Strategic Environmental Assessment of Operational Programme Innovation

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European Regional Development Fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

Under contract № 232/06.03.2014 for Strategic environmental assessment and Compatibility assessment with the object and purpose of the conservation of protected sites of the Operational Programme Innovation and Competitiveness 2014-2020

REPORT ON STRATEGIC ENVIRONMENTAL ASSESSMENT OF OPERATIONAL PROGRAMME " INNOVATION AND COMPETITIVENESS " 2014-2020 (on the application of Article 19a of The Ordinance on conditions and procedures for environmental Assessment of Plans and Programmes and Article 86, paragraph 3 of the Environmental protection act)

“The Project BG161PO003-5.0.01-0003 “Effective Management of Operational Programme “Development of the Competitiveness of the Bulgarian Economy” 2007- 2013” is implemented with the financial aid of Operational Programme “Development of the Competitiveness of the Bulgarian Economy” 2007-2013”, (Priority Axis 5 “Technical Assistance”), co-financed by the European Regional Development Fund’’.

P-United Ltd.: /Manager - Petar Petrov/ Sofia, July, 2014

"This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective Management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the Contracting authority."

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CONTENT

INTRODUCTION ...... 7 CONTACT DETAILS ...... 7

PRINCIPAL'S NAME, ID, RESIDENCE, SITIZENSHIP - INDIVIDUAL, LEGAL PERSON'S REGISTERED OFFICE AND COMMON CODE FOR IDENTIFICATION ...... 7 FULL ADDRESS ...... 8 PHONE, FAX, Е-MAIL ...... 8 CONTACT PERSON ...... 8 1. DESCRIPTION OF THE CONTENT OF OPIC 2014-2020 AND CONNECTION WITH OTHER RELEVANT PLANS AND PROGRAMME ...... 8

1.1. BASIS OF PREPARATION OF THE PROGRAM ...... 8 1.2. MAIN OBJECTIVES OF THE 2014-2020 OPIC ...... 9 1.2.1 Priority axis 1: Technological development and Innovation ...... 10 1.2.2 Priority axis 2: Entrepreneurship and Capacity for growth of SMEs ...... 15 1.2.3 Priority axis 3: Energy and Resource Efficiency ...... 23 1.2.4 Priority axis 4 - Technical Assistance ...... 30 1.3. ALTERNATIVES FOR OPIC 2014-2020 ...... 36 1.5. CONNECTION OF OPIC 2014-2020 WITH INVESTMENT PROPOSALS ...... 59 2. CURRENT STATE OF THE ENVIRONMENT AND POSSIBLE DEVELOPMENT WITHOUT APPLICATION OF OPIC 2014-2020 ...... 60

2.1. CURRENT STATE OF THE ENVIRONMENT ...... 60 2.1.1. Climate condition and climate changes ...... 60 2.1.2.Air quality index ...... 64 2.1.3. State of surface waters ...... 73 2.1.4. Groundwater status ...... 84 2.1.5.Subsoil status ...... 88 2.1.6. Status of soils and land use...... 95 2.1.7. Vegetation status ...... 110 2.1.8. Status of animals ...... 117 2.1.9. Status of protected sites under the Biodiversity Act ...... 127 2.1.10. Status of the protected areas under the Protected areas act ...... 133 2.1.11. Landscape condition ...... 140 2.1.12. Status of material assets ...... 144 2.1.13. Heritage including architectural and archaeological heritage ...... 147 2.1.14. Health and hygienic aspects of the environment ...... 158 2.1.15. Harmful physical factors ...... 164 2.1.16.Waste ...... 167 2.2. POSSIBLE ENVIRONMENTAL DEVELOPMENT WITHOUT APPLICATION OF OPIC 2014-2020 ...... 175 3. ENVIRONMENTAL CHARACTERISTICS OF TERRITORIES WHICH ARE LIKELY TO BE SIGNIFICANTLY AFFECTED BY THE REALIZATION OF OPIC 2014-2020 ...... 180 3.1. PROTECTED SITES, PROTECTED AREAS AND OTHER AREAS OF BIODIVERSITY IMPORTANCE ...... 180 2 „"This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the Contracting authority."

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3.2. WATER ...... 181 3.3. OBJECTIVES OF HEALTH PROTECTION ...... 181 3.4. AREAS AT RISK OF FLOODING ...... 182 3.6. AREAS OF VALUABLE LANDSCAPES ...... 182 3.5. LANDS OF HIGH NATURAL VALUE ...... 183 4. EXISTING ENVIRONMENTAL PROBLEMS IDENTIFIED AT DIFFERENT LEVELS, HAVING REGARD TO THE OPIC 2014-2020, INCLUSIVE RELATING TO AREAS OF PARTICULAR ENVIRONMENTAL IMPORTANCE, SUCH PROTECTED SITES IN BIODIVERSITY ACT ...... 184 5. THE ENVIRONMENTAL PROTECTION OBJECTIVES, ESTABLISHED AT NATIONAL AND INTERNATIONAL LEVEL, WHICH ARE RELEVANT TO OPIC 2014 - 2020 AND THE WAY THOSE OBJECTIVES AND ANY ENVIRONMENTAL CONSIDERATIONS ARE TAKEN INTO ACCOUNT DURING PREPARATION OF THE PROGRAMME ...... 192 6. LIKELY SIGNIFICANT IMPACTS ON THE ENVIRONMENT, INCLUDING BIODIVERSITY, POPULATION, HUMAN HEALTH, FAUNA, FLORA, SOIL, WATER, AIR, CLIMATE FACTORS, MATERIAL ASSETS, CULTURAL HERITAGE INCLUDING ARCHITECTURAL AND ARCHAEOLOGICAL HERITAGE, LANDSCAPE AND THE RELATIONSHIP BETWEEN THEM ...... 210

6.1. IMPACT ON CLIMATE CONDITION AND CHANGE ...... 210 6.2. IMPACT OF AIR QUALITY ...... 214 6.3. IMPACT ON SURFACE WATER ...... 220 6.4. IMPACT ON GROUNDWATER ...... 224 6.5. IMPACT ON THE SUBSOIL ...... 228 6.6. IMPACT ON SOILS AND LAND USE...... 232 6.7. IMPACT ON VEGETATION ...... 235 6.8. IMPACT ON WILDLIFE ...... 238 6.9. IMPACT ON PROTECTED SITES UNDER THE BIODIVERSITY ACT ...... 242 6.10. IMPACT ON PROTECTED AREAS UNDER THE PROTECTED AREAS ACT ...... 245 6.11. IMPACT ON THE LANDSCAPE ...... 249 6.12. IMPACT ON MATERIAL ASSETS ...... 254 6.13. IMPACT ON HERITAGE INCLUDING ARCHITECTURAL AND ARCHAEOLOGICAL HERITAGE ...... 258 6.14. IMPACT ON POPULATION AND HEALTH (HEALTH AND HYGIENE ASPECTS OF THE ENVIRONMENT) ...... 261 6.15. IMPACT OF THE HARMFUL PHYSICAL FACTORS ...... 265 6.16. IMPACT IN TERMS OF WASTE...... 268 6.17. FORECAST FOR CUMULATIVE IMPACT ...... 272 6.18. POSSIBLE CROSS-BORDER IMPACT OF THE PROVISIONS OF THE PROGRAM ON THE ENVIRONMENT AND HUMAN HEALTH IN OTHER COUNTRIES ...... 273 6.19. GENERALIZING CONCLUSION ...... 273 7. APPROPRIATE MEASURES ENVISAGED TO PREVENT, REDUCE AND, AS FULLY AS POSSIBLE, OFFSET ANY ADVERSE EFFECTS ON THE ENVIRONMENT AND HUMAN HEALTH RESULTING FROM THE IMPLEMENTATION OF OPIC 2014-2020...... 274 8. THE REASONS FOR THE CHOICE OF THE ALTERNATIVES STUDIED ...... 277 9. METHODS OF CONDUCTING ENVIRONMENTAL ASSESSMENT, USED LEGAL BASIS AND DOCUMENTS AND DIFFICULTIES IN COLLECTING NECESSARY INFORMATION ...... 278 10. MEASURES RELATING TO MONITORING DURING IMPLEMENTATION OF OPIC 2014-2020 ...... 280 11. CONCLUSION OF THE REPORT ON THE STRATEGIC ENVIRONMENTAL ASSESSMENT ...... 282 3 „"This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the Contracting authority."

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12. REFERENCE FOR THE RESULTS OF THE CONSULTATION IN THE DRAFTING PROCESS OF OPIC 2014-2020 AND STRATEGIC ENVIRONMENTAL ASSESSMENT ELABORATION ...... 282 13. NON-TECHNICAL SUMMARY ON THE STRATEGIC ENVIRONMENTAL ASSESSMENT ...... 282 14. APPENDIX TO THE REPORT ON STRATEGIC ENVIRONMENTAL ASSESSMENT ...... 282 APPENDIX: ...... 283

4 „"This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the Contracting authority."

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The opinions expressed herein are those of its author and do not necessarily reflect the opinions of the Ministry of Economy and Energy.

ABRIDGENT HEIs Higher education institutions SЕA Strategic Environmental Assessment EPA Environmental protection Protection Act ICT Information and communication technologies SMEs Small and medium enterprises R&D Research and development OCPEAPP Ordinance on the conditions and procedures for environmental assessment of plans and programes OPIC Operational Programme "Innovation and Competitiveness " 2014-2020 OPE Operational Programme "Environment" 2014-2020 OPSEIG Operational Programme Science and Education for Intelligent Growth 2014-2020 г. OPDCBE Operational Programme Development of the Competitiveness of Bulgarian Economy OPHRD Operational Programme Human Resourse Development 2014-2020 г. CMD Council of Ministers Decision ESIF European Structural and Investment Funds GF Grant Financing ISSS Innovation Strategy for Smart Specialisation TO Thematic objective PA Priority axis IP Investment priority SO Specific objective BSMEPA Bulgarian Small and Medium Enterprises Promotion Agency SAMTS State Agency for Metrological and Technical Surveillance BIM Bulgarian Institute of Metrology BDS Bulgarian Institute for Standardization BAS Bulgarian Accreditation Service MA Managing Authority SEDA Sustainable Energy Development Agency MEE Ministry of Economy and Energy 5 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

MH Ministry of Health MEW Ministry of Environment and Water EFRD European Fund for Regional Development MF Ministry of Finance GDP Gross domestic product EU European Union ESIF European Structural and Investment Funds NDP National Development Programme NRP National Reform Programme RES Renewable energy sources NPAF National Priority Action Framework for Natura 2000 PRD Programme for rural development PMAF Program for maritime affairs and fisheries EIB European Investment Bank EAFRD European Agricultural Fund for Rural Development EFMAF European Fund for Maritime Affairs and Fisheries OPTTI Operational Programme Transport and Transport Infrastructure OPGG Operational Programme Good Governance TPP Thermal Power Plant IG Industrial gases ExEA Executive Environment Agency AAUs Assigned amount units AQ Air quality AAMAAQ Areas for Assessment and Management of Ambient Air Quality NASMAAQ National Automated System for Monitoring Ambient Air Quality PM10 Particulate matter EEA European Environment Agency RBMP River Basin Management Plan RBD River Basin Directorate WWTP Waste Water Treatment Plant QS Quality Standard MAF Ministry of Agriculture and Food EIA Environmental Impact Assessment PS Protected site MPFR Management Plans for Flood Risk

6 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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INTRODUCTION Operational Programme "Innovation and Competitiveness" (OPIC) 2014-2020 is prepared in accordance with the Partnership Agreement for 2014-2020, which sets framework for funding under the European Structural Funds investment for period 2014- 2020 and sets period provided operational programs. The program is closely linked to the objectives for growth and employment and the contribution of the Republic of Bulgaria to achieve three complementary types of growth, according to "Europe 2020 strategy":  smart growth: developing an economy based on knowledge and innovation;  sustainable growth: promoting a more resource efficient, greener and more competitive economy;  inclusive growth: fostering a high-employment economy delivering social and territorial cohesion. By Decision № ЕО-1/2014 of the Minister of Environment and Water for the OPIC project 2014-2020 Strategic environmental assessment is required to be carried out on the application of Chapter 6 of Environmental protection act and OCPEAPP. An assessment of likely degree of negative impact is made according to this decision. According to this assessment OPIC 2014-2020 is unlikely to have a significant negative impact on natural habitats, populations and habitats of species in protected sites of the European ecological network Natura 2000 (therefore does not require a Compatibility assessment of the impact of OPIC 2014-2020 on the object and purpose of the conservation of protected sites). According to Art. 19, paragraph 1, paragraph 3 and paragraph 4 of the Ordinance on the conditions and procedures for environmental assessment of plans and programs, the Ministry of Economy and Energy shall consult with the public, interested bodies and third parties likely to be affected plan drawn up for this purpose. Under Article 19 of the Ordinance on the conditions and procedures for environmental assessment of plans and programs was prepared Report for scope and content of the Strategic environmental assessment (representing The Scope of work under the Ordinance on the conditions and procedures for environmental assessment). The Scope of work was submitted for consultation of interested parties. As a result of consultations were received opinions. They are consistent in preparing of SEA. CONTACT DETAILS Principal's name, ID, residence, sitizenship - individual, legal person's registered office and common code for identification Ministry of Economy and Energy General Directorate „European Funds for Competitiveness”

7 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Full address 1000 Sofia, “6th of September” Str. № 21 Phone, FAX, Е-mail Phone.: 02/9329220; FAX: 02/9329299 Contact person Eli Milusheva Managing director Phone.: 02/9329220; FAX: 02/9329299 e-mail: [email protected] 1. DESCRIPTION OF THE CONTENT OF OPIC 2014-2020 AND CONNECTION WITH OTHER RELEVANT PLANS AND PROGRAMME 1.1. Basis of preparation of the program OPIC 2014-2020, produced in accordance with:  Council of Ministers Decree № 5/18.01.2012 on the development of strategic and program documents of the Republic of Bulgaria to manage funds under the Common Strategic Framework of the European Union for the programming period 2014-2020;  CMD № 328/25.04.2012 on the approval of a list of thematic objectives to be included in the partnership agreements of the Republic of Bulgaria for the 2014-2020 programming period, the list of programs leading institution for the development of each program;  Regulation (EC) № 1301/2013 of the European Parliament and of the Council of 17.12.2013 on the European Regional Development Fund and special provisions for the objective 'Investment for growth and jobs ", and repealing Regulation (EC ) № 1080/2006;  Regulation (EC) № 1303/2013 of the European Parliament and of the Council of 17.12.2013 laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Fund for maritime Affairs and Fisheries and laying down general provisions on the European regional Development Fund, the European Social Fund, the Cohesion Fund and the European maritime and Fisheries Fund and repealing Regulation (EC) № 1083/2006 of the Council;  Draft Partnership Agreement of the Republic of Bulgaria.

8 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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1.2. Main objectives of the 2014-2020 OPIC The main objective of OPIC 2014-2020 is to achieve a dynamic competitive development of the economy based on innovation, optimization of production chains and sectors with high added value. To achieve this objective the following priority areas for support are determined: • Technology development and innovation • Entrepreneurship and capacity for growth of SMEs • Energy and resource efficiency. The focus of the priority axes 1 and 2, "Technological development and innovation" and "Entrepreneurship and capacity for growth" includes two mutually complementary aspects - acceleration of growth (providing "catch up" growth) and supporting the development of innovation (as an option 'smart' growth). Need to be strengthened as the production capacity of enterprises and technological development and transfer of knowledge and technology, in parallel with the development and commercialization of innovations and promote sustainable entrepreneurship through financial instruments which synergistically lead to increased competitiveness and productivity businesses and creating new opportunities in the European and international markets. 1 investment priority is set under priority axis: 1.1. / Technological development and innovation. Under priority axis 2 has been identified the need for two investment priorities:, 2.1. / Entrepreneurship and 2.2. / Capacity for growth of SMEs. Investment priorities along two axes only integrated can address key challenges facing innovation and competitiveness of Bulgarian enterprises. In order to achieve maximum focus and enhanced effect of the investments required compliance with national strategic policies: • under Priority Axis 1 "Technological Development and Innovation" (TО1) is a leading innovation strategy for smart specialization; • under Priority Axis 2 "Entrepreneurship and capacity for growth 'SMEs (ТО3) is a leading national strategy for the promotion of SMEs, ie eligible for funding through grant funding are only identified in its sector. Priority Axis "Energy and resource efficiency" also addressed two inter-related aspects (resource productivity and energy efficiency of enterprises), which are the basis of "sustainable" growth. Integrated addressing resource and energy efficiency is the only option for addressing complex challenges facing Bulgarian enterprises in terms of their resource inefficiency. It is both improving resource productivity in enterprises and enhance their energy efficiency and flexibility, leading to increasing the sustainable competitiveness of the Bulgarian economy.

9 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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This axis consists of two investment priorities: 1. / Energy technologies and energy efficiency and 2. / Resource efficiency. In order to achieve maximum focus and impact of investments made under Priority Axis 3 "Energy and resource efficiency" in the thematic objective 4 are removed sectors of trade and services, and in Thematic objective 6 will be allowed only pilot and demonstration projects for resource efficiency. Priority axes, investment priorities, specific objectives and types of activities eligible for funding are as follows: 1.2.1 Priority axis 1: Technological development and Innovation Investment priority 1.1: "Technological development and Innovation" In accordance with the Thematic Objective 1 "Strengthening research and development, technological development and innovation", Investment priority 1b/, Regulation 1301/2013, "encouraging business investment in R&D, development of relations and cooperation between enterprises, R&D centers and the university sector, in particular the promotion of investment in the development of products and services, technology transfer ... " and according to the identified needs at national level within the OPIC 2014-2020, this priority axis includes support for technological development and innovation in order to increase innovation activities of enterprises. Recommendations of the Council for 2013 highlight the importance of linking education with the needs of businesses as well as strengthening the cooperation between education-science-businesses (Recommendation 4); and access to finance for SMEs and start-ups (Recommendation 5). Under Investment priority 1.1. OPIC aims at directly cotributing to the achievement of objectives related to innovation activities in enterprises in line with the Innovation Strategy for Smart Specialisation (ISSS): a) fosteringpartnership between innovative enterprises and innovation potential holders ; b) introducing specific measures for support of innovation activities in enterprises; c) further development of existing or introducing new financial instruments for funding innovation activities; d) development of contemporary innovation infrastructure; e) internationalisation of innovation process f) popularisation of good practises of innovation activities.

Specific objective 1.1.: Increasing innovation activity of enterprises by at least 3.5%1 by 2023 г.

