECT IMVESTMENTS IN BULGARIA Dynamics of the US direct investment in Bulgaria (USD million) FDI in Bulgaria ,1992-2007, USD million 4 532 Austria 3 377 Nederland 2007 201 306 2006 103 2005 Greece 2 892 134 2004 2 754 Great Britain Belgium and Luxembourg 1 685 Germany 1 647 2003 128 57 2002 2001 44 57 2000 Cyprus 1 449 1999 62 64 USA 1 254 1998 Hungary 1 207 1997 1996 Switzerland 36 19 1 040 Source: NSI • For the period 1992-2007 the USA ranked 8th among the investors in Bulgaria in terms of FDI amount – USD 1.254 bln 26 US INVESTMENTS IN BULGARIA (total USD 1 254 m.) Major US Investments in Bulgaria American Standard (production of sanitary faience), USD 239,7 m. Hilton (hotel), USD 39,7 m. Craft Foods (chocolate factory), USD 38 m. MacDonald's, USD (fast food chain)23 m. News Incorporated (tv channel) USD 22,8 m. World Trade Company /Gort Securities UK/ (Radisson Hotel), USD 17.7 м. Westinghouse –modernization of 5 & 6 energy units of NPP “Kozlodui” (completed) Ongoing projects with US participation in Bulgaria AES Corporation – construction of a new 670 MW TPP within “Maritza East 1” TPP (for the period 2006-2009) – the biggest “green” investment of AES in SEE, worth more than USD 2 bln. Textron –offset agreement (signed in November 2007) for USD 20,4 m. ”green” investment in the construction of Low-voltage equipment Factory Honeywell - modernization of 1,2 and 4 energy units of TPP “Maritza East 2” for USD16,9 m. (started 2006) Hewlett Packard- “Global service centre” for its clients in Europe, Africa and Near East. Microsoft is to open in Bulgaria a free online software support centre, covering SEE Microsoft, Cisco Systems and Siemens – are to launch soon a centre for innovations 27 INVESTMENT COOPERATION BETWEEN BULGARIA AND USA Forthcoming US projects in Bulgaria AES-Bulgaria plans to build a 120 MW Wind Power Park for USD 250 m. Tishman International Companies” plans to invest in a Logistics and Business Centre more than USD 300 m. Honeywell– plans to open a centre for assembling of industrial automation systems CISCO – plans to open a fund for investment in IT SMEs in CEE, including Bulgaria Possibilities for future US investment in Bulgaria In 2008 will commence a Special Public Procurement Award “Development of Communication and Information Means” (Offset Project №9) for the modernization of the Bulgarian Armed Forces, USD 300 m. - ITT Corporation, Lockheed Martin and General Dynamics are interested to participate In 2010 the Offset Project № 3 “Acquisition of a new multiple-role fighter” for the modernization of the Bulgarian Armed Forces is to be started. - Lockheed Martin and Boeing have presently expressed interest to participate. Global Environment Fund has included Bulgaria in its long-term plans for investment in renewable energy sources and water treatment plants in Bulgaria. Bulgarian-American Investment Fund and its Bulgarian –American Credit Bank provides funds for investment in Bulgaria (mainly in the field of tourism and SMEs) with a capital USD 70 m. 28 SUFFICIENT ACQUISITION OF THE EU FUNDS IS ANOTHER IMPORTANT PRIORITY FOR STIMULATING THE ECONOMY 25% 22% 20% 15% 15% Value EUR m 2003 % of Total 1800 1234 2% 1601 1213 ss is ta nc e Ca pa ci ty Te ch ni ca lA Ad m in is tra tiv e ev el op m en t en t m Re gi on al D En vi ro n Tr an sp or t Re so u m an Hu Co m pe tit iv en es s rc es 180 1% 56 The Ministry of Economy and Energy runs Operational Program “Competitiveness” with a Budget of EUR 1.2 billion Priority 1: Economic development based on knowledge and innovation activities (budget – EUR 246 million or 21%) Priority 2: Increasing production efficiency and development of favorable business environment (budget – EUR 593 million or 51%) Priority 3: Provision of financial resources for business development (budget – EUR 200 million or 17%) Priority 4: Strengthening of the Bulgarian economy's position in international markets (budget – EUR 87 million or 7.5%) Technical support (budget – EUR 34 million or 3%) Considerable financial support for SMEs 29 SIGNIFICANT PROJECTS UNDER IMPLEMENTATION (valued over 8 bln. euro) • Construction of a new nuclear capacity at the site of Belene nuclear power plant –Euro 4 bln; • Construction of spare capacity plant at Maritza East 1 thermal power plant – Euro 1.3 bln; • Rehabilitation and installation of flue gas desulphurization plants in Units 1-4 and increase of the production capacity of Units 5 and 6 at Maritza East 2 thermal power plant – Euro 190 mln.; • Rehabilitation and modernization of Maritza East 3 thermal power plant – Euro 800 mln.; • Construction of hydro power plant Tsankov Kamak – Euro 220 mln; 30 ENERGY PROJECTS UNDER STUDY • Construction of hydro power complex Nikopol (Bulgaria) – Turnu Magurele (Romania) – Euro 1.5 bln; • Construction of hydro power complex Silistra (Bulgaria) – Kalarash (Romania) – Euro 1.2 bln; • • Construction of Gorna Arda Cascade and Tundja Dam; Construction of Maritza East 4 thermal power plant. 