issue 75 december 2006

20062006 -- RecordRecord ofof U.S.U.S. InvestmentsInvestments AmCham Events: Christmas Party, Thanksgiving Dinner, Berlitz Cocktail, Microsoft Launches Vista Analysis: The Ultimate Miracle, U.S. elections 2006 - surprising, but predictable

American Chamber of Commerce in

Business Park , Mladost 4 Area, Building 2, Floor 6, 1715 Sofia Tel.: (359 2) 9769 565 Fax: (359 2) 9769 569 homepage: www.amcham.bg e-mail: [email protected] editorial

Dear Members and Friends, Dear Reader,

As we approach New Year the focus on I sincerely hope that you have attended at Bulgaria's EU membership which will be a fact least as many Christmas parties in December from January 1, 2007 becomes greater and as I have. That is, two. The first one was, of greater. We have successfully completed the course, American Chamber of Commerce in negotiations with EU and the Commission has Bulgaria's festivities in Sofia Hilton, where I released its positive report for the country's personally met many of you. The other one membership. Though there were debates until happened to be at home, where I finally got to sit down with my wife at the same table the very last moment in some member states on after a few very busy months. the second wave of enlargement, the ratifica- tions of the treaties for Bulgaria and Romania I am sure your schedule was no lighter than accession have finished. Now the government is mine. It seems that year after year our busi- preparing grandeur celebrations. And we will ness commitments increase and free time open the champagne on New Years Eve. withers away. It is because of that looming nationwide party on the New Year's Day - Bulgaria's But we have to remember that the EU reforms are a double-edged sword. membership? While they are expected to bring infrastructure investments, regulatory sta- bility and better standard of life, the economic and social costs of adjust- We decided on purpose not to dedicate this issue to Jan. ment remain high. From a corporate investment point of view, it is important 1, 2006, because the accession is actually a drawn-out to see how Bulgaria's economy will perform within the highly competitive EU process, not one date, however momentous. We will be market. spending enough ink on these developments during the next year - as we have done before. For one, in 2007 we And here is the good news. Year 2006 will be another record of foreign direct may realize whether Bulgaria and Romania truly deserve investments in Bulgaria. However, what particularly matters is that last year to be part of the European family. We did not skirt the turned to be a record for U.S. investments in Bulgaria. The American issue altogether, of course, so please spend some pleas- Ambassador, John Beyrle, refers to the investment boom as 'the springtime ant minutes reading Boyko Vassilev's reflections on Page 36. for the U.S.-Bulgaria economic relations", and it means that the largest for- eign investor in Bulgaria is a U.S. company, while the largest The departing year was also important to us at the investor in Bulgaria is a U.S. firm. These investments bring new technology, AmCham Bulgaria Magazine in another respect. It brought management, expertise and fresh capital that will help Bulgarian economy a record-setting volume of U.S. investments in Bulgaria. be more competitive in EU. So we decided to make this the focal point of the issue, not the least because so many of the AmCham member We are proud that the expansion and growth of U.S. business has been companies have contributed greatly to this accomplish- greatly supported and assisted by the American Chamber of Commerce ment. We devote pages 6 through 35 to presentation and which has proven to be a powerful advocate of American businesses in analysis of major U.S. investments.

Bulgaria. AmCham Bulgaria Magazine December 2006 Our membership ranks swelled during 2006, too, and we With Bulgaria's future in the EU the country joins the largest and most introduce some of the most recent additions in our New dynamic economic partnership - that of the U.S.-EU trade relationship with Members section (see Page 50). I must admit that I have over $1.8 billion of goods and services exchanged daily. We hope that 2007 rarely included this section in my editorial remarks so far. will bring more U.S. trade and investments to the country. And the Chamber But here is the run-down: we have published 10 issues of the magazine in 2006, and in each one we have brought is ready to accept these challenges - we will develop a number of new ser- out the names of at least three companies who had vices for the U.S. companies in finding and evaluating potential business joined the American Chamber of Commerce in Bulgaria. partners, as well as in identifying new market opportunities arising from page This means more readers for the magazine, which is 1 Bulgaria's EU membership. already well known among the business circles in Bulgaria. Yes, we do not lack in the popularity department Marry Christmas and Happy New Year! - so I wish you, too, a popular and successful 2007!

Best regards, Sincerely,

Valentin Georgiev Milen Marchev Executive Director Editor-in-Chief contents

issue 75 december 2006

AmCham Bulgaria Magazine is a primary forum for political and economic analyses, news, viewpoints as well as for the presentation of new business oppor- tunities. The articles in the AmCham Bulgaria Magazine express the opinions of the authors and do not necessarily reflect the position of the American Chamber of Commerce in Bulgaria.

Publisher Writers: American Chamber of Commerce in Bulgaria Boyko Vassilev, Marina Tzvetkova, Business Park Sofia, Mladost 4 Area Mina Georgieva, Panayot Angarev, Building 2, Floor 6, Sofia 1715, Bulgaria Yuliana Boncheva e-mail: [email protected] www.amcham.bg Advertising AmCham Bulgaria: Editor-in-Chief Nadejda Vakareeva, [email protected] Milen Marchev AmCham Bulgaria Magazine: Milen Marchev, [email protected] Deputy Editor-in-Chief: Christopher Karadjov The AmCham Bulgaria Magazine reaches a broad audience Senior Editor: of AmCham members, leading US, Bulgarian and internation- Irina Bacheva al companies, US and Bulgarian decision-makers, all AmChams around the world. Layout, Design & Printing: Subscription is free of charge. If you would like to subscribe Milen Marchev to AmCham Bulgaria publications, please contact the AmCham Bulgaria office.

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AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria amcham bulgaria

Board of Directors of the American Chamber of Commerce in Bulgaria President Mr. Borislav Boyanov Borislav Boyanov & Co. Vice President Mr. Stefan Dimitrov Allied Pickfords Bulgaria Contents Second Vice President Mr. David Hampson Grenville Financial Treasurer Mr. Anthony Hassiotis cover story U.S. investors' Bulgarian Portfolio Doubled in 2006 . . . . .4 Members Ms. Olga Borissova AUBG, Director European Programs By Marina Tsvetkova Ms. Tanya Kosseva-Boshova Landmark John Beyrle: Springtime for U.S.-Bulgarian Relationship . . .9 Mr. Kenneth M. Lefkowitz New Europe Corporate Advisory Jim Rigassio: Bulgaria is Now Part Mr. George Randelov IBM Bulgaria of the USA - EU Trade ...... 9 Ms. Evgenia Stoichkova Coca-Cola Bulgaria Mr. Christopher Thompson Bearing Point, CLRP Members of the American Chamber of Commerce in Bulgaria are among the Biggest U.S. Investors ...... 10 Ms. Elitsa Tsaneva Ideal Standard Bulgaria By Irina Bacheva Ms. Maria Vranovska Abbott Laboratories Ex-Officio Member Mr. James Rigassio US Senior Commercial Officer AES Boasts Largest Investment in Bulgaria ...... 12 Executive Director: Mr. Valentin Georgiev Alcoa Put $30 Million in Former DZU Facility ...... 13 3M (East) AG . AA KRES EOOD . ABB Bulgaria Ltd. . Abbott Laboratories S.A. . AbCRO American College of Sofia - the Only U.S. - Bulgaria . Accor Services Bulgaria . ACSIOR . ADIS Ltd. . Advance International Transport Accredited High School in Bulgaria ...... 14 (Balkan) EAD . AES Corporation . AFA OOD . AGS Bulgaria Ltd. . AIG Bulgaria Insurance & Reinsurance Company EAD . AIG Life Bulgaria . AIMS Human Capital . Alcoa Packaging Enterprise Realty Group ...... 14 . . . Bulgaria ALEXANDROV. GROUP CORPORATION Alfred. C.Toepfer International . Allan American University Boasts 1,726 Alumni, Collautt Associates, Inc.. Alliance One Tobacco Bulgaria. Allied Pickfords Bulgaria Alter. Unique Investments ...... 16 Ego Company OOD American. College of Sofia American. Construction Products JSC American .English Academy American Resarch. Center in Sofia American University. in Bulgaria CISCO Spends $230,000 on Equipment for (AUBG) .Anglo-American .School of Sofia Anton. Preslavski, Liebert Hiross APIS. - BUL- Three Schools ...... 17 GARIA Ltd. . APOLO Ltd. APPTRAN .EOOD Argento Human Resource. Solutions Aries Commerce Ashtrom. International AD Association. Integra-BDS Association. of Bulgarian Dodge Goes Europe ...... 19 Broadcasters - ABBRO . Astra Zeneca UK. Ltd. AT Engineering 2000 Ltd. . Auditing Company Versi and. Partners Ltd. Avendi Ltd. . AVON Cosmetics. Bulgaria Ltd.. Balkan Accession General Electric Real Estate, Quinlan Private .Fund Balkan News. Corporation Plc.. Balkan .Star Baxter AG Bayer. Bulgaria EOOD Acquire Mall of Sofia ...... 20 BearingPoint,. Inc. BG Radio. BMG Ltd. Bodyguard-Fire-K. Ltd. Borislav Boyanov & Co. Braykov's. Legal Office . Bristol-Myers Squibb Brown Forman. Beverages Worldwide TravelStoreMaker.com - From Start-up Sofia Branch LLC BULBANK. Bulgarian American. Enterprise Fund Bulgarian Charities to Success Story ...... 20 Aid Foundation (BCAF) Bulgarian Post Bank Bulgarian Telecommunications Company EAD . Business Media Group . Business Park Sofia EOOD . CallCenterBulgaria . Car Rental Gramercy's Acquisition of Business Park Sofia Bulgaria Ltd. . Carlsberg Bulgaria AD . Cefin Bulgaria EOOD (IVECO dealer) . Center for Sets High Point for U.S. Investments ...... 21 the Study of Democracy . CENTURY 21 Bulgaria . Chelopech Mining EAD . Cisco Systems Bulgaria . Citibank N.A.- Sofia Branch . City University . Clockwork Ltd. . CMS Cameron HP: Experience, Knowledge, Technology ...... 22 McKenna EOOD . Coca-Cola Bulgaria EOOD . Coca-Cola HBC Bulgaria SA . Colgate- Palmolive Adria . COLLIERS International . ConsulTeam Recruitment and Selection Ltd. . Cook Nu Image Ramps up Its Movie Production in Bulgaria . . .22 Communications . Corstjens Worlwide Movers Group . CPM International Ltd. . Curtis / Balkan Ltd. . DeConi M&A . Deloitte Bulgaria EOOD . DHL Express Bulgaria Ltd. . Diageo Bulgaria Microsoft Corporation Invests in Bulgarian Education . . .25 Ltd . Diamed Ltd. . Dimitrov, Petrov & Kalaidjiev . Djingov, Gouginski, Kyutchukov, & Velichkov . DLA Piper Weiss - Tessbach Branch Sofia . Dobrev, Kinkin & Lyutskanov Law Firm . Westinghouse Upgrades Kozloduy Units Five, Six . . . . .26 Domaine Boyar AD . Dr. Emil Benatov & Partners . Dr. I.S. Greenberg Medical Center, Ellen Ruth Greenberg, Ph.D. . DynCorp International LLC . Effekten Und Finanz - Sofia AD . Electron Sofia Airport Center Investment Progress AD . Eli Lilly and Company . Elido (Lamel Ltd.) . Elmec Sport Bulgaria Ltd. . Totals 200 Million Euro ...... 28 Elta consult AD associated partner of CB Richard Ellis for Bulgaria . Emerson Process Management AG . Encouragement Bank AD . Enemona SA . Engineeringservice Sofia Ltd. . Epsilon In Bulgaria Tishman is to Invest in Interactive International . Equest EAD . ERATO HOLDING PLC . Ernst & Young Bulgaria . Infrastructure and ...... 28 Expo Team Ltd. . Flying Cargo Bulgaria Ltd. - Licensee of FedEx . Force Delta Ltd. . Forem By Irina Bacheva Consulting Bulgaria . Forton International JSCo . G4S Security Services Bulgaria JSC . General Electric International . Genmark Automation Bulgaria . GiTy Bulgaria ltd. . UPS Expands Business in Bulgaria ...... 30 GlaxoSmithKline . Global Benefits Group Inc. . Goodyear Dunlop Tires Bulgaria . Grand Hotel Sofia . Grenville . Grey Worldwide Bulgaria EOOD . Hewlett-Packard Bulgaria Ltd. . Hilton U.S. Agency for International Development Sofia . Holiday Inn Sofia . Honeywell EOOD . Horizon . HVB Bank Biochim AD and Invests in Bulgaria's Future ...... 31 HEBROS Bank AD . IBM Bulgaria . Ideal Standard Bulgaria . In Time Ltd. . Industrial Holding Bulgaria . Infoguard - Stefan Nedkov . ING Bank Sofia Branch . Intel Czech Tradings, American Standard Going Strong Inc. . Interbrands Marketing & Distribution Inc. OOD . Interdean . Investbank Plc. . IP in Bulgaria 10 Years Later ...... 32 Consulting Ltd. . ISI Emerging Markets (Internet Securities, Inc.) . Johnson Controls Electronics Bulgaria . Johnson & Johnson Doo. . Junior Achievement Bulgaria . Kaliakra AD . analysis Kamenitza AD . Kamor Auto Ltd. . Kempinski Hotel Grand Arena Bansko . Kolbis International The Ultimate Miracle ...... 34 Transfer Corporation . KPMG Bulgaria . Kraft Foods Bulgaria . LANDMARK Properties Bulgaria by Boyko Vassilev . . . .

Lexim Sofia Ltd. Lindner Bulgaria OOD Lirex BG Ltd. Lowe Swing Communications AmCham Bulgaria Magazine December 2006 . M & M Air Cargo Service BG OOD . M3 Communications Group, Inc. A Hil & Knowlton Associate U.S. elections 2006 - Surprising, but Predictable ...... 36 . Maersk Bulgaria Ltd. . Magnetic Head Technologies . Maritza East III Power Company AD By Christopher Karadjov . Marsh EOOD . MARTERN EOOD . Mathnasium Rossimat . McDonald's Bulgaria Ltd. . Merck Sharp & Dohme IDEA Inc. . Microsoft Bulgaria . Miltech Ltd. . Mmd, Corporate, Public Belene Nuclear Project ...... 38 Affairs & Public Relations Consultants . Mobiltel EAD . Monbat Plc. . Moody International Ltd. . Moten Sport . Moto Pfohe Ltd. . Motorola Bulgaria EAD . National DISTRIBUTORS amcham events . . . . Christmas party ...... 40 NATO Defense College .Anciens' Association NDT .Equipment Supplies LTD Net Is Ltd. . Neterra Communications. Neumann International. AG New Europe Corporate. Advisory Ltd. AmCham Thanksgiving Dinner Raises Nexcom Bulgaria EAD Nu Image. Bulgaria Opet. Aygaz Bulgaria. EAD Oracle East Central 10,500 Leva Children with Disabilities ...... 42 .Europe Limited - Branch. Bulgaria Orbit Ltd. . Orkikem Ltd. OSG Records. Management PANDA - IP Ltd. Parsons E&C Bulgaria. Penev & Partners Law Offices. Pfizer H.C.P. Learning Fast with Berlitz ...... 46 Corporation, Representation. Office Bulgaria. Philip Morris .Bulgaria EOOD Pioneer .Semena Bulgaria EOOD. Popov Legal Office .Pratt & Whitney. PricewaterhouseCoopers. Prima page member news Soft Ltd. Procter. & Gamble Bulgaria ProSoft. PSG Payroll Services. Ltd. Radisson. 3 The American College of Sofia Will Have New President from SAS Grand Hotel. Reader's Digest EOOD. Rising Force Co.,. Ltd. Rockwell/Intelpack the Beginning of the Next School Year ...... 48 S&T Bulgaria Sante International OOD Schenker EOOD Schering - Plough Central East - Bulgaria . SEAF Management Bulgaria EOOD . Sheraton Sofia Hotel Balkan . Sherita M Radisson Raises 1,700 Euro for Orphanage ...... 48 Ltd. . Sienit Ltd. . SigmaBleyzer Investment Group LLC - Representative Office . Soravia Bulgaria Ltd. . Stanton Chase International Bulgaria . Stefan Dimitrov, Norman Management Co. Microsoft Launches Windows Vista Ltd. . Stoeva, Kuyumdjieva & Vitliemov Law Firm . Symix Bulgaria OOD . TechnoLogica and Other New Products ...... 49 EOOD . TeleLink AD . Tero Halmari, European Bank for Reconstruction and Development (EBRD) . The Atlantic Club of Bulgaria . The Executive Centre . Tishman Management Company Ltd. Colliers International Named Best Employer ...... 49 . Tissue Bank Osteocenter Bulgaria EAD . TM Auto Ltd. . TMF . Totema Engineering . TravelStoreMaker.com . Tumbleweed Communications EOOD . Unimasters Logistics Group AD new members ...... 50 . Unisys Bulgaria Branch . United Medical Communications . Urban 2000 Ltd. . Vaptsarov Abbott Laboratories S.A., Balkan Accession Fund (BAF), Joint Stock Company . Vector Management Bulgaria EOOD . Videolux Holding / Technopolis DLA Piper Weiss-Tessbach Branch Sofia . VIP Security Ltd. . VISA International Service Association . VSK Kentavar Ltd. . Welcome to Bulgaria . Westinghouse Energy Systems Bulgaria Branch . World Courier Bulgaria . Wrigley music Bulgaria EOOD . Xerox Bulgaria Ltd. . Yavlena Ltd. . Zlati Dinev Studio in partnership with Canadian Icon Bryan Adams ...... 50 Outerbridge/Morgan . cover story

Ideal Standart Building in Sevlievo

U.S.U.S. investors'investors' BulgarianBulgarian PortfolioPortfolio DoubledDoubled inin 20062006 By Marina Tsvetkova