1 According to data from NSI for the period 2006 – 2010 the expenditures (public and private) for R&D in enterprises had icreased for about 77.6 million Euro (from 30.8 million Euro in 2006 to 108.4 million Euro in 2010) as for the same period the share of innovation enterprises in Bulgaria had increased by 6.9% (in absolute rate ) – from 20.2% to 27.1% (which makes 34% relati ve increase).Taking into account, that the provided under OPIC funds,in IP 1.1. for support of enterprises is 10 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Expected results Indicative activities in support of that specific objective will lead to increased innovation activity of the Bulgarian enterprises by creating the necessary innovation environment and infrastructure for development of innovation; stimulating R&D activities and innovation in and for enterprises, incl. through partnerships between enterprises or between enterprises and research institutes and universities. The enhancing of the innovation activity of the enterprises is achieved both by stimulating investment (both public and private) in R&D and through increased investment in product, process, marketing and/or organizational innovation. Eco-innovations as well as innovation in the field of low-carbon economy are integral part of the OPIC’s approach to innovation. This creates prerequisites for building an integrated innovation capacity, movement up the value chain and creating long-term competitive advantages, incl. into the ecology and low- carbon tehnologies. Description of sample types and financing activities and their expected contribution to the relevant specific objectives: The support provided within the priority axis is envisaged to be focused on, but not limited to the following indicative sets of activities:  development of cooperation for innovation between enterprises, between business and academia and between business and other innovation capacityholders, incl. internationalisation of the innovation process.  support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research. The development of cooperation for innovation between enterprises, between business and academia and between business and other innovation capacity holders, incl. internationalisation of the innovation process will be encouraged through implementation of mutual projects, including clustering and participation in pro-innovative EU networks and platforms. Opportunities will be created for companies and leading national and/or European academic and research groups to collaborate, which will lead to the creation/development of innovative capacity and sharing resources for the development and implementation of innovative processes and products, protection and transfer of copywright and license royalties, commercialization of the results from researches.

254% (196.7 million Euro/77 million Euro) from these for the period 2006 – 2010. If the tendency of the period 2006 – 2010 is retained, then the increasing of the innovation enterprises share could reach 17.5% (6.9/77.6/196.7). Nevertheless only about 15% - 20% from the beneficiaries under OPIC 2014 – 2020 by IP 1.1.will be enterprises, which currently han’t introduced any innovation, that is way the expected effect of IP 1.1. will lead to about 3 % increasing share of innovation enterprises in Bulgaria when the tendency retained the same, which is the specific objective ot the Investment priority. 11 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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On the other hand, mostly for high technology, an approach could be applied to the identification and structuring of innovation clusters under two basic models : 1/ focus on a particular sector/cluster in line with technology transfer generally needed for introducing innovation in individual companies in the sector/cluster; and 2/ focus on Key Enabling Technologies - KETs, which are applicable to multiple and/or different sectors, but lead to progress in specific technological sphere. Public support in technology results in close-to- market investments, as pilot lines, validation activities, advanced manufacturing capabilities. Furthermore, mutual cooperation could be supported also through the development of technology transfer offices and technology centers. Support will focus on increasing the capacity to identify studies of interest to the industry, science-business relationship management, intellectual property rights, commercialization through licenses and start-ups, researchers’ awareness about intellectual property rights and commercialization. The Strategy for the Danube Region also contains a priority that OPIC will support in the development of the "knowledge society" (research, innovation, education and ICT). Examples of activities in this regard include the creation of Living Labs for the development, validation and implementation of new products and services through joint participation of consumers, the academia and the businesses in the innovation process (according to the Danube Strategy, the Action Plan for the Danube strategy, PA7), as well as facilitation of creative knowledge transfer through establishing new design centers and transfer of knowledge from the creative industries to the traditional enterprises (according to the Danube Strategy, the Action Plan for the Danube strategy, PA8). The expected contribution of these supported actions is in raising the innovation activity of the enterprises due to the enabled opportunities for mutual cooperation, exchange and sharing of ideas and resources. As a result, the share of companies developing and introducing innovation in partnership with other participants of the innovation chain will increase, leading to establishing innovation capacity in the supported sectors and creating long-term competitive advantages for the country. The target group includes Bulgarian enterprises in cooperation with other Bulgarian or European companies, universities and/or research organizations; Bulgarian start-up (spin- off) companies based on intellectual property transferred by the Bulgarian or European universities/research organizations; clusters with potential for high value added, consortia of enterprises designed to create new products and services, in line with the Innovation Strategy for Smart Specialisation. (ISSS). Support for innovation in enterprises, incl. development and introduction of new products, processes and business models is associated with investment and consultancy support for development of innovation, technology transfer in the country, implementation of innovation in enterprises. Support is also envisaged for greater opportunities for inclusion of Bulgarian enterprises in Horizon 2020 as well as ECSEL Joint Undertaking. Consideration

12 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

will be given to opportunities for developing the potential for "blue" growth and innovation - "blue" bio- technology, sea mineral resources, surveys of the seabed, deep wells, etc.. The expected contribution of these supported activities is expressed mainly in the increased share of companies which by themselves carry out innovation activities, develop and disseminate innovation, and as a result, their own innovative capacity and competitiveness will increase. The target group includes enterprises developing/introducing innovation incl. existing enterprises. Support for the development of environment and infrastructure for innovation and research includes:  Creation, development and accreditation of thematically focused laboratories for certification, testing and proof of concept to test models and utility models, and other shared infrastructure to support the R&D activities of enterprises, including Phase 2 of the Technology Park “Sofia Tech Park. Supported laboratories are thematically focused laboratories and high-tech labs for testing and technology verification that provide open public access by sectors to tehnology options and tools, education and training and mentoring for prototyping and digital production of innovative ideas and products. This will reduce the risk associated with the launch of new products and ideas to market prior to proof of return. Targeted support for Sofia Tech Park aims at creating the first completely new innovative science and technology eco-system of advanced level where they can identify, promote and develop innovative ideas and projects; creating a focal point for co-active interaction of international and Bulgarian partners to support the relationships between existing knowledge-based institutions and the private sector to improve the commercialization of R&D activities. A national environment for innovation on a global level will be established in order to stimulate the development of sectors with significant added value.  Supporting the development of modern and new for the country business services related to the management of the intellectual property system, the Bulgarian standardization system and the system of accreditation of laboratories and new products. The expected contribution of these supported activities is expressed in increased innovative activity by improving the environment and infrastructure for development and dissemination of innovations - a catalyst for the development of applied research and opportunities for entrepreneurship, innovative environment that will support the development of innovative capacity and create long-term competitive advantages of the Bulgarian economy by moving up the value chain. The target group is Sofia Tech Park with the aim to create an eco-system of vertically integrated enterprises, clusters with potential for high value added, existing 13 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

technology transfer offices, associations of companies as well as associations of companies with scientific organizations, institutions of direct benefit to the innovation activity of the enterprises. Specific targeted territories: the territory of the whole country. Types of Beneficiaries: enterprises or their associations, including partnerships with research organizations; agencies, institutions and business organizations and other entities that are related to the provision of services to support R&D and innovation in the business, Sofia Tech Park, technology transfer offices and technology centers, clusters. Guiding principles for selecting operations: In the selection of operations within the investment priority, the following leading principles should be followed:  Thematic concentration – within this investment priority the Innovation strategy for smart specialization will be of leading importance;  Funding will be performed as per the procedures, established in the national legislation and the the internal procedures of the MA;  Need-based funding – the selected operations are supposed to meet key challenges to the business/economy identified in the Partnership Agreement and the OPIC strategy;  Effectiveness and efficiency of the investments – the selected operations should fully meet the objectives of the OP. The leading factor in the selection of a mechanism for implementation of the operations should be achieving maximum effectiveness as well as reducing the administrative burden for the potential beneficiaries;  Sustainability of the investments – ensure sustainability of the achieved results after project completion;  The principle of sustainable development – on funding the operations under the Op, the MA should ensure compliance with the principle of the sustainable development;  Mitigation of climate change and adaptation impact - in the selection of operations, the MA will provide monitoring to avoid harmful impact on climate in the implementation of operations;  The principle of partnership and transparency – the criteria for selection of operations are subject to approval by the Monitoring Committee of the operational programme;  The principle of the equal opportunities – encouraging equal opportunities for everybody, including accessability for disabled people through the integration of the principle of non-discrimination.

14 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

 Developing a comprehensive system for monitoring and evaluation with the possibility to assess the impact, especially in the implementation of grants and voucher schemes.  Balance of tools quickly reaching the enterprises (e.g. vouchers) and those with a focus on high quality of projects (e.g. grants).  Coordination and synergy – coordination between the various operational programmes at national level, the horizontal programmes and other instruments of the Union with the aim to achieve maximum synergy effect and not allow double financing According to the Guide to synergies between the Structural Funds and Horizon 2020 and other research programmes related to innovation and competitiveness (Ref. Ares (2014) 755 621 - 17.03.2014) despite the increased budget in the area of research, innovation and competitiveness, what is crucial is to ensure optimal synergy between the various funds and instruments for addressing global competitive pressures and to maximize the results and effectiveness of public resources. The European Parliament and the Council clearly show that the approach has changed from "it is nice to have" to "it should have" synergistic effect between ESIF and the Framework Programmes in the period 2014-2020, Horizon 2020 and COSME. The guide provides for three main features: - Parallel complementary projects with good timing; - Co-financing under the same project with clear demarcation of expenditure; - Building on the results of the projects under the Framework Programmes, where the OPIC 2014-2020 strategy envisages to include this opportunity, given the proximity of the possibilities for reducing the administrative burden. Project proposals involving building on the results under 5, 6, 7 Framework Programme and Horizon 2020 and ECSEL Joint Undertaking, will be advantagously encouraged under the principle of bonus points in the assessment. When providing any kind of grant the European state aid legislation will be respected and checks for the absence of double funding will be carried out. 1.2.2 Priority axis 2: Entrepreneurship and Capacity for growth of SMEs Investment priority 2.1. „Access to finance for supporting entrepreneurship”

15 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

In accordance with Thematic Objective 3, Investment Priority 3a/Regulation 1301/2013 "promoting entrepreneurship, in particular by facilitating the economic exploitation of new ideas and fostering the creation of new businesses ..." and according to the identified needs at the national level within OPIC 2014-2020 and Recommendation No 5 (to improve access to finance for SMEs and start-ups) of the Council for 2013, this investment priority provides for support to promote entrepreneurship and facilitate access to financing for enterprises under priority area "Entrepreneurship " and "Access to Funding" of the National Strategy for Promotion of SMEs 2014-2020.

Specific objective 2.1.: Encouraging entrepreneurial activity by at least 2% till 2023 through improvement of access to finance

Expected results: The expected results of the implementation of the indicative measures envisaged for support through financial instruments within this specific objective relate to the need of creating sustainable businesses, especially in the industrial sector and the knowledge- intensive services, and new jobs in the Bulgarian economy. The desired effect is: increasing

entrepreneurial activity rate by 2% in order to reach the objective set in the National Strategy for Promotion of SMEs 2014-2020 through creation of new enterprises and support to successful implementation of new business ideas of existing SMEs in order to compensate the established sectoral imbalances in the Bulgarian economy, including in specific areas; successful and accelerated development of existing entrepreneurial companies, leading to economic stabilization and growth. The results achieved under this investment priority will have a direct contribution to the implementation of the National Strategy for Promotion of SMEs 2014-2020 in priority areas 1 and 6. Action to be supported under the investment priority:  Financial instruments for support of entrepreneurship;  Encouraging entrepreneurial ideas in areas related to European and regional challenges.

16 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

The financial instruments for support of entrepreneurship, including venture capital (mostly in the early stages of the development of the enterprise), guarantee products, loans and hybrid financing will encourage: the creation of new businesses in high- and medium-tech sectors and those of knowledge-intensive services under the National Strategy for Promotion of SMEs ; development of new ideas, new products/services, transfer of entrepreneurial ideas through investments in tangible and intangible assets, acquisition of permits, licenses for the realization of new businesses for specialized activities, implementation of franchise, etc. for companies with a higher risk profile, but with the potential to create high added value. Instruments will involve mentoring for the entrepreneurs and establishing links with foreign entrepreneurs and potential investors. Financial support is envisaged for new or proven entrepreneurs and implementation of new business ideas. The expected contribution of these activities is to create new sustainable businesses and jobs therewith, by increasing entrepreneurial activity as well as successful implementation of new business ideas for accelerated development and investment activity of the existing entrepreneurial companies in the sectors under the National Strategy for Promotion of SMEs with the potential to create high added value. The target group of this set of measures are: newly registered enterprises wishing to implement a business idea above 25 000 €; entrepreneurs seeking opportunities for development and realization of higher added value; companies that seek market development and sustainability. In connection with the implementation of the financial instruments, a minimum percentage of the value of the respective instrument is envisaged to be provided for supporting ideas that will be implemented by women entrepreneurs, people with disabilities, start-up entrepreneurs - individuals under 29 years of age and persons over the age of 50 starting their own business. Encoraging entrepreneurial ideas in areas related to European and regional challenges is envisaged as an integral part of the entrepreneurship as an investment priority of the OPIC strategy. Given the particular importance for the EU of certain specific areas2 related to European and regional challenges, support will be provided for enterprises in

specific areas48F, e.g. creative and cultural industries, companies developing new products and services related to active aging and social healthcare entrepreneurship, social entrepreneurs and cooperatives of people with disabilities, ICT applications and e-commerce applications and services in these areas. The expected contribution of these activities is provision of support for development of new businesses and competitiveness of the existing businesses and the creation and sustainability of jobs therewith in order to achieve growth in emerging areas related to European and regional challenges.

2 Creative and cultural industries, healthcare, activities related to the aging of the population, in accordance with paragraph (8) of the Preamble to Regulation 1301/2013 with up to 2% of the Programme’s budget 17 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

The target group of this set of measures are: enterprises wishing to implement entrepreneurial ideas in the field of health, the processes associated with aging of the population, demographic issues, cultural and creative industries and others. Territorial scope: all measures and activities within this investment priority will be implemented throughout the country. Types of Beneficiaries: start-up (newly registered) and existing enterprises in the sectors defined in the National Strategy for Promotion of SMEs and businesses operating in the area of healthcare, the processes associated with aging of the population, demographic issues, cultural and creative industries, etc..

UGuiding proinciples for the selection of operationsU: The following guiding principles should be observed in the selection of operations within investment priority 2.1:  Provision of financing will be realized in compliance with the procedures, established in the national legislation and the internal procedures of the MA;  Need-based funding – the selected operations must conform with the main challenges before the business/economy, which are identified in the Partnership Agreement and OPIC 2014-2020 strategy, the relevant strategic documents in the implementation of the specific ex-ante conditionalities;  Effectiveness and efficiency of the investments – the selected operations should conform completely with the objectives of the operational programme. The achievement of maximum effectiveness should be leading in the selection of mechanism for the implementation of operations as well as the reduction in the administrative burden for the potential beneficiaries;  Sustainability of the investments – ensuring sustainability of the results achieved after the completion of the project implementation;  Relevance – the selected operations should contribute to the implementation of the output and result indicators under the Programme  Coordination and synergy – coordination among the different operational programmes at national level, the horizontal programmes and other instruments of the Union with the aim to achieve maximum synergic effect and avoid double financing;  The principle of partnership and transparency – the criteria for selection of operations are subject to approval by the Monitoring Committee of the operational programme;  The principle of sustainable development – on funding the operation under the OP, the MA should ensure compliance with the principle of sustainable development as set out in Article 3, paragraph 3 of the TEU and the obligation to integrate the requirements of environmental protection under Article 11 and the "polluter pays" principle laid 18 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

down in Article 191, paragraph 2 of the TFEU. In the selection of projects it should be ensured that the investment is directed towards the most sustainable options with the most efficient use of resources;  Mitigation of the climate change and adaptation impact - in the selection of operations, the MA will provide monitoring to avoid harmful impact on climate in the implementation of operations;  The principle of the equal opportunities – encouraging equal opportunities for everybody, including opportunities for accessibility to specialized enterprises and cooperatives for people with disabilities, and respect for the principle of accessibility (prevention of discrimination based on disability) When providing any kind of support, the European state aid rules will be complied with and checks for the absence of double funding will be carried out.

UPlanned financial instruments The specific financial instruments (if applicable) within Investment Priority 2.1 will be determined after the completion of the ex-ante evaluation on the implementation of financial instruments, which under Art. 37 of Regulation 1303/2013 seeks to identify market failures or non-optimal investment situations, hence the need for investment, opportunities for private sector participation and thereby creating added value through the particular financial instrument. Investment priority 2.2: „Capacity for SMEs to grow” In accordance with Thematic Objective 3 Investment Priority 3d/Regulation 1301/2013 "support the capacity for growth of SMEs at regional, national and international markets and participation in the innovation process" and according to the identified needs at national level within the OPIC 2014-2020 and Recommendation No. 5 (to improve access for SMEs and start-ups to finance) of the Council for 2013, under this investment priority support is to be provided for strengthening the competitiveness of the Bulgarian enterprises, including meeting the criteria for priority areas "Access to Finance", "Internationalization" and "Skills and innovation" of the National Strategy for Promotion of SMEs 2014-2020.

