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Read our exclusive interview.
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 GLAVBOLGARSTROY PLC
Ambassador of Peace
Manager:
Nikolai YANAKIEV, Ph. D.
Chairman of the Board of Directors
Contact:
3-5 Damyanitca St.
1619 Sofia,
BULGARIA
Phone: (359-2) 957 12 33 // 57 02 21 // 57 15 207
Fax.: (359-2) 957 10 88 // 957 12 07
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| COMPANY PROFILE |
 Glavbolgarstroy, ambassador of Peace
The fall of the Berlin wall and the withdrawal of the Soviet troops from Eastern Europe made the beginning of new relations on the Old Continent.
Our company GLAVBOLGARSTROY EAD is a direct partcipant in this process. We are one of the main participants in the Programme for housing construction for the returning militaries financed by the Government in Bonn.
For almost 30 years already GLAVBOLGARSTROY EAD has been executing different construction and assembly works on the territory of the former Soviet Union. These are projects of industrial, social and housing construction.
The employers have chosen the team of GLAVBOLGARSTROY – engineers, designers and builders, making the choice among several world famous companies. We belong to the small number of East-European organisations which managed to preserve and develop their positions on the Russian market. We have executed six from the numerous military housing projects of the territory of Russia, the Ukraine and Byelarus. Three of these were executed in co-operation with the German construction company HOCHTIEF. The construction was financed by the Russian Ministry of Defence with the help of Germany.
We take care of everything – to begin with the research and design and finish with the qualitative execution and « turn-key » handing – over. We dispose of designers, most modern computer technique, transportation facilities and a powerful modern construction technical basis.
The observation of short terms, preciseness and high quality are our advantages, the ethic professional relations are our everyday work. Bearing in mind the importance of the execution of these projects it can be well said that GLAVBOLGARSTROY is an ambassador of peace and good interrelations in contemporary Europe.
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| STRATEGY |
Interview with Nikolai Yanakiev
the Chairman of the Board of Directors of Glavbolgarstroy:
Q: Your company is very popular abroad. Would you describe your main markets and some of the most significant projects your company has realized?
A: The annual turnover of our company is 200-250 million $. Generally, our markets are in Russia, Khazakhstan, Ukraine and other former Soviet Union republics. We also execute construction in Hamburg, Germany. We are present on the markets of Morocco, Cyprus and in other countries. Our strategy is to enter the building markets of the Near and Middle East and Africa.
Our company was established in 1967-1968 in pursuance of governmental agreements between the former Soviet Union and Bulgaria for the construction of the gas pipelines "East - Western Border of Russia". Later on, and especially after
1990, making use of our presence there, we have developed our activities following the market relations principles of direct negotiation of building projects with different investors. The large projects completed in Russia and Ukraine by our company are related to the construction of residential towns for the Russian military troops returning from Germany. These are large residential districts with their social and engineering infrastructure in the towns of Starokonstantivov, Novograd Volinski, Kamenka, Rostov on the Done, Zernograd, Tula and others.
We build a residential district in the Julebino region of Moscow; we build housing buildings and a business center in the town of Ekaterinburg; we build also in Tyumen, Novosibirsk and in other towns in Russia. Our company has projects connected with the gas industry. We carry out construction works for the needs of AVTOVAZ Works in the town of Toliati, Russia. We have completed a large hospital complex in the town of Kazl Orda, Khazakhstan, a sports hall and other projects in the town of Aterau, also in Khazakhstan, a bank building in Astrakhan, Russia. A large recreation complex of Gasprom, located in the town of Tuapse at the Black Sea coast is under construction and comprises a balneologic building, sports hall, modern beach facilities, etc.
The finalizing of the negotiations with Gasprom for the execution of different projects in return for gas supply for Bulgaria is forthcoming. We are welcome on the Russian markets because of two main reasons: the high quality and the short terms of construction execution.
The company occupies serious positions on the Bulgarian building market. While two years ago the construction volume was 2.5 percent of the total construction volume of the company, during the current year 1998 we hope that this volume will reach 15-18 percent. This can be explained by the constantly improving investment climate in Bulgaria. Besides the construction of business and bank buildings and lodgings, we carry out projects financed by the PHARE Program and funded by other European financial institutions. We have completed 4 of a total of a 6 wholesale markets constructed in Bulgaria under PHARE Program. We are also active in the road and bridge construction. At present we carry out three lots representing part of the project for rehabilitation of the road network in Bulgaria. The construction of a modern five-star hotel to be included in the Hilton Hotel Chain will be started by our company in the near future We dispose over own production facilities for aluminum windows and doors, ventilation equipment, dry building mixes, metal fabricates etc., spread all over the country.
Q: As far as I know your company applies for the construction of the Sofia Airport?