U.S. investments in Bulgaria will double Google, Microsoft, Hewlett-Packard and another 1,500 are employed by the in 2006 to a record-high level, U.S. Cisco Systems. He also pointed to the sanitary faience manufacturer Ideal Ambassador John Beyrle said in early expanding scope of the projects imple- Standard Bulgaria. These are all November. The Ambassador stressed mented by Westinghouse in upgrading daughter companies of the U.S. con- that the 1.2 billion Euro contract for the the Kozloduy Nuclear Power Plant. cern American Standard. U.S. invest- 4 construction of two new generating American Standard is doing well in ments have boosted the development units at Maritsa Iztok 1 Thermal Power Sevlievo as well, the ambassador said. of the whole region. "Only grandma's Plant, signed in the beginning of 2006 still refuse to speak English," local peo- between the U.S. company AES and Sevlievo is a benchmark ple joke. the Bulgarian government, gave a for a municipality, revived major boost of U.S. investments. by foreign funds American Standard has more than 100 production units worldwide. The U.S. Ambassador Beyrle highlighted the More than 2,000 people are employed company established in 1992 a joint

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria intense interest in Bulgaria displayed by at the Vidima AD three facilities for the venture with the Sevlievo-based manu- information technology majors like production of sanitary hardware, and facturer of sanitary hardware Vidima cover story

Structure of Bulgaria's exports to the United States in 2005 Bulgaria-US trade turnover, USD million Export, Share of export Year 2003 2004 2005 Section in USD to the United Export (FOB) 331.1 440.1 355.6 million States, percent Import (CIF) 272.8 323.4 470.4 Iron or non-alloyed steel bars, hot-forged, hot-rolled or 51.2 14.4 Balance (FOB-CIF) 58.3 116.7 - 114.7 hot-drawn Trade turnover 603.9 763.5 826.0 Raw or unprocessed tobacco; tobacco waste 32.7 9.2 Mineral or synthetic nitrogen fertilizers 31.3 8.8 started in June 2006. The U.S. project is the largest green-field investment not Suits, ensembles, jackets, dresses, skirts 19.3 5.4 only in Bulgaria, but in the whole of Chairs and seats (excluding those under N 9402), 18.7 5.2 Central and Eastern Europe. fording beds and components Petrol oils and bitumen oils, other than raw products 18.0 5.1 The construction of the two sulfur Various types of moisture-resistant cement 13.9 3.9 treatment installations will amount to 12 percent of the total investment budget. Structure of Bulgaria's imports from the United States in 2005 The French Alstom was employed as Export, Share of import the main contractor. Bulgarian compa- Section inUSD from the United nies will be subcontracted to complete million States, percent works for some $200 million. Other aircraft (helicopters, airplanes) 66.8 14.2 Coal and similar hard fuels derived from coal 48.0 10.2 Sixty-five percent of Automatic machines for data processing, magnetic and the Bulgarian 29.0 6.2 optical readers etc. Telecommunications Automotive parts and accessories, listed under NN 8701 Company 20.5 4.3 to 8705 was acquired in 2004 by the U.S. Products contained in small-value consignments 19.0 4.2 investment fund Advent through its Pharmaceuticals (with the exception of those listed daughter company Viva Ventures, for 13.4 2.9 under NN 3002, 3005 or 3006) 230 million Euro, with the price includ- ing also the fee for starting the third Turbojet engines, turbofan engines and other types of 12.1 2.6 mobile operator in Bulgaria. gas turbines Ideal. Then, in 1996, the largest sani- awarded to The Bulgarian state received another tary faience manufacturer in Europe 630 million Leva (more than 300 million was built as a green-field project. AES-3C Maritza Leva) from the sale of the residual Currently, 99 percent of the output is Iztok 1 Ltd. package at the stock exchange, where dedicated to exports. A genuine manu- the shares were sold for compensatory facturing complex of companies sup- in October last year for the ASE project instruments. plying components for the main manu- to build a new 1.4 billion Euro electric facturing lines was established around utility with two 335 MW generators on Post Bank signed with the hub containing the two companies. the site of Maritsa Iztok 1. The con- the U.S. Eximbank struction of the new electric utility, A "first-class" investor's certificate was which employs more than 3,000 people, a framework cooperation agreement. AmCham Bulgaria Magazine December 2006

page 5 cover story

This was the first contract of its kind, which the U.S. company has ever trends signed with Bulgaria. As a result of the agreement, Post Bank clients may now Bulgaria will attract some 40 billion Euro in investments over the next five or six use the special terms for trade in U.S. years, Minister of Economy Roumen Ovcharov predicted recently. Bulgaria's acces- products. Eximbank is an independent sion to the EU and the reduced profit tax - 10 percent as of Jan. 1, 2007 - are the agent of the U.S. government. It is major reasons for the expectations. Besides, corporate tax will be reduced to zero engaged in financing products and in all municipalities, in which the unemployment rate is by at least 35 percent high- equipment dedicated to export from the er than the country average. United States by providing bank guar- antees and export insurance. Eximbank Minister Ovcharov also said that power engineering alone will absorb 10 billion Euro. will guarantee , released by Post The Belene Nuclear Power Plant, for instance, will cost 3.9 billion Euro. Two new Bank at preferential terms and interest generators will be constructed in Maritsa Iztok TPP, in which another 1 billion Euro rates to state-owned and private com- will be invested. Another 12 billion to 13 billion Euro will be allocated by EU funds, panies willing to import products, together with revenues from other sources and dedicated to large infrastructure pro- equipment and services from the jects. United States. It will offer both insur- ance on export financing and guaran- A study released by the UNDP ranked Bulgaria as the 9th most attractive invest- tees on medium-term and long-term ment destination worldwide. project financing. Eximbank assumes 85 percent of the guarantees on cred- According to BIA data, direct investments in Bulgaria between 1992 and 2005 stood its released by Post Bank for the pur- at a total of $12.9 billion. Real estate investments reached an all-time record of 409 chase of U.S.-made equipment. million Euro in 2005. Direct investments through financial brokerage rose to 614 mil- lion Euro. The Bulgarian-American Bank (BACB) The largest U.S. investments in Bulgaria by mid-2006 Invested was established in 1996 and was Investing company amount, in Bulgarian company issued a full banking license by the USD million Bulgarian National Bank (BNB). The bank is owned by the Bulgarian- AES 1,400 Maritsa Iztok 1 TPP American Enterprise Fund (BAEF), a Ideal Standard (1 plant), Vidima (3 U.S. corporation established in 1992 in AMERICAN STANDARD 239.7 plants and a technical mainte- Chicago, Illinois. In line with the law on nance call centre) providing assistance of democracies in HP not disclosed Hewlett-Packard Bulgaria HILTON INTERNATIONAL East Europe, the U.S. government pro- 39.7 Hilton Sofia vided $57 million as the initial capital of (USA/Netherlands) BAEF, which allocated these funds to KRAFT FOODS 38.0 Kraft Foods Bulgaria investments and reinvesting in McDONALDS 23.2 McDonalds Bulgaria Bulgaria's private sector. BAEF is man- NEWS INC. 22.8 bTV aged by a Board of Directors, whose members are appointed by force of an Ambassador Beyrle said earlier this as a NATO member state. individual decree signed by the year, in perfect Bulgarian, that the USA President of the United States. are interested in However, the accord is of a huge inter- According to BNB statistics, BACB has est to USA as well, as it provides U.S. firmly established itself as one of the a rich and prosperous Armed Forces units with the opportuni- leaders in terms of return on assets Bulgaria, ty to train in new, different conditions and equity capital among the commer- and terrain and thus prepare better for cial banks in Bulgaria. as that means more security. He participating in the new missions of a stressed that as of the summer of transformed NATO. The joint use of mil- The largest aluminum 2006 the relations between the two itary facilities will bring also a genuine processing company Alcoa states have entered the era of benefi- economic benefit to Bulgaria by open- 6 cial cooperation. He supported his ing new jobs and new business oppor- worth some $30 million, created 170 words by stressing that Bulgarian and tunities. new jobs in a facility manufacturing U.S. pilots are flying wing-to-wing on aluminum foil and packaging. Alcoa's their MiG and F-15 jet fighters. The mil- A strong and prospering Bulgaria would products are sold in East Europe and itary accord signed by the two states is be a better partner and ally of the the Middle East. Alcoa has a total of a form of strategic investment in United States and a stronger EU mem- 129,000 employees worldwide, and Bulgaria, John Beyrle said. It will pro- ber. Specific results have already Bulgaria was the 44-th country, where vide the Bulgarian armed forces with emerged - the United States was

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria the U.S. company started operations. an opportunity to upgrade its combat ranked on the eighth place in terms of capabilities and operative compatibility foreign investments in 2003, and it cover story

managed to climb up to the seventh amount to $76.2 million. A centre for technical maintenance place in 2004 and go up to the sixth services in several languages was place in 2005. By June 2006, a total of 634 US com- established by the U.S. company C3i in panies and 861 natural persons invest- 2005, aided by BIA. Hewlett-Packard It is clear by now that 2006 is emerg- ed in Bulgaria, compared to 577 com- opened in January 2006 a global ser- ing as the best year ever for U.S. panies and 811 natural persons by the vices centre in Sofia, which will employ investments. However, U.S. companies end of 2005. The bulk of U.S. compa- between 400 and 800 high-qualification do not bring in money and jobs alone nies invested in trade, management, IT professionals. but also world-class technologies, top- real estate, building construction and level management, good business consultancy services. Johnson Controls Inc., one of the ethics and creativity, which will help world's leaders in automotive electron- Bulgarian companies become more The investment worth $432.5 million, ics, interior systems and accumulator competitive in the EU and on the world made by Advent International in the pri- battery producer, opened its new office markets. vatization of the Bulgarian in Sofia in October 2006. For a fifth Telecommunications Company, should year Johnson Controls - Bulgaria is The establishment of traditions in the be added to the list, although the BNB developing high-tech electronics for partnership between Bulgarian and statistics does not reflect this as an automotive giants like Daimler- U.S. companies is one of the dimen- American investment, because it was Chrysler, Ford, General Motors, sions of the U.S.-Bulgarian military channelled through Viva Ventures, Renault-Nissan, Peugeot-Citroen, cooperation accord, Bulgaria's Foreign Austria. BMW, and others. Minister Ivaylo Kalfin said. The major economic effect of the military facilities U.S. investments in 2005 stood at Bulgaria-U.S. trade is generated by the reduced political $66.2 million, with the largest share turnover risks in this country, and by the higher attributed to: stability and security in Bulgaria and in The United States is Bulgaria's 9th the region, which unavoidably will have ● First Investment Bank, where the largest trading partner. Bilateral trade an impact on businesses and projects. European Bank for Reconstruction has been steadily growing since 1999. and Development (EBRD) sold last In line with the US-Bulgaria Defense Co- year its share to two investments Bulgaria's exports to the United States operation Agreement AmCham Bulgaria funds - Growth Management Ltd. и amounted to 3 percent of its total and US Commercial Service in Bulgaria Hillside Apex Fund exports in 2005, and the share of organized in June 2006 a conference imports from the USA stood at 2 per- entitled „US-Bulgaria Joint Training ● BAEF - in the Bulgarian-American cent. Facilities: Commercial Opporunities and Credit Bank Business Partnerships“ which was and U.S.-Bulgarian bilateral trade in 2005 important first step in introducing the ● American Standard - in Ideal stood at $826 million. Bulgaria's contracting procedures of the future mil- Standard-Vidima exports fell by 19.1 percent, compared itary facilities. The conferences and the to 2004, to $355.6 million. U.S. imports follow up training seminars in September ● Coca-Cola - in a new inter-company in 2005 stood at $470.4 million, up by have turned to be also ideal vanues for IT shared services centre in Sofia. 50 percent compared to 2004. The networking between US and Bulgarian trade balance was negative for Bulgaria companies. Public contracts worth tens As a result of the efforts, made over at $114.7 million. of millions of dollars are expected to be the last three years by the Bulgarian awarded in the next couple of years, the government in partnership with the pri- Trade volume in 2004 stood at 763.5 experts from US envisaged. Eighteen vate sector to promote in the USA the million, with exports to the United Bulgarian and foreign companies won investment potential of Bulgaria, and States estimated at $440.1 million, up contracts for BGN 1.5 million during the more specifically the investments in by 32.9 percent compared to 2003. joint military exercise of Bulgaria, USA information technologies, there is a Imports from the United States in 2004 and Romania July this year in Novo serious interest displayed by U.S. com- stood at $323.4 million, up by 18.5 per- Selo. panies in the development of software, cent on 2003. Bulgaria's trade balance electronic equipments, business with the United States was positive at Statistics indicate that process outsourcing and technical $116.7 million. 8 maintenance contact centres. U.S. investments made in The devaluation of the U.S. dollar low- Bulgaria Bulgaria Invest Agency (BIA) serviced 12 ered the competitiveness of Bulgarian U.S. investment projects in 2005, out of exports to the United States. This between September 1992 and a total of 94. This is the largest number affected the rate of increase of September 2006 amount to a total of of projects initiated by a single state. exports, and in 2005 exports fell below $782 million, which makes the United They include services sector projects - the 2004 level. At the same time the States the eighth largest investor in the technical maintenance centres, financial rate of increase of imports from the

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria country. The investments made and administrative shared services cen- United States in 2005 were higher than between January and September 2006 tres, and call centres. those recorded in 2004. ■ cover story

John Beyrle: Springtime for U.S.-Bulgarian Relationship

2006 was a momentous year for I am confident that the political and Bulgaria, and for the U.S.-Bulgarian business partnership between Bulgaria relationship. I began referring to it as and the United States will grow and "the springtime for the U.S.-Bulgarian prosper in the coming year. The compa- economic relationship," as we saw a nies of the American Chamber of remarkable surge in U.S. investor inter- Commerce in Bulgaria are helping to est and a series of major American create a new Bulgaria that will be more investments in the Bulgarian economy. prosperous, more productive, more inno- vative, and more competitive in Today, the largest foreign investor in European Markets, raising standards of Bulgaria is a U.S. company, the largest living and creating new jobs and oppor- real estate investor in Bulgaria is a U.S. tunities for young Bulgarians. firm, and our bilateral trade continues to break records. I salute the members of the American Chamber of Commerce for your accom- The visit to Sofia by Secretary of State plishments in 2006. Together with your Condoleezza Rice in April, and the sign- many friends and colleagues at the U.S. ing of the U.S.-Bulgarian Defense Embassy in Sofia, I wish you good Cooperation Agreement, provided further health, good fortune, and many contin- evidence of the deepening of the strate- ued successes as we continue our part- gic partnership between our two coun- nership in 2007. tries. The best news of all, of course, was the confirmation that Bulgaria will join the European Union (EU) in January 2007, thus becoming part of the U.S.- EU commercial relationship, the largest trading relationship in the world. U.S. Ambassador John Beyrle

Jim Rigassio: Bulgaria is Now Part of the USA - EU Trade

A more mature Bulgarian marketplace is Bulgaria's future in the EU means attracting American companies in record Bulgaria is now part of the U.S.-EU numbers. And it is not just the large trade relationship with over $1.8 billion of companies with a higher tolerance for goods and services exchanged each AmCham Bulgaria Magazine December 2006 risk coming to Bulgaria to do business. day. This means that 2007 will bring Now with more opportunities that will greater U.S. trade and investments with come with European Union (EU) mem- this new relationship - and next year is bership, smaller U.S. firms - the engine only the start of a continued upward of economic growth in the United States trend as EU membership translates into - are finding their way here thanks in greater opportunities for bilateral eco- large part to the work of the AmCham nomic and commercial cooperation in page and its members. Bulgaria will be more Bulgaria. 9 competitive in the EU with American technology and know-how, especially in sectors that include alternative energy, environmental technologies, safety and security solutions, , information technologies, medical sys- tems, consumer goods, and real estate Jim Rigassio investment and services. U.S. Embassy Commercial Attache cover story Members of the American Chamber of Commerce in Bulgaria are among the Biggest U.S. Investors By Irina Bacheva

Bulgaria proved to be more attractive Bulgarian commercial enterprises, Microsoft and Cisco Systems are the to U.S. businesses in 2006 than ever. and to promote U.S.-sponsored busi- most active in the IT sector, planning Several large and important projects ness initiatives and investments within to invest millions of dollars. 10 have been commenced and U.S. Bulgaria. Uniting about 250 multina- companies have been expanding their tional businesses AmCham Bulgaria Microsoft has announced a total of existing operations at an increasing is proud to have under its umbrella over $1 million worth of investments rate. the most successful American invest- in entry-level job training. In addition, ment projects this year. Microsoft will invest in the establish- These developments augment ment of a number of consumer cen- American Chamber of Commerce in The most visible economic sectors for ters to be able to localize a large Bulgaria's mission to strengthen eco- this flourishing are the IT branch and number of its program packages in AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria nomic relations between U.S. and the energy sector. Hewlett Packard, Bulgaria. cover story