Specific objective 2.2.: Strengthen the export potential of Bulgarian SMEs by at least 10% by 2023

Expected results The implementation of the indicative measures under this investment priority aims at achieving a positive effect on the development of a sustainable market competitiveness of the Bulgarian SMEs, in order to increase their export potential. Particular emphasis is placed on the quality of products and services to businesses, their potential to realize higher performance in the value chain and rapid provision of market stability in a highly dynamic 19 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

and competitive environment. The expected results are related to the creation and development of competitiveness of the enterprises based on improved efficiency and effectiveness of the production processes, increased production capacity, improved capacity to manage and implement new business models and practices, incl. by improving resource efficiency. By accessing the technology and innovative resource, the Bulgarian SMEs will realize the opportunities offered by the global market and thus improve their market position. Action to be supported under the investment priority: The support under this investment priority is envisaged to be focused on, but not limited to the following indicative groups of activities and combinations thereof:  support for enhancing the production capacity for growth through effective and efficient use of the factors of production and through creation of opportunities for adoption and adaptation of European and international knowledge and technology;  support for the growth of businesses by improving the quality and by use of ICT;  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export. The support for improving the production capacity for growth and creating competitive advantage through the effective and efficient use of the factors of production and through creation of opportunities for adoption and adaptation of European and international knowledge and technology will include measures to increase productivity, effective and efficient use of the factors of production (human capital, financial capital, natural resources and technology), improvement of production processes through investments in tangible and intangible assets, introduction of leading technology solutions and/or reengineering of processes to expand production by adding new features or improving the existing products and services and diversification of operations by diversifying the portfolio of businesses and the access to markets. As part of the management of the factors of production, focus will be placed on opportunities for adoption and adaptation of European and international knowledge and technology. The resource efficiency of companies will be improved by measures for implementation of new technologies/practices/methods/systems for improving the resource efficiency and effectiveness in the production process, implementation of best practices/technological methods/technologies/processes for reducing the consumption of natural resources, recycling of secondary raw materials, industrial waste disposal, regeneration and/or non-waste technologies. The expected contribution from the implementation of this set of measures is related to improving the competitiveness and the market presence of the Bulgarian SMEs, in order to create export potential through implemented technologies for optimizing and improving the manufacturing process, achieving higher performance, reducing production costs and

20 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

optimizing the supply chain, respectively increasing the value added, and active involvement in all the stages of the added value chain. The target group of the indicative measures is: SMEs according to NSPSMEs. Support for the growth of businesses by improving the quality and by use of information and communication technologies – the support will be directed towards the development, implementation and certification of quality management systems, environmental protection, energy management, information security and other systems under the internationally, EU and nationally recognized standards; improving the quality of the existing processes, products and services through the development, transfer, implementation and certification of good practices; development and implementation of ICT-based systems for: business management, including ones for integration of different units and locations of a company, computer aided design, engineering and production; for transforming the business and operational processes that lead to increased productivity and competitiveness; electronic business platforms for improving access to foreign markets. This group of measures includes support to improving conditions for SMEs operation and development, as well as providing conditions for fair competition and a favorable business environment for economic operators (e.g. technical and metrological supervision, quality control and notification of assessment bodies compliance) - monitoring compliance with the legal obligations of producers and traders and avoid doing business in the „informal sector”; completion and accreditation of laboratories for verification and proof of compliance with national and EU quality standards and marks recognition of national product. Complementary support is envisaged in implementing a comprehensive policy for provision of coherence of the Bulgarian products with international quality standards in order to support business growth. The contribution expected from the implementation of this set of measures relates to improving the competitiveness and the market presence of the Bulgarian SMEs in order to create export potential through higher quality of the manufactured products, the existence of objective quality guarantee and use of good manufacturing practices, increased use of ICT and optimization of the business management processes. The target group of the indicative measures included: SMEs, organizations, institutions, agencies for business support and business environment improvement. Support for implementation of activities and provision of services of direct benefit for the business development and opportunities for export orientation – investment will be made for improvment of entrepreneurial culture on unification of SMEs in clusters and export consortia; promoting transnational and international activities of the Bulgarian SMEs by providing information and advices about European and third country markets, organizing trainings on internationalization and SME export management, organization of showrooms and information events in Bulgaria, of business forums in the country and abroad, supporting the participation of enterprises in trade missions abroad, as

21 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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well as in national and international exhibitions to promote the Bulgarian production; information, business statistics, databases and etc.; investment and export-oriented activities, including support to export consortia, organizing visits to potential investors and partners of SMEs in the country; programs to attract foreign investment. Promotion, marketing and information activities are envisaged for SMEs in the tourism and other related sectors. That includes including positioning and promotion of “Destination Bulgaria” by national tourist marketing to diversify tourist products and markets and creating sustainable forms of tourism (including development and promotion by PPP in territorial aspect). Investment in clusters and participation in incubators, networks and platforms for growth and exports will be possible as well. The contribution expected from the implementation of this set of measures relates to improving the export, awareness, the international partnership and the market presence of the Bulgarian SMEs by promoting their production, guarantees for quality standards and support for implementation of ideas for growth and export. The opportunities for awareness, partnership and cooperation for growth and export will be improved as well. The target group of the indicative measures includes: SMEs according to NSPSMEs, institutions and associations of business, as well as organizations and institutions, related to activities and services, provided to support business and improve the business environment. Territorial scope: measures and activities within this investment priority will be implemented throughout the country, and some limited directly relevant activities are also possible abroad. Types of Beneficiaries: existing micro, small and medium-size enterprises, incl. cooperations, according to National Strategy for Promotion of SMEs 2014-2020, clusters (including new and existing clusters within the Strategy for the Danube region, the Action Plan, PA 8 and in support of the objectives of blue growth), institutions and business organizations as well as organizations and institutions that are associated with the implementation of activities and the provision of services in support of business and improvement of the business environment.

22 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

 Effectiveness and efficiency of the investments – the selected operations should conform completely with the objectives of the operational programme. The achievement of maximal effectiveness should be leading in the selection of mechanism for the implementation of operations as well as the reduction in the administrative burden for the potential beneficiaries;  Sustainability of the investments – ensuring sustainability of the results achieved after the completion of the project implementation;  Relevance – the selected operations should contribute to the implementation of the output and result indicators under the Programme  Coordination and synergy – coordinating among the different operational programmes at national level, the horizontal programmes and other instruments of the Union with the aim to achieve maximum synergic effect and avoid double financing;  The principle of partnership and transparency – the criteria for selection of operations are subject to approval by the Monitoring Committee of the operational programme;  The principle of sustainable development – on funding the operation under the Operational programme, the Managing Authority should ensure compliance with the principle of sustainable development as set out in Article 3, paragraph 3 of the TEU and the obligation to integrate the requirements of environmental protection under Article 11 and the "polluter pays" principle laid down in Article 191, paragraph 2 of the TFEU. In the selection of projects it should be ensured that the investment is directed towards the most sustainable options with the most efficient use of resources;  Mitigation of the climate change and adaptation impact - in the selection of operations, the MA will provide monitoring to avoid harmful impact on climate in the implementation of operations;  The principle of equal opportunities – encouraring of the equal opportunities for everybody, including the opportunities for access of disabled people through integration of the principle of non-discrimination. When providing any kind of support, the European state aid rules will be complied with and checks for the absence of double funding will be carried out. 1.2.3 Priority axis 3: Energy and Resource Efficiency

URationale for Priority Axis 3 Bulgarian enterprises rank first in energy and resource intensity per unit of output and somewhere in the last positions in environmental performance, which are the main prerequisites for the creation of sustainable competitiveness. High levels of energy consumption and the cost of raw materials/materials in the production and the low level of environmental performance are due not only to depreciated and outdated technologies, but 23 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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also to limited access to new practices, systems and production patterns that are energy efficient, effective and environmentally friendly. Renewal of the existing resource and energy intensive and outdated production equipment is indispensable, but is delayed due to lack of sufficient financial resources, and due to the relatively slow return on investment in new one, as the prices of electricity and resources in the country are still some of the lowest. Therefore it is necessary to encourage businesses to undertake investments to increase the resource and energy efficiency, which in turn will reduce the cost of production per unit of output, will contribute to the introduction and development of eco-industries and increase sustainable competitiveness of enterprises as a whole. The implementation of these measures will provide for the Bulgarian economy direct contribution to the achievement of the national objectives under “Climate and Energy” Package in the implementation of the "Europe 2020" strategy in terms of the transition to a low carbon economy, environmental protection and adaptation to climate change and implementation of Recommendation No.7 (... to make more efforts to improve energy efficiency) of the Council for 2013. Priority Axis 3 "Energy and Resource Efficiency" will improve the competitiveness of the enterprises through targeted support for the transition to a low carbon economy in all sectors of production (Thematic Objective 4 of the Common Strategic Framework for the period 2014-2020) and promote efficient use of resources (Thematic Objectivel 6 of the Common Strategic Framework for the period 2014-2020). Promoting energy efficiency and resource efficiency in businesses, especially those in the manufacturing industry is a crucial and imperative process since these are companies that most contribute to the low productivity of resources and the low energy efficiency of the economy. According to the framework 3 proposed by the European Commission 52F , energy efficiency is one of the main components of resource efficiency and the integrated guidelines of the Commission indicate that a decoupling of economic growth from use of resources is necessary; and the environmental challenges turn into opportunities for growth through efficient use of natural resources. Consequently, the desired and expected effect of the targeted support for improving energy efficiency and environmental performance in the economy can only be achieved through joint implementation under one priority axis of measures to introduce more energy efficient technologies and productions for effective use of resources in the companies, in compliance with:  4.b/of Art. 5 of Regulation 1301/2013 "Promotion of energy efficiency and use of renewable energy in enterprises";  6.g/ of Art. 5 of Regulation 1301/2013 "Support for industrial shift towards a resource efficient ecomomy, through promoting green growth, eco-innovation and environmental performance management in the public and private sector" - in the part on effective use of resources.

3 Resource Efficient Europe flagship initiative и Resource Efficiency Scoreboard 24 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

In line with this framework, and seeking a synergistic result, the supported interventions under Priority Axis 3 of OPIC 2014-2020 are grouped into the following two investment priorities:  Investment Priority 3.1: Energy technology and energy efficiency, corresponding to Thematic Objective 4 of the Common Strategic Framework.  Investment priority 3.2: Resource efficiency - in line with Thematic Objective 6 of the Common Strategic Framework. Investment priority 3.1 will support measures to increase energy efficiency, while Investment priority 3.2. will support those aiming at promoting efficient use of resources in the Bulgarian enterprises. Investment priority 3.1: "Energy technologies and energy efficiency" In accordance with Thematic Objective 4 "Supporting the shift towards a low carbon economy in all sectors" and according to the identified needs at national level within the OPIC 2014-2020 this investment priority provides for support for reducing the energy intensity of the economy, primarily through increased energy efficiency and flexibility of the enterprises, and hence of the country's economy in line with the National Energy Strategy.

Specific objective 3.1.: Reducing energy intensity by at least 5% by 2023

Expected results As a result of the implementation of the activities envisaged under this priority investment, it is expected that the share of enterprises with low-carbon production in the economy will increase, increased number of production buildings with high energy efficiency, increased number of businesses using energy from renewable sources for their own needs, and – in general - increased energy efficiency, leading to lower energy intensity both at the level of individual enterprises production, and for the economy in general.

UActions to be supported under the investment priority: Support within the investment priority will be focused, but not limited to the following indicative sets of activities:  support for increasing the energy efficiency in enterprises;  support for increasing the flexibility of the supply aiming at additional opportunities for enterprises to achieve energy savings;  institutional support for sustainable energy development. Support for increased energy efficiency in enterprises - includes preparing and conducting audits for identifying appropriate measures for energy efficiency in businesses and energy audits, and subsequent implementation of the recommendations made by energy 25 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

efficiency audits; investments directly related to tangible and intangible assets, energy management and implementation of technologies and production lines and ICT-based systems to manage energy efficiency, leading to increased energy efficiency in the supported enterprises, reducing the use of conventional energy in production and promotion of the use of energy from renewable sources in enterprises for their own use and to support the ecological performance, reducing greenhouse gas emissions (including through the capture and storage of CO2), increasing the energy independence of enterprises. Given that energy and thermal performance of buildings has a significant contribution to improving the energy efficiency, complementary support for construction works to improve the energy and thermal performance of the production buildings of enterprises will also be provided once their effect and the relation to such activities is proven. Support will also be possible for projects in the field of " blue" growth given the demand and development of the potential for "blue" energy (energy of waves, currents, tides, using the difference between the salt concentration in the water, etc.).. The expected contribution of these supported activities relates to increasing the energy independence of the supported enterprises and increase in their energy efficiency, which will reduce their production costs, improve their environmental performance and increase their competitiveness. In turn, this will have a positive effect not only on the specific enterprises supported, but also on the entire economy. Target group - existing enterprises (outside the sectors of trade and services). Support for enhancing the flexibility of the supply aiming at additional opportunities for enterprises to achieve energy savings by funding the project "Construction of Gas Interconnection Bulgaria-Serbia" Phase 2. Preparatory activities under the project, all research and design are included in the current OP “Development of the Competitiveness of the Bulgarian Economy 2007-2013”, as Phase 1. All other activities related to land acquisition procedures, construction, supervision and audit with the aim to implement the project will be co-funded under the OPIC 2014-2020. The expected contribution of this support is reliability and flexibility in gas supply realization of energy efficiency in enterprises supporting the main priorities of the Energy Strategy of R.Bulgaria till 2020. Specific beneficiary: MEE - in connection with the construction of this interconnection Bulgaria-Serbia, Phase 2, on the territory of Bulgaria. The institutional support for sustainable energy development aims at providing the necessary institutional prerequisites for an integrated approach to energy efficiency and renewable energy, for example by supporting the capacity building of SEDA to improve the quality and quantity of services provided to Bulgarian enterprises, as well as increased opportunities for energy management of enterprises.

26 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

The expected contribution of this support is improved coordination and synergy of the measures in the field of energy efficiency. Types of beneficiaries: existing enterprises throughout the country (outside trade and services sectors); MEE for the construction of the gas interconnection Bulgaria-Serbia. Territorial scope: throughout the country.

UGuiding principles for the selection of operationsU: The following guiding principles should be observed in the selection of operations within the investment priority:  Provision of financing will be realized in compliance with the procedures, established in the national legislation and the internal procedures of the MA;  Need-based funding – the selected operations must conform with the main challenges facing the business/economy, which are identified in the Partnership Agreement and the OPIC;  Effectiveness and efficiency of the investments – the selected operations should conform completely with the objectives of the operational programme. The achievement of maximal effectiveness should be leading in the selection of mechanism for the implementation of operations as well as the reduction in the administrative burden for the potential beneficiaries;  Sustainability of the investments – ensuring sustainability of the results achieved after completion of the project implementation;  The principle of sustainable development – on funding the operation under the OP, the MA should ensure compliance with the principle of sustainable development as set out in Article 3, paragraph 3 of the TEU and the obligation to integrate the requirements of environmental protection under Article 11 and the "polluter pays" principle laid down in Article 191, paragraph 2 of the TFEU. In the selection of projects it should be ensured that the investment is directed towards the most sustainable options with the most efficient use of resources;  Mitigation of the climate change and adaptation impact - in the selection of operations, the MA will provide monitoring to avoid harmful impact on climate in the implementation of operations;  Coordination and synergy – coordination between the various operational programmes at national level, the horizontal programmes and other instruments of the Union with the aim to achieve maximal synergy effect and not allow double financing;  The principle of partnership and transparency – the criteria for selection of operations are subject to approval by the Monitoring Committee of the operational programme;

27 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

 The principle of equal opportunities – encouraging of the equal opportunities for everybody, including the opportunities for access of disabled people through the integration of the principle of non-discrimination. Investment Priority 3.2: Resource Efficiency In accordance with Thematic Objective 6 "Environmental protection and promotion of the efficient use of resources" and according to the identified needs at national level within OPIC 2014-2020, this investment priority provides support for increasing the resource efficiency of businesses, including a contribution to the criteria in the priority area "Environment" of the National Strategy for Promotion of SMEs 2014-2020.

Specific objective 3.2.: Increase the resource efficiency of SMEs by at least 0.4% by 2023

Expected results This investment priority is aimed at improving resource efficiency and raise awareness for enterprises in relation to the available opportunities by supporting the activities related to increased waste recovery and reduced waste generetaion, reduced costs of raw materials through pilot and demonstration innitiatives. The expected results are directly related to improving the resource efficiency of the supported enterprises, and hence the production sectors and the economy as a whole, thus will contribute to the implementation of the respective target by NSPSMEs4

UActions to be supported under the investment priority The support within the investment priority will focus on, but will not be limited to:  support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises /or group of enterprises. To increase the efficient use of resources in enterprises or group of enterprises measures will be supported to improve the resource efficiency and sustainable use of raw materials: introduction of high-tech and ICT solutions for optimizing the production processes and reducing the use of raw materials; implementation of modern technologies for use of waste as a raw material in new production and/or other alternative uses; implementation of modern wastefree technologies, incl. replacement of obsolete and resource-intensive equipment; implementation of innovative production materials and increasing the use of recycable materials, incl. investing to adapt the existing equipment to the characteristics of new products. The results will be applied to the distribution requirement in order to achieve multiplier effect and the effect of capitalization (capitalization).

4 In NSPSMEs has set the objective of increasing SME measures of resource efficiency (28 000 SMEs) 28 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

The expected contribution of these activities results in improving the awareness about the efficient use of resources in the supported SMEs, which gradually will improve the efficiency of the production processes, reduce the cost of their production and increase their competitiveness. Main target groups: SMEs, organizations of SMEs, clusters, industrial zones, LAGs. Type of beneficiaries: SMEs in the manufacturing industry. Territorial scope: Measures and activities within this investment priority will be implemented throughout the country.

UGuiding principles for the selection of operations U: The following guiding principles should be observed in the selection of operations within the investment priority:  Provision of financing will be realized in compliance with the strategic documents and the needs identified there, the procedures, established in the national legislation and the internal procedures of the MA;  Effectiveness and efficiency of the investments – the selected operations should conform completely with the objectives of the operational programme. The achievement of maximal effectiveness should be leading in the selection of mechanism for the implementation of operations as well as the reduction in the administrative burden for the potential beneficiaries;  Sustainability of the investments – ensuring sustainability of the results achieved after completion of the project implementation;  The principle of sustainable development – on funding the operation under the OP, the MA should ensure compliance with the principle of sustainable development as set out in Article 3, paragraph 3 of the TEU and the obligation to integrate the requirements of environmental protection under Article 11 and the "polluter pays" principle laid down in Article 191, paragraph 2 of the TFEU. In the selection of projects it should be ensured that the investment is directed towards the most sustainable options with the most efficient use of resources;  Mitigation of the climate change and adaptation impact - in the selection of operations, the MA will provide monitoring to avoid harmful impact on climate in the implementation of operations;  Coordination and synergy – coordination between the various operational programmes at national level, the horizontal programmes and other instruments of the Union with the aim to achieve maximal synergy effect and not allow double financing;  The principle of partnership and transparency – the criteria for selection of operations are subject to approval by the Monitoring Committee of the operational programme; 29 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

 The principle of equal opportunities – encouraging of the equal opportunities for everybody, including the opportunities for access of diasbled people through the integration of the principle of non-discrimination 1.2.4 Priority axis 4 - Technical Assistance In the programming period 2007-2013 Priority Axis 5. Technical Assistance of the Operational Programme “Development of the Competitiveness of the Bulgarian Economy 2007-2013” supported the management, implementation, monitoring and control of programme activities, as well as the work of the Monitoring Committee, including by carrying out studies and surveys for the needs of the evaluation of the OP and promotional campaigns to ensure transparency and awareness. The Priority Axis covered the following areas of intervention:  Area of intervention 5.1. Support for the management, implementation, monitoring and evaluation of the OP;  Area of intervention 5.2. Other activities for the implementation of the OP. In the programming period 2014-2020 the Priority Axis dedicated to technical assistance will provide even more targeted support for the successful and good management of interventions under the OP and will continue to build on the capacity of the MA and beneficiaries. The implementation of this support will be streamlined through measures to achieve the following specific objectives: 1. Support for effective and efficient implementation of actions related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; 2. Provision of adequate and timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; 3. Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better use of its financial resources.