A: Your question is probably related to our participation in the tender for execution of the second stage of the National Center of Air Traffic Services. In fact, we participated in the tender and were informed to have been classified on the first place. We learned from the press, that the European Investment Bank, Luxembourg, who secures financing of part of the project, had objections to the manner of conducting the tender, irrespective of the fact that the whole tender dossier had been coordinated with the bank. As mentioned above, this is only information obtained from the press, without any official notice, except that we have been informed to be classified first. | Concerning the project for reconstruction and modernization of the Sofia Airport, this project will probably not be executed this year. Financing of the project has been secured by the European Investment Bank and by a Kuwaiti fund. We take part jointly with the Municipality of Sofia, Sofia Airport and Siemens AG in a joint stock company established especially for participation in the airport construction. The company will probably participate in financing of the construction and will complete the cargo terminal.
Q: How do you succeed in beating your rivals in most of the tenders you take part? What are your competitive advantages?
A: We consider competition fully natural under the market conditions where we realize our business. Competition is the major incentive in our activity and forces us constantly improve it. The major competitors on the markets where we have stable presence are the local building companies, Turkish, Finnish, Polish companies and firms from other countries. We have serious competition also on the Bulgarian building market. We are the preferred partner for the investors because of the high quality of our building production, the short terms for execution of the projects and the moderate prices we offer. An essential advantage are also the modern production facilities established in the regions where we execute large volume of construction. Furthermore, we always attempt to use new building technologies and a broad palette of high quality building materials and products.
That fact that we are a fully privatized company and the confidence of the bank in our company also contribute to our competitiveness.
Q: Your company and especially you convict a good PR campaign even when your company was state owned. Why did you put so much attention to PR when the other Bulgarian companies do not care much?
A: Glavbolgarstroy pays serious attention to public relations. The objective public opinion is very important for the company because we consider it a gauge measuring our image and the public benevolence for us. The independent public opinion helps us remedy eventual mistakes in our behavior and to render objectiveness to our business. We use the public relations also for popularizing our achievements in the country and abroad. We have always respected the public opinion, even when for subjective reasons it has not been benevolent to us.
Q: Concerning the matter of promoting Bulgaria, you have made the biggest donation to "The future of Bulgaria" Foundation, edited by Prime Minister Kostov’s wife.
A: I am not in position to judge whether the donation made by our company to "The Future of Bulgaria" Foundation was the biggest of all donations made to the Foundation. With the mentioned donation we have built a Christian church in the town of Nedelino, the Eastern Rhodopes. The prevailing part of the population of this part of Bulgaria is Bulgarian of Muslim religion. A great part of the Bulgarians inhabiting this part of the country, especially the younger ones, wanted to convert to the eastern-orthodox religion. The erection of the eastern-orthodox church was welcomed exceptionally cordially by the local people. The mountains were filled with the ringing of a church bell for the first time since 400 years.
As you may have noted, no political ground is contained and can be looked for in this donation. It is a patriotic undertaking of our company.
This donation is not an incidental humanity act on the part of Glavbolgarstroy. On official holidays - Christmas, New Year, Easter - we endow kindergartens, hospitals and schools with clothing, food, books , training aids, etc. For two consecutive years we have secured warm food for more then 200 poor people during the winter months.
I believe you have become convinced that by these humanity missions of ours we have never ever sought any political dividends whatsoever.
Q: We have seen that you have a lot of contacts around the world but what about your contacts with the USA?
A: Unfortunately, we have limited contacts with American companies. We recently operate with Vista Wall on the execution of suspended facades for buildings. The pre-privatization investigation of Glavbolgarstroy was carried out by the Washington subsidiary of Ernst & Young. We hope to establish contacts with the company Bechtel in the near future, who are engaged with the construction of Transport Corridor No. 8 which passes also through Bulgaria.
Q: But as we say in the USA contacts often means contracts. What would you do to encourage bigger contacts?
A: Our company is open for cooperation with all companies, American companies included, who are willing to be our partners. Naturally, it is our wish that these contacts be materialized in particular contracts. Generally speaking, the presence of American companies in Bulgaria is weak. I would like to hope, that if we attract American investments for our economy, then the presence of the American business in this country will be activated. We propose to interested companies form the USA to enter jointly the building markets of third countries.
Q: Mr. Yanakiev, you are very much involved in the development of Bulgaria. As a more global question, how confident are you in the future of Bulgaria?
A: I am very optimistic and I love Bulgaria. What our company is doing is also directed towards the prosperity of Bulgaria. We secure jobs for ca. 10,000 Bulgarian builders. Furthermore, with the products we export from Bulgaria for the purposes of construction in other countries, we secure a further 15 to 17 thousand jobs in the Bulgarian building industry.
I am convinced of Bulgaria’s prosperity. This confidence of mine is based on the huge potential of the Bulgarian, his diligence and selflessness. In order to create the required conditions it is necessary that our country be integrated into the European value systems as soon as possible. Besides, fresh investments are needed for the modernization of our industry and agriculture in order to achieve the desired competitive position of the Bulgarian products. I am convinced that whoever invests in Bulgaria now, will only become a World Investment News Ltdr and this will be a big shot. Come back to this country in five years’ time to be convinced in my optimistic visions. By that time Bulgaria will be a blooming garden as is our famous Rose Valley now. |
© World INvestment NEws, 1998.
This is the electronic edition of the special country report on Bulgaria
published in FORBES Magazine's
November 30th issue.
Developed by AgenciaE.Tv
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BULGARIA, 