The Maritsa East One Power Station, With the financial support of Cisco Sofia, located in the heart of Sofia, a $project of the U.S. energy firm Systems, three Bulgarian schools is the first high-quality modern AES (the largest single foreign invest- were equipped with the latest com- mixed-use development totaling ment in Bulgaria) will help maintain munication technologies and became 33,500 square meters. Bulgaria's position as an energy the first education institutions in our exporter. country that have started training Tishman Management has come out under the project Bulgarian Internet with a Sofia Airport Center project. It On the eve of the 10th anniversary Generation. The modern technology will be the premiere corporate office, from the start of its construction, the amounts to $230,000. logistic center with a hotel in Bulgaria Sevlievo ceramics plant is now the on the site consisting of approxi- largest facility in American Standard Besides its numerous academic ben- mately 140.000 square meters with a globally in the bath and kitchen divi- efits to the region, American projected built up area of about sion. In 2006, significant investments University in Bulgaria is an active 256,000 square meters and lettable were made American Standard's participant in the local economic life space of approximately 140,000 other facility in Sevlievo - the fittings of the Blagoevgrad municipality. The square meters. plant. direct economic impact on the local community for the FY 2005-2006 is Under the motto "Dodge Goes Alcoa Packaging Bulgaria's factory, expected to exceed the expenditures Europe," the Chrysler Group is firmly another investment at the amount of from the previous FY, which amount- on track in Europe after revealing $30 million, has started operations on ed to $3 million. In May 2006, three vehicles from its international the territory of DZU-Videoton in Stara American Schools and Hospitals Dodge line-up. Zagora. The factory will produce alu- Abroad (ASHA) provided its financial minum foil under the brands of assistance for the construction of a UPS, the biggest delivery company in Reynolds and Baco. At the current new classroom building. This single the world and a global leader in man- stage the plant will employ between project automatically supports local agement of transport and logistics, 250 and 300 specialists. businesses by hiring a Bulgarian con- expanded its business in Bulgaria. In struction company and workers. The May 2006 the company's Bulgarian The world's pioneering nuclear power grant provided for the project is subsidiary, UPS Supply Chain company Westinghouse and Kozloduy $770,000 and will receive additional Solutions (UPS SCS), was launched Nuclear Power Plant (KNPP) are support from AUBG. officially. It provides comprehensive involved together in the upgrade of logistic solutions for large packages Instrumentation and Control (I&C) The American College of Sofia is now and freight. Thus, the leading US systems at Kozloduy Units Five and a test center for the internationally Corporation offers a full spectrum of Six. This project is unique, as it is a administered TOEFL examination. The services in Bulgaria. unique large-scale I&C modernization American College of Sofia is the only project for a VVER type plant. U.S.-accredited high school in As the U.S. Ambassador John Beyrle Westinghouse is replacing the Bulgaria. It is also the only Bulgarian stated earlier this year, encouraging Russian I&C systems at KNPP with school that is accredited by all three news are coming from a variety of state-of-the-art digital control sys- institutions: The Middle States small- and mid-size American com- tems; proven technology that Association of Colleges and Schools panies setting up shops in Bulgaria improves system performance, relia- (U.S.), the International as well. One such example is the bility and safety, in compliance with Baccalaureate Program (Switzerland), American software company, U.S. and Western European stan- and the Bulgarian Ministry of PostPath. "PostPath got established in dards. Education. All three institutions autho- February and is actually a good AmCham Bulgaria Magazine December 2006 rize ACS to award diplomas. example of what can be achieved In June 2006 Hewlett-Packard here," says Eric Dumas, Bulgaria Corporation opened a new technical The news is good from the real country manager. operation in Sofia, Global Delivery estate sector too. Over the past sev- center, providing high-value and cost- eral years the Bulgarian American "The expansion and growth of the US effective remote processing technical Enterprise Fund has invested debt business has been greatly supported services to customers from Europe, and equity of over 200 million Euro in and assisted by the American the Middle East and Africa. The cen- the Bulgarian real estate market. Chamber of Commerce in Bulgaria“, page ter currently employees 400 high level says the executive director Valentin 11 Bulgarian IT professionals. The pro- In June 2006, a consortium compris- Georgiev. In the eve of Bulgaria's join- ject is a long-term investment of the ing General Electric Real Estate and ing the European Union the Chamber company and for its fulfillment 1000 Quinlan Private acquired the remain- plans to develop a number of new highly qualified Bulgarian IT special- ing 50-percent stake in the Mall of services for the U.S. companies in ists will be recruited by 2007. The Sofia upon completion of the project, finding and evaluating potential busi- team is situated in a newly construct- from AVIV, an Israeli property devel- ness partners as well as in identifying ed building with a total area of 10,000 opment company, and CCI, an Israel- new market opportunities arising from square meters. based cinema operator. The Mall of Bulgaria's EU membership. ■ cover story

AES Boasts Largest Investment in Bulgaria

AES broke ground in June 2006 for its first project in Bulgaria, AES Maritza East One -the largest greenfield invest- ment in the energy sector of Southeast Europe, AES's single largest greenfield project investment to date and the sin- gle largest foreign investment in the country's power sector.

Building on this presence, in October 2006 AES announced that it had acquired a minority stake in a 120 MW wind development project, one of the largest wind development projects in southeast Europe. AES expects to gen- erate almost 800 MW of power in Bulgaria by 2010 once AES Maritza East One and the wind generation project reach commercial operation. of $11 billion. With operations in 26 efficiency lignite power plant in countries on five continents, AES's gen- Bulgaria and among the most efficient Bulgaria is the kind of country in which eration and distribution facilities have in all of South East Europe. It has AES looks to do business-a country the capacity to serve 100 million people been designed to meet current experiencing growth and burgeoning worldwide. Our 14 regulated utilities Bulgarian, EU and World Bank stan- demand, with developing infrastructure, amass annual sales of over 82,000 dards. fair market rules and an energy sector GWh and our 122 generation facilities that we can help vitalize. The country have the capacity to generate approxi- ● It will have the so-called electrostatic has a growth rate nearly double that of mately 44,000 megawatts. Our global precipitators (ESPs) to capture fine the average EU country, and will to join workforce of 30,000 people is commit- particles and wet limestone flue gas the EU on Jan. 1, 2007. ted to operational excellence and meet- desulphurization absorbers (FGD) to ing the world's growing power needs. reduce sulfur dioxide (SO2) emis- AES's presence in the country is help- sions. ing to lay the groundwork for that future. Maritza East One project in The 670 MW AES Maritza East One Bulgaria: ● EBRD, Calyon, BNP Paribas SA and Power Plant will help supply Bulgaria's ING Bank underwrote the project. A electricity needs and maintain the coun- ● AES is building a 1.2-billion-Euro lig- portion of the debt is covered by a try's position as an energy hub for nite-fired 670 MW (gross) power plant combination of lenders political cover- Southeast Europe. When completed, it at the site of the Maritza East One age from MIGA (World Bank agency) will be the most efficient and cleanest Thermal Electric Power Plant. and lenders political and commercial fossil-fuel power plant in Bulgaria, meet- risk coverage from COFACE (the ing Bulgarian, EU and the World Bank ● AES will utilize local lignite fuel to French export credit agency) and environmental standards. It is the first provide cost-effective electricity sup- HERMES (the German export credit power plant constructed in Bulgaria to porting growing demand in Bulgaria agency). be installed with flue gas desulphuriza- for reliable electric power supplies. tion technology. AES in Eastern Europe ● The project commenced construction Project Finance magazine named AES in the second quarter of 2006. AES has been in Eastern Europe for 12 Maritza "European Power Deal of the Completion is anticipated in 36 almost ten years, since acquiring three Year" for 2005, writing, "AES's financing months after start of the construction. power plants in Hungary in 1996. Today, for its Maritza East One plant… AES has electric utilities and generation cements both the host country's claim ● Alstom of France is the general engi- plants in the Czech Republic, Hungary to be a viable EU accession state and neering procurement and construction and Ukraine, and employs approximate- AES's claim to be a viable force in glob- contractor. ly 5,740 people in the region. al power…" ● AES Maritza East One Power Plant AES also has development offices in

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria AES is one of the world's largest global will have state of the art environmen- Bulgaria and Romania. In Bulgaria, the power companies, with 2005 revenues tal controls and will be the highest company is developing the construction cover story project AES Maritza East One a 600 AES in Europe under a 21-year energy agreement. MW lignite-fired power plant. The AES office in Romania is coordinatin the AES has had power facilities in Europe The $920 million project is the largest company's long-term investmen pro- since 1992 when it acquired the AES non-recourse financed power invest- gram in the electricity distribution supply Kilroot plant in Northern Ireland. Today, ment in Spain. AES owns 71percent of adn generation sectors. AES owns and operates more than the Cartagena project. AES's partners 3,500 MW of power generation facili- in the project include Gaz de France AES produces 7 percent of Hungary's ties in Europe, including power plants in (GDF), which owns 26 percent, and electricity and was the first independent the Czech Republic, Hungary, Mitsubishi Heavy Industries, Ltd. (MHI), power producer (IPP) investor in the Netherlands, Spain and the United which owns 3 percent. country. AES also is the leading compa- Kingdom. ny in biomass conversion in Hungary, Non-recourse financing for the project generating 37 percent of the nation's A 1,200 MW combined cycle gas tur- was provided by a syndicate of total renewable generation in 2004. bine (CCGT) plant located on Spain's European banks including Societe south-eastern coast became fully oper- Generale, Calyon and ABN AMRO In Ukraine, AES owns and operates two ational just recently. It has the capaci- BANK NV as lead arrangers, as well as distribution companies: Kyivoblenergo ty to generate enough energy to power a subordinated debt facility provided by and Rivneenergo. Together, these busi- approximately 300,000 homes in the Societe Generale and Calyon. The nesses serve 40 percent of Ukraine's country. AES Cartagena buys gas from financing structure was recognized total population base of approximately 3 and sells power to GDF International regionally by Euromoney as "European million people. (GDFI), a subsidiary of Gaz de France, IPP of the Year 2003." ■ Alcoa Put $30 Million in Former DZU Facility Less than 12 months ago, a 12,000-square-metre far corner of the DZU facility in Stara Zagora was a desolate ruin of buildings, left, it seemed, in the middle of a production day, said James Debney, managing director of Alcoa Packaging Bulgaria and Baco Consumer Products. "It was barely safe to even walk through," he said.

But Alcoa structural engineers and environmental scientists confirmed that the structure, with some work, would be sound, the environment clean, and Alcoa would be able to turn this into not only a modern manufacturing facility, and one that would provide a work force with a clean and safe factory environment where their health and well-being was of the highest importance, Debney added.

The transformation was astounding and remarkable. Except

for looking at the remainder of the buildings in the DZU com- workforce," said Debney. "We have actively involved AmCham Bulgaria Magazine December 2006 plex in Stara Zagora, one would never know that this newest Bulgarian senior managers in all our team events including Alcoa manufacturing facility, employing over 200 Bulgarians, a recent senior management meeting called "Baco Team with Bulgarian managers, was left to the vegetation and MasterChef" taking place in a rustic environment in historic scavenging animals, Debney said. Stow-on-the-Wold in the United Kingdom."

Now, with a $30 million investment, it has become a pro- Petar Angelov, plant manager, participated as a member of ductive facility and one of growing importance for Alcoa a 25-strong management team, from manufacturing, finance,

Consumer Products as Alcoa supplies the United Kingdom. logistics, sales, and marketing. He said he looked at growth page The plant has begun to look forward to supplying Europe, of Baco and APB from the perspective of creating a 'restau- 13 Eastern Europe, and the Mideast with time-saving kitchen rant menu' for the customers all over Eastern Europe, aids for the family. Debney added that Alcoa Packaging Europe, the UK, and the Middle-East. Bulgaria has laid the foundation for a new Bulgarian sales and marketing team for branded and private-label Alcoa Debney concluded that while it was still too early to truly products. measure the positive impact that the opening of APB has made for Alcoa, all indicators pointed to it being a correct "We are very proud of the the results, and results I might add decision, and one that would reap great rewards for Alcoa that were accomplished by a strictly Bulgarian construction and for Stara Zagora. ■ cover story

American College of Sofia - the Only U.S. Accredited High School in Bulgaria The American College of Sofia is the only As part of its External Programs (courses stands for School Wide Skills Initiative. U.S. accredited high school in Bulgaria. It for children and adults), ACS also offers This work centers around identifying the is also the only Bulgarian school that is TOEFL (iBT) preparation courses. Other skills at increasingly difficult levels, which accredited by all three institutions: The courses currently offered are SAT 1 students need to learn today, and then Middle States Association of Colleges preparation course, English for Adults, integrating those skills into the regular and Schools (U.S.), the International English Language Course for Kids, Spring curriculum that is being taught. Baccalaureate Program (Switzerland), and Summer Schools for Kids as well as and the Bulgarian Ministry of Education. in-company English Language Training. The American College of Sofia has hired All three institutions authorize ACS to More information can be found at an experienced International award diplomas. www.acs.bg under the Language Courses Baccalaureate Program Coordinator, who section. is leading the College into it's second full The American College of Sofia is now a year of the IB Program, which is a uni- test center for the internationally adminis- The American College of Sofia's teachers versally recognized and standardized, rig- tered TOEFL examination. Registration is are now involved in three year profession- orous academic program designed for on-line through the TOEFL organization. al development work called SWSI, which international students. ■ Enterprise Realty Group Enterprise Realty Group is the team of experience. The team of engineers, A multi tenant shopping center in Shumen real estate professionals that manage the architects, attorneys and finance profes- A 16-unit townhouse development in real estate related activities of the sionals has extensive experience acquir- Varna Bulgarian American Enterprise Fund. ing development sites, permitting, con- A 4,000-square-meter residential complex struction, leasing and managing proper- in Varna The Bulgarian-American Enterprise Fund ties. Our projects have ranged from green A 5,000-square-meter residential complex (BAEF) is a U.S.-registered corporation field developments to renovations of exist- in Plovdiv owned by the U.S. government. The ing structures, renovations of historic A 4-unit townhouse complex in Sofia BAEF began operations in 1992 with the buildings and acquisitions of completed A 4,000-square-meter apartment complex objective of assisting in the development projects. in Sofia and expansion of the Bulgarian economy through investing profitably in the The Bulgarian American Enterprise fund The Enterprise Realty Group also man- Bulgarian private sector. The Fund's orig- has invested debt and equity of over 200 aged debt and joint venture investments inal equity funding was $58 million. million Euro in the Bulgarian real estate for the construction of over 125 apartment Additional funds have subsequently been market. Following is a summary of some projects with a total area of over 500,000 raised through various credit facilities and of the real estate projects managed by square meters. bond issues. The primary sectors that the the Enterprise Realty Group: Fund invested in include: banking, real The Enterprise Realty Group is also the estate, hotels, food processing and con- A 3,600-square-meter office building sponsor, developer and manager of ERG sumer goods. occupied by GlaxoSmithKline, Alcon, Capital I and ERG Capital II two real Maersk, ING Pension Fund and estate companies that are listed on the Over the past several years, the SigmaBlazer Investment Fund Bulgarian stock exchange. Bulgarian-American Enterprise Fund has A 3,300-square-meter office building been a major participant in the develop- occupied by ING Bank SPECIFIC CAPABILITES ment of the Bulgarian real estate market. A 2,300-square-meter head office/ware- Site selection consultation Either directly or through its wholly owned house/showroom for Oriflame S.A. Documentation preparation subsidiaries including the Bulgarian- An 8,200-square-meter retail facility for Re-zoning and site planning American Credit Bank, the BAEF has Praktiker, A.G. in Sofia Consulting and managing the permit extensive investments in the areas of: res- A 7,000-square-meter retail facility for process 14 idential and commercial mortgage lend- Praktiker, A. G. in Varna Conceptual design ing, construction lending and a portfolio of An 8,000-square-meter retail facility for Design management equity holdings in office, residential and Piccadilly Bulgaria Value engineering retail properties. The head office of the Bulgarian football Preparing tender documents association Cost analysis The key to the Fund's real estate invest- The head office of the Rodina Pension Project management ment and development activities is an Fund Construction supervision experienced team of real estate profes- The head office of the Bulgarian Brokerage services AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria sionals with international training and American Credit Bank Property management. ■ cover story

American University Boasts 1,726 Alumni, Unique Investments In October 2006 the American University in Bulgaria celebrated its 15th anniversary. Since 1991, the University has built a reputation as one of the most successful and well regarded academic institutions in Bulgaria and Southeastern Europe.

Located in a region at the crossroads of East and West, the Christian and Muslim worlds, AUBG's task is ambitious and its educational approach unique to this part of the world. In accordance to its mission - "To educate future leaders committed to serving the needs of the region by promoting the values of an open, democratic society," it will not be too bold to say that AUBG is an excep- tional investor in the intellectual capital of Southeastern Europe. Its 1,726 grad- uates contribute to the prosperity of May 8, 2006. A ceremony marked breaking the ground for a new classroom building. From left to right: their communities as more and more of AUBG Board of Trustees Chair David Flanagan, Deputy Chair Andrey Delchev, AUBG President Michael them decide to stay in their countries. W. Easton, U.S. Ambassador to Bulgaria John Beyrle, and Blagoevgrad Mayor Lazar Prichkapov.

As a comparatively young private American university, AUBG has benefit- ed from the generous support of USAID and a variety of companies, organiza- tions, and individual donors. According to Michael Fritz, mission director of USAID to Bulgaria, AUBG is one of the most important and successful projects of the Agency, which is about to con- clude its mission to Bulgaria after investing more than $600 million during its 16 years in the country. "AUBG is an important legacy that will continue to invest in the youth of the region," Fritz said.

Besides its numerous academic benefits to the region, AUBG is an active partic- ipant in local economic life. The direct October 12, 2006. AUBG alumni celebrate the University's 15th Anniversary at the Military Club in Sofia. economic impact on the local communi- ty for the FY 2005-2006 is expected to In May 2006, American Schools and lion and the "matching gift" amounting exceed the expenditures from the previ- Hospitals Abroad (ASHA) provided its to $1,798,000, the University will be ous financial year, which amounted to financial assistance for the construction able to continue to be an important 16 $3 million. of a new classroom building. This single factor in the local economic environ- project automatically supports local ment. The economic impact of AUBG is sig- businesses by hiring a Bulgarian con- nificant as its uses local businesses for struction company and workers. The Today AUBG is a financially self-depen- maintenance, utilities, fuel, supplies and grant provided for the project is $ dent institution. The University enjoys materials, food and beverages, social 770,000 and will receive additional sup- the increasing support of the corporate and health insurances, rents, to name port from AUBG. community helping students with schol- just a few of its expenditures. The arships, especially those who otherwise

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria amount spent on salaries alone for FY Upon receiving the last installment would not be able to afford to attend 2005-2006 was $ 1,7 million. from USAID of approximately $5 mil- AUBG. ■ cover story

CISCO Spends $230,000 on Equipment for Three Schools

Three Bulgarian schools were equipped with the latest communication technolo- gies and became the first education institutions in the country to start train- ing under Bulgarian Internet Generation project. The modern technology was donated by the leader in networking technologies, Cisco Systems, and is val- ued at $230 000.