SPECIFIC OBJECTIVE 4.1.: Support for effective and efficient implementation of actions related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices

A major challenge will be to maintain and further strengthen the capacity of the MA given the need for parallel management, by 2015, of the OPDCBE 2007-2013 and the follow- up responsibilities related to the programme closure on the one hand, and the need to launch the implementation of the OPIC 2014-2020 as early as possible on the other. The activities related to the closure of the current programme are significant and time-consuming and Bulgaria has no relevant experience dating before the 2007-2013 period. This necessitates continued investment in the human resources of the system. Some further strengthening of the 30 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

qualification and motivation of MA staff will be required, as will be the pursuit of sustainability and stability of the structures and the developed capacity, including through measures to reduce the turnover of human resources. In this regard, the MA has undertaken the necessary steps for a systematic approach to its capacity by performing a comprehensive analysis in accordance with the approach to good governance recommended by the EC, including structures, human resources, and systems and tools. A public procurement procedure to cover preparation of an updated organisational strategy, analysis and assessment of the organisational structure and the existing administrative capacity, as well as analysis and assessment of training needs in the medium turn, and development and implementation of a comprehensive training programme is in the final phase of contracting. In the period 2007-2013 certain weaknesses in public procurement and state aids at national level were identified, which will also have an effect on OPIC 2014-2020. Their resolution will require technical assistance funds. The gaps identified in the capacity for programme monitoring and evaluation in the current period in turn resulted in a delay of the necessary re-programming actions. In the period 2014-2020 similar processes would cause a loss of implementation reserves, i.e. an actual reduction of the planned funding outside the n+3 rule. Another closely linked element is the completion of a reliable framework for feeding statistical information under set indicators and ensuring the integrity of the system of indicators, including clear sources of information and methods of calculation, valuation etc. In the new period it will also be necessary to support actions arising from the ex-ante conditionalities. In order for technical assistance to be able to adequately meet the changing needs of the MA and the Monitoring Committee in accordance with new challenges and requirements, it has been foreseen to apply a more flexible approach to the planning of actions over the previous programming period. The indicative types of actions include: Actions to be supported and their expected contribution to the specific objectives:  Organisation of the operation and running costs of the Monitoring Committee;  General and specialised training for MA staff, including development and sustaining capacity in the field of state aid (workshops, seminars, exchange of best practices and experience etc.);  Financing basic and additional remuneration for experts (wage costs etc.);  Evaluation of the implementation of OPIC (including ongoing evaluation);  Provision and implementation of technical support, consultancy, research, analyses and studies for proper management, monitoring, evaluation and control of OPIC;  Support for the process of evaluation and selection of projects (organisation of evaluating committees, database of independent experts having appropriate technical expertise, contracting of experts etc.), independent evaluation of projects; 31 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

 Support for ongoing monitoring, financial control and audit (including spot-on checks and related reports, internal monitoring and control systems, organisation and tendering of public procurement etc.), as well as risk assessment, anti- fraud/irregularities/corruption measures;  Maintenance costs for office space and travel costs for staff directly involved in the programming, management, monitoring, evaluation and control of OPIC, including in cases of outsourcing;  Procurement and maintenance of computerised information system (hardware and software) and office equipment;  Support for costs for activities of OP’s completion (closure);  Support for preparation of documents for the next programming period (consultations, studies, manuals etc.) Expected Results The implementation of the activities will ensure an effective, efficient and proper management of the OP in accordance with the principle of sound financial management and the regulations of the European and national legislation. Performance will be ensured by the good structuring and organisation of the work of the programme MA and its regional units (including risk assessment system) and the high qualifications, motivation and commitment of staff on the one hand, and by the proper functioning of the programme Monitoring Committee on the other.

SPECIFIC OBJECTIVE 4.2.: Supporting the Managing Authority for provision of adequate and timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation.

Previously conducted studies have shown that potential beneficiaries need more targeted and timely information about the practical aspects of using EU funds in Bulgaria, more specifically about application procedures, funding opportunities, project preparation and other similar issues concerning the programme specifics. Special attention should be paid to the conclusions of the studies conducted under Priority Axis 5 of the OPDCBE in the period 5 2007-2013. According to a recent study55F , the continuous communication efforts of the MA of OPDCBE in 2012 have led to significant positive results: compared to all other operational programmes, the OPDCBE has experienced the greatest growth in recognition among the general public in the past year – 16%, i.e. information and awareness raising activities have covered a further 340 000 people. Yet, the level of awareness of concrete programme aspects

5 The study was carried out by ESTAT OOD in 2013 32 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

among the population remains low. There is a clear profiling of informational needs, based on which three main groups can be defined: with general interest in the Programme, companies with project ideas, groups of companies (or consortia thereof) in actual interaction with the Programme (including beneficiaries with completed projects). The degree of programme commitment should be taken into account, as well as the content of the selected information, in order to achieve a higher level of communication efficiency. There is an increase in the estimates of the institutions associated with the management of the OP. Data suggest that there has been a significant positive change in the interaction between the administration and beneficiaries. More likely than not this has been facilitated by the closure of the Intermediate Body, simplification of communication, shortening response times and reduced document flows. Estimates are even higher among beneficiaries with ongoing or completed projects. This indicates that much of the negative attitude is a reflection of the overall mistrust of institutions rather than some form of critique of the MEET and DG European Funds for Competitiveness in particular. What is needed is more communication directly related to management mechanisms so as to create an impression of transparency of operations and explain that, in fact, both parties work towards the same common goal – to improve the condition of the business in Bulgaria and hence the general standard of the population. Despite the registered increase in the interest in the internet website of the OP among the general public, the visitors share – 10.7% of the population (approx. 673 000 people, compared to approx. 267 000 people by 2012) is rather low. This not only suggests a need for greater integration of this channel of communication in information and awareness raising processes, but also a need for joint action and involvement of actual and potential beneficiaries. The outlook for the next programming period is rather positive. The proportion of companies having declared an intention to submit projects in the period 2014-2020 is 52%, accordingly 80% among ICT and other organisations, of those aware of the OPDCBE 2007- 2013. There is a growing confidence in Euro-funding opportunities among businesses, as well as overcoming of initial fears. As regards the new innovation and competitiveness programme, potential beneficiaries have specific requirements concerning simplification of procedures, support to the business to secure the necessary co-financing, and prospect for development in the form of focus on sectors of potential. Fulfilling those requirements would result in an increase in the number of candidates and successfully completed projects. Most likely to apply subject to fulfillment of the above conditions are companies that are currently in interaction with the Programme in one way or another. As regards communication, this means that in the next period one of the main target groups of the OP should be organisations that have in some way been involved in the OPDCBI, regardless of whether they have actually implemented a project or have just applied and been turned down.

33 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

Actions to be supported and their expected contribution to the specific objectives:  Organisation of public and promotional events – promotional campaigns, seminars, round tables, conferences, exhibitions, presentations, seminars to promote public support and responsibility for the proposed investment;  Distribution of documentation, information and materials related to the implementation of OPIC;  Update and maintenance of an internet website as key communication channel;  Participation in programmes, preparation and distribution of promotional films and videos, commercials and other media events;  Publications, bulletins, brochures, banners, manuals etc.;  Analyses and opinion polls – focus groups, surveys, sociological studies etc Expected Results The implementation of the activities will ensure transparency of OPIC implementation and its promotion among the widest stakeholder range, physical persons and legal entities alike. Opportunities will be created for raising public awareness of the ERDF (as well as of funding from the state budget and other sources of funding, including IFIs, EU programmes such as Horizon 2020, COSME etc.) and OPIC in the period 2014-2020, attracting public interest, stimulating project participation, explaining the opportunities and benefits of participation in the Programme and complementary financial resources, ensuring equality and transparency in its implementation. Efforts to promote the Competitiveness OP in the period 2007-2013 have significantly improved the visibility of the OP among the general public. The organised national promotional campaigns can be considered successful and of significant use to participants. Events, however, tended to attract mainly companies that have a specific intention to participate, as well as certain project experience. Therefore, the coverage of such events should be expanded. At the same time, since greater awareness is more often than not concomitant with greater criticism, special attention should be paid to the selection of the content and the form of promotional events.

SPECIFIC OBJECTIVE 4.3.: Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better (quantitative and qualitative) use of its financial resources. According to an analysis of the OPDCBE of March 2014, a large part of beneficiaries mention serious problems in the preparation and implementation of projects. At the present moment, the end of the programming period, beneficiaries are still unable to prepare and manage projects on their own and often resort to consulting services. On the one hand, this indicates a need to further reduce the administrative burden of the OP and, on the other, the 34 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

substantial experience gained by the consulting sector in Bulgaria. In this regard, another indicator of beneficiaries’ capacity is the fact that only 13% of all completed grant contracts have finished within the established timeframes. The data are indicative enough to conclude that the beneficiaries still lack the capacity to plan and implement projects within set periods. In view of the current experience of the MA in planning and support provision to develop the capacity of beneficiaries in the period 2007-2013, the following main challenges can be identified: 1) Achieve a balance between the supply and demand, i.e. address the specific needs of both current and potential beneficiaries. A key prerequisite for this will be the preliminary preparation, study and systematisation of needs and most of all expectations. 2) Identify, take into account and make targeted efforts to minimise “typical” mistakes, irregularities, faults and gaps admitted by beneficiaries both at the stage of the preparation of the project and during the implementation and reporting. An important guiding principle will be to approach “typical” mistakes in a systematic manner, initiate and maintain proper and regular external communication and internal coordination within the MA to standardise the methods of operation, fully unify the approach in case of precedents, and answer enquiries and requests for clarification in a straightforward and understandable manner. 3) Consider the specific actual needs and capacities of the different groups of beneficiaries (micro-enterprises, small and medium-sized enterprises, large enterprises, institutional beneficiaries) and key partners (other MAs, public institutions, business organisations etc.), and, where applicable, even take sectoral specifics into account. Streamlining the OP and shifting the focus to performance will require a strictly differentiated approach. There will be a need to support actions to address the difficulties of the different groups of OPIC beneficiaries in prioritising their needs, as well as during the identification, justification, preparation and implementation of projects. An important issue that will also require attention will be to create prerequisites for and understanding of the role of partnership both business- to-business and with the research community, public institutions and the non-governmental sector. It will similarly be necessary to gain a deeper understanding of the role and significance of financial instruments. Actions to be supported and their expected contribution to the specific objectives:  Consulting services to identify project ideas and prepare project proposals consistent with OPIC objectives and priorities; preparation and maintenance of a list of mature projects;  Organisation of training, training materials etc. specifically designed for and aimed at facilitating the implementation of OPIC on topics such as energy efficiency for enterprises, financial instruments, complementarity with other programmes and instruments of the EU, link between innovation and business development etc.;

35 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

 Preparation and implementation of evaluations, analyses and action plans to strengthen the administrative capacity of OPIC beneficiaries;  Identification, adaptation and application of best practice from other Member States, joint initiatives and models to support the capacity of beneficiaries using external or previous experience;  Actions to develop and strengthen partnership aimed at improving the provision of business services and facilitating business-to-business cooperation, as well as cooperation with the research community and with socio-economic, regional and other relevant partners. Expected Results Developing beneficiaries’ capacity will contribute to making significant progress in terms of resource absorption and, last but not least, attaining OPIC objectives. 1.3. Alternatives for OPIC 2014-2020 There are three official versions of the program existing at the time - the first of 10/18/2013, the second of 04/20/2014, and third version of May, 2014. Last version is described in Section 1.2 above and it is subject to detailed assessment in the Report on Strategic Environmental Assessment. Provides for the three versions are presented in the following table:

Version I – OPIC 2014-2020 Version II - OPIC 2014- Version III – OPIC 2014-2020 October, 2013 2020 April, 2014 May, 2014

Priority axis 1: Priority axis 1: Innovation, Priority axis 1: Technological Entrepreneurship, export and entrepreneurship and growth development and innovation: production potential: potential: Specific objective 1.1: Increased Specific objective 1.1: Creation and strengthening of the capacity of the Specific objective 1.1: Increasing innovation activity of enterprises by at Bulgarian enterprises for the innovation activity of enterprises least 3% by 2023 development and embedding of by at least 4% by 2023 innovative products, processes and business models through investments in scientific-research and innovations. Investment priority 1.1: Investment priority 1.1: Investment priority 1.1: Technological development and Encouraging the investments in the Technological development and innovation scientific research and innovation innovation activity (technological development and innovations).

Action to be supported under the Action to be supported under the Action to be supported under the investment priority 1.1 (TO1): investment priority 1.1 (TO1): investment priority 1.1 (TO1):  Development and  Development of  development of cooperation for innovation between

36 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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embedding of new cooperation for innovation enterprises, between business products, processes and between enterprises, and academia and between business models in between business and business and other innovative enterprises; academia to improve innovation capacityholders, conditions for the incl. internationalisation of  Encouraging investments commercialization of the innovation process; in SRDA, including in research; partnership with the  support for innovation in scientific research  Support for innovation in enterprises, incl. organizations and other enterprises, incl. development and enterprises aiming to development and introduction of new strengthen the cooperation introduction of new products, processes and between business and the products, processes and business models in scientific media; business models in enterprises; enterprises;  Encouraging the  support for the development development of mutual  Support for the of environment and initiatives for researches development of infrastructure for innovation and innovations; environment and and research infrastructure for  Support for innovative innovation and research starting enterprises;

 Support for the development of infrastructure for innovations and researches:

Thematically focused certifying and measuringlaboratories; Laboratories for testing and proving concepts of trial samples and useful models; Technological centersm Priority axis 2: Entrepreneurship specialized by sectors; and Capacity for growth of SMEs  Development and upgrading a pilot project for technological park “Sofia Techpark” or a legal

successor;  Provision of services for

37 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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business support;

Specific objective 1.2: Improvement Specific objective 1.2: Encouraging Specific objective 2.1: Encouraging of the conditions for the realization of innovative activity, including entrepreneurial activity by at least entrepreneurial activity by 2% till through developmenet of the 2% by 2023 2036 through improvement of access cooperation between the business to finance by at least 2% and scientific media and improvement of the conditions for commercialization of the scientific Investment priority 1.2: Investment priority 2.1: Access to researched. Enterpreneuship finance for supporting Investment priority: Support for the entrepreneurship. increase of the capacity of SMEs, for the increase their contribution to economic growth and development of innovation processes (competitiveness and productivity ). Action to be supported under the Action to be supported under the Action to be supported under the priority investment priority 1.2: investment priority 2.1:  Investmements for  Financial instruments for  Consulting and investment support of support of entrepreneurship; support for newly entrepreneurship; occurring and/or starting  Encouraging entrepreneurial enterprises in priority  Encouraging ideas in areas related to sectors; entrepreneurial ideas in European and regional areas related to European challenges;  Renovation and excellence and regional challenges;. of the technologies aiming to improve the productivity

and increasing the Specific objective 1.3: Strengthen Specific objective 2.2: Strengthen the effectiveness of the the export potential of Bulgarian export potential of Bulgarian SMEs resourse used through the SMEs by at least 10% by at least 10% by 2023 introduction of leading technological solutions;

 Investment support for the

introduction of new ICT- Investment priority 1.3: Capacity Investment priority 2.2: Capacity for based services, production for SMEs to grow SMEs to grow and methods of distribution, applications for electronic trade etc. in the enterprises, including

6 In the NSPSMEs 2014-2020 there is a objective for increase of enterprenuerial activity from 10% to 12%. 38 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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specially considered measures for support of the ICT companies, Action to be supported under the Action to be supported under the developing applications investment priority 1.3: investment priority 2.2:  Support for enhancing the and services for the needs  support for enhancing the production capacity for of remaining industrial production capacity for growth and competitive sectors; growth through effective and advantages through efficient use of the factors of  Improvement of the effective and efficient use production and through manufacturing processes in of the factors of creation of opportunities for the enterprises through the production; adoption and adaptation of implementation of European and international internationally  Support for the growth of knowledge and technology; acknowledge standards; businesses by improving covering of the quality and by using  support for the growth of requirements for quality information and enterpprises by improving certification and obtaining communication the quality and by use of of internationally technologies; ICT; acknowledge certiicates;  Support for provision of introduction in the  support for the services directly benefit enterprises of integrated implementation of activities business development; systems for resource and services for direct management, systems for benefit of the business automated designing, development and engineering activity and opportunities for SMEs production etc.; export;

 Support for the development of existing

clusters and support of

newly created ones in the

event of justified necessity;

 Support for

growing enterprises;

 Provision of services for business

support, incl. tourism

promotion and marketing;

Specific objective 2.2: Creation and development of effective and stable

39 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Version I – OPIC 2014-2020 Version II - OPIC 2014- Version III – OPIC 2014-2020 October, 2013 2020 April, 2014 May, 2014 systems for support and expertise in new and/or existing agencies, organizations and administrations through the development of modern and innovative services which contribute to the increase of the competitiveness of the enterprises in the country. Priority 2: Green and efficient Priority axis 2: Energy and Priority axis 3: Energy and economy: resource efficiency: resource efficiency: Specific Objective 2.1: Increase the Specific objective 2.1: Reducing Specific objective 3.1: Reducing proportion of enterprises with optimized manufacturing processes energy intensity by at least 5% by energy intensity by at least 5% by for the efficient use of resources. 2023 2023

Investment Priority 2.1: Support for Investment priority 2.1: Energy Investment priority 3.1: Energy the transition to a resource efficient technologies and energy efficiency technologies and energy efficiency and green Economy Action to be supported under the Action to be supported under the Action to be supported under the investment priority 2.1 investment priority 3.1: investment priority 2.1: • support for increasing the energy • support for increasing the energy • Implementation of high-tech efficiency in enterprises efficiency in enterprises solutions for optimizing production support for increasing energy • support for increasing the flexibility processes and reduce the use of raw security, energy independence and of the supply aiming at additional materials efficiency of the country opportunities for enterprises to • Implementation of advanced • institutional support for achieve energy savings technologies for use of waste as a sustainable energy development • institutional support for sustainable raw material in new production and energy development / or other alternative uses; • Implementation of advanced waste technologies • Implementation of innovative production materials and increase the use of recyclable materials; • Integration of technologies for the production of "green products"; • Consultancy services for the identification of measures to improve resource • efficient and sustainable use of Specific Objective 3.2: Increase the raw materials; Specific Objective 2.2: Increase the Specific Objective 2.2: Achieving resource efficiency in SMEs by at resource efficiency of SMEs by at national targets for energy least 0.25% to 2023 least 0.4% to 2023. efficiency and the share of RES in gross final consumption of energy in the country by 2020 by 40 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Version I – OPIC 2014-2020 Version II - OPIC 2014- Version III – OPIC 2014-2020 October, 2013 2020 April, 2014 May, 2014 supporting the introduction of low- carbon technologies in enterprises and improve their energy efficiency. Investment Priority 2.2: Resource Investment Priority 3.2: Resource Investment priorities: Promoting efficiency Efficiency energy efficiency and use of Action to be supported under the Action to be supported under the renewable energy in enterprises. investment priority 2.2: Action to be supported under the • Support for increasing resource investment priority 3.2: investment priorities: efficiency in enterprises • support for pilot and demonstration • Support for increasing energy • Partnership Project Resource innitiatives to increase the resource efficiency in enterprises Efficiency efficiency in enterprises /or group of • Development of methods for the enterprises evaluation and implementation of financial and other mechanisms in • Initiatives to increase the efficient the field of energy efficiency and use of resources in enterprises and / or renewable energy, as well as its groups promotion

• Support for increasing energy security, energy independence and energy efficiency Priority 3: Technical assistance: Priority 4: Technical assistance: Priority 3: Technical assistance: Specific Objective 3.1: Support for Specific Objective 4.1: Support for Specific Objective 3.1: Support the effective and efficient effective and efficient implementation managing authority for the effective implementation of activities related of actions related to the programming, and efficient implementation of to the programming, management, management, monitoring, evaluation activities related to the monitoring, evaluation and control and control of OPIC in accordance programming, management, of OPIC under current legislation with the current legislation and existing best practices. monitoring, evaluation and control and current best practices. of OPIC, under current legislation and current best practices.