31 ELECTRICITY INTERCONNECTION PROJECTS (Under implementation) Construction of electricity interconnection between Bulgaria and Macedonia: substation Chervena Mogila (Bulgaria) – substation Shtip (Macedonia). Bor Vidin (Planned) - Extension of -------- interconnections electricity towards Albania to Italy /European Corridor N 8/ (Planned) Construction of second electricity interconnection between Bulgaria and Serbia (Vidin – Bor). (Planned) Construction of second electricity interconnection between Bulgaria and Greece: substation Maritsa East (Galabovo, Bulgaria) – substation Filippi or Nea Santa (Greece) 32 NABUCCO PROJECT ROUTE & TECHNICAL DATA Pipeline diameter: 56” (1422 mm) Distance: 3 300 km Investment: 8 billion € Maximum transport capacity: 31 bcm/y 33 “SOUTH STREAM” PROJECT POSSIBLE ROUTES OF THE BRANCHES & TECHNICAL DATA NORTH HU RU SR BG IT SOUTH GR Transport capacity: 31 bcm/y Under discussion - 2 branches “SOUTH” and “NORTH” Offshore part RU-BG – 900 km Max. deep: 2000 m Singed MoU Eni-Gazprom 23.06.2007 Signed agreements of Russia with: Bulgaria, Serbia, Hungar, Greece Total amount of the investment: Euro 12 bln. 34 REGIONAL GAS INFRASTRUCTURE PROJECTS 1. GAS PIPELINE BULGARIAN (BG) GRID – TURKEY – GREECE INTERCONNECTOR 2. REGIONAL LNG TERMINAL (BG & SEE REGION) 3. DUPNITZA – NIS GAS PIPELINE (BG-SR) 5. RUSE – GIURGU GAS INTERCONNECTION (BG-RO) Giurgu 4 Ruse Nis 3 Dupnitsa 1 Haskovo LNG 2 35 OIL TRANSPORT INFRASTRUCTURE PROJECTS Oil pipeline Bourgas- Alexandroupolis •Length of the pipeline- 290 km, BG territory - 155 km; •Pipe diameter – 900 mm (36”); •Capacity: 0.75 M barrels/day (35 M tons/y); •2 pump stations; •Trilateral agreement Bulgaria-Greece-Russia signed and ratified; •IPC establishment - February 2008; •Expected: Start of the construction by the end of 2008. 36 OIL TRANSPORT INFRASTRUCTURE PROJECTS Oil pipeline Bourgas– Vlore (along the European Corridor No. 8 route) •Length of the pipeline – 900 km; •On Bulgarian territory – 480 km; •Pipe diameter – 900 mm (36“); •Capacity: 0.75M barrels/day (35 M tons/y); •4 pump stations; •Convention Albania-Bulgaria-Macedonia signed and ratified. 37 OUTLOOK FOR THE PERIOD 2008 - 2010 INDICATOR 2008 2009 2010 Real growth of GDP 6.2% 6.5% 6.9% Average annual inflation (harmonised index of consumer prices) 6.9% 4.4% 3.7% Unemployment 6.5% 6.2% 6.1% -6.9 -7.7 -8.2 -21.1% -21.0% -20.0% 7.0 7.6 8.2 Current account, € bn Current account, % of GDP FDI, € bn (average annual rate of 8%) Source: Agency for Economic Analysis and Forecasting. FDI – prognosis of MEE It is expected that the dynamic and ascending development of the Bulgarian economy will continues. The economic growth rate is envisaged to exceed 6% annually. According to the forecast in the end of the period the average annual inflation rate will drop to 3.7%. The unemployment rate will remain 7%. The current account deficit will remain 21% of GDP. In order to cover the current account deficit FDI should increase annually by 8% 38 GLOBAL COMPANIES ARE GAINING INSIGHT IN ADVANTAGES OF DOING BUSINESS IN BULGARIA Examples of those who already have discovered their opportunity in Bulgaria “Very well educated, talented and committed workforce, large talent pool, very competitive cost structure, European culture, good English skills, short flight times and almost no time difference from Western Europe…” - Dr. Peter Kurpic, Senior Vice President NetWeaver Foundation SAP AG “…among the reasons why HP had chosen Bulgaria were the high level of education in terms of technical skills and languages, good infrastrucutre and investor-friendly legislation.“ – Tino Canegrati, HP Global Delivery General Manager “Political and economic stability, the qualified labor force and the cost structure” – Gilles Bernard, Executive Director of EPIQ (Belgium) YOUR LOGO HERE “Over the past several years, we have proven that Bulgaria is a competitive, productive place to do business with a lot of talented and well trained people. As we look to expand here in Sofia we plan to continue hiring the best and the brightest people that Bulgaria has to offer.” – Eric Dumas, Director of Tumbleweed Communications Bulgaria “The combination of existing and proven local expertise, the excellent academic facilities and the strength of the Bulgarian economy, made Sofia an ideal choice for further investment in our global mixed-signal engineering capabilities.” – Nelly Pergoot, Managing Director, AMI Semiconductor (USA) The list of foreign companies in Bulgaria is growing quickly! Source: Invest Bulgaria Agency – Bulgaria Investment Guide 2007, Value Scope Bulgaria, http://neveq.com 39 THANK YOU FOR YOUR ATTENTION! Ministry of Economy and Energy www.mee.government.bg 40