The three schools that received the donation are National High School of Mathematics and Science (NHMS) technical high school Electronic Systems in Sofia, and foreign-language high school Hristo Botev in Kardjali. They participate in the pilot phase of the project to implement information and communication technologies in Bulgarian education.

The equipment provided by Cisco Systems and the partners of the com- pany allow both students and teachers The launch of the project Bulgarian Internet Generation in the National High School of Mathematics and to use the latest practices in the field of Science in Sofia on Nov. 15, 2006. education. Technological solutions open up new possibilities for schools leading - IP telephony ● Communication and cooperation to a higher degree of administrative effi- - Wireless network between teachers from different ciency and preparation of students and - Development and distribution of multi- schools and sharing of the best prac- teachers. media study materials tices; - Wireless network equipment for the Through the new technologies imple- boarding house at NHMS ● Students will have the opportunity to mented in these schools, lessons will conduct conference calls conversa- become more interactive and more inter- Partners in the project are the three tions with their classmates from the esting to children which in turn will lead schools, the Ministry of Education and other schools; to better learning results. The equip- Science, State Agency for Information ment will improve security in schools Technologies and Communication, ● Teachers will be able to input atten- both in the real and virtual world. municipalities of Sofia and Kardjali, dance/non-attendance data and keep Communication between teachers, stu- Bulgarian Association of Network electronic class record book automat- AmCham Bulgaria Magazine December 2006 dents, principals, administrative person- Academies and Sofia University St. ically, using IP telephone or comput- nel and parents will be much easier and Kliment Ohridski. ers with special software; accessible due to the implementation of internet telephony. The three schools The project, which started at the begin- ● Lessons or presentations of students equipped with modern network tech- ning of the school year, also envisages may be recorded merely by pressing nologies will be connected to one training of teachers in order to achieve a single button; another and will have at their disposal best results from the use of the imple- page technology for development and distrib- mented new technological solutions. ● Use of voice mail function - consulta- 17 ution of multimedia study materials via The training is to be prepared by lectur- tions concerning the students, com- the internet. ers from the Faculty of Mathematics munication with parents - e.g., a mes- and Informatics at the Sofia University. sage may be sent to a parent or one Within the pilot project Bulgarian message may be sent to the whole Internet Generation, Cisco Systems and One of the highlights of the project is class simultaneously; the partners of the company provide the the implementation of internet telephony following technological solutions: and video-conferencing connections in ● Automatic sending of SMS to stu- classrooms. These technologies serve dents or parents through the IP tele- - Local network in schools for realization of the following: phone containing information on cover story

absences or grades;

● The principal may send message to all teachers simultaneously or super- vise who attends classes (who has registered and at what time);

● Sending out messages to all partici- pants within the system for the pur- poses of basic communication or in urgent cases;

● Communication with parents - the lat- ter may also leave voice messages;

● Informing of parents for forthcoming tests, automatic sending of informa- tion on grades, parent-teacher confer- ence calls, attendance and non-atten- dance;

● Audio and video conferencing - teach- ers may conduct virtual meetings between the schools for the purpose of information exchange, may invite experts to a particular lesson by tele- Minister of Education Daniel Valchev during the ribbon-cutting ceremony phone, or video -conferencing con- nections that may provide short con- ● Students will acquaint with each other where networks, communications and sultation or answer students' ques- and feel better in an environment close technologies related to them occupy a tions; to the environment in the real world substantial part of life. ■

18 AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria cover story

Dodge Goes Europe After revealing three vehicles from its rooms as early as mid 2007, and the Jeep Patriot, the Jeep Wrangler and the international Dodge line-up, Chrysler Nitro, a mid-size SUV which shares a all-new Jeep Wrangler Unlimited four- Group is firmly on track in Europe. A 16- platform with the next-generation Jeep door. model line-up from the Chrysler, Jeep Cherokee. The Dodge Avenger is a and Dodge will represent the company sporty sedan targeted at non-main- At Chrysler, the 300C model broke into in 2007. stream buyers in Europe. The Avenger the conservative European E-segment continues the bold, muscular design and in many markets matches the tradi- Dodge revealed its Caliber compact car theme seen on the Dodge Caliber, which tional German players. In 2007 comes in Frankfurt last September, firmly stat- went on sale in Europe this summer and the new Sebring, the premium mid-size ing its intentions to break onto the already has a six-month waiting period sedan, due to fill in the gap just above European marketplace. According to the in some markets. The sedan will be the Avenger in the chunky D-segment. Dodge promo materials, "Dodge Caliber offered with 2.0- and 2.4-liter gas Later in the year the new minivan concept brings emotion to the C-seg- engines and a 2.0-liter turbodiesel com- Voyager will maker its debut, due to hit ment sea of sameness." ing from Volkswagen. showroom in early 2008.

There is no getting away from the Look at Jeep: after launching the "It's an once-in-a-lifetime experience, to chunky, sculpted styling though, and Commander 7-seated full-size SUV last launch a new car brand," says Philip the imposing Dodge face certainly year, now Jeep expands its range with Kitoff, marketing and sales manager for does stand out in any crowd. The the new entry model Jeep Compass, Chrysler, Jeep and Dodge brands at Sunburst Orange paintwork helps, too. combining what the manufacturer calls Balkan Star, DaimlerChrysler's Bulgarian In the metal, the Caliber feels like a the functionality of a sports utility vehi- partner. "With Dodge, we'll be able to mid-size MPV, with high sides and good cle with the handling and fuel economy move up from a niche to premier-league use of space inside. Dodge claims that of a compact car. Next year comes the player in the midterm. A model range of the Caliber mixes coupe looks with Patriot, another typical 7-slot grill vehicle 16 distinctive cars in three complement- SUV functionality. Admittedly, from the and the successor of the legendary ing brands sold in one showroom is side, if you squint a little, the shape Wrangler. something any dealer would wish for". appears to taper in a coupe-like fash- ion, thanks to the blackened roof and With that, the Jeep brand will offer the Balkan Star has been an established rear spoiler. largest product range of any 4x4 brand, player in the automotive sector with its its global line-up expanding to seven Mercedes business when they took over Later came the Avenger, a mid-size SUVs, including the Jeep Commander, the distribution of DaimlerChrysler's sedan due to arrive in European show- Jeep Grand Cherokee, Jeep Cherokee, U.S. brands in 1999. ■ AmCham Bulgaria Magazine December 2006

page 19 cover story

General Electric Real Estate, Quinlan Private Acquire Mall of Sofia A consortium comprising GE Real developed in the centre of Sofia and "The development of the Mall of Sofia is Estate and Quinlan Private agreed this totaled 33,500 square meters on its now almost complete and we are spring to acquire the remaining 50-per- opening that took place in June 2006. extremely pleased to have been able to cent stake in the Mall of Sofia on com- The building comprises of a two-level acquire the remaining 50-percent stake. pletion from AVIV, an Israeli property shopping centre (15,520 square meters), We look forward to working with our development company, and CCI, an a 12-screen cinema (4,300 square consortium partner, Quinlan Private, to Israel-based movie theaters operator. meters), a supermarket (3,900 square ensure that this prime, flagship scheme, meters) and a five-storey office building becomes quickly established as the The consortium originally acquired a 50- (9,790 square meters). Construction on destination of choice in the city. The percent share in the centre for approxi- the retail element began in July 2004 purchase of this remaining stake clear- mately 37 million Euro in August 2005. and is already fully let to an impressive ly demonstrates our intention to increase The value of the Mall of Sofia on com- list of tenants including Piccadilly, the our presence in Bulgaria, where we pletion is expected to be in the range of supermarket anchor tenant, Mango, believe there are strong prospects for 90 million Euro. Esprit and Benetton, the fashion retail- growth particularly in the retail sector." ers, and Cinema City. The Mall of Sofia, located in the heart GE Real Estate currently owns 19 shop- of the Bulgarian Capital, is the first high- Karim Habra, managing director of GE ping centers in Central and Eastern quality modern mixed-use scheme to be Real Estate Central Europe, said: Europe. ■ TravelStoreMaker.com - From Start-up to Success Story In 2000, a newly founded American corporation chooses Bulgaria's capital city Sofia for its operational headquarters. Established with the investment of retired U.S. Navy Admiral Bobby Inman and leading global distribution system Worldspan at the time, TravelStoreMaker.com is a start-up technology company that recognizes the favorable invest- ment climate and technical resources Bulgaria has to offer. In his capacity as CEO, U.S. entrepreneur John Hazelwood took the company to a 130-employee organization, working for the travel industry.

TravelStoreMaker.com has been a leader on the internation- al travel market for more than six years and has managed to establish a worldwide network of partners providing them with state-of-the-art travel technology solutions and out- standing customer service. The company's product portfolio prompted the establishment of the TravelStoreMaker.com contains the extremely successful Internet Booking Engine travel agency. The first travel agency of its kind on the (IBE) that has already gained strong positions in the travel Bulgarian market, TravelStoreMaker.com operates 24/7, industry. Thousands of travel agencies, airlines and web por- offering a full range of travel services around the globe. The tals in over 30 countries have implemented the internet trav- agency has already earned its reputation among the inter- el solutions on their web sites and have experienced the national community in Bulgaria. Private and corporate trav- benefits of TravelStoreMaker.com's products and services elers enjoy the benefit of getting skilled customer support for their business. and last minute arrangements any time of the day from any- 20 where in the world via toll free numbers accessible from Customers using IBE are able to search through a wide more than 40 different countries. range of flights, hotels, car rentals and holiday packages content including the integrated low-cost database with over TravelStoreMaker.com's investment plans do not end here. 40 no-frills airlines. This flexible and budget-cautious travel The company firmly believes in the potential of Central and solution is perfectly designed to meet the ever growing Eastern Europe as a popular tourist destination and will con- demand for low cost online travel services. tinue to combine experience, technological know-how and innovation in their effort to develop the online travel services AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria In 2004, the success story of the Bulgarian travel industry in the region. ■ cover story

Gramercy's Acquisition of Business Park Sofia Sets High Point for U.S. Investments Business Park Sofia is the first business park in Southeastern Europe that has gathered in a single location the major corporate names across a diverse group of industries, applying in practice its motto "Synergy at work."

At this stage the buildings have total rentable area of about 62,000 square meters, of which office area is 40,000 square meters, storage area 17,000 square meters and showroom area 5,000 square meters. After completing the con- struction works of buildings Five and Eight, the total rentable area will reach 116,800 square meters, of which office area is 87,300 square meters, storage area 21,800 square meters and show- room area 7,700 square meters The achieved turnover in 2005 was 33.3 mil- lion Leva.

"We are satisfied that we won this deal under the extremely strong competition from 55 other institutional investors. Our proposal was the best because it com- bined the successful international finan- cial practices with significant presence on and knowledge of the local market. I congratulate the Lindner family for their courage to invest in the idea 7 years ago. We and our partners from Alfa Finance believe in Bulgaria's potential and plan for new large-scale invest- ments," said Jay Johnston, co-managing otherwise benefit from restructuring and denominated investments in emerging partner of Gramercy. are selling below their intrinsic value. markets.

By acquiring the Business Parks Sofia, Gramercy currently sponsors five funds: Alfa Finance Holding AD is the local part- Gramercy plans to expand its investment the Gramercy Emerging Market Fund, ner and investment consultant to operations in the region, and this project Gramercy Mexico NPL Fund, Gramercy Gramercy. The Holding's subsidiary Alfa AmCham Bulgaria Magazine December 2006 will be key to this strategy. At the same Mexico NPL Fund II, Gramercy Mexico Developments EAD will manage the activ- time the large-scale investment program NPL Fund III and the Gramercy Global ity of Business Park Sofia after the deal. for completing the park will be finalized, Optimization Fund. Gramercy has expe- Alfa Developments plans to develop new the scope of services offered will be rienced success throughout various busi- significant project in the vicinity of increased, as well as their quality. ness cycles often finding opportunities in Business Park Sofia - BPS Alfa Center. otherwise less than attractive market con- The project is envisaged as the next Gramercy was formed in 1998, and is an ditions, focusing on distressed debt or stage of Business Park Sofia and will page SEC registered investment adviser which assets that can otherwise benefit from have a total built-up area exceeding 21 has transacted an aggregate of $40 bil- their investment management expertise. 100,000 square meters, including offices, lion in emerging-market investments The company's principal executives have commercial and residential areas. Thus since its formation. As of June 30, 2006, an average of more than 20 years of the group of the Business Park Sofia, Gramercy had more than $3.5 billion experience in the fields of corporate Residential Park Sofia, Commercial Park face value of assets with equity of $1.4 credit, real estate investing and finance, Sofia and BPS Alfa Center projects will billion under management. Gramercy distressed and stressed securities, private create the first suburban center of a new employs an event-driven, value-oriented equity investment, capital markets, trans- kind in Bulgaria, combining in unique strategy seeking to identify and exploit action structuring and risk management fashion work places, living areas and securities that are distressed or could with respect to both dollar and non-dollar leisure facilities. ■ cover story

HP: Experience, Knowledge, Technology For more than 65 years, HP has com- try. The project represents the core of sional development in a world class envi- bined its ingenuity, engineering skills and the e-Government platform and will ronment of know-how and experience. customer focus to help people around increase the transparency of the admin- the world apply technology in meaning- istrative activities. It foresees efficiency The project is a long-term investment of ful ways to their businesses, personal and optimization of the administration to the company and for its fulfillment 1,000 lives and communities. meet the EU standards, by offering easy highly profiled Bulgarian IT specialists and fast electronic services to the citi- will be recruited until the end of year Closing a strong year on Bulgarian mar- zens and business. 2007. The team is situated in a newly ket, Hewlett-Packard has enhanced its constructed building with a total area of leading position in the IT field during Another significant event during 2006 10,000 square meters. The selection of 2006. Once again, the company has was that in June the corporation has Bulgaria for that significant high-profile proven its profound knowledge and opened a new technical operation in investment of HP is putting Bulgaria on experience in the field of information Sofia - Global Delivery Center, providing the investment map of the IT world. technologies through implementation of high-value and cost-effective remote pro- numerous successful projects. cessing technical services to customers Hewlett-Packard strives to be an eco- from Europe, Middle East and Africa nomic, intellectual and social asset to Important achievement throughout 2006 regions. each country and community in which it was Hewlett-Packard's selection as a does business. The company engineers strategic partner by the Bulgarian gov- The center currently employees 400 and designs trusted, reliable products ernment for delivering the foundation of high-level Bulgarian IT professionals and and services to help businesses and the e-Government strategy for the coun- gives opportunity for excellent profes- communities prosper. ■ Nu Image Ramps up Its Movie Production in Bulgaria Since its launch in 1992, Nu Image Inc. has produced over 190 films at a total cost approaching $750 million. The Nu Image Group produces and distributes between 15 and 18 films every year. Its daughter company Millennium Films Inc., fully owned by Nu Image, was established in 1996.

In 1999, Nu Image transferred a large portion of its production operations to Sofia, using its company, Nu Image Bulgaria EOOD, which had been regis- tered according to the effective Bulgarian legislation. The company has produced about 50 films since then.