Specific Objective 3.2: Support the Specific Objective 4.2: Supporting the Specific Objective 3.2: Support the Managing Authority for the Managing Authority for provision of Managing Authority for the provision of adequate and timely adequate and timely information and provision of adequate and timely information and public awareness raising the public awareness of information and public awareness about funding opportunities for funding opportunities under OPIC and about funding opportunities for OPIC, criteria, rules and procedures the criteria, rules and procedures for OPIC, criteria, rules and procedures for participation and participation in its implementation. for participation and implementation. implementation. Specific Objective 4.3: Strengthening the capacity of the beneficiaries of Specific Objective 3.3: OPIC for participation in the Specific Objective 3.3: Strengthening the capacity of the Strengthening the capacity of the programme implementation and better beneficiaries of OPIC for (quantitative and qualitative) use of its beneficiaries of OPIC for participation in the program and financial resources. participation in the program and better (qualitatively and better (qualitatively and 41 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Version I – OPIC 2014-2020 Version II - OPIC 2014- Version III – OPIC 2014-2020 October, 2013 2020 April, 2014 May, 2014 quantitatively) use of the financial quantitatively) the use of financial resources resources

1.4. Relation of OPIC 2014-2020, with other relevant plans, programs and strategies A. Strategic documents consistent with the preparation of the OPIC 2014-2020: Europe 2020: Strategy for smart, sustainable and inclusive growth aims growth that is smart - through effective investment in education, research and innovation; sustainable - thanks to a decisive shift towards a low-carbon economy and competitive industry and inclusive, with a strong emphasis on job creation and poverty reduction. The strategy focuses on five ambitious objectives in the areas of employment, innovation, education, poverty reduction and climate / energy. To measure progress in achieving the objectives of the "Europe 2020" defined five headline targets for the EU-wide: 1. Employment - work for 75% of people aged between 20 and 64 years; 2. R&D - investing 3% of EU GDP in research and development; 3. Climate Change and Energy Sustainability - reducing greenhouse gas emissions by 20% (or even 30% if the conditions are met) compared to 1990; acquisition of 20% of energy from renewable energy sources; increase energy efficiency by 20%; 4. Education - Reduction of early school leavers under 10%; least 40% of 30-34 year olds with tertiary education; 5. Combating poverty and social exclusion - at least 20 million fewer poor or at risk of poverty and social exclusion of people. The strategy of OPIC 2014-2020, as part of the implementation of EU structural funds and investment in Bulgaria, according to the Partnership Agreement 2014-2020, is closely connected with the objectives for growth and employment (Growth and Jobs) and contribution of Bulgaria to achieve three complementary types of growth according to the "2020": • Smart growth: developing an economy based on knowledge and innovation; • Sustainable growth: promoting a greener and more competitive economy and a more efficient use of resources; • Inclusive growth: fostering a high-employment, leading to social and territorial cohesion. 42 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPIC 2014-2020 directly engages in smart growth (by Priority Axes 1 and 2) and sustainable growth (through Priority Axis 3), aiming additive effect in terms of inclusive growth. National Development Programme: Bulgaria 2020 (NDP BG 2020) is a leading strategic and programming documents, which sets policy objectives for socio-economic development of the Republic of Bulgaria in 2020, and taken national solutions for growth in the context of the "Europe 2020." NDP BG 2020 as a primary objective the achievement of quality and balanced long- term economic growth. Vision: By 2020 Bulgaria is a country with a competitive economy, providing conditions for full social, creative and professional development of personality through smart, sustainable, inclusive and regionally balanced economic growth. Objectives to achieve the vision are: 1. Raising living standard through competitive education and training, creation of conditions for quality employment and social inclusion and ensuring affordable and quality health care. 2. Developing the infrastructure network, providing optimal conditions for economic development and quality and healthy environment for the population. 3. Increasing the competitiveness of the economy by providing a favorable business environment, investment promotion, innovative solutions and increase resource efficiency. Priority areas for achieving the vision and objectives are: 1. Improving access and quality of education and training and quality of the labor force. 2. Reducing poverty and promoting social inclusion. 3. Achieving sustainable integrated regional development and use of local potential. 4. Development of the agricultural sector to ensure food security and production of products with high added value in the sustainable management of natural resources. 5. Supporting innovation and investment activities to increase the competitiveness of the economy. 6. Strengthening the institutional higher efficiency of public services to citizens and businesses. 7. Energy security and increasing resource efficiency. 43 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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8. Improving transport connectivity and access to markets. OPIC 2014-2020 directly commits to contributing to the achievement of Strategic Objective 3 and Priorities 5 and 7. Since the program sets goals for environmental protection, a detailed analysis of the way in which OPIC 2014-2020 taking into account these objectives into account, is made in section 5 of the SEA report. National Reform Programme (NRP) annually reflects the country's progress in implementing the national objectives in the context of the Community Strategy "Europe 2020" and progress on the recommendations of the EU Council. OPIC 2014-2020 was directly involved in contributing to the achievement of national objectives 2 ("Investments in R & D amounted to 1.5% of GDP," support for promoting R&D and innovation activities of enterprises (in accordance with the flagship initiative 'Union innovation') and 3 the "climate and energy" (Reaching the 16% share of renewable energy sources (RES) in gross final consumption of energy and increasing energy efficiency by 25% by 2020), in accordance with the flagship Europe for effective use of resources. Since 2012 the share of renewable energy is 16.3% and the goal is achieved, efforts are focused on the need to balance the power system. The position of the Commission services on the development of the Partnership and programs of Bulgaria for the period 2014-2020 is consistent with the preparation of the OPIC 2014-2020. OPIC 2014-2020 was directly involved with priories 2 "Innovation-friendly business environment", 3 "modern infrastructure for growth and employments" and 4 "green and resource efficient economy" Council Recommendation on the National Reform Programme of Bulgaria in 2013 and delivering a Council opinion on the convergence program of Bulgaria for the period 2012- 2016 is consistent with the preparation of OPIC 2014-2020. OPIC 2014-2020, is committed to Recommendations 4 "... by strengthening cooperation between education, research institutes and enterprises", 5 "... to improve access for SMEs and start-ups to finance" and 7 "... lay efforts to improve energy efficiency. "

44 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Partnership Agreement of the Republic of Bulgaria, outlining the help of EU structural funds and investments for 2014-2020 is the founding document for the elaboration of operational programs for 2014-2020. OPIC 2014-2020 is committed to Strategic Priories 2 Scientific research, innovation and investment in smart growth and 3 Connectivity and green economy for sustainable growth of the Partnership Agreement. National strategy for the promotion of SMEs in Bulgaria 2014-2020: Small Business Act presents the vision of the Republic of Bulgaria on state support in the area of SMEs in line with EU policy. Account is taken of the need to create about 12 000 new SMEs distributed in the relevant sectors of the economy, especially in the industrial and knowledge- intensive services. OPIC 2014-2020 contributes to achieving the objectives in five priority areas of the National Strategy for Promotion of SMEs - entrepreneurship, access to finance, skills and innovation, environment and internationalization.

Innovation strategy for smart specialization of the Republic of Bulgaria by 2020 aims to ensure effective and coordinated management of innovation processes; strengthening the innovation system by building a modern innovation and scientific infrastructure, enhancing human capacity to the needs of science and industry and the introduction of specific financial instruments support; support growth of digital and electronic governance. The strategy works for the approach of defining the thematic areas (based on the so-called process of entrepreneurial discovery) with the potential to become a "growth generators" to achieve significant economic impact on a regional and national level. Targeted impact under OPIC 2014-2020 there will be in terms of innovation performance of Bulgaria in the following indicators: amount of local providers (local business entities engaged in the process of creating innovation), contribution to the value chain, the interaction between business and academia in R & D, capacity for innovation, the nature of competitive advantages Energy Strategy of Bulgaria until 2020 represents the country's vision for the sector, in line with the current European framework and global trends in energy technology. The key challenges are the high energy intensity of production in Bulgaria, the high dependence on imported energy resources and the need for environmentally sound development.

45 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPIC 2014-2020 is in line with the priorities of the strategy to ensure security of energy supply, compliance with the objectives for renewable energy and improving energy efficiency. E-Government strategies in Bulgaria for the period 2014-2020 and the National Programme "Digital Bulgaria 2015" recognizes ICT as a driver of innovation and economic growth OPIC 2014-2020 sets the parameters for the development of the information society (IS) and digital technologies in Bulgaria, leading to the implementation of EU objectives defined in the Digital Agenda of Europe (DAE).

EU Strategy for the Danube Region in Bulgaria is divided into 11 priority areas to support the four pillars of the Strategy. A) Connecting the Danube Region B) Protection of the environment in the Danube Region C) Creation of Prosperity in the Danube Region D) Strengthening the Danube Region OPIC 2014-2020 has indirectly contributed to the priorities the stairs, through the activities in the field of entrepreneurship, innovation activity, increase competitiveness and efficiency of enterprises.

Since the strategy sets targets for environmental protection, a detailed analysis of the way in which OPIC 2014-2020 taking into account these objectives, is made in section 5 of the SEA report. Strategy for Sustainable Tourism Development in Bulgaria 2014-2030 sets as a primary objective for tourism development in the period 2014-2030 was launched promoting competitiveness and efficiency of the tourism sector in Bulgaria through the best use of natural and anthropogenic resources in accordance market requirements and consumer expectations for sustainable tourism development through:  Improving the framework conditions for the development of the tourism industry;  Increasing the capacity and competitiveness of tourism;  Developing and maintaining the necessary development of the tourism industry general and specialized infrastructure;  Maintain and quality services in the tourism industry;  Diversification of tourism products and the development of responsible tourism;

46 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 Promoting regional development, reduction of regional disparities and the creation of strong regional brands. The contribution of OPIC 2014-2020 expresses support activities by Priority Axis for entrepreneurship and capacity for growth of SMEs in particular - through eligible activities for the promotion, marketing and information activities in the field of tourism, including positioning and promotion of Destination Bulgaria by national tourism marketing to diversify tourism products and markets and creating sustainable forms of tourism

Guidelines for the integration of environmental policy and policy on climate change in the funds for Cohesion Policy, the Common Agricultural Policy and the Common Fisheries Policy for 2014-2020 - Programming Phase provides specific interventions that each operational program should include a financing in its scope. OPIC 2014-2020 complies the Guidelines The analysis of the incorporation of the interventions of the Guidelines provided for OPIC is made in section 5 of the SEA. National Action Plan to promote green public procurement for the period 2012- 2014 supports procurement policy that encourages the development and diffusion of environmentally friendly goods and services. GPP is an important tool to facilitate the implementation of measures in other areas related to sustainable development, the promotion measure under the Law for Promotion of Employment for employers to reveal green jobs in economic activities supporting environmental protection; certification of sustainable buildings criteria for environmental quality / eco-balance of the site and use of resources and water, application of energy efficiency and energy savings in the supply of equipment and vehicles, and more. OPIC accounts the Plan by providing funding of resources and energy efficiency. The analysis of the degree of compliance of the plan in OPIC is made in section 5 of SEA. B. Strategic documents setting goals for environmental protection, which are related to the OPIC 2014-2020: The analysis of the objectives of environmental protection at national and international level and how they have been taken into account in OPIC 2014-2020 is made in section 5 of the SEA. 47 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Seventh Environment Action Programme of the EU by 2020 "Living well within the limits of our planet" aims to strengthen the EU's efforts to protect our natural capital, encouraging efficient in terms of resource use, and low-carbon growth innovation and protect the health and welfare of the people while respecting the natural limits of our planet. OPIC 2014-2020 contributes to achieving the objectives of resource efficiency, low- carbon growth and innovation.

EU Strategy on Biological Diversity 2020 targets halting the loss of biodiversity by 2020, placing six main objectives for this. OPIC 2014-2020 through the activities of resource and energy efficiency will lead to a reduction of carbon emissions and pollution, enhance energy and resource efficiency and environmental improvement, leading indirectly to biodiversity conservation.

Strategic Plan for Biodiversity Conservation 2011-2020, including Aichi Biodiversity Targets puts 5 strategic goals and 20 objectives for biodiversity conservation and achieving certain results by 2050.

OPIC 2014-2020 has a direct contribution to the achievement of Objevtive 4: By 2020, at the latest, Governments, business and stakeholders at all levels have taken steps to achieve or have implemented plans for sustainable production and consumption and have kept the impacts of use of natural resources well within safe ecological limits.

Roadmap to a Resource Efficient Europe presents Vision: By 2050 the EU’s economy has grown in a way that respects resource constrains and planetary boundaries, thus contributing to global economic transformation. Our economy is competitive, inclusive and provides a high standard of living with much lower environmental impacts. All resources are sustainably managed, from raw materials to energy, water, air, land and soil. Climate change milestones have been reached, while biodiversity and the ecosystem services it underpins have been protected, valued and substantially restored. OPIC 2014-2020 directly contribute to achieving the objectives related to economic change - sustainable consumption and production (improving products promote the efficient production, conversion of waste into resources, support for research and innovation) and OPIC 2014-2020 has indirect contribution to other purposes.

48 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

The plan for the conservation of water resources in Europe by 2020 (Blueprint) aims to protect the Europe’s water resources by addressing issues related to land use, pollution, loss of water, improve water management. OPIC 2014-2020 is contributing to reduce pollution and loss of water by investing in innovative technologies.

Strategy "Innovation for Sustainable Growth: a Bioeconomy for Europe", European Commission, Brussels 13.02.2013 aims development of the bioeconomy, to maintain and to stimulate economic growth and employment in rural, coastal and industrial areas and to improve the economic and environmental sustainability primary production. OPIC 2014-2020 contributes to the maintenance and promotion of economic growth and employment in industrial areas, including to improve the economic and environmental sustainability of production by supporting activities for the implementation of eco- innovation.

Eco-innovation action plan by 2020 of the EU (Innovation for Sustainable Development - Action Plan for environmental innovation) has a direct connection with OPIC 2014-2020, which provides for the introduction of eco-innovation in enterprises as a horizontal approach is adopted. The implementation of high tech solutions for optimizing production processes and reduce the use of raw materials; implementation of modern technologies for use of waste as a raw material in new production and / or other alternative uses; introduction of low-waste technologies, innovative manufacturing materials, technologies for production of "green products" and in all other sectors of the economy will be supported. The focus of OPIC in this direction is the introduction of eco-innovations that contribute to better use of resources and energy, and increase the productivity of enterprises. OPIC 2014-2020 directly contribute to the implementation and development of eco- innovation.

EU Strategy for the Black Sea (according to European Parliament Resolution of 20 January 2011 on the EU Strategy for the Black Sea 2010/2087 (INI)) OPIC 2014-2020 attaches importance to the implementation of the objectives of the Integrated Maritime Policy and the EU Strategy for "blue growth". The country has the potential to implement the "blue" policy as a Black Sea and Danube country and strategy of OPIC is to support them in the areas of applicable investment priorities. 49 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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EU strategy on adaptation to climate change provides guidance for increasing Europe's resilience to climate change - increasing the level of preparedness and ability to respond to the effects of climate change at local, regional, national and European level, the development of coherent approach and improving coordination. Adaptation measures to climate change are: Infrastructural "gray" measures - physical interventions or measures for construction and engineering services, to make buildings and infrastructure that are essential to social and economic welfare of the society more resistant to extreme events. "Green" structural measures - increasing the resilience of ecosystems, used the services provided by ecosystems to achieve effective adaptation in terms of cost. "Soft" non-structural measures - implementation of policies and procedures, information and economic incentives to reduce or eliminate vulnerability to disasters. They require careful management of human systems. Measures are also: anticipation (to fund research and development), safety (reducing the negative impact) and opportunistic (endeavor to reinforce and exploit beneficial effects). OPIC measures of innovation, energy and resource efficiency contribute to adaptation to a changing climate.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on green infrastructure - increasing the natural capital of Europe, Brussels, 06.05.2013 COM (2013) 249 final (Green infrastructure) - green infrastructure is strategically planned network of natural and semi-natural areas and other elements of the environment, which is designed and operated so as to provide the most diverse ecosystem services. OPIC 2014-2020 will lead to increased opportunities for development and improvement of green infrastructure by innovation activities

Strategic Plan for the implementation of the European Innovation Partnership on water sets guidelines for the protection of water, including the need to provide a transparent way the results of research funded by the Seventh European Framework Programme for research and development, creating partnerships for innovation in water given specific vital water to the population.

50 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPIC 2014-2020 is contributing to reduce pollution and loss of water by investing in innovative technologies.

Thematic Strategy on Air Pollution, Brussels, 21.9.2005, COM (2005) 446 sets goals to protect the environment and human health and the limitation of emissions of major pollutants (sulfur dioxide, particulate matter, nitrogen oxides, tropospheric ozone). Compared to the situation in 2000, the strategy sets specific long-term targets for 2020 - a reduction of 47% in life expectancy as a result of exposure to particulate matter; reduction with 10% of deaths due to exposure to ozone; reduction of acid deposition by 74% in forest areas and 39% for surface fresh water; reduction by 43% of the sites or ecosystems exposed to eutrophication. To achieve these objectives it is necessary to reduce emissions of sulfur dioxide, nitrogen oxides, volatile organic compounds, ammonia and particulate matter PM 2,5, which directly emitted into the air. OPIC 2014-2020 is helping to reduce air pollution through investment in innovation in enterprises which are emission sources, improve production, energy and resource efficiency. Third National Action Plan on Climate Change 2013-2020 includes sectoral measures to reduce climate change at the national level. OPIC 2014-2020 has a direct contribution to reducing greenhouse gas emissions through actions on investment in innovation in enterprises which are emission sources, improve production, energy and resource efficiency.

