Q: After one year of financial stabilisation Bulgarian economy badly needs economic growth. Do you consider that big infrastructure projects can be the driving force for Bulgarian economic recovery?
A: That is a very interesting question and the time is very correct for it to be asked. In the program of our Government the infrastructure theme is very seriously stressed. The infrastructure and its various aspects: transport, long distance communication, Energy network. I will try to present to you how the ideas underlining the development programme of this infastructure.
We really consider investing into serious infrastructure projects one of the driving forces for economical growth. Besides, developing implementing infrastructure projects mean new employment, development of production of construction materials. So what we managed to do in the first mandate of our Government so far was attracting new investments in the form of credits for implementation of certain infrastructure projects which will be as follows: The total amount of investments attracted is a little over 200 million $ which was achieved for just a year of our Government’s rule. And I consider that as a high-trust rate on the part of foreign investors in our Government. For instance, European Investment Bank in Luxemburg lent us a credit of 60 million ECU for the renovation of the Sofia Airport. I am also expecting on the 21-st of June ( this month ) representatives of the Kuwait Investment Fund who will lend a credit of 40 million $ which will also go for the renovation of the Sofia Airport. We also reached an agreement with the Japanese National Fund-OSCF-for the development of the Burgas Airport, The financing is in the amount of 120 million $ for this project. This amount would provide 30% of the investments needed for the development of the Airport. I am mentioning those facts just to emphasise the with finalising these credit agreements we were sort of attacked from other foreign investors which expressed willingness to co-finance in these projects. This includes American investors – Turner and Steiner, Meryl Lynch. We have a saying in Bulgaria: It is very important who will make the first step, set the speed rate. That is the indicative of the fact that a lot of positive developments are coming to Bulgaria.
Q: Bulgaria has a strategic geographic situation. Which in your opinion is the best way to make use of it?
A: Yes, I will talk about the Bulgaria’s strategic location but let me first finish the theme about the investments. Interest was shown also by General Electric and General Motors for investing in the restructuring of the Bulgarians rail-roads – mainly in renovation of the locomotive machines and the rail-road wagons. And we really approve and underline a programme for investment in infrastructure projects like the development of Seaports, Airports, rail-road system, road network . But not to go into any more details , I would like to offer you a small booklet which lists all the forthcoming projects. You can select the major ones that are mentioned in the report. And now a couple of words about the strategic geographic location of the country: If you take a close look at the geographical map of Bulgaria, parts of the Pan-European transport corridors are coloured differently. Of a total of 10 Pan-European transport corridors, five pass through the territory of Bulgaria. I would like to mention those right now because they are quite particularly pointed out in the booklet. But there’s a very basic principal: the four directions- North, South, East, West. The countries marked in yellow are the EU countries, the green ones are the Central and East-European countries. These lines here are the corridors that touch on the borders of the countries members of the EU. A priority for Bulgaria is the East-West corridor. And if I need to show it on the Bulgarian map : it is the one numbered "8" ( as it is known in the transport network ). It is a priority exactly for the fact that connects the Kaspian region and Central Asia with Central Europe passing through Bulgaria, Macedonia, Albania. Another priority corridor is the link North – South – N:5. It connects the port of Thesaloniki with Central and Northern Europe. So in the booklet you will find detailed information about those corridors and our projects , but I would like to mention and it is very important that all our projects are subjected to the logic of those Pan-European corridors passing through our country. They are related to them so our investment infrastructure program is subjected to the development of European transportation program.
The process of accession of Bulgaria into the European and Atlantic economic and political structures is not possible without bringing along communications and transportation corridors into line with the European marks.
May be I talked too much and didn’t give you the opportunity to ask your questions but things are related , so when you start talking about one of those subjects you lust automatically go to another one because they are all related. I am convinced that if we lack good internal policy we will not be able to bring our policy with the European line . | Q: There are some huge multinational infrastructure projects that pass through Bulgarian territory. Would you briefly describe them and explain what Bulgaria can benefit of its participation?
A: So , in the month of May, Bulgaria joined a four-side agreement in the Caucasus region with the countries of Azerbaijan, Afghanistan, Uzbekistan and Georgia for transportation of loads from the Caucusus area to Western Europe , with overall annual amount of shipment not less than 4 million of tones. So there is a terminal at the port of Varna equiped with a special technical equipment, where the wagons come from Russia and their wheels are being changed to the European standards of wheels size.So that transportation from East to West facilitated with moving the load in the wagon - only the wheels are changed. Ferry-boats are used to transport the wagons from Varna to Russia and backwards, so Varna port is an unique and important place where the wagons are being standardised respectively to European or Russian standards. This is a project which responds to the characteristics of the multinational infra-structural projects; one of the European corridors is the Danube river which is an internal European water way of the water-way : Rein - Main - Danube.
We can also talk of the transportation of the energy but you are probably meeting the Deputy Prime Minister Mr.Bakardjiev and he will explain you more.
Q: Bulgarian national airlines - Balkan, suffers bad financial results in recent years. What were the reasons for that bad economic performance and do you think the ongoing privatisation will improve Balkan’s financial results?
A: We are counting much on that by the end of September the process of privatisation of Balkan Airlines will be over. It is interesting to mention that in the list of potential buyers American companies are included. Of course, I will not say the name because I do not have the right to do so. So this is a possible and really necessary solution to the problems of the company. The problems of this company are a lot in number and they touch on different aspects but we hope that the new owner will be able to handle the situation. One of the basic principals of our Government is that the State needs to withdraw from the direct governing of the economic activities in the country and this is the essence of the privatisation process. May be your readers would find it hard to understand what " central planning economic system " is which was the essence of the Communist regime. Actually restoration of property ownership is a revolutionary process which does not have an equivalent in world history so far. So it is very important to say what we have achieved for the year passed , we have privatised twice the assets that have been privatised for the last four years. In this way we are proving the success of this process
, the changing of ownership. You might also receive a chart from Mr.Vitchev to give you a visual idea. Here you can see the trend of improvement of the investment climate in the country.
Q: As a more personal issue , what has been your most satisfying personal achievement since you have been the Minister of Transport?
A: My personal agenda consists of several points and the first one is the privatisation which is my major goal as a Minister of Transport. The second point in my personal agenda is the very big issue of bringing into line all the aspects of our legal system related to transportation, especially according to European legal standards - of 9 laws that will regulate the transportation system in Bulgaria , 3 are already a fact. One third for the period of one year and we have three years left so... I hope we will bring this process to a completion next year which is a very major issue. And another point is the creating and developing of an adequate administration for the transportation institution. We have marked very particular and concrete achievements in this regard so far - the administrative personal of this institution has been reduced with 15% already. We are very much set on not performing any commercial and management activities but just to regulate transport operations in the country. And those companies where the state has the major share yet I am very much decided on delegating the responsibility of managing the operations to a particular management stuff. This is a complicated process and it will be accomplished with great effort. We very much rely on young people not burdened with the old ways of thinking. In the recent past nothing was done unless the manager orders you to. Now we look for the initiative of the young people.
Q: What will be your final message to our readers?
A: I have already repeated that several times but I will stress on it once again : I would like to appeal to foreign investors right now in the present time and not later on because later on it will be more difficult for them because of the more intensive competition. That’s what I think and I think that I am not wrong.
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BULGARIA, 