Nu Image has invested more than $27 million in 2006 in Bulgaria. The 2006 tally included 12 productions, five of executive director of Boyana Film and of studio on the Balkans. I hope that more which were shot in Bulgaria. chairman of the board of directors of than 1,000 people will be working for 22 the Sofia-based film studio. Nu Image next year and that we shall Four major films will be produced in finally be able to produce a 100-per- Bulgaria in 2007, with a budget of $40 Varod said: "This a great day for cent Bulgarian film. I would like to million each. Morgan Freeman and Bulgaria's industry, as Nu Image has express my gratitude to all people in Scarlett Johansson are among the become a part of it. We have serious Bulgaria, who supported me during movie stars expected to visit Bulgaria intentions for the Boyana film studio, these years. I would like to convey my for the shootings. and very soon everybody will be able gratitude to the government of Bulgaria to see that the promises I have made as well for the confidence and for its

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria By force of a court ruling dated Nov. 10, over the last years will become true - assistance in successfully finalizing the 2006, David Varod formally became the Boyana will emerge as the largest film deal." ■ cover story

Microsoft Corporation Invests in Bulgarian Education The Microsoft Corporation is investing in a large number of social activities, main- ly in worldwide education projects. Microsoft Bulgaria as a subsidiary of the Corporation is focusing on the same areas locally. For 2006 the main priorities and current stage of development are: Microsoft and K-12

The global initiative focusing on K-12 sup- port is called Partners in Learning. To date, 101 countries have been included and the global investment is more than $250 million for a five-year period (2003- 2008). Its key emphasis is on improving and facilitating the work of both teachers and students and enhancing the efficien- cy of the education process. Although it is a global initiative the framework is flex- ible and each country is focusing on spe- In this archive photo, Ivan Stanchov, jury chairman, and Theodor Milev, general manager of Microsoft cific items that needs to be improved. In Bulgaria, are shown during the presentation of 2005 awards for best educational investments. Bulgaria the implementation of Partners in - To assure Microsoft Bulgaria's long- Education", presenting the achievements Learning initiative started in 2003. The term partnership with all key institutions, and impact of the Partners in Learning main goals have been: business organizations, educational units initiative in Bulgaria. and NGOs that are actively engaged in - To assists for bringing up-to-date the improving the quality of education and in More information is available at system of ICT skills development for the prosperity of the Bulgarian school. In http://www.microsoft.com/bulgaria/educa- Bulgarian teachers, by providing the K-12 partnership with the Syndicate of tion/secondary.mspx system with licensed Bulgarian and Bulgarian teachers and Ministry of English versions of Microsoft latest desk- Education and Science (MES) an the Microsoft and Academia top software at extremely favorable annual national conference Information prices; Technologies in Education - the The main program focused on Academic Indispensable Investment in Bulgaria's institutions is Microsoft Developers - To establish a working model for Future is organized each year and Network Academic Alliance (MSDN AA). eLearning content development by innov- became a respected forum for exchange MSDN AA provides faculty and students ative teachers. Five technical curricula of ideas and for outlining secondary edu- with the latest developer tools, servers, developed on behalf of Microsoft by out- cation best practices was established. In and platforms from Microsoft at a very standing experts in applying ICT in edu- partnership with Junior Achievement low cost. Member departments may install cation were localized methodologically Bulgaria, Microsoft's technical curriculum the software on their lab machines for AmCham Bulgaria Magazine December 2006 and didactically by teams from leading Entrepreneurship and Business instructional and research purposes, and Bulgarian universities. In 2005, over 3,000 Technology Profile was introduced in 31 permit their faculty and students to install school system administrators (one for secondary schools. In 2006, in coopera- the software on their personal computers. each Bulgarian school) have been trained tion with leading NGOs (Rotary Club and The program helps members to keep on this curricula. Each trained teacher St. Cyril and Metodii Foundation) and the their labs, faculty, and students on the has been provided with a multimedia disk Ministry of Education, Microsoft Bulgaria leading edge of technology. In 2006, 18 containing the necessary materials for co-organized the first national contest for university faculty members are participat- page curriculum teaching and learning. Some e-content development by teachers in ing in the program. 25 28 Microsoft IT Academies for teachers 2006. All 33 awarded projects were pub- training have been established in all lished on DVD and distributed to At the opening of each semester, regions of the country in partnership with Bulgarian schools in time for the opening Microsoft Bulgaria is organizing the National pedagogical center. In 2006, of the school year. Academic Road Show in 14 Bulgarian team of leading innovative teachers and universities. During the "Microsoft day in university professors published the book In 2005 Microsoft Bulgaria won the the university" the latest technologies 101 Ideas for Innovative Teachers, 3,500 Bulgarian Business Leaders Forum and solutions provided by Microsoft are copies of which have been distributed (BBLF) Annual Award for corporate social presented and demonstrated to the stu- among schools; responsibility in the category "Investor in dents and university professors by lead- cover story

ing Microsoft technologies profession- small or economically underdeveloped educators, students, and communities. als. communities. The project is focused on The program reaches students during training different target groups all over the their early IT experience and continues More information available here: country in core IT skills. Microsoft partic- throughout their professional careers. http://www.microsoft.com/bulgaria/educa- ipate as a co-funder of the project focus- Membership is available at two levels: IT tion/higher.mspx ing on providing a localized content of Pro Platinum and Microsoft Office Unlimited Potential Curriculum for basic Specialist. The IT Pro Platinum level pro- Microsoft and life-long computer skills training as well as the vides members with comprehensive cur- learning development of a distance learning sys- riculum and workforce development tem based on Microsoft Class Server resources. It includes courses for IT Pro Microsoft Unlimited Potential (UP) is a technology. (or Microsoft Certified Professional) and global initiative designed to help broaden Microsoft Office Specialist certifications. digital inclusion and aid global workforce More information available here: The Microsoft Office Specialist level pro- development by providing technology http://www.microsoft.com/about/corpo- vides benefits toward Microsoft Office skills through community technology cen- ratecitizenship/citizenship/giving/pro- Specialist certification. The program is ters (CTCs). In Bulgaria the UP initiative grams/up/ available for Bulgaria and until today, 15 is supporting the TeleCenters Project. "T- institutions participating, most of them Centers" is a joint project between the Microsoft and professional focused on professional training. Bulgarian government and UNDP, which training aims to establish a broad-base network of More information available here: public telecenters providing services to The Microsoft IT Academy Program is a http://www.microsoft.com/education/msi- the widest possible range of people in global IT learning solution that connects tacademy/default.mspx ■

Westinghouse Upgrades Kozloduy Units Five, Six Westinghouse and Kozloduy Nuclear Power Plant (KNPP) During a recent visit to Westinghouse's headquarters in are working together for the upgrade of Instrumentation and Pittsburgh, Bulgarian Ambassador to the United States Elena Control (I&C) systems at Kozloduy Units Five and Six. This Poptodorova commented on Westinghouse's technology and project is unique, as it is a first-of-a-kind large-scale I&C success at developing these working relationships. modernization project for a VVER type plant. Westinghouse is replacing the Russian I&C systems at KNPP with state-of- "Westinghouse technology is well-known and has an out- the-art digital control systems; proven technology that standing reputation throughout the world. What I was really improves system performance, reliability and safety, in com- impressed with is the way Westinghouse works with the pliance with U. S. and Western European standards. Bulgarian customer, demonstrating cultural understanding, flexibility, and a real sense of teamwork with the customer. Since its beginning in 2001, the KNPP I&C modernization pro- This relationship is of a level which matches the technical ject has progressed on schedule and has even expanded as capabilities," she said. the result of continuous high-quality installations. Westinghouse has successfully implemented Computer Information Systems, During a November visit to the Kozloduy site, U.S. Turbine Control Systems, Radiation Monitoring Systems and Ambassador to Bulgaria John Beyrle visited the Primary Control Systems at KNPP. Implementation of Westinghouse on-site office where he reviewed the ongoing Secondary Control Systems is currently in progress. projects and met the company team. He expressed his pos- itive impressions of the projects, noted that these I&C activ- This past July KNPP awarded Westinghouse a new contract ities at Kozloduy provide a model example of U.S. and to provide Primary Side Chemistry Monitoring Systems for Bulgarian companies working together to achieve success. Kozloduy Nuclear Power Plant (KNPP) Units Five and Six. As follow-on to their successes at Kozloduy, Westinghouse Westinghouse will provide an on-line chemistry analysis sys- hopes to have the opportunity to participate in the Belene tem to replace manual sample collection and laboratory plant completion project as supplier of I&C systems. 26 analysis of 16 primary chemistry parameters. The chemistry system will provide information to the Kozloduy plant com- Westinghouse Electric Company is the world's pioneering puter system for display in the control room and at other nuclear power company and is a leading supplier of engineering work stations. Westinghouse will supply the nuclear plant products and technologies to utilities through- hardware system, as well as project management, system out the world. Westinghouse supplied the world's first PWR integration, site activities and installation. While some pre- in 1957 in Shippingport, Pa. Today, Westinghouse technol- liminary installation work will occur in 2007, the main system ogy is the basis for approximately half of the world's oper- installation for Unit Five is scheduled for the spring of 2008 ating nuclear plants, including 60 percent of those in the

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria and, for Unit Six, for fall 2008. United States. ■ cover story

Sofia Airport Center Investment Totals 200 Million Euro The construction of the Sofia Airport Center project, the largest "We are happy that in the spring of next year we hope to be able real estate project in Bulgaria, is anticipated to start in the spring to start the construction. The companies that we have selected of 2007, said Alan Levy, chairman of Tishman International as our professional team are very experienced and professional. Companies. We trust that together we will be able to realize this large and exciting project - Sofia Airport Center," said Tishman Sofia Airport Center (www.sofiaairportcenter.com) will be the pre- International's Levi. miere corporate office and logistic center with a hotel, consisting of approximately 140,000 square meters with a projected built-up The SAC project is located approximately 300 meters from the area of about 256,000 square meters and lettable space of new airport terminal. It will be developed by TL Property approximately 140,000 square meters. The project will be real- Company and managed by Tishman Management Company. ized by Tishman Management in several phases. Tishman Management is one of the largest U.S. investors and The company also introduced the team, which will work on the the only U.S.-based property developer in Bulgaria. Tishman project. The Bulgarian architects are from the company International Companies is active in the United States and PROARH Urban Planning, Architecture, Design. The interna- Europe with a European headquarters, based in London. tional architects of the project are Cigler & Marani Architects, They operate in the acquisition, development, management while project and cost managers come from the firm of and financing of commercial real estate. Tishman has acted Gardiner & Theobald. The communication partner of the pro- as a consultant and joint venture partner to some of the ject is M3 Communications Group, Inc. world's leading institutions and private investors. ■ In Bulgaria Tishman is to Invest in Infrastructure and Property Management The Condominium Law Could Hardly Resolve Julian Edwards joined Tishman International Companies some the Problems of Older 20 years ago to head up their Buildings, says Julian European operation. On behalf Richard Edwards, of the principals of Tishman Managing Director International Companies, he and Tishman International a Japanese client purchased a Management Limited blue chip office/ retail building and General Manager of let to the British Government for 145 million Euro. In a joint ven- Tishman Management ture with a Swedish company, he Company EOOD acquired 15 buildings with a By Irina Bacheva value in excess of 150 million Euro. Edwards has made a fur- - Why did Tishman decide to invest in ther 70 million Euro worth of Bulgaria? acquisitions. He has developed some 125 million Euro of proper- - The reason to be in Bulgaria is that we ty in the United Kingdom and looked at the number of countries in Ireland, and managed in the Southern and Eastern Europe and felt that the country would offer what we region of 200,000 sq.m. of commercial and residential property. Edwards was were looking for. Three years ago also involved in putting together a $52-million real estate fund in Europe and Scandinavia to invest in U.S. property. Prior to joining Tishman International 28 Romania has begun to attract more glob- al investors, but Bulgaria was not. The Companies, Edwards had worked for Land Securities PLC, one of Europe's other reason was that Bulgarians have a largest quoted property companies, where he was a manager of its 4 billion Euro mentality of ownership as much as they Central London Commercial and Residential Portfolio. Over the last 18 months, own their own homes, often they own Julian Edwards has spent a lot of time researching the Bulgarian property mar- their own offices, so one did not have to ket place. He is a board member of Tishman Bulgarian Real Property GmbH, the go through the ownership hurdle in com- fund which is currently investing in Sofia. Julian Edwards is a Freeman of the parison to some other countries. Also, City of London, a Liveryman of the Worshipful Company of Paint Strainers and has undertaken numerous charitable activities. AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria with well educated workforce I saw that Bulgaria had some of the best opportu- cover story

nities in going into the EU and being able seven people at the moment. We also would take care of the common areas. to offer extended opportunities. That is have a back up of our offices in London They expect that to happen. On the why some of the manufacturers would be and Los Angelis. other hand, they also expect to being interested to come here. paid for that through a common areas - You are applying for a first class maintenance charge. And I am sure - Could you tell more about Sofia air- investor here. Would it help you? some of them are surprised when they port project? go back to their apartment and see not - We are proposing to apply for a first that much has happened: it is not prop- - Around a year ago we purchased a 143 class investor and we have done a lot of erly cleaned and looked after. I can 000 m2 of land close to the airport. The work towards it but we were not able to understand that because in some of the total built up area of the project now is finalize our application until we have got older panel buildings people have a little 285,000 m2 and we will develop a hotel, our cash flows and everything else in wealth and little money and can not con- office buildings and logistics. The total place. We will have to see what the ben- tribute large amounts in order to get investment will be more than Euro 200 efits of obtaining the first class investor things brought back to where they should million. As you would be able to see from are. It is very nice to have this in princi- be. I think there should be a different the plan, the hotel and the offices are at pal, but from what I can see at the strategy for the older buildings opposed the front in a park with the logistics at the moment, the benefits are fairly small. to the new buildings. It should be made rear. The rear would be shielded from the by the government. There would be front by trees, and good landscaping. - What are the other projects that you Condominium Law in Bulgaria and it is The first phase of the project would pro- are intended to develop here? going to cover both the old and the new, duce around 30 000 m2 of offices. In and I see this would be an area with fact, it is infrastructure close to the air- - We have got the facility close to the air- problems for the reasons I have just port and we hope to have the ground- port of TNT which is ours, we are look- explained. breaking in the first quarter of next year. ing at residential projects but the airport The delivery of logistics facilities is project is our priority because we are at - Do you think the new Condominium planned for October 2007. At the moment a critical stage, refining the designs, dis- Law, when adopted by parliament, we envisage that the offices will be deliv- cussing Financing with the Banks and would concern mainly the new build- ered in October 2008. With regard to the discussing prospective tenants' require- ings? logistics space we have had indications ments with them. of interest for all of the space we are - I think it would resolve the problems of going to build and we are in discussions - You are also intended to develop the new and the older buildings. In the with at least one occupier for the offices. property management niche in panel buildings you have a majority of Bulgaria? people of different wealth living in there. - How do you appreciate the business It would be very difficult to bring every- climate here? What kind of difficulties - We have a division for a property man- thing in line because there are going to you have faced with the administra- agement and it has been running for six be people who can not afford making a tion? months. We are currently maintaining 18 contribution. Then other people in the banks offices around Sofia and around building are going to take care of those - The business climate in Bulgaria is a country and we are in talks with a num- few people. one that an investor would anticipate in ber of other companies, both commercial an emerging market. It is understandably and residential. We see Property - Is your company going to invest in slow because the people have to put in Management as a growth business here new projects? place various arrangements and people in Bulgaria, but there are number of peo- from the municipality and the government ple who are also looking at property man- - I would say in new and in all projects offices are learning how things are hap- agement, but many of them do not have available. We would certainly attempt to AmCham Bulgaria Magazine December 2006 pening. In Tishman’s case it has taken us the knowledge and experience that we help in the case of older buildings, but a long time to get a regulation of the site do to develop it in a very professional there would be problems. The but it was due to the fact the mayor of way. The property manager is acting for Government and the municipalities are Sofia and the chief architect resigned the tenants, using the tenants' money, not going to make any contributions. In last year and the new appointments took and accounting to the tenants. this case, it would be good for the build- the office in the beginning of this year. In ings to elect a board of management addition it is a large profile project; it had In Bulgaria the property management is with a chairman to oversee the running page to be looked more carefully. not developed at all. It is day to day look- of the building, to find ways to improve 29 ing after the property but also having a the exterior and interior. - How many employees do you cur- strategy for the property with regard to rently have? maintenance. It is monitoring of potential A lot of our history as a company was in problems and having them repaired at an the property management, we have man- - We are working on the basis of out- early date so that when you have break- aged very large portfolios in America and sourcing a lot of the project. We have got down these can repaired speedily. In in UK. Currently we are managing a prop- two firms of architects: one is interna- Bulgaria there are a lot of new apart- erty in the city of London 55 000 m2 and tional based in Prague and one local ments sold to the Western Europeans two or three buildings in the US, in based in Sofia. We have a team here of who have the expectation that someone excess of 200 000 m2. ■ cover story

UPS Expands Business in Bulgaria UPS, the largest delivery company in the world and a global leader in man- agement of transport and logistics, expanded its business in Bulgaria. In May 2006 the company's Bulgarian sub- sidiary, UPS Supply Chain Solutions (UPS SCS), was launched officially. It provides comprehensive logistic solu- tions for large packages and freight. Thus, the leading U.S. corporation offers a full range of services in Bulgaria.

In Time Cargo Ltd., a special unit of In Time Ltd. - the authorized service con- tractor for UPS in Bulgaria, will take responsibility for the logistics activity of UPS in Bulgaria. The two companies signed an agreement for enhancing cooperation after having worked togeth- er in the field of delivery services for 15 years. In Time invested 3 million Leva in Time and UPS is a result of the positive ● Supply volume in 2005 - 3.75 billion storage facilities, ensuring efficient results achieved in Bulgaria. In 2005 the packages and documents; operation with regard to business expan- authorized service contractor for UPS in sion. Bulgaria In Time registered 23-percent ● Provides services in over 200 compa- package growth and 20-percent revenue nies and territories worldwide; Leading managers within UPS' structure growth year-on-year. The company arrived in Bulgaria on occasion of processes over 76,000 packages a ● 407,200 employees worldwide; establishing the corporation's new field month. These numbers pertain exclu- of activity. Stuart Richardson, director of sively to small express packages. The ● The biggest wireless network in the mediators and cooperation at UPS company also works with cargo. The world; Supply Chain Solutions in Europe, the average volume of packages shipped Middle East and Africa, Christian Strobl, abroad rose by over 50 percent between ● The biggest private database in the manager of European Development at 2002 and 2005. The company has over world; UPS SCS, and Michael Mavropoulos, 23,000 clients, most of whom are cor- division manager of UPS International, porate. ● 1 of 8 AAA-ranked companies presented the options before Bulgarian importers and exporters provided by About UPS: ● 99 years of experience in the field; UPS' global network for delivery of goods and cargo. ● The biggest delivery company in the ● Accounts for 6 percent the U.S. GDP world and a global leader in manage- and 2 percent of the international Enhancement of cooperation between In ment of transport and logistics; GDP. ■

30 AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria cover story

U.S. Agency for International Development Invests in Bulgaria's Future

The American people, through USAID, Development Project. Strengthening Initiative is working with have invested more than $600 million 32 courts to improve their efficiency, since 1990 to support Bulgaria's transi- Rule of law transparency and independence. An tion to a market-based democracy. independent polling company surveyed Starting with support to political parties The Rule of Law program is the center- the public's perception of the courts in during the first democratic elections and piece of USAID's assistance program areas where the courts received USAID humanitarian assistance, USAID pro- with three major components: justice assistance, compared with courts that grams have evolved to address the sector reform, anti-corruption efforts, did not receive this assistance; court needs of the country and to help and reducing trafficking in persons. In users ranked USAID-assisted courts Bulgaria overcome the difficulties of the 2006 the National Institute of Justice, higher in a variety of criteria. The transition to democratic governance and established with USAID support, gradu- Mission's anti-corruption activities a market economy. With Bulgaria's ated its second class of newly appoint- strengthen the Government of Bulgaria's effective EU membership as of January ed judges. The USAID Judicial institutional capacity to prevent corrup- 2007, the economic and technical assistance provided to the country under the Support to Eastern European Democracy (SEED) Act will diminish during 2007 and will end in September 2008. USAID funding in fiscal year 2006 exceeded $17 million.