National Priority Action Framework for Natura 2000 (NPAF) project in April 2014 presents a strategic conservation priorities for Natura 2000 in Bulgaria for the period of 2014 - 2020 related to management planning of protected sites of Natura 2000 network; sustainable management of protected sites of Natura 2000 network; sustainable use of ecosystem services for optimum public benefits, and other factors for socio-economic development of the regions; construction, development and maintenance of a shared vision for the ecological network Natura 2000 in Bulgaria; technical assistance (to support the management and implementation of activities included in NPAF) and a description of the key measures to achieve the priorities. OPIC 2014-2020 does not contradict the NPAF, it is directed towards the introduction of eco-innovation in enterprises, as long as the NPAF are included in OPE, PMAF, PRD.

51 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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National information and communication strategy for Natura 2000 - 2014-2023, adopted by the National Assembly on 19.06.2013 aims to support the whole process of communication of Natura 2000 in the next ten years. OPIC 2014-2020 does not conflict with National information and communication strategy for Natura 2000 - 2014-2023, it does not provide operations strategy

Management plans for the river basin of the East Aegean, Danube, West Aegean and Black Sea basin management for the period 2010 - 2015 include programs of measures to achieve the objectives of environmental protection. Plans are consistent with the preparation of the Report on Strategic Environmental Assessment. OPIC 2014-2020 does not contrary to the measures to achieve good water status, it has a contribution to achieving the objectives through activities for innovation and resource efficiency.

Flooding risk management plans for the four basin directorates are expected to be prepared at the time made preliminary assessments of flooding risk for the four basin directorates, charting and grading areas at risk of flooding. OPIC 2014-2020 does not provide direct actions on plans, and implementation of program activities should be consistent with management plans, with a view to sustainability of projects in terms of flood risk. National strategy for the management and development of the water sector by 2037 and action plan puts it as a long term view of the sustainable use of water resources, ensuring optimum levels present and future needs of the population and the economy, and aquatic ecosystems. This will be achieved through four objectives - ensuring the water provision for households and businesses in terms of climate change, leading to drought, maintain and improve the condition of surface and groundwater, improve the efficiency of the integrated management of water as an economic resource, reducing the risk of flood damage OPIC 2014-2020 will contribute to achieving the objectives of the strategy, and especially the aim of ensuring the provision of water for households and businesses through the activities of resource efficiency and innovation.

Strategy management and development of water and sanitation of the Republic of Bulgaria sets targets for the development of the water sector, including environmentally

52 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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friendly, financial and technical viability of the sector, affordability and quality of services and efficiency of water supply operators. OPIC 2014-2020 will contribute to environmental friendliness and efficiency of the sector through the activities of resource efficiency and eco-innovation.

National Strategic Plan for a phased reduction in the amount of biodegradable waste going to landfill 2010 - 2020, aims to improve the management of biodegradable waste to reduce the environmental impact of landfilling. OPIC 2014-2020 will contribute to environmental friendliness and efficiency of the sector through the activities of resource efficiency and eco-innovation.

National Strategic Plan for waste management of construction and demolition waste in the Republic of Bulgaria for the period 2011 - 2020 is placing target by 2020 our country has a developed system for the management of waste from construction and demolition, ensuring no less than 70% economically viable recycling, thereby terminate pollution and to reduce to a minimum the environmental impact of waste generated as a result of construction activities in the context of sustainable development. OPIC 2014-2020 will contribute to achieving the plan’s objective through the activities on eco-innovation related to waste management. Municipal programs to reduce the levels of pollutants and achieve the appropriate standard for the development of settlements which are problems regarding air pollution as required by Art. 27 of the Clean Air Act. OPIC 2014-2020 is helping to reduce air pollution through investment in innovation in enterprises emission sources, improve production, energy and resource efficiency.

National program on reducing the total annual emissions of sulfur dioxide, nitrogen oxides, volatile organic compounds and ammonia in the air. OPIC 2014-2020 is helping to reduce air pollution through investment in innovation in enterprises which are emission sources, improve production, energy and resource efficiency

National Action Plan for Renewable Energy by 2020

53 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPIC 2014-2020 accounts the targets on renewable energy and increasing energy efficiency.

C. Other plans and programs with a duration matching / overlapping the next programming period: Operational programs for the programming period 2007 - 2013, are related to OPIC 2014-2020, as the programs for the period 2014-2020 are a continuation of programs for the period 2007-2013 in the preparation of OPIC 2014-2020 in the analysis of the current situation and identify the needs for funding are used the results of the OP Development of the Competitiveness of the Bulgarian economy, including results of the implementation and effectiveness of other operational programs. Draft operational programs for the period 2014-2020 - Section 8 of the draft of OPIC 2014-2020 includes information about the coordination between the Funds, the EAFRD, EFMAF other national funding instruments and instruments of the Union as well as EIB. In terms of other programs demarcation and complementarity of activities is as follows: Operational Programme "Science and Education for Smart Growth (OPSESG) focuses on research and innovation through the development of centers of excellence and centers of competence (PA1), integrating both scientific capacity to business needs and focus of the Innovation Strategy of Smart Specialization (ISSS). OPIC provides investment to support the cooperation between business and science activities as upgrading investments of OP SESG - encouraging businesses to use the services of the centers and complementary cooperation activities business beyond science centers, again ISSS is a leading. Thus, OP SESG will fund activities which place a sound basis for innovation and the focus of OPIC is to stimulate businesses to use the results of the established conditions for the implementation of innovation by transforming them into marketable products and processes that create economic growth. In addition to developing research infrastructure OP SESG, OPIC will support and further development of innovation infrastructure aimed at creating conditions for business-to-business collaboration and cooperation between business and academia through the creation, development and accreditation of thematically focused laboratories and other shared infrastructure to support innovation activities of enterprises, Phase 2 of the measure associated with creating a science and technology park and funding clusters, technology centers and technology transfer offices to build basic infrastructure. The strategy of the Operational Programme "Regions of growth" (OPRG) relies on the quality of life in order to overcome the negative demographic trends and the potential of cities for balanced development throughout the country. Coordination between both programs will be held in the areas with potential for economic development identified in Integrated plans for 54 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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urban regeneration and development (IPURD). OPIC will give more priority to eligible entities that develop business or intend to invest in identified areas of potential for economic development of integrated urban regeneration and urban development outside the scope of the definition of rural area. OPRG provides almost 20% of the funds for the implementation of energy efficiency measures in commercial and residential buildings, and about 9% of the development of integrated urban transport. On the other hand, OPIC provides for measures aimed at improving energy efficiency in enterprises industrial processes, heating / cooling, energy performance of buildings). Thus both programs cover two different, but complementary areas of interventions. In addition to the Priority Axis "Regional tourism" of OPRG aimed at preserving and developing cultural and natural heritage of national and global importance, within OPIC provides support for marketing and information activities in the field of tourism at national and regional level. OPIC and the Operational Programme "Environment" (OPE) simultaneously address one aspect of the main objective of the strategy "Europe 2020" - smart, sustainable and inclusive growth, namely sustainability. OPE 2014-2020 provides 6 priority areas - water, waste, Natura 2000 and biodiversity, prevention and management of flooding risks, improving air quality and technical assisstance. Within two programs provide activities to support the implementation of the thematic objective 6 - Protecting the environment and promoting resource efficiency. OPIC provides implementation of eco-innovation in enterprises having adopted a horizontal approach. Will support the implementation of high tech solutions for optimizing production processes and reduce the use of raw materials; implementation of modern technologies for use of waste as a raw material in new production and / or other alternative uses; introduction of low-waste technologies, innovative manufacturing materials, technologies for production of "green products" and in all other sectors of the economy. The OPIC’s focus in this direction is the introduction of eco- innovations that contribute to better use of resources and energy, and increase business efficiency while the leading direction of the OPE is protection of the environment. OPE are not provided for activities in support of the promotion of innovative solutions in the field of environment. Considering this is not expected overlap / duplication of interventions between the two programs. The strategy of the Operational Programme "Human Resources Development" (OP HRD) is based on three pillars - the higher and better jobs; reducing poverty and promoting social inclusion; modernization of public policies and it is based on the identified needs of the main target groups of the program. OPHRD addresses the social component of 55 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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the main goal of the EU strategy "Europe 2020" - smart, sustainable and inclusive growth, namely fostering a high-employment, leading to social and territorial cohesion. By complementarity of measures both programs will achieve higher effectiveness of the ESIS. On the one hand, through the Operational Program "Innovation and Competitiveness" 2014- 2020 entrepreneurship and strengthen the export and production potential of enterprises are supported, which is a prerequisite for the opening of new jobs. On the other hand, OPHRD measures are foreseen to allow for employees, enterprises and entrepreneurs to more easily adapt to the changing needs of the economy and labor market, including through the development of knowledge and skills of employees in accordance with the necessary business skills and competencies, new forms of work organization and promotion of geographical and professional mobility. OPHRD will offer job seekers and employers an appropriate package of incentives, including information brokerage service-oriented applications for vacancies and training incentives to reduce labor costs. The two programs are complementary in terms of measures to promote entrepreneurship. OPIC provides mainly the use of financial engineering instruments to promote entrepreneurship as part of the Thematic Objective 3. Activities in this direction of OPHRD aim to improve access to employment through the promotion of entrepreneurship and private business and self-employed persons within the Thematic Objective 8. Operational Programme "Transport and Transport Infrastructure" (OPTTI) is dedicated to building a sustainable transport and transport systems, development of environmental and low-carbon transport systems and promoting sustainable urban mobility, including river and sea transport, ports and multimodal connections (within Thematic Objective 7). The provision of good road infrastructure is one of the factors that affects the conditions for business development, but in terms of the dividing line between the two programs, there are areas of overlap investment. OPIC and the Operational Programme "Good Governance" (OPGG) - by OPIC provides support to businesses in the specialized areas of intervention in the priority areas of the program (innovation, entrepreneurship and competitive SMEs, energy and resource efficiency). Key element is the provision of direct support to enterprises (vouchers, grants and financial instruments). The effectiveness of these investments is directly dependent on the support that will be provided in OPGG on more positive overall business environment and competitiveness, especially through better regulation and a focus on quality and timeliness of supply of public services, including further development of e-government. In addition, it will be possible OPIC to implement a limited number of quality projects on a national level institutions (agencies, departments, etc..) or partnership projects (business

56 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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organizations) in direct benefit to business development - awareness, electronic applications, international presence and investment activities with export orientation and more. Will be targeted as eligible investments for standardization and accreditation, peer review, and technological facilities of laboratories and units for control, innovative capacity and capacity in the field of patents and enforcement of intellectual property systems for monitoring and evaluation in the field of energy and resource efficiency in business strictly specialized professional qualification in OPIC financing. Rural Development Programme (RDP) aims to help farmers - natural or legal persons, and producer organizations, while OPIC supports enterprises of other economic sectors. Rural Development Programme is financed by the European Agricultural Fund for Rural Development and provides support for diversification of economic activities, products and services to SMEs in rural areas and farms in response to changing needs and market demand. RDP will stimulate innovation and knowledge base in agriculture, food and forestry and finance investments in start-up businesses in rural areas. To avoid overlap between the Operational Programme "Competitiveness and Innovation" and RDP support for investment in agricultural activities for existing and start-up micro, including start-ups in rural areas will be provided in the RDP (diversification). Clusters, SMEs will be eligible for OPIC support if they perform non-agricultural activities in accordance with the financing of OPIC whether in urban or rural communities. Similarly and the current programming period (2007-2013) the demarcation between the two programs will be based on the scope, beneficiaries and the type of activities covered by the respective priorities. Programme for Maritime Affairs and Fisheries (PMAF) includes measures relating to the development of research infrastructure and applied research, technological development and innovation, competitiveness, entrepreneurship, low-carbon technologies and energy efficiency, environmental protection and others. fisheries and aquaculture. In view of the nature and scope of the measures envisaged in both programs, the main line of demarcation between OPIC and PMAF should be on the beneficiaries and in the current programming period. Both programs will be complementary in terms of measures in support of the blue growth. In PMAF emphasis on marine flora and fauna, in OPIC will possible projects in the field of marine mineral and other resources, blue energy, promotion of sustainable marine, coastal and cruise tourism, and other clusters. In Section 8 of the draft of OPIC 2014-2020 were examined and other programs on the Common Strategic Framework, relevant to the program. National Concept for Spatial Development 2013 - 2025 shall submit the following concept: national space of Bulgaria - open to the world and integrated in the European space 57 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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and in the European network of core-centers and axes of development, culture, science and innovation; The well-preserved national resources – the people, land, waters and forests, ores and minerals, natural and cultural heritage - a guarantee of national identity; Balanced and sustainable integrated development achieved through rational organization of the economic, social, transport, engineering, cultural and tourist infrastructure and ensuring smart growth, adaptability to change and equality. OPIC has a direct contribution to the realization of the vision presented in terms of conservation of resources (through the activities of resource efficiency), economic infrastructure and smart growth.

National Concept for Spatial Development of the Republic of Bulgaria for the period 2012 - 2022, adopted by Decision № 696 of the Council of Ministers of 24.08.2012 puts vision: Bulgarian areas - attractive for living, effectively utilizing their potential for sustainable growth creating new jobs, business and tourism, with preserved natural and cultural heritage. OPIC has a direct contribution to the realization of the vision presented by financing activities aimed at sustainable growth, creating new jobs, businesses, and indirectly - for other aspects.

Regional development plans of the regions (North-East, North-West, North- Central, South-East, South-West and South-Central) Level 2 2014-2020 presented the main priorities for regional development, for the implementation of a vision for development: the North Central region - rapid and sustained emerging European region, an integral part of the Danube area where young people see their future and personal fulfillment; North-East region of Bulgaria – open to the Black Ses and the world Bulgarian territory preserved a rich history and material culture, fertile land, human capital, infrastructure, tourism image and applies her specific potential to achieve overall economic progress and improved quality of life; North-West region overcomes the significant socio-economic retardation and severe structural and demographic problems through appropriate investments in related infrastructure and strengthen growth potential, creating conditions for accelerated development at national and European level; South Central region - an attractive place for living, business and tourism, with better conditions for communication and conserve natural and cultural heritage; South-East region - an attractive place to live and businesses with conserved natural and cultural heritage, the efficient use of their potential for sustainable and balanced socio- economic development by strengthening the tradition in tourism and energy; South-West

58 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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region - national standard for balanced development through smart, sustainable and inclusive growth. The six RDP set priorities and activities related to the development of the economic sector. OPIC 2014-2020 includes priority axes and activities that correspond to the formulated priorities of the area. The program will contribute to the sustainable development of the regions.

1.5. Connection of OPIC 2014-2020 with investment proposals Provisions of OPIC’s 2014-2020 detailness does not allow identification of specific investment proposals at the programming stage. There is clarity only in supporting the project for the construction of the gas connection Bulgaria-Serbia and development and upgrade project for the technology park "Sofia Tehpark." For the project to build the Gas Interconnection Bulgaria-Serbia was conducted procedure for environmental impact assessment, as issued Decision № 48-PR/2012 by which the Minister of Environment and Water has determined not to carried out EIA for the proposal, which is unlikely to have a significant negative impact on natural habitats, populations and habitats of species subject to conservation in protected sites. Targeted support for Sofia Tech Park aims to create the first completely new inovation science and technology eco-system of advanced level where they can identify, promote and develop innovative ideas and projects; to create a focal point for co-active interaction of international and Bulgarian partners to support connections between existing knowledge- based institutions and the private sector to improve the commercialization of R & D activities. It would establish a national environment for innovation on a global level in order to stimulate the development of sectors with significant added value. The establishment of 20 000 square meters new and renovated areas on the territory of the former property of the Ministry of Defence in Sofia, Iskar behind Aviation square (4th kilometer of Tsarigradsko road) where to locate applied research laboratories, general incubator, innovative lecture, education, discussion forums, places for demonstration of new technologies, office space, car parking and pedestrian green spaces.

59 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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2. CURRENT STATE OF THE ENVIRONMENT AND POSSIBLE DEVELOPMENT WITHOUT APPLICATION OF OPIC 2014-2020 2.1. Current state of the environment 2.1.1. Climate condition and climate changes Bulgarian’s climate is formed under the influence of various factors and primary role has country’s location and the related distribution of solar radiation, prevailing atmospheric circulation, the relief, the nature of the bedding surface and Black Sea. Revenue of solar radiation is determined by geographical location and in a result there are four distinct seasons. Atmospheric circulation includes influxes of air masses from the northwest, northeast and southwest horizon. Air masses transport from the northwest prevailing throughout the year, under the influence of surface litter greatly transformed airflow reaches us, which in winter is colder and in summer more overheated and has a reduced moisture content, because of the remoteness of the country from the Atlantic. As a result, during the spring and early summer when the invasion of these air masses over the vast territory of the country fall torrential rain accompanied by thunder and lightning. In late fall and early winter cold continental air masses are entering from the north eastern horizon, causing abrupt cooling. Mediterranean cyclones influence in the southern, where rainfall is abundant and long during this period. The relief expressed by mountain ranges, affect penetration of air masses in different parts of the country. Black sea influence to climate conditions is within the narrow band of 30-60 km far from the coast. The country is divided into two climate zones and four sub-areas according to climatic regions of Bulgaria (Stanev and others., 1991). The areas are divided into European- Continental and Continental-Mediterranean. The differences between them are related to the distribution of atmospheric circulation during the cold half. Areas are divided into two subareas: the first of Temperate Continental and Continental, and the second of the Black Sea and South-Bulgarian. Mountain climate is formed in areas with an altitude above 1000 m. Due to rapid changes in the values of different climatic features in height there are two separate parts in the mountain climate region: highland and high. It is accepted altitude 2000 m boundary between them. Climatic regions are distinct in each subregion depending on the physical and geographical characteristics and mode of air temperature and precipitation. Temperate Continental climate subarea is characterized by relatively cold winters with little rainfall and relatively hot summers. The average temperature in January is less than 1,5°C to 3,0°C depending on orography. Temperature drops below minus 18-20°C in the sharp frosts. The average July temperature is in the range 22-24°C and maximum temperatures can exceed 40°C. The average annual temperature range between 22-25°C, which emphasizes the continental nature of the climate. Rainfall patterns are characterized by a maximum in May-June and a minimum in February. The difference between summer and

60 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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winter precipitation accounts for 15-25% of the annual amount. Spring and autumn are cool, but autumn is slightly warmer and drier than spring. Continental climate subarea is located south of the Balkan Mountain. Significantly milder winter conditions are distinctive to this subregion. Balkan mountain is key to this because it is the barrier in terms of cold continental air masses. Winter is significantly softer and less snow, summer is hot. The average January temperature is between minus 1.5 and 1,0°C. The number of days with snow cover is almost two times less than in northern Bulgaria. Summers are hot, with average July temperature around 22-24°C, but heat waves exceed 40°C. Rainfall patterns has a continental character (summer maximum and winter minimum), but the difference between summer and winter rainfall is significantly reduced. May-June rainfall is the main maximum, second maximum is in November. South-Bulgaria climate subarea covers the southern border areas of the Belasitza and Ograjden to Strandja mountain (excluding central parts of the Rhodopes) downstream of the Maritsa River, Eastern Rhodopes, Mesta River valley, the valley of the Struma River south of Kresna gorge and the surrounding mountain areas. A relatively small part of the territory is flat terrain - mainly in river valleys. The rest is occupied by mountains. Climate is of temperate zone and warm, but with more rainfall in winter. Summers are hot and dry. Even in January temperature is 1-2◦C above zero, which defines the subregion as one of the warmest in winter. Minimum temperatures can fall below minus 10◦C - minus 14◦C and in exceptional frosts and below 20◦C individual sudden cold snap. Summer is very hot and sunny. The average July temperatures are between 23◦C. and 25◦C. Spring is warmer than in the Black Sea subarea. Distribution of precipitation is emphasized autumn-winter maximum (November-December) and minimum in August- September. Cold part of the year is not only the period with the highest monthly rainfall, but this is the period during which fall heaviest single heavy rainfall. Climate in the Black sea climate subarea is formed mainly by the proximity of the water masses of Black Sea and the nature of the atmospheric circulation. Rainfall patterns confirm the Mediterranean climate character. Rainfall maximum is mainly in November and rainfall minimum is in August. Winters are mild with positive annual temperatures in the northern part around 0-1,5C, and in the southern part up to plus 3C. Strong winter frosts occur relatively less, but in certain situations, and in the southern parts are possible temperatures to minus 17-18C, and in the north even to 25C below zero. The average July temperature is 22C to 23,5C. Breeze circulation strongly influence thermal mode in summer. Temperatures can reach 39-40C in varying weather conditions. Relatively frequent occurrence of fog during the warm part of the year is another feature of the climate here. Climate is not homogeneous in subareas so they are divided into different climatic regions, where, however, retain the aforesaid main climatic features. The following briefly describes climatic regions within the regions in NUTS.