The USAID assistance program is cur- rently focused on three areas: rule of law, economic restructuring and growth, and local governance. Other cross-cut- ting initiatives include a variety of train- ing programs, advocacy and public awareness through media, and enhanced avian influenza preparedness.

To name just a few significant achieve- ments of the USAID investment in 2006: Youth and ethnic minorities are the target groups of USAID projects aimed at providing equal opportunities for growth and advancement The Initial Public Offering (IPO) of the Bulgarian-American Credit Bank (BACB) by the Bulgarian American Enterprise Fund (BAEF) resulted in gross proceeds of 55.6 million Euro, making BACB the third-largest company on the Bulgarian AmCham Bulgaria Magazine December 2006 Stock Exchange. BAEF has been a pil- lar of USAID assistance in Bulgaria since its creation. Two groups of private enforcement agents were sworn in. This new profession, established with USAID assistance, plays a critical role in the enforcement of judicial decisions. page 31 The American University in Bulgaria, the largest U.S. government investment in Bulgaria, celebrated its 15th anniversary. The "Authentic Bulgaria" quality mark, which will identify tourism providers who are striving to create a higher-value image of Bulgaria as a tourism destination, was launched by the USAID Business and Trade USAID supports economic growth and job creation through small-business assistance programs cover story

tion. In 2006, the USAID Open Commercial Mediation Center of the involvement to tie the assistance to Government Initiative developed and American Chamber of Commerce community building and public-private launched a Public Procurement Register resulted in the Bulgarian partnerships. USAID assistance was compliant with EU standards. USAID Telecommunications Company incorpo- crucial for the development and the helps Bulgaria fight trafficking in per- rating a mediation clause into its con- adoption of the government sons through capacity building of tracts with local vendors. Decentralization Strategy (2006-2015). Bulgaria's anti-trafficking commissions, Ten community funds and 28 social as well as supporting a shelter for child To reduce the gap between supply and enterprises established with USAID victims. demand for skilled workers, USAID funding already serve as models for helped establish 25 Career Development local development in Bulgaria. Economic restructuring and Centers at universities throughout Seventeen Bulgarian municipalities used growth Bulgaria and in one pilot vocational USAID assistance during this year to school, and supported the Ministry of develop and implement procedures for The focus during the last year of the Education in setting up a system for contracting out services to non-profit USAID program is on projects that career facilitation. In its last year of organizations, an efficient alternative enhance the business environment, con- operation the USAID microfinance pro- that improves service delivery and tribute to job creation, and improve gram extended almost 1,500 total- accountability in the use of public access to financial resources. In 2006, ing approximately $3.8 million as an resources. USAID programs especially enactment of the Business Registration alternative lending mechanism to the target ethnic minorities, vulnerable Act was the major achievement of the poor and needy. The USAID Energy groups and communities, and youth. USAID Commercial Law Reform Project. Regulatory Development Program sup- The law removes the registration ported the first privatization of a large In 2006, more than 350 minority repre- process from the judiciary, centralizes it generating utility in the country in 2006. sentatives graduated from a capacity- in the Ministry of Justice, and makes it building program to improve their skills electronic, easing market entry and Local governance to address community issues and par- enhancing transparency. Commercial ticipate in the political process. The mediation was increasingly used as a USAID is building on its unique invest- USAID ethnic integration program also method of alternative dispute resolution, ment in the local government sector, created more than 100 jobs in six and the efforts of the USAID-supported while at the same time broadening municipalities. ■

32 AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria cover story

American Standard Going Strong in Bulgaria 10 Years Later Ten years after its construction first started, the ceramics plant in Sevlievo is the largest facility of American Standard in the Bath and Kitchen division. The construction of the plant commenced in December 1996 and the project was completed in 11 months. The investment brought American Standard the presti- gious Investor of the Year award grant- ed by the Bulgarian government in 1997. The initial annual plant capacity was two million pieces; since then, the success- ful development of the business encour- aged the company to invest further in increasing production capacity, process automation, improvement of working conditions and increasing production efficiency.

In 2006, significant investments were made in the other facility of American Standard in Sevlievo - the fittings plant. The company invested mainly in the In March 2006 the US Ambassador to Bulgaria John Beyrle (left) presented the Secretary of State Corporate development of new competitive prod- Excellence Award to David Modi, Vice-President of American Standard during business luncheon of the ucts, as well as in equipment and tech- American Chamber of Commerce in Bulgaria. The Ambassador thanked Elitsa Tsaneva, Executive Director of nologies that raise productivity. The fit- Ideal Standard Sevlievo for her commitment to develop successfully the business of the company in Bulgaria. tings plants in Sevlievo represent the ments, implementation of new technolo- cars. The company employs some largest manufacturing hub for fittings gies as well as contemporary manage- 61,000 people and has manufacturing production of American Standard world- ment techniques are only part of the operations in 28 countries. American wide. investment program of the company. Standard is included in the S&P's 500. With care to environment protection, the In 2006, the company added to its port- company has invested in systems and Ideal Standard Bath & Kitchen folio of facilities in Bulgaria a distribution equipment for waste management and Operation - Europe, Middle East and center aiming to improve quality of ser- limiting harmful emissions. The facilities Africa (EMEA) is a leading provider of vices to all customers using the latest of American Standard in Bulgaria have bathroom fixtures, fittings and shower technology in advanced logistics. developed and implemented integrated enclosures for residential, commercial management systems in accordance and institutional buildings. Its headquar- The company products are well known with the requirements of ISO 9001 for ters are in Brussels, Belgium, it has on the Bulgarian market for their high quality, ISO 14001 for environment pro- 13,000 employees and 29 manufactur- quality, modern design, excellent after- tection and OHSAS 18001 for safe work- ing facilities in 12 countries across AmCham Bulgaria Magazine December 2006 sale and logistics services which have ing conditions. EMEA. gained wide customer confidence. American Standard is a $10.3-billion The products are sold under leading The successful developments made in global manufacturer with market-lead- brand names - Ideal Standard and JADO Bulgaria were also recognized through ing positions in three businesses: air - and local brands Armitage Shanks the U.S. Secretary of State award conditioning systems and services, sold (UK), Ceramica Dolomite (Italy), Porcher received by American Standard this year under the Trane® and American (France) and Vidima (Eastern Europe). page for its corporate citizenship, environmen- Standard® brands for commercial, insti- It is the #1 provider in Europe, and its 33 tal and employment practices as well as tutional and residential buildings; bath largest markets in EMEA are the United for being a safe and healthful work and kitchen products, sold under Kingdom, Italy, , Egypt, France, place. brands such as American Standard® Spain, Germany and Benelux. Every and Ideal Standard®; and vehicle con- other bathroom in Italy contains According to Bulgarian national statis- trol systems, including electronic brak- American Standard products. Finally, the tics, American Standard has invested ing and air suspension systems, sold high-potential growth markets include over $150 million in Bulgaria during its under the WABCO® name to the countries in Eastern Europe, particularly 15 years of presence in Sevlievo. world's leading manufacturers of heavy- Russia, Ukraine and Bulgaria, as well as Reconstructions, green-field invest- duty trucks, buses, SUVs and luxury the Middle East and Africa. ■ analysis

Nearly 1 million Bulgarians attend the rally for Democratic changes in Sofia, June 1990. The end of the Communist era was the miracle number 1 for Bulgaria after the end of the Cold War. Pressphoto BTA Pressphoto The Ultimate Miracle Bulgaria enters the European Union - and we all must start relying on ourselves by Boyko Vassilev

"Now, this is the end of miracles." Most Bulgarians never understood that that was their responsi- bility, too. They did not venture into risks, This line came at the end of one of the many movies about Merlin and King Arthur. And since the Bulgarian authorities are did not take the initiative going to celebrate Bulgaria's entry into the European Union (EU), I would suggest that they post the quotation on a huge billboard to change their lives. between the President's offices and the Council of Ministers. They let each 'new thing' charm them and then sat down to wait In 1989 the miracles of communism were replaced by the mira- for the next miracle, day and night. cles of the newly-created democracy. The 'bright future' promised during socialist years was swapped for the buzz words But we have to do them justice: they were never warned not to like 'democracy,' 'privatization,' 'market economy.' wait. Only president Petar Stoyanov back in February 1997 called for "closing the illusion factory" but we did not listen, we had Five or six years later the thrill of those miracles waned - and other things to do. From then on, the end of illusions became a new ones promptly took their place. NATO was a real miracle but pet topic of each opposition, and each government - with jeal- not only. We remember the financial pyramids and the get-rich- ous perseverance, campaigns, communication strategies and quick schemes. The abolishment of visas for travel to Europe, the spontaneous celebrations - planted the illusions back. And, most tears of the then foreign minister Nadezhda Mihaylova. King of all, furthered the belief in the EU; the perfect miracle. Simeon's promise to cure the country's ills within 800 days and secure interest-free credits, the famous mayor Borissov. Indeed, the EU is the miracle of miracles. What is more, it is the launch vehicle of miracles. Here they are: Miracles, miracles, miracles… Well, there remains only one more miracle: the Great January 1, the Big EU. - The mythical European funds. They will nourish the arid Bulgarian economy, satisfying the everybody’s thirst and raising 34 Not that the miracles so far have all been unfounded. Democracy the living standards two- or three-fold. Some will absorb them, has won, Bulgaria is now a functioning market economy, the pri- others will steal them - at any rate there will be enough for every- vate sector controls the economy, NATO provides peace and body. security, Bulgarians are no longer subject to the humiliation of having to line in front of foreign embassies for entry visas (with - The powerful political Brussels. It will knock sense into the a few exceptions, such as the U.S. embassy). The government heads of Bulgarian politicians. What is more, it will be their only of the Simeon II National Movement moved Bulgaria ahead (not superior, the one to whom they will pray and whom they will fear. with a magic wand, though), and even some people really got In a strange way it will ally itself with the people and in the end

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria rich quickly. But that is not the point. it will give a good spanking to politicians, prosecutors and the elite that deserve it. analysis

- The famous European 'rules and order.' You know, streets are Farmers will start writing business strategies, but they will not so clean there, drivers never cut in and people do not jostle for know how. The project-savvy will want to steal European money, space on the bus. "I admire them," said a taxi driver. "They have but that will be hard. Traders will have to issue invoices. The traffic cams at intersections to tape violations." Having said that, thousands living off the gray sector will have problems. In he sped up to jump the yellow signal. But that is OK, the December, as a businessman said, everybody will spend their European rules are for the others to observe. money on gifts and steaks. But on Jan. 2 they will sober up and start waiting for their wages at the end of the month, deeply in - And finally, the cherry on the cake: the European "Well done!" thought how to change themselves. to the glorious Bulgarians. Europe will finally appreciate and rec- ognize us; it will be stunned by the Panagyurishte Gold Treasure, And here is a clue: Bulgarian politicians will have to forget the the barbecues in the Rhodope Mountains, the Bulgarian 'sex ath- Europe-wants-it excuse. Bulgarian journalists will have to find lete' and the native intelligentsia. Europe will not only learn the another topic, because European integration will be completed. Cyrillic alphabet but also the Transko dialect. At last, we will gain Bulgarian non-government organizations will have nothing to use self-confidence. for scaremongering. The Bulgarian chattering classes will be struck dumb. Bulgarian businesses will be anxious to see if they Now, do you understand the paradoxical results of sociological have got away with the price trick. And Bulgarian citizens will be studies? The data are categorical: the Bulgarians at the same time are among the strongest left alone

EU optimists and pessimists to their own devices. This experience must bring enlightenment. Until now Europe has been the main excuse of politicians, about their country and their future, stronger than the because they have been unwilling to take responsibility. We jour- Scandinavians and the Serbs. Yes, the Bulgarians are pessimistic nalists have talked about Europe boringly, because we have not and do not like the life they live. But they are optimistic that understood it. Non-government organizations have used Europe Europe, the ultimate miracle, will set things right. for scaremongering. Businesses have thought how to take advan- tage of Europe, because that is what they do. "The average Bulgarian has a car, a decent salary, a mobile tele- phone but he says: Look at what people have! They live better Now Europe is here. It is late to start learning now. The miracles but they do not know it yet." have finished.

That theory belongs to sociologist Kolyo Kolev. To the Bulgarian I am trying to remember the ending of that movie, with Merlin from the emerging middle class, Europe is also a hope and help. and King Arthur. Lines always have a context, otherwise the And that is where the problem lies. Or, if you wish, the danger. meaning is lost - just imagine Galileo saying, "And yet the earth still rotates," after having just finished two bottles of wine. I can Because, as time passes from Jan. 1 to Jan. 2, 2007, the small remember now, the ending was happy. The miracles finished and disappointments will start adding up. Units Three and Four of the you felt relief: from now on, it's your responsibility, your life. Kozloduy Nuclear Power Plant will have to be shut down. Some businessmen will try to raise their prices - if it works, it works. Let us drink to that on January 1! ■ AmCham Bulgaria Magazine December 2006

page 35 analysis U.S. elections 2006 - Surp

Gov. Arnold Schwarzenegger beat handily his California opponents and will continue to manage this most important state until 2010 as a 'hybrid' Republican, who is fiscally conservative, but socially liberal. The stunning results of the 2006 election one of the most Reagan suffered in sixth-year midterms. Woodrow Wilson had unpredictable and dramatic in all of American history. The just won World War I, but it didn't help his party at the polls in national headlines in the United States showed as much: 1918.

"Democrats Claim Majority, Inherit Leadership Burdens" - The 2006 Parallels 1950 New York Times; The public's unhappiness about the Iraq war and its presiden- "Dems Complete Election Sweep of Congress" - The tial advocate has two precedents. Harry Truman in 1950 and Associated Press; "Democratic Wave Washes Over Capitol Hill's Lyndon Johnson in 1966 were running unpopular wars in Korea Character" - The Washington Post; "Elections Bring New and Vietnam, so the voters sent them an unflattering message Landscape to Capitol" - The New York Times; "Democrats at the ballot box. In fact, the Truman-Korea parallel to Bush-Iraq Score Upsets in Key Races" - Chicago Tribune. is remarkable in one other way: In 1950, Truman's Democrats lost 29 House seats and six Senate seats, and in 2006, Bush's Democrats picked up 29 seats in the House, six seats in the Republicans lost 29 House seats and six Senate seats. Senate, six governorships in crucial states such as Ohio and Colorado, and more than 300 state legislative seats around the Like the GOP's scandals this year that cost the Republicans nation. seats in the Congress, Eisenhower had to suffer for his chief of staff's unethical acceptance of gifts in 1958, and Gerald Ford As surprising as it seems, the Democratic victory in 2006 was paid dearly for Nixon's Watergate follies in 1974. one of the most predictable events in American politics. Of course Democrats worked hard for it, and they deserve their Even high popularity won't protect a president. Eisenhower was 36 celebration. Yet it was a classic election in the middle of a at a 59-percent job approval in 1958 when the Democrats won president's second term. In the past 106 years, every president landslides in both houses of Congress, and Reagan weighed in but one has generated a serious rebuke from the voters at this at 63 percent just before the 1986 election when the point in his administration, typically because of war, a bad econ- Democrats surprisingly recaptured the Senate. Compare this omy, or scandal. A chief executive has made many controver- with George W. Bush's paltry 35 percent to 40 percent in the sial decisions by year six, and he's unavoidably turning into a polls of late, and it becomes easy to see why Republicans lame duck. fared so poorly on Nov. 7, 2006.

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria Even enormously popular presidents such as Theodore On the other hand, it could have been worse. Democratic Roosevelt, Franklin Roosevelt, Dwight Eisenhower and Ronald President Grover Cleveland's six-year election in 1894 created analysis rising, but Predictable By Christopher Karadjov In 1998 there was a public backlash to the GOP's attempt to impeach Clinton over the Monica Lewinsky scandal, and this enabled Democrats to hold their own in the Senate and pick up five House seats. Of course, the precocious Clinton actually had his sixth-year itch in the second year, when the GOP swept Congress in 1994. There weren't many seats left for the Democrats to lose after that.

The new Democratic Congress isn't going to give President Bush much peace in his final two years in the White House. He'll have to fight for every last judicial appointment, appropriations bill, and maybe even Mother's Day resolution. His top second-term prior- ities - Social Security reform, tax reform, and comprehensive immigration reform - are dead and not likely to be resurrected. More polarization coming

The United States is facing a polarized, unrelenting, two-year political battle leading up to the election of the next Congress and the 44th president. Congress will go after Bush daily, and Bush will blame Congress at every opportunity. All this has hap- pened many times before, too.

Wilson would remind us about the late-term loss of his League Former US President Bill Clinton embraces his wife Sen. Hillary Clinton, D-NY, of Nations, Truman and Johnson would recall the early end of after she addressed the crowd at a New York State Democratic Party election night their presidencies (both could have served another term), and event after she was reelected in New York on Tuesday 07 November 2006. Reagan would cite the defeat of Judge Bork for the Supreme Court. So if you like fireworks, pull up a lawn chair to watch the political tsunami of all time. Republicans added 120 House the show in 2007 and 2008. As always, it will be up to the seats all at once! Suddenly, the 29 in 2006 looks like a wave American people to break the tie and end the polarization. In in a kiddie pool. The one modern historical exception to the 2008 Americans might even find a president and a Congress sixth-year rule is Bill Clinton. that hug the vital center, that can bring them together again. ■ AmCham Bulgaria Magazine December 2006

page 37 analysis Belene Nuclear Project AtomStroyExport wins tender for building Belene nuclear plant

The National Electricity Company (NEC) announced Russia's AtomStroyExport winner in the tender for building a 2GW nuclear plant in Belene just after the end of the presidential election in late October and signed a draft assignment contract late November. The Russians won the race against the Czech consor- tium Skoda Alliance with a big advantage in the composite evaluation system com- prising 4 criteria -- technical (35%), quantitative economic and financial parameters (35%), qualitative economic and financial parameters (15%), and bid- ders' professional characteristics (15%). In fact, both construction proposals of the Russians were put higher than the Czech best-ranked one, with composite Pictures from Belene Construction site, taken by National Electricity Company scores of 611, 585 and 547 points, try. The time count will be triggered in respectively, as compared to a bench- Main Parameters: the first half of next year which means mark level of 600 points seen as meet- ● Production capacity of 2,000 MW that the first unit of the plant in Belene ing all tender requirements. France's ● EUR 4bn construction cost will launch operations in the second half Areva and Germany's Siemens are ● Production at EUR 36-37 per MWh of 2013 at earliest. included as main subcontractors to ● Exploitation period of 60 years AtomStroyExport while 30% of the con- ● State will hold 51% equity stake Economic risks struction works should be assigned to ● Power supplies expected in late local subcontractors. The Russian best- 2013 Although NEC presented good argu- performing offer is considered more ments in favour of AtomStroyExport advantageous than the Czech one in equipment held in Belene but the price against Skoda Alliance, the winner selec- both technical and economic terms. The will be decided in the process of signing tion procedure is not fully transparent as winning bid relies on a new (third) gen- the final assignment. This could reduce the parameters of the cheaper offers of eration power reactors B466 with a long the total cost of the project by some Skoda for upgrading old equipment pur- life span of at least 60 years and higher EUR 100mn. Nevertheless, the total chased for the first unit of the plant were safety characteristics based on expand- investment plan appears much higher not unveiled to the public. NEC has ed passive control systems (second con- than the range of EUR 2bn to EUR 3bn explicitly requested the bidders to tainment) than the previous generation of rumoured in the local and Russian press. improve their offers for upgrading old B320 reactors proposed by Skoda Moreover, the estimates do not include equipment and it seems that Skoda Alliance. In economic and finical terms, expenses for attracting leveraged financ- Alliance has concentrated its efforts on AtomStroyExport has capped the cost of ing by the investment company, where this request, offering a quicker and construction at EUR 3,997.26mn and the National Electricity Company will cheaper alternative for commissioning of estimated electricity production cost of hold 51% of the equity capital. the first nuclear power unit. However, the EUR 36-37 per MWh against EUR details of all investment scenarios are 4,098mn and EUR 40-43 MWh offered The selection committee mentioned only not officially presented and we cannot by Skoda Alliance. The average produc- one disadvantage of the Russian pro- make good comparisons. We are also tion cost however may not be a good posal concerning the deadline for com- concerned about the appropriateness of indicator, as the calculations are proba- missioning the first power unit of the the cost estimates, as the average elec- 38 bly made with different depreciation peri- plant in Belene. AtomStroyExport vows to tricity production price in the Russian bid ods of 60 years for AtomStroyExport and complete the first unit in 6.5 years and is calculated on a 60-year period against 40 years for Skoda. In addition, the second one in 7.5 years after the a 40-year period in the other bid. The AtomStroyExport vows to purchase old first assignment endorsed with the coun- longer life span of the Russian offer is

This article is based on extracts from ISI Emerging Markets IntelliNews publications: Bulgaria This Week and Bulgaria Country Report. For more detailed information please contact ISI Emerging Markets office in Sofia at +359 2 8160404 AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria or [email protected] analysis

given as an advantage by NEC but it chains through development of local state-owned National Electricity could easily turn into a weakness in uranium deposits; Company in particular have limited case of rapid technological develop- ● Big export opportunities within coun- capacities to develop the project into a ments in the field of power generation. try's integration into EU power market. highly competitive and profitable busi- Finally, both investment and production ness. The local administration has a long costs in the winning bid are put at the Risks: track record of bad investments due to upper limit of the initial tender require- ● Competitive pressure from new tech- slow decision making, frequent conflicts ments and the project will thus contain nologies given the long-term deprecia- of political interests, weak corporate gov- big investment risks. The state wants to tion period (main risk); ernance, limited transparency, and many hold 51% of the ownership in the new ● Possible crowding out of investments other reasons. The first launch of the plant that will also put a lot of pressure for full utilisation of renewable alterna- nuclear project in Belene about 20 years on the government budget in terms of tives; ago has already turned into a big failure direct financing and guarantees. The ● High initial cost; as the present value of the purchased cost of leveraged financing will be a crit- ● Increased dependence on Russian equipment and related maintenance ical issue in view of the big size of the energy sources; costs exceed EUR 1bn and will be pur- project for the standards of the local ● Dominant state ownership and possi- chased back by the Russians at a much economy, the long repayment period, ble negative implications on state bud- smaller price. On the other hand, the and various market risks related to get; outlook on the new project in Belene demand and alternative energy invest- ● Unclear mechanisms for attracting could be much more optimistic if the ments in the region. direct and leveraged financing; government decides to sell the leading - Ambitious energy investment plans in equity stake to a private investor with a Critical analysis shows equally strong neighbouring countries. proven track record of international arguments in favour and against Belene experience in the electricity sector. nuclear project Investment outlook Possible public offering of minority stakes on international stock markets Strengths: Larger involvement of private investors could also provide a good test for return ● Investments in modern (third genera- could radically improve competitiveness prospects while transferring investment tion) technologies with high safety and market risks to private entities. Even standards; As all large-scale investment ventures, if the government sticks with its decision ● Securing relatively low cost of power the nuclear project in Belene offers big to control at least 51% of the ownership production with little dependence on opportunities but it also hides significant in the new plant, the option for attracting input prices; risks. Taking into account the country's non-debt financing through the stock ● Utilisation of existing expertise; growth potential and the forthcoming market and/or running a transparent ten- ● Meeting long-term needs for replace- integration into the EU market, invest- der for strategic equity partner will sig- ment of old power capacities; ments in additional nuclear power nificantly improve the prospects of ● Investment benefits through CO2 capacities could offer good return rates Belene to reinstate the local power reduction mechanisms; due mainly to attractive export opportu- industry into a valuable export-oriented ● Opportunities for building value added nities. However, the government and the business. ■ AmCham Bulgaria Magazine December 2006

page 39 amcham events

AmCham Christmas Party Opens Year-end Festivities U.S. Ambassador John Beyrle: I'll celebrate with you on Jan. 1, 2007

Christmas is probably the most festive Heilige Nacht, Joy to the World, Ave Maria, 1st of January 2007 I will be in time of the year, a season of gift-giving Viva la Musika and much more. Adding to Washington but I will make a transatlantic and celebration. We all know that the Christmas moods, the guests were celebration with Bulgaria, thinking about all Christmas is a religious holiday which welcomed at the entrance with a small gift of you," Ambassador Beyrle added, con- marks the birth of Jesus Christ and thus - a red bell that the AmCham team gave gratulating Bulgaria with the upcoming EU it is a long-established tradition to be with to every guest. The festive decorations of membership. Following the spirited intro- the family. But the 12th month of the year the Hilton with its brilliant lights and light ductions and the joyful performance of is also a time associated with the abun- background music provided the perfect Jingle Bells, the AmCham party was the dance of social events where partners backdrop for the opening of the party by place to be as coworkers and friends and friends meet to wind up the year and AmCham Executive Director Valentin gathered in the Musalla lobby where Hilton eventually initiate new projects. The Georgiev and Borislav Boyanov, waiters filled glasses with assorted bever- AmCham Christmas party, dubbed "party AmCham's president. They enthusiastical- ages and spirits. AmCham greatly appre- of the year," attracted some 400 members ly welcomed the guests with the coming ciates the kind support of Domaine Boyar and friends of the Chamber. For the long- of the Christmas holidays and wished and Johnnie Walker who contributed to awaited event, guests gathered at the everybody a successful New Year. U.S. the party's joyous atmosphere. The fan- Hilton's gates in the evening of Dec. 12. Ambassador to Bulgaria John Beyrle also tastic music provided by Georgi Marholev, The lobby of the Hilton hotel turned out to attended as a special guest. Greeting the Amalia and the "Dirty Purchase", drew the be the ideal setting for the performance of audience in perfect Bulgarian, the ambas- crowd to the dance floor where the enter- Georgi Robev choir, creating a special sador said that Christmas is a holiday to tainment continued the chimes of mid- Christmas atmosphere with Stille Nacht, be with family and close relatives. "On the night. ■

The dances continued till midnight.

40 AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria amcham events

Would you mind singing with the choir? Anthony Hassiotis, CEO of the Saluting Bulgaria's EU membership Ambassador Beyrle says: "On the 1st of Bulgarian PostBank and Dimosthenis Baroutsos, Head of Corporate Banking of January 2007 I will be in Washington but I will make a transatlantic celebra- PostBank. tion with Bulgaria, thinking about all of you".

Dirty Purchase - from jazz to rock they bring the perfect spirit to the party It is hard to resist to the performance of "Georgi Robev" choir. AmCham Bulgaria Magazine December 2006

page 41

A Very Merry Christmas to AmCham Members from the Chamber's President Amalia and Georgi Marholev: two great voices and two great friends of Borislav Boyanov AmCham amcham events AmCham Thanksgiving Din Children with Disabilities

"Thanksgiving time is about family values and generosity, and it is very important that we have friends and partners to share these values with", US Ambassador John Beyrle said to the audience at the community dinner. AmCham Bulgaria held its 4th annual Family Thanksgiving Dinner on Nov. 16. In the American tradition, the event was dedicated to charity fundraising through a silent auction. Some 200 guests par- ticipated in the event at the Sheraton Sofia Hotel Balkan.

AmCham thanks Abbot Laboratories S.A., Eli Lilly and Company, Pfizer H.C.P. Corporation, and ABB Bulgaria for the main sponsorship of the event. In addi- tion, Rusalka Holidays will provide sum- mer holidays for 25 children with dis- abilities accompanied by a parent at the Kavatsite camping site. 42 Distinguished AmCham members con- tributed with special prizes for the fundraising in favor of the We Exist Association - Sofia, Future for Children with Disabilities Association - Kazanluk and Equality Association - Teteven.

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria AmCham Bulgaria fundraising for chari- ty purposes succeeded to collect 10,500 The famous jazz singer Vassil Petrov was admired by the guests at the dinner. amcham events ner Raises 10,500 Leva For Leva. The money was raised through Silent Auction Contributions silent auction bidding, sponsorship of ITEM CONTRIBUTOR the event and entrance fees, donation, as well as special contribution from 3 Luxury baskets of AVON Products AVON Cosmetics Bulgaria AmCham July Fourth party. Jack Daniel's 1914 Gold Medal Replica Bottle Brown Forman Beverages Worldwide Bulgarian Telecommunications 3 BTC ADSL 1024 Unlimited for one year AmCham appreciates financial support Company from all generous contributors and bid- Camelot Health & Beauty and ders who kindly provided their help for 6 vouchers for luxury body therapy Sheraton the three Associations: Iva Petkova, S&B 4 sets of CLUSTER wines limited selection Industrial Minerals; Andrei Vasilescu, Domaine Boyar Philip Morris; Teodor Milev, Microsoft; 2003 Rumen Mihailov, 3M; also, Technologica, Complete set of alarm system Force Delta Ltd Abbot, Mathnasium Rossimat, NECA, Dinner for two at Shades of Red Restaurant Grand Hotel Sofia Bearing Point, Greenville Bulgaria, 2 Dream Notes Piano Bar vouchers for two Grand Hotel Sofia Deloitte, Rising Force, Moten, Vivatel, 2 Buffet Dinner for two at Seasons Balkan Star, AUBG, Johnson Controls, Hilton Sofia American College. Restaurant Hand made ceramic lamp Integra Association Among the contributors for the fundrais- 6 sets of ROMANZA wines limited selection Karnobat Winery ing was Rising Force Company, with 2004-2005 donation of White Fender Stratocaster Kempinski Hotel Grand Arena Overnight stay for two at Kempinski Bansko which was autographed by dignitary Bansko guests of the 4th of July 2006 Celebration. Andrei Vasilescu of Philip Wireless desktop keyboard and mouse Microsoft Bulgaria Morris won the guitar with the highest 2 Ski & snowboard training courses Moten Sport bid of 500 Leva. New York Sunday Brunch vouchers for two at Radisson SAS Grand Hotel Flannagans As a special guest at the dinner, U.S. 10 books "Discover the Wonders of the Reader's Digest Ambassador to Bulgaria John Beyrle World" welcomed audience in Bulgarian. 2 A la carte dinner vouchers for two at "Thanksgiving time is about family val- Sheraton Sofia Hotel Balkan Balkan Restaurant ues and generosity, and it is very impor- 3 Annual subscriptions to Bulgaria Property tant that we have friends and partners Sofia Echo Media to share these values with," Beyrle said. Wise 3 Annual subscriptions to Sofia Echo Sofia Echo Media The evening program went on in the St Valentines romantic overnight for two at TravelStoreMaker.com spirit of the American tradition with a Bansko special program, live music with jazz DVD Player Sang Videolux-Technopolis Holding singer Vassil Petrov and the delicious Thanksgiving menu. Parti-colored pil- for rehabilitation specialists. Equality Association - Teteven is an AmCham Bulgaria Magazine December 2006 grims and Indians from the American organization of parents of children with College added to the atmosphere. Future for Children with Disabilities mental and physical disabilities, which Association - Kazanluk is an organiza- provides disabled children with special- About Associations tion of parents of children with mental ized support to improve their physical and physical disabilities, which is com- and mental health and make them more We exist Association - Sofia is an mitted to successful social integration of independent individuals. Their daily cen- organization of parents of children with disabled children. The organization ter takes care or 70 children and young page mental and physical disabilities. They maintains a daily rehabilitation and inte- people with disabilities. They would like 43 are working to create a better living gration center and takes care of 40 chil- to equip a room for physiotherapy and environment for children with disabilities. dren and adolescents with mental and rehabilitation within the daily center. The Currently, the daily center for disabled physical disabilities. They are planning organization needs 5,000 for the equip- children, which they are maintaining, to equip a room for visually impaired ment (a rowing device, medical balls takes care of 25 children. They need children and young people. They need and a couch for physical training, etc.) 5,000 Leva to buy equipment for physi- 9,000 for the equipment (a voice-recog- cal therapy and rehabilitation (a nition computer configuration, Braille The Thanksgiving Story hydraulic couch, a special device for devices for visually impaired people - physiotherapy, etc.), as well as funding keyboard, scanner, printer, etc.) In 1621, after a hard and devastating amcham events

first year in the New World, the Pilgrims' Student Actors from the American fall harvest was very successful and plentiful. They had corn, fruits, vegeta- College of Sofia Contributed to the bles, along with fish which was packed in salt, and meat that was smoke cured AmCham Thanksgiving Dinner over fires. They found they had enough food to put away for the winter.

The Pilgrims had beaten the odds. They built homes in the wilderness, they raised enough crops to keep them alive during the long coming winter, and they were at peace with their Indian neigh- bors. Their governor, William Bradford, proclaimed a day of thanksgiving that was to be shared by all the colonists and the neighboring Native American Indians.

The custom of an annually celebrated thanksgiving, held after the harvest, continued through the years. During the American Revolution, a day of national thanksgiving was suggested by the American College of Sofia students, President Louis Perske and his wife Deana Continental Congress. very much enjoyed the AmCham Thanksgiving celebration at the Sheraton Hotel on November 16. Bulgarian and American members came together to celebrate In 1817, New York state adopted the Thanksgiving tradition with fantastic food, a friendly atmosphere and most Thanksgiving Day as an annual custom. important quality entertainment. Part of this entertainment was provided by some By the middle of the 19th century many of American College student actors. During the arrival of guests actors were pre- other states also celebrated a sent at the front doors, dressed as Pilgrims and Native Americans. Not only did Thanksgiving Day. In 1863 President the delighted guests have their pictures taken with the Thanksgiving characters, Abraham Lincoln appointed a national but were also given a show. Under the direction of student director Michael day of thanksgiving. Since then each Georgiev, ACS actors performed their rendition of the meaning of Thanksgiving. president has issued a Thanksgiving It was a night enjoyed by all and a great experience for ACS students to meet Day proclamation, usually designating with the Bulgarian-American business community. the fourth Thursday of each November as the holiday. ■

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AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria Some 200 guests participated in the event which was possible with the main support of Abbot Laboratories S.A., Eli Lilly and Company, Pfizer H.C.P. Corporation, and ABB Bulgaria. amcham events Learning Fast with Berlitz How can one learn to understand essential Japanese words in Berlitz method pioneered 125 years ago and continues inno- half an hour? The 'miracle' happens at Berlitz, franchised by vating today, as AmCham guests at the traditional Business Infoguard, where language instructors from Bulgaria and after Hours cocktail on Nov. 28 learned from Stefan Nedkov, abroad with rich background make you understand a foreign franchiser, Slava Varbanova, director, and Maria Karaivanova, language, no matter whether it is Japanese, English, French, language instructor. The Chamber hosted the cocktail at the German, or Czech. Berlitz House on 31 Macedonia Square close to Russki Pametnik. On behalf of the AmCham, Olga Borissova, director European Programs AUBG, welcomed all the guests at the party and briefly presented the main advantages of the learn- ing center.

The method focuses on conversation in the target language and exclusively uses the language, no need for translating. The instructors are native fluent and rely on the active stu- dent participation. The language groups are small and con- sist of participants with similar language skills. The English module consists of General English, Business English for executives, virtual class rooms and online modules, programs for kids.