61 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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North-West region – This region falls within the Temperate Continental subarea and in particular in the northern, middle, and climatic region of the mountain front. North-Central region - The climate in this region is similar to that in the previous one. Lowland areas of this region are relatively distant from the Stara Planina mountain range, so here we see the characteristic of the western region increased precipitation. North-Eastern region - This region falls within the NUTS Temperate Continental subarea in Continental Mediterranean subarea. Temperate continental subarea it lies on the northern and eastern climatic regions of the Danubian plain and Continental Mediterranean subareas falls into the region on the North Coast. South-West region – This region belongs to the European Continental and Continental Mediterranean climatic subareas. The northern part of the region is characterized by a temperate continental climate and falls into three climatic regions - Mountain; And low mountainous areas of West Central Bulgaria and climatic regions of the high plains of West Central Bulgaria. South-Central region - South Central region falls within two continental climate subareas – Continental and Continental Mediterranean. Four climatic regions are related to Continental Mediterranean. South-East region – This region falls within two continental climate subareas - Continental and Continental Mediterranean climate subareas. Continental subarea, western part of the area falls within the eastern climatic region of East Middle Bulgaria, the climate of which was described above. The rest of this area falls within the Continental Mediterranean climate subarea. Part of the region lies in the Black Sea subarea in particular climatic regions of Burgas plain and Strandja coast. Southwest is Continental Mediterranean climate subarea - in Strandja and Brannishko Dervenska - climatic regions. Clarifying research for climate change increases significantly after the 60 years of XX century. The observed changes causes examination shows with sufficient accuracy that the general trend of increase in temperature over the last century can be explained by variations in the transparency of the atmosphere and the greenhouse effect of increasing CO2 concentration. Specific changes in temperature latitude in different seasons are determined by the amount and type of stratospheric aerosols and change the boundaries of polar ice. The economic activity has significant influence on the modern climate. The increasing of CO2 content in the atmosphere is a particularly important aspect of its impact. This in turn resulting in increasing of the greenhouse effect and increasing the temperature in the lower troposphere. There is a tendency towards warming in the second half of XX-th century beginning of the 80s of last century in Bulgaria. Positive anomalies dominate the average annual air temperature relative to the climatic norm since 1989 of the base period 1961 - 1990. The average annual temperature in 2011 is 0,4°C above the climate norm. This is a 14th serial year

62 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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with higher temperatures than usual for the country. Annual amplitude between the maximum and minimum temperature decreases - the minimum temperature is increased more rapidly then the maximum. The extreme weather and climate events are increasing in frequency. There are more and longer periods of drought followed by severe storms and flooding with heavy damage and casualties. Longest droughts have been observed during the 40 years and the last two decades of the 20th century and the most significant droughts are in 1945 and in 2000. The winters are milder since the beginning of the 21st century. The average number of days with daily rainfall over 100 mm is significanty increasing. The number of cases with heavy rainfall, thunderstorms and hails in January and February are increasing; the average number of days with thunderstorms and hail in April and in September are increasing in frequency. Snow months in the mountains are reduced and the thickness of the snow cover shows steady trend towards thinning. The annual precipitation tend to increase in most regions of the country in the first decade of the 21st century after the trend toward of decreasing rainfall to mid 90s of last century. Intergovernmental Panel on Climate Change (IPCC) developed models that assess climate change. Mathematical climate models that are used to simulate the expected climate change in the XXI-st century need scenarios for future emissions of greenhouse gases and aerosols in the atmosphere. These scenarios describe broadly the main demographic, economic and technological resources that have and will continue to influence future emissions of greenhouse gases and aerosols in the atmosphere. It is using different models HadCM, MPI-M, CCCMA, GFDL, NCA and others for the study of climate change. Independent models are used for modeling the processes characteristic of the individual components of the air conditioning system, as well as those that bind the results of the component patterns in a common integrated model. Regional models for Central and Eastern Europe, used in the project CECILIA (Central and Eastern Europe Climate Change Impact and Vulnerability Assessment), showed a statistically significant trend of increasing average temperature by about 1.5C in the period 2021-2050, compared to this for 1961-1990, the South East Europe precipitation project CLAVIER established upward trend in winter by about 20% and a decrease in summer by about 10%. For the territory of Bulgaria is established a strong upward trend of maximum temperatures in summer and increase the number of tropical nights (at a minimum temperature above 20C), and duration of dry periods (consecutive number of days without rain). The results of the simulations with the global model ECHAM4 show that air temperatures in the country will increase over 2025 with 1.1-1.2C, in 2050 with 2.1-2.2C and in 2100 - with 4.2-4.3C. Provides precipitation will decrease in 2025 to 2-3% in 2025, 4-5% and 8-10% in 2100. Winter precipitation in Bulgaria will increase by the end of the present century, but rainfall during the warm half of the year and especially during the summer are expected to decrease according to most climate scenarios. In the recent years both in Europe and in our country is actively engaged in identifying measures to reduce the climate impact. Adopted in 2013, "Third National Action Plan on

63 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Climate Change" provides concrete measures to reduce greenhouse gas emissions in all sectors, such measures are consistent with the national policy in the field of climate change, and consequently the potential of national economy for the reduction of emissions. The plan addresses key international and European aspects of climate policy and objectives which the EU should achieve by 2020 is currently under development and document national adaptation strategies that will provide a framework for the guidelines to be followed for adaptation to the conditions of a climate changing. We are working on implementing a new leadership for the integration of climate change and biodiversity in Strategic environmental assessment (Guidance on Integrating Climate Change and Biodiversity into Strategic Environmental Assessment, 2013). 2.1.2.Air quality index Emissions of harmful substances It is established the following since the last inventory (2011) of emissions of harmful substances emitted in Bulgaria (Annual report on the state of the environment, 2013): Thermal power plants are the largest source of sulfur dioxide - 84% of the total emissions in the country (fig.2.1.2.1.). Sulfur dioxide emissions by power plants in Bulgaria tend to significantly reduce (by about 48%) for the period 1990-2011. - From 829,4 kt to 431,90 kt. In the last year of emission inventories grew the sulfur dioxide 127.2000 tons compared to 2010, due to increased consumption of lignite TPP. Thermal power plants are major sources of nitrogen oxides - 39% of the total amount issued in the country (fig.2.1.2.1.). Agriculture emits 74% of ammonia, followed by treatment and land disposal of waste - 18% (fig.2.1.2.1.). The main source of NMVOC is the nature - 67% of the total for the country. The share of agriculture is 11% and 12% of domestic heating (fig.2.1.2.1.).

The home heating is a major source of PM10, emitting 58% of the total emitted.

Fig.2.1.2.1. Distribution of emissions of harmful substances in the main groups of emission sources in 2011,% Source: NSI and EEA

Greenhouse gas emissions 64 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Greenhouse gas (GHG) data since the last inventory (2011) show that total emissions presented in CO2 - eq. are 66 133,28 gigagrams (Gg). Net emissions (including removals by LULUCF sector) are 57 747,13 Gg (fig.2.1.2.2.).

Analysis of the distribution of GHG shows that CO2 has the largest share of total emissions - 80.51%, emissions of CH4 - are in second place with 11.62%, N2O emissions are 7.25% share and remain Thirdly, F - gases with a share of 0.62 percent - fourth.

Fig.2.1.2.2. Trend in emissions of GHGs - CO2, CH4 and N2O and total GHG emissions (including HFCs, PFCs and SF6) for the period 1988-2011, the, Gg CO2 - eq. Source: EEA, National inventory report on GHG emissions for 2011. For the period 1988 – 2011 the basis GHG emissions show reduction trend, in 2011 the total GHG emissions emitted are 45.75% from the basis year’s emissions (1988). Sector "Energy" is the source of 78.9% of the aggregate GHG emissions for the last inventory in Bulgaria. The largest share in the sector occupied CO2 emissions - 95,5%, such as by combustion processes for energy production is 67.5%. In 2011, an increase of GHG emissions by 5462,11 Gg CO2-eq. compared to 2010 and it is associated with a large amount of lignite used by Thermal Power Stations. GHG emissions by the sector "Industrial Processes" are 6.02% of national emissions. The largest contribution to emissions of the sector has CO2 - 83,78%. The sector most significant GHG sources are: production of lime (CO2); The production of cement (CO2); The production of ammonia (CO2); Use of limestone in desulphurisation installations energy (CO2). There has been a drastic reduction in emissions by metallurgical industry since 2007 due to the cessation of the activity of "Kremikovci" to its definitely discontinued after 2008.

65 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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A non-methane volatile organic compounds (NMVOCВ) and N2O are mainly emitted by “Solvent” sector. It is not a key source of GHG emissions. NMVOCs emissions and CO2 for 2011 decreased than 2010 by 14.96% due to the positive effect of the Ordinance relating to the production and marketing of paints and varnishes, as well as the use of solvents certain plants. N2O has only been used for anesthesia in 2011 and there is a decrease of N2O emissions by 6.1%.

Processes and activities in the "Agriculture" sector are mainly sources of CH4 and N2O. The largest source of CH4 emissions in the sector is enteric fermentation in livestock - 21.3% of the sector. The most significant N2O emissions by agricultural soils and their share is 57.6%. The GHG emissions in the “Waste” sector are determined only by processes of decay of landfilled solid waste. The methane emissions from this source in the inventory of 2011 are first in Bulgaria, emitting 3580,2 Gg (CO2-eq.) The total GHG emissions are presented on (Fig.2.1.2.3.) by sectors for the period 1988-2011 in Gg CO2-eq. Also the quantities of absorbed CO2 are included by the forest, which leads to a reduction in emissions. The data show the "Energy" sector has the largest share of total GHG emissions in 2011 - 78.9%. Second is the "Agriculture" sector - 9.3 % and third is the "Industrial Processes" sector by 6.0% of national emissions.

Fig.2.1.2.3. Total greenhouse gas emissions by sectors for the period 1988 - 2011., Gg CO2 - eq. Source: EEA, National inventory report on GHG emissions for 2011. The greenhouse-gas emissions per capita are main indicator for assessing greenhouse gas emissions internationally. This indicator decreased from 13.6 t CO2-eq. in 1988 to 9 tons 66 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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of CO2-eq. in 2011 in Bulgaria, the lowest levels were in 2000 - 7.3 t CO2-eq. According to this indicator Bulgaria is close to the average for the European Union (EU) - 9.4 t CO2-eq. Bulgaria's commitments on emissions of harmful substances Bulgaria has adopted the National Programme for the reduction of total annual emissions of sulfur dioxide, nitrogen oxides, volatile organic compounds and ammonia into the air in order to ensure the implementation of Directive 2001/80/EC. The document was adopted by Decision № 261 of the Council of Ministers in 2007. This program provides for the implementation of measures to reduce emission levels as a result of which is expected to achieve those below national ceilings, taking into account the implementation of Directive 2001/80/EC. Table.2.1.2.1. Emissions of harmful substances into the air by anthropogenic sources and Bulgaria’s international commitments, kt1. Source: EEA

Commitments Commitments undrer the Objectives of the National under the Gothenburg Programme, adopted by Directive Emissions Protocol to Decision № 261 of the CM Air pollutants 2001/81/EC in 2011 CLRTAP

2010 2010 2010 2015 2020

SOx (like SO2) 514 836 856 380 300 250

NOx (like NO2) 136 247 266 247 247 247

NMVOC 92 175 185 175 175 175

NH3 48 108 108 108 108 108

The analysis of the data from the National inventories for the period up to 2011 in comparis to the Kyoto target shows that the GHG emissions are significantly lower than the base 1988 and presently Bulgaria has the necessary reserve to ensure the carrying out of the obligations of the State under Kyoto Protocol (fig.2.1.2.4). Two of the "flexible" mechanisms of the Kyoto Protocol are performed in Bulgaria - an international emissions trading and "Joint Implementation". Steps to participate in the international emissions trading had taken by means of an agreement for the sale of assigned amount units (AAUs) to the Republic of Austria under the National Green Investment

67 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Scheme. Financial proceeds by the sale are used to finance public and private projects. Until now has contracts to implement projects to improve energy efficiency of municipal buildings, kindergartens and primary schools. Private projects are funded on biomass, biogas, transportation, renewable energy and more. The approved projects under the mechanism "joint implementation" provides for a reduction to around 8 million tonnes of CO2 eq. for a period of 4 years.

Fig.2.1.2.4. Achieving the objectives of the Kyoto Protocol by 2011, Gg CO2 - eq. Source: EEA An assessment of air quality index, including areas for assessment of Air Quality index and Air Management. The assessment of air quality index (AQI) is based on the quarterly newsletter of the Executive Environment Agency for the period 2012 - 2013 and the first quarter of 2014, and the final State of the environment reports for 2013. The analysis is conducted separately by region air quality assessment and management (RAQAM). The country is divided into 6 regions - Capital, Plovdiv, Varna, North/Danube, Southwestern and Southeastern. The National Automatic Air Quality Monitoring and Control System (NAAQMCS) functioned from 46 to 53 fixed points located in 31 to 34 locations. Capital region Air quality index (AQI) control in Sofia is carried out in the neighborhoods - Druzhba, Pavlovo, Nadezhda, Hippodrome, Orlov most and Kopitoto. Sulfur dioxide concentrations in the Capital region are significantly lower than the 3 3 limit values (SO2-24h-125  g/m , SO2-1h-350  g/m ).

Cases of excess of the norm for one-hour nitrogen dioxide (NO2-1h - 200  g/m3) are reported duing the colder months of the year. Most often this occurred in 2012 respectively - 68 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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point Hippodrome - 42 cases, Pavlovo - 36 cases and Orlov most – 3 cases. It is reported only a few hours in Pavlovo and Nadezhda in 2013.

It is established concentrations of particulate matter (PM10) over the limit average daily concentration of 50 μg/m3 (24-h average) in the Capital region, most often in the first and fourth quarters of the year. All of the monitoring stations violated the legal requirement for no more than 35 days per year with concentrations above the 24-h average, except Kopitoto. The days of PM10 over limit values in individual stations ranged from 59 (Druzhba) to 108 (Orlov most) in 2012, from 43 days (station Yana) to 110 pc. (Druzhba) in 2013. Frequent exceedances about ½ of the days noted in the first quarter of 2014. The highest values were 8-8.5 times the limit value. Elevated levels of ozone are identified in the region, especially in Kopitoto, where the current target value (CTV = 120  g/m3) is exceeded in 119 cases in 2012 and -78 cases in 2013. Otherwise the number of monitoring stations with 8-hour average ozone over the current target value ranged from 1 (Hippodrome) to 40 (Nadezhda) in 2012; from 1 (Hippodrome) to 15 (Pavlovo) in 2013. Plovdiv region Air quality index (AQI) control in Plovdiv is carried out in 2 monitoring stations in Plovdiv – Bania Starina and Kamenitza and Dolni Voden. Sulfur dioxide is not a problematic pollutant in the region of Plovdiv. There have been only two cases of excess of 1- hour average - in monitoring station Bania Starina (the first quarter of 2014) and in monitoring station Kamenitza (the fourth quarter of 2012). The highest measured value reaches 1.5 times the limit value (350  g/m3). Absent excess of the daily average values (125  g/m3). In respect of nitrogen dioxide in the Plovdiv region there were 11 cases of exceeding the 1-hour limit values (200  g/m3) in 2012 and 9 cases in 2013. The highest measured value is 1.6 times the limit value. It was found by AMAQ Plovdiv that over 1/3 of the days are with abnormal concentrations of PM10 over the last two years. At various monitoring stations values range from 127 cases (Dolni Voden) to 154 (Bania Starina- Plovdiv) in 2012 and from 139 (Dolni Voden) to 173 cases (Plovdiv Kamenitza) in 2013. Maximum measured concentrations reach 6 times the limit value. There is an ozone measuring only in monitoring station Kamenitza from all of the monitoring stations in Plovdiv. Most days with concentration above current target value (120 g/m3) are established in the third quarter of 2012 - 31. It was registered only one case during the second quarter of 2012 and 2013 years. Maximal values are 1.2 times current target value. Varna region

69 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Air quality index (AQI) control in Varna is carried out in 2 monitoring stations in Varna – Ian Palah and Batak str. and one monitoring station in Devnia. Sulfur dioxide is not significant pollutant for the region of Varna-Devnia. Nytrogen dioxide 1- hour average concentrations exceeded the target value in a few cases - only 3 times for the recent years (first quarter of 2014).