The key word at our center is communication, and 40 percent of the time in the room is dedicated to speaking skills, man- agers of the Berlitz Center explained.

Berlitz is the largest language center in Bulgaria so far. The intense personalized program Total Immersion is one of the fastest and most certain ways to master conversation. In only two to three weeks everybody can learn to communicate in the new language in both social and business situations. It works on the basis that the student speaks, listens and thinks in the new language all day long. The maximum learning inten- sity is with 12 instructional units daily.

Except for this program, Berlitz offers private language instruc- tion, corporate group instruction, group courses and cultural Stefan Nedkov, franchiser of Berlitz, cuts the picturesque cake in front of the ■ guests. consulting.

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AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria Let's go for a Japanese lesson, invited the language instructor Elena Atanasova /center/ from the Berlitz learning center. Learning fast with Berlitz was demonstrated with several language instructors in Czech, Bulgarian and Japanese. member news

The American College of Sofia Will Have New President from the Beginning of the Next School Year Sofia, Bulgaria (November 29, 2006). In Master and House Master at The sities in the United States and the world. July, 2004, Mr. Louis Perske advised the Lawrenceville School in Lawrenceville, Board of Trustees of Sofia-American New Jersey. During the preceding three Tom is a graduate of Middlebury Schools, Inc., that after seven highly years he was History Department Chair College, in Middlebury, Vermont, where successful years as head of the at the Trevor Day School in New York he received a Bachelor of Arts, majoring American College of Sofia, he planned City, and during the three years before in American Literature and minoring in to retire as the President of the College that Tom taught History and English at History, and played varsity football and at the end of academic year 2006-07. the American International School of junior varsity lacrosse. He holds Master The Board reluctantly acquiesced in Budapest, Hungary. Tom has coached of Arts and Master of Philosophy such determination and thereafter con- (American) football, lacrosse and soc- degrees in History from Columbia ducted a worldwide search for a suc- cer. University in New York City, and a cessor. Masters of Arts in Teaching English Founded in 1810, The Lawrenceville from Tufts University in Medford, The Board is pleased to announce the School is one of the leading private col- Massachusetts. selection of Thomas M. Cangiano from lege preparatory schools in the United Lawrenceville, New Jersey, as the next States. The co-educational school has Tom, his wife Linda Monbouquette President of the American College of approximately 800 students, two-thirds Cangiano, and their three young chil- Sofia. Mr. Canigano will assume his of whom reside at the school. Like the dren, George (7), Grace (5), and Celia duties in August, 2007. For the past nine College, its graduates gain admission to (3), will take up residence at the College years Tom Cangiano has been a History the most selective colleges and univer- in the summer of 2007. ■ Radisson Raises 1,700 Euro for Orphanage A program of volunteer donations of 1 Euro from each abroad to extend their support for Little Sun Orphanage. guest's bill was established in August 2006 as part of the Responsible Business policy of Radisson SAS Grand Hotel Radisson SAS Grand Hotel is part of the international in Sofia. In less than two months, the collected amount hotel chain Radisson SAS Hotels and Resorts. The hotel exceeded 1,700 Euro. These funds were used to buy opened its doors in January 2001 after privatization and a equipment and food for Little Sun Orphanage for mentally full renovation of the former Grand Hotel Sofia. The hotel challenged children at Gorski Senovets village. currently has 136 rooms, 8 meeting rooms, a restaurant and bar on the mezzanine, Flannagans Irish Pub, fitness During a visit to the orphanage, Fernando Gruenberg center, business lounge and business center. There are Stern, general manager of the hotel, also donated clothes, shops, travel and couriers agencies and a casino at the shoes, notebooks, sanitary items and candy. Some of the hotel premises as well. Since September 2005 the hotel goods were voluntarily collected from the hotel employees. has been offering free Wi-Fi Internet to all guests and vis- itors. "We will continue our support for this orphanage because it is human to show understanding and to help as much Radisson SAS Hotels and Resorts, part of Rezidor SAS as we can. "Responsible Business" is not only company Hospitality, offers first-class service, providing guests policy, but it is also a personal attitude towards these chil- with a contemporary, upscale hospitality experience. dren, deprived from normal childhood," said Gruenberg Radisson SAS has received numerous awards for Best Stern. Hotel Chain and is renowned for its "Yes I Can" spirit of service and the 100-percent guest satisfaction guaran- Little Sun Orphanage at Gorski Senovets is the home of tee. It currently includes 174 hotels either in operation or 48 53 children, all with varying levels of mental and physical under development, in 44 countries, in Europe, the disabilities. There are 10 kids who have multiple diseases Middle East and Africa. For more information, visit whose life expectancy hardly reaches 15 years. www.radissonsas.com

Radisson SAS Grand Hotel has been supporting this Rezidor SAS Hospitality is one of the fastest growing hos- orphanage for five years now. During that time thanks to pitality companies in the world and currently has 253 various activities the hotel has donated a mini van, mobile hotels with over 47,000 rooms, in operation and under medical equipment, food, clothes, therapy toys and more. development in 48 countries, with the aim to develop 700

AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria It has also attracted the attention of many people from hotels across its different brands by 2012. ■ member news

Microsoft Launches Windows Vista and Other New Products

According to the report, with the launch of Windows Vista only within the six- country region, where the research took place more than 1 million new jobs will be opened. On a worldwide basis, IDC forecasts more than 105,000,000 units of Windows Vista will ship in 2007.

The new versions of Windows, the Office release and Exchange Server are the result of an unprecedented col- laboration between Microsoft and its customers. During testing, customers from around the world downloaded more than 5 million beta versions of the three products and provided valu- able feedback and suggestions. As a result the new products of Microsoft enable people to work easier and faster, turning the information into potential for development and growth.

During the event Mr. Milev, on behalf of Teodor Milev during the presentation Micrososft Bulgaria, presented the observatories of Varna and Smolyan Mr. Teodor Milev, Managing Director of enues and growth for many of the 1 mil- with professional telescopes. Their Microsoft Bulgaria, announced lion IT companies worldwide that sell teams are among the 33 winners in the November 30 the new products of the hardware, write software, provide IT ser- First national contest for implementing company: Windows Vista®, 2007 vices, or serve as IT distribution chan- innovative IT projects in education. The Microsoft® Office System and nels. For every euro of Microsoft rev- contest was held under the patronage Microsoft® Exchange Server 2007 are enue from Windows Vista in 2007 in the of the Ministry of Education, Rotary and already available for the businesses. six countries studied, the ecosystem Microsoft Bulgaria. The official launch beyond Microsoft will reap almost 14 for businesses is part of a larger cam- "The economic impact of the upcoming euro in revenues", said Mr. Teodor Milev, paign promoting the new products and launch of Windows Vista® and 2007 Managing Director of Microsoft Bulgaria, is organized under the motto "Close to Microsoft® Office System will drive rev- quoting a research conducted by IDC. the eyes, close to the heart." ■ AmCham Bulgaria Magazine December 2006 Colliers International Named Best Employer Colliers Bulgaria was recognized as Best Employer in the of labor and social policy as well as business executives first national survey conducted by the international HR from a variety of industries.

consulting company, Hewitt Associates. The study ranked page 48 leading Bulgarian companies based on the results of a Colliers International (www.colliers.com) is a global real 49 detailed questionnaire filled in by their employees and estate services provider with more than 240 offices in over managers. Colliers was in the top three firms, demon- 50 countries worldwide. It has been operating in Bulgaria strating excellent overall results in all three areas mea- since 1991 and has proved itself as the unquestionable sured - employee engagement, HR audit, and leadership leader in all market segments, offering a comprehensive team. portfolio of real estate services, including investment and development advisory, market research and valuation, bro- The award ceremony took place Nov. 24, 2006 at the Hotel kerage and representation services, and property and facili- Hilton in Sofia and was honored by the Bulgaria's minister ties management. ■ new members

with consolidation potential, and having a clear domestic and/or regional expan- sion strategy through M&A/organic Canadian growth. The fund focuses on investing Abbott is a global, broad-based health- in: Financial Services, Retail, Logistics & With his distinctive vocals and blue-col- care company devoted to discovering Distribution, Consumer Products, lar songwriting skills, Canadian icon new medicines, new technologies and Information Technology & Bryan Adams' take on rock 'n' roll new ways to manage health. Abbott's Telecommunications, Healthcare, basics found a niche that has lasted for products span the continuum of care, Selected Industrial, Media and other over 20 years. from nutritional products and laboratory Consumer Related Services. diagnostics through medical devices and Adams solo career was launched with pharmaceutical therapies. The company Contact: the release of his self-titled debut album has sales, manufacturing, Thomas Higgins Bryan Adams in February of 1980 on research&development, and distribution Managing Partner A&M Records. Adams had already been facilities around the world. Abbott oper- Tel. +359 2 948 9111 touring, recording demos and working as ates in four segments: pharmaceutical Fax: +359 2 943 3886 a studio musician paying his rent for a products, diagnostic products, Ross 3 Shipka Str. few years, but it was when Adams Products and international. The Sofia 1504, Bulgaria formed a song-writing partnership with International segment markets and man- drummer Jim Vallance that things start- ufactures pharmaceutical and adult and The DLA Piper law firm was founded in ed to happen. pediatric nutritional products outside the 2005 following the The first album was not initially released US. Abbott Bulgaria joined the Abbott merger of a major in the U.S. (although "Hiding from Love" International family about 10 years ago UK and US law firm. was issued as a single and reached No. and all these years has a presence in This created one of 43 on the dance chart), so Adams the Bulgarian market, operating in vari- the largest global assembled a backup band and ous therapeutic areas through a team of law firms in the world whose 3,200 embarked on his first Canadian tour as more than 40 employees. Abbott prides lawyers in 24 countries, located in more a solo act, spending four months playing itself on being recognized as a good than 62 offices, provide legal services clubs and colleges. place to work because Abbott strives to across the US, Europe, Asia and the provide an environment that enables its Middle East. The tour was to be the foundation for employees to succeed. A member of the DLA Piper legal net- his second album, You Want It, You Got It, which was recorded in NYC in two Contacts: work the Austrian law firm DLA Piper weeks and released in the spring of Abbott Laboratories S.A. Weiss-Tessbach coordinates the devel- 1981. The original album title was Bryan Representative Office in Bulgaria opment of DLA Piper's services in Adams Hasn't Heard Of You Either but 45, Oborishte Street Central and Eastern Europe ("CEE"). that title was rejected by A&M as being 1504 Sofia The DLA Piper office in Sofia is the lat- too provocative. This 2nd album became Phones: +359 2 946 1551 est office of DLA Piper Weiss-Tessbach Adams' first 'official' release in the U.S. Fax: +359 2 943 3178 in CEE. Web Site: http://www.abbott.com The DLA Piper Sofia office consists of His third album, Cuts Like a Knife was released in January of 1983, with the The Balkan Accession Fund (BAF) is a 8 Bulgarian attorneys, all of whom have single "Straight from the Heart", leading private equity fund had international experience and are the way. It broke his career open, peak- backed by the DLA Piper global net- targeting invest- ing in the Top Ten of the Hot 100 and work, led by partner Peter Valert, who ment opportunities setting up the LP, which followed. The has over 12 year experience working in throughout South- album also reached Top Ten, selling CEE. The office provides clients a wide East Europe primarily focusing on platinum and spawning further Top 40 range of legal services in a profession- Bulgaria and Romania. hits with the title song and "This Time". al, proactive and cost effective manner. BAF is a EUR 110 million follow-on fund Adams' fourth album Reckless was Contacts: established in January of 2005 by man- released on his 25th birthday, November Managing Partner agement of the Bulgarian-American 5, 1984, and was preceded by the sin- 50 Peter Valert Enterprise Fund (BAEF) and the gle "Run to You", which reached the Top DLA Piper Weiss-Tessbach - Romanian-American Enterprise Fund Ten. It was followed by no less than five branch Sofia (RAEF). Top 20 singles drawn from the album: Tel: 935 561 "Somebody", "Heaven" (which hit num- Fax: 935 561099 BAF will typically invest, through equity ber one), "Summer of '69" (Top Ten), Address: 7, Pozitano Str. and/or mezzanine finance, in industry "One Night Love Affair", and a duet with Sofia 1301 leaders active in double digit growth Tina Turner, "It's Only Love". sectors and/or fragmented industries AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria Reckless reached No. 1 in the U.S. sell- music Icon Bryan Adams ing five million copies in America and a reported three million more in the rest of the world. Adams also earned his first two Grammy nominations, Best Male Rock Performance for the album as a whole, and Best Rock Performance by a Duo or Group for "It's Only Love". As per usual, Adams toured extensively in sup- port of it. His "World Wide in '85" tour began in December of 1984 finally wrapping in November 1985. One of the highlights that year included being the first artist to open the American side of the Live Aid concert from Philadelphia on July 13th.

Into the Fire, followed in March of 1987, prefaced by the single "Heat of the Night," which became Adams' fifth Top Ten hit in the U.S. The album reached the Top Ten in the U.S. and sold a mil- lion copies, with another million sold overseas. It also spawned the Top 40 hits "Hearts on Fire" and "Victim of Love". Adams' worldwide tour in support of the album went on for more than a year. One of the final shows, in Werchter, Belgium, was filmed for a television special, "Bryan Adams: Live in Belgium", broadcast in Canada the fol- lowing year.

Live! Live! Live! a concert album drawn from the 1988 Belgium show, was initial- ly released only in Japan but later gar- nered a wider audience. In a departure from earlier years, Adams did not tour extensively but opted to spend his time in England with writer/producer Robert John "Mutt" Lange, preparing for his next album. AmCham Bulgaria Magazine December 2006 Ten hits "Can't Stop This Thing We November 1993 featuring the single In June of 1991, Adams went back on Started" and of course, "(Everything I "Please Forgive Me," a new the road in Europe co-headlining with ZZ Do) I Do It for You". Before it finished Adams/Lange track. The song would Top. This coincided with the release of running its course there would be three also find its way into the Top Ten. Then the single "(Everything I Do) I Do It for more Top 40 hits, "There Will Never Be came the Adams' theme song for the You" which topped the U.S. charts for Another Tonight", "Do I Have to Say the movie The Three Musketeers, "All for seven weeks - the longest any song had Words?" and "Thought I'd Died and Love", recorded with Rod Stewart and page remained at No. 1 in eight years. Its Gone to Heaven". Waking Up the Sting, which hit No. 1 in the U.S. in 51 international success was even greater; Neighbours sold four million copies in January of 1994. That same month, spending 16 weeks at No. 1 in the U.K., the U.S. and another six million in the Adams embarked on an ambitious tour making it the longest-running chart-top- rest of the world. It also earned Adams of the Far East, including countries like per in the history of the British charts. a Grammy nomination and his first Vietnam that were rarely visited by Academy Award nomination. Western pop artists. Waking Up the Neighbours was released in September of 1991, and Adams once Adams began to look forward to his next Throughout the better part of 1994, again hit the road - this time until July studio album, but in the interim released Bryan kept a low profile with the excep- of 1993. The album featured two Top a hits compilation, So Far So Good, in tion of a song called "Rock Steady" writ- music

(Canadian Icon Bryan Adams - from page 51) to the fact that his record company Adams returned in the spring of 2002 (A&M) transferred his contract in the collaborating with Hans Zimmer on his ten for Bonnie Raitt's live album Road middle of the release to independent rap first full-length song score for a film, the Tested. He performed the song as a label, Interscope Records. animated DreamWorks feature Spirit: duet with her, and the two soon shared Stallion of the Cimarron. The soundtrack a chart single. Adams filmed an appearance for MTV's made it into the Top 40 and Adams and popular Unplugged series in the fall of Zimmer earned a Golden Globe At the beginning of 1996 Adams 1997, and it was released as an album Nomination for their collaboration. released a new album 18 'Til I Die. The in December. It was a modest success, album featured the flamenco-tinged and served as a stopgap until the In September of 2004, Room Service "Have You Ever Really Loved a appearance of his next studio album, was released in Canada and Europe Woman?" from the Johnny Depp/Marlon On a Day Like Today, which was where it debuted at No. 1 on the Brando film Don Juan DeMarco. Adams released in October 1998. Overseas, the Billboard European Top 100 albums was rewarded with yet another No. 1 hit, disc featuring the Melanie C duet "When Chart. This was shortly followed by its as well as a Grammy nomination for You're Gone", reached the UK No. 3 release in the US in the spring of Best Male Pop Vocal Performance and spot in December of 1998 and spent 10 2005. his second Oscar nomination for Best weeks in the Top 10. This was followed Song. by the Top 10 dance re-mix of "Cloud In the fall of 2005 Bryan Adams cele- Number Nine". The album also hit No. 3 brated his 25th anniversary as a record- An 18-month world tour followed and the in Canada. ing artist with his first two-CD collection album soon went platinum in the U.S. Anthology, the biggest retrospective of The singles "Lets Make A Night To In November 1999, Adams issued a sec- his multi-platinum career. The 36 selec- Remember" charted briefly in the Top ond hits compilation, The Best of Me, tion Anthology spans Adams' entire 40 and the provocatively titled "The Only but the American branch of career from 1980 through to present Thing That Looks Good On Me Is You" A&M/Interscope declined to release it. day, offering the very best of one of the proved to do well outside of the US, but The title track "The Best Of Me" chart- most popular rock singer-songwriters to didn't dent the US charts, perhaps due ed all over Europe and in Canada. ever don jeans and a t-shirt. ■

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THE RIGHT MESSAGE TO THE RIGHT AUDIENCE. For more details please contact: AmCham Bulgaria Office – Nadia Vakareeva, phone: 976 95 65, e-mail: [email protected] AmCham Bulgaria Magazine – Milen Marchev, phone: 846 88 32, e-mail: [email protected] AmCham Bulgaria Magazine December 2006 December Magazine AmCham Bulgaria