In the Varna-Devnia region it is identified concentrations of particulate matter (PM10) over the limit average daily concentration of 50 μg/m3 (24-h average). All of the monitoring stations in Varna has violated the legal requirement for a maximum of 35 days per year with concentrations above the 24-h average, except of monitoring station Devnia. The most frequent exceedances are in monitoring station Varna – Batak: 155 days in 2013 and 135 days in 2012. In monitoring station Ian Palah-Varna it is marked 60 cases of concentrations above the limit target value only in 2012. The maximal values of PM10 are mostly in the range 1.1 to 1.5 times the limit target value. The concentrations which reach up to 3 times the limit value target are single. Excess of ozone current target value is established only in single cases – 6 in Varna in 2012 and 1 in Devnia in 2013. North/Danube region The monitoring stations by the National network of air monitoring stations are situated in Vidin, Vratza, Montana, Nikopol – DOAS N, Pleven, Lovech, Svishtov, Ruse, Silistra, Dobrich, Shumen, Gorna Oriahovitza and Veliko Turnovo.

In terms of sulfur dioxide it is registered only 3 exceedances of the limit value (SO2- 3 24h-125g/m ) in the region of Vidin (the first quarter of 2012), at the others monitoring stations values are in the range of the limit values. In none of the cities are not exceeded 1- 3 hour average concentrations (SO2-1h-350g/m ). Measured concentrations of nitrogen oxides at the monitoring stations of the North 3 region are lower than the limit value (NO2-1h - 200 g/m ).

It is highly contaminated with particulate matter (PM10) over the limit average daily concentration of 50 μg/m3 (24-h average). During the heating period - at all of the monitoring stations in the region are reported from 20 to 68 days the first and fourth quarters in the quarter with concentrations above the limit value. Most exceedances were recorded respectively in Vidin - 68 pc. (the first quarter of 2014), 67pc. (the fourth quarter of 2012); Montana - 63 pc. (the first and the fourth quarter of 2013), Gorna Oriahovitza - 65 pc. (the first quarter of 2012), 32 pc. - Silistra (the first quarter of 2012 and 2014). The highest measured concentrations reach 5-6 times the target value. There are cases of exceeding the limit value only in some of the monitoring stations during the hottest part of the year and they are significantly less. All of the monitoring stations in the North region has violated the legal requirement for a maximum of 35 days per year with concentrations above the 24-h average, except of monitoring station Dobrich. 70 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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It is observed excess of ozone current target value (120 g/m3) in some of the monitoring stations (Vratza, Gorna Oriahovitza, Ruse, Silistra, Svishtov, Shumen). The number of cases in the third quarter of 2012 is most significant - G.Oriahovitza - 49 days, Ruse - 27 days, Vratsa and Silistra - 15 days and Svishtov - 5 days. Single excesses of ozone current target value are established in the same settlements in the second quarter of 2012, and the second and third quarter of 2013. Southwestern region The monitoring stations by the National network of air monitoring stations in the Southwestern region are situated in Pirdop, Pernik, Smolian, Kurdzhali, Blagoevgrad. There are registered exceedances with regard to sulfur dioxide mostly during the cold months of both years. The average daily concentration over the limit values are reported in Pernik - 17 days (the fourth quarter of 2012), 9 days (the first quarter of 2012), 6 days (the fourth quarter of 2013) and 3 days (the first quarter of 2013). The monitoring station of Kardzhali has single cases - in one day (the fourth quarter of 2013 and the first and the fourth quarter of 2012 and the first quarter of 2014). Cases exceeding 1-hour average concentrations are single – Pernik – 1 hour in the first and the fourth quarter of 2013 and 3 hours in the fourth quarter of 2012 and 5 hours in the first quarter of 2012; Kurdzhali – 8 hours in the first quarter of 2012. Measured concentrations of nitrogen oxides in the monitoring station of Southwestern 3 region are lower than the limit value (NO2-1h - 200  g/m ).

It is founded frequently pollution with PM10 in the monitoring stations. There are higher concentrations and frequent cases of excess of the limit value during the cold months of the year. It is established concentrations of particulate matter (PM10) over the limit average daily concentration of 50 μg/m3 (24-h average) in all of the monitoring stations. All of the monitoring stations violated the legal requirement for no more than 35 days per year with concentrations above the 24-h average, respectively – in Pernik 171 days in 2012 and 123 days in 2013; Smolian – 105 days in 2012 and 92 days in 2013; Kurdzhali – 77 days in 2012 and 73 days in 2013; Pirdop – 79 days in 2012 and 62 days in 2013 and Blagoevgrad – 84 days in 2012 and 69 days in 2013. The highest values reach 6 times the limit value. There is an ozone measuring only in monitoring station Blagoevgrad. Most days with concentrations above the current target value (120 g/m3) are established in the third quarter of 2012 and 2013, respectively - 49 and 12. Significantly fewer cases are identified in the second quarter of 2012 and 2013 years and the first quarter of 2012, respectively - 9, 1 and 3 days. The maximal values reach 1.25 times the current target value. The tendency continues towards decreasing of the annual average concentrations of lead aerosols except of Kurdzhali. Exceeding of annual average (LV) lead aerosols in the atmosphere is registered only in RAMAQ –Southwest-Kurdzhali in 2011. The higher lead aerosols concentrations in Kardzhali are due to the activity of the Lead-Zinc Plant S.A and 71 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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“Aurubis Bulgaria” Ltd. The annual average value for Cd is exceeded in the Southwest region in 2011 (Bulgaria’s state of the environment report, 2011) and the highest annual average value is registered in Kurdzhali - 25,4 ng/m3. The source of cadmium pollution is the activity of enterprises of nonferrous metallurgy Lead-Zinc Plant S.A "Kardjali". An exceeding of the target annual average value for Arsenic is registered in Kurdzhali in 2011. Southeastern region The monitoring stations by the National network of air monitoring stations in the Southeastern region are situated in Burgas, Nesebur, Sliven, Stara Zagora, Mogila village, Ruzhena village, Ostra mogila village, Gulubovo, Dimitrovgrad, Haskovo, Pazardzhik. Some of the monitoring stations in the Southeastern region are characterized by the highest concentrations of sulfur dioxide reported in Bulgaria. Significantly are exceeded the hourly limit values (350 g/m3) in Gulubovo – 48 cases in 2012 and 39 cases in 2013, Dimitrovgrad – 16 hours in 2012 and 61 hours in 2013, Sliven – 22 cases in 2012 and 13 cases in 2013. Only two concentrations above the limit value are registered in Burgas – the first quarter of 2012. The highest values reach 3-4 times the limit value. The alert threshold of sulfur dioxide (500 g/m3) is exceded 3 times in Dimitrovgrad and 2 times in Sliven. Higher annual average concentrations than the limit value are registered in Gulubovo, Dimitrovgrad and Sliven, respectively 2 days in each of the monitoring stations and 4 days in Gulubovo and Dimitrovgrad in 2013. Measured concentrations of nitrogen oxides in the monitoring station of Southeastern 3 region are lower than the limit value (NO2-1h - 200  g/m ).

It is established a pollution with PM10 in most of the monitoring stations in the Southeastern region. There are higher concentrations and frequent cases of excess of the limit value during the cold months of the year. An isolated cases of excess of the limit value are observed in Ostra mogila and Ruzhana vilages. The monitoring stations which violated the legal requirement for no more than 35 days per year with concentrations above the 24-h average (50 µg/m3) are respectively in 2012 and 2013 – Dimitrovgrad – 173 and 134 days, Haskovo – 75 and 77 days, Pazardzhik – 74 and 104 days, Burgas-Dolno Ezerovo – 64 and 104 days, Gulubovo – 47 and 69 days, Sliven – 44 and 81 days. The highest values reach 5 times the limit value. It is observed exceeding ozone levels in some of the monitoring stations. Most days with concentrations above the current target value (120 g/m3) are established in 2012, respectively in the monitoring stations – Nesebur – 45 cases; Dimitrovgrad – 29 cases; Burgas-Meden rudnik – 21 cases. Single exceeding over the current target value are registered in the other monitoring stations and in 2013. The highest values reach 1,2 times the current target value. 72 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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There is no registered exceedences of the annual average value for public health protection for benzene (5 μg/m3) and nickel in the monitoring stations that control these substances. Conclusions: There is a significant reduction of emission levels of all major air pollutants between 1990 and 2013, hence the improvement of air quality.

It can be concluded that PM10 pollution continues to be a major problem for air quality in all RAQAM in recent years. The source of registered excess pollution are industrial, domestic and transport activities in the territory of the municipalities, as well as polluted and poorly maintained roads. Additional contribution to air pollution by particulate matter has the impact of adverse weather conditions in the country as poor dilution of locally emitted pollutants, including as a result of low wind speeds (less than 1.5 m/sec.) and prolonged droughts. The main sources of sulfur dioxide in the Southeastern RAQAM are thermal power plants by the energy complex "Maritsa Iztok", TPP- Sliven, and for Southwestern RAQAM - “LZC AD”, Kurdjali and "TPP-Pernik". The emissions coming from road transport are a major source of nitrogen oxides in the regions of Sofia and Plovdiv. There is recorded exceedances of the european target value for ambitient air of PAHs (1 ng/m3) in RAQAM Sofia, Plovdiv, Southwestern, Southeastern and North in 2011. The main sources of pollution are the burning of various fuels, including and the household sector. EEA recognises that still there is a high percentage of the population living in excessive contamination levels of PM10 and NO2. The percentage of the population living in ozone levels over the current target value (17.4%) in Bulgaria is approximately equal to the member countries of the European EA (17.3%). It is very disturbing that the majority of the Bulgarian population is exposed to high and frequent concentrations of PM10 - 51% of people in the country, considerably above the European average (21.3%). The percentage of the population living in pollution levels of nitrogen oxides over the limit value in Bulgaria reaches 22% at the Europe level of 6,6% . The percentage of the population living at levels of sulfur dioxide over the limit value is 1,8% while in Europe this percentage is less than 0.1%. 2.1.3. State of surface waters Bulgaria’s water management policy lies in the following strategic documents:  National Water Sector Development Strategy to 2015 73 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 Programme for construction of Sewer by 2015  Maritime Strategy of the Republic of Bulgaria  Strategic Action Plan for the Environmental Protection and Rehabilitation of the Black Sea (BSSAP)  National programme on required measures in conditions of tendency to drough The country is divided into four water basin management districts in accordance with Article 152, subparagraph 1 of the Water Act:  DANUBE DISTRICT with headquarter in Pleven – covering the drainage areas of the Iskur; the Erma, the Nishava, the Ogosta and the territory west of the Ogosta River; the Vit, the Ossum, the Yantra and the Rusenski Lom and Danube Dobrudzha rivers ans the waters of the River Danube;  BLACK SEA DISTRICST, with headquarters in Varna, covering the drainage areas of the rivers emptying into the Black Sea between the northern border and the southern border, including the internal marine waters and the territorial sea;  EAST AEGEAN SEA DISTRICT, with headquarters in Plovdiv; for the drainage areas of the Toundja, the Maritsa, the Arda rivers;  WEST AEGEAN SEA DISTRICT, with headquarters in Blagoevgrad, for the drainage areas of the Mesta and the Struma rivers. А) General information on surface water The water potential of the Republic of Bulgaria is formed by the flow of the inland rivers, groundwater and part of the Danube River. The average annual flow rate of the inland rivers is 20.7 billion cubic meters and decreases to 9.0 billion cubic meters in a dry year. The usable part is estimated at about 60.0% of the multi-annual average flow. The fresh water resources of Bulgaria are estimated at 106.7 billion m3 per year, including the Danube River. Fresh water resources are distributed unevenly throughout the country. Most of them are formed by an external flow (84%), as in most countries of the Danube basin. Furthermore, the high costs of precipitation evaporation (75%) are characteristic of the country. The fresh water resources in Bulgaria are about 14 thousand m3/year per person, which puts the country among the top 10 of the European countries. However, certain areas of the country are experiencing shortfalls due to the disparities in the geographical distribution of water resources. There are about 2100 watercourses with a total useful volume of about 6.0 billion cubic meters, which regulate and redistribute 40% of the country formed in surface runoff in terms of the average year.

74 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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There are 18 larger lakes in the territory of Bulgaria (6 seaside and 12 high) with a total area about 77 km2. The major users of water are agriculture, industry and domestic sector (households and services). The majority of water are derived for own purposes (average 69%) and the rest for water-supply - potable water and irrigation. The surface waters are the most important, because provide an average 90% of the necessary resources.

Fig. 2.1.3.1 Fresh water abstractions by major economic activities in Bulgaria (source MOEW- National State of Environment Report 2013) On water use from surface waters in Bulgaria we can draw the following conclusions:  Significant drop in the water use for the period 1900-1995 due to the economic restructuring, and after 2000 there is relative stabilization of the water quantities.  The Energy sector is the biggest water user – for cooling water processes are used average about 75% of the water resources (2000-2011).  An increase in demand for water for irrigation and in the manufacturing and mining industry - sustainable downward trend is registered in the period 2000-2011.  From 1990 to 1997 decreases the use of drinking water in household, after that period it is stabilized at 90 to 100 l/day per capita. Significant regional differences in the consumption are recorded. Enhancing the competitiveness of Bulgarian enterprises would undoubtedly decreased the use of fresh water for industrial purposes. This would lead to a positive effect not only in the regional but also on a European scale in the steadily declining global water resources. Б) Areas with potential significant flooding risk

75 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The Republic of Bulgaria’s assessment and management of flooding risks is a subject to the European Directive 2007/60/EC entered into force on 26 November 2007. This Directive is transposed into the National legislation with the amendment of the Water act in August, 2010. All of the Basin Directorates in Bulgaria have produced estimates of the flooding risk in their areas. An overview maps for each Basin Directorates with areas at significant potential risk of flooding are shown below:

Fig. 2.1.3.2. Map of areas at significant potential flooding risk in the Danube District

76 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Fig. 2.1.3.3. Map of areas at significant potential flooding risk in the Black Sea District

77 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Fig 2.1.3.4. Map of areas at significant potential flooding risk in the East Aegean sea District

78 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Fig 2.1.3.5. Map of areas at significant potential flooding risk in the West Aegean sea District

The industrial enterprises located in areas at high risk of flooding should certainly take measures for its minimization. Risk assessment of surface and groundwater bodies for failing to achieve the environmental objectives is part of the development of the River Basin Management Plan. It is presented in the plan, but to date 2010 identifying the condition of water bodies, respectively: -surface water bodies - chemical state determined by the content of priority substances and 79 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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environmental-biological, hydromorphological and physico-chemical indicators of quality elements and content of specific substances; - for groundwater bodies - chemical and quantitative status; We run a program to clarify the detailed chemical status outwardly and groundwater bodies on the territory of Bulgaria. At the time of preparation of the SEA Report there was no published data to complement the above so far. В) Chemical status of surface waters, biological monitoring of surface water, drinking water supply  Chemical status of surface waters The key indicators that apply to the assessment of the chemical status of surface waters at national and European level annualized concentrations following basic parameters - dissolved oxygen (DO), BOD5 (BOD5), COD (COD), ammonium (NH4-N) and nitrate (NO3- N) nitrogen, phosphate (PO4-P). Evaluation of the indicators are based on data for the period 1996 - 2011 for surface waters of the Republic of Bulgaria. Figure 2.1.3.6. shows the change in the concentrations of the main indicators for the period 1996-2011 (source MOEW- National State of Environment Report 2013). It shows the trend for improving the water quality.

Fig.2.1.3.6. Variation of the concentration of the main indicators of chemical status of surface waters In the period 1996-2011 the trend to improvement in the quality of water seen during the recent years is stable, still there are some water bodies at risk according to developed by the RBD management plans for the river basin (RBMP). Programs of measures are establihed

80 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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for these bodies to achieve good ecological status by 2015. Specific programs were developed for these bodies aiming at achievement of the good ecological status until 2015.

For the period 1996-2011 the concentrations of NH4-N (ammonium nitrogen), BOD5 (Biochemical Oxygen Demand) and PO4-P (orthophosphate) have shown a decrease.

For the period 1996-2011 dissolved oxygen and NO3 (nitrate nitrogen) remain without substantial modification During the past 2011 there is clear trend for improvement in the quality of the surface water in Republic of Bulgaria as regars the basic chemical indicators, both in short and in long-term. Ecological status of surface water bodies in Republic of Bulgaria is shown in Fig. 2.1.3.7

Fig. 2.1.3.7 Ecological status of surface water bodies in districts of the basin, % of their total number in the basin

 Hydrobiological monitoring of surface waters In Bulgaria is carried out biological monitoring program of surface water, which is part of the National System for Environmental Monitoring. Figure 2.1.3.8 shows the summary of monitoring results for 2011 (source MOEW- National State of Environment Report 2013).

81 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Fig 2.1.3.8 Biological assessment of river types in macrozoobenthos in 2011

 Water for drinking-water distribution (source MOEW - National strategy for development and management of the Water sector till 2015) Pollution of water bodies affect the quality of water supplied for drinking purposes. The percentage of the population connected to treatment plants for drinking water (WTP) is still very low - 44.7%, while the population connected to the public water supply is 99% in 2009. Notwithstanding national legislation for construction of wastewater treatment facilities for all water sources of drinking water from surface waters, their number is insufficient. In the Danube disrict are built 15 WTP project average annual capacity 580 189 thousand m3, of which in 2009 was used only 43.9%. There are stations with significantly lower usability. The largest number of built WTP in the East Aegean district - 20 pieces, but the percentage utilization is lowest - 17.8 percent. WTP are 10 in the West Aegean district, whose design capacity utilization is also low - 31.8 percent.

82 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Country's total drinking water treatment plants are with 41.2% average utilization of project capacity, poorly maintained equipment and reagents applied not always ensure consistent performance quality of water intended for drinking purposes. Even in well-purified drinking water possible secondary pollution after WTP falls in polluted water distribution network. Poor quality and high depreciation plumbing for drinking water supply in the country as a whole, frequent accidents also account for a significant part of the identified variations in the quality of drinking water. Therefore mismatches microbiological indicators significantly exceed the recommendation outright to 5% per year of the World Health Organization in the following areas in 2009: Pazardzhik - 11.34% (11.9% in 2008), Yambol - 9.23 % (compared to 11.6% in 2008), Montana - 8.88% (7.81% in 2008), Pernik - 8.86% (5.87% in 2008), Bourgas - 8.14% (5.98% in 2008), Vratsa - 7.16% (10.7% in 2008), Kyustendil - 6.99% (less than 5% in 2008) Plovdiv - 6.94% (less than 5% in 2008), Kardzhali - 6.33% (5.22% in 2008), Pleven - 5.27% (less than 5% in 2008) and Dobrich - 5.26%. (Less than 5% in 2008). The most significant increase in the percentage of non- standard samples was recorded in Kyustendil from 1.62% in 2008 to 6.99% in 2009, district of Plovdiv - from 3.06% to 6.94% and Pernik - from 5.87% to 8.86%. More often deviations microbiological indicators are typical for the smaller areas of water-supply, whose water-supply systems submit water to villages and small towns that do not have built treatment facilities and disinfection is still an outdated way. The number of small areas of water supply mismatching indicator nitrates in drinking water is 313 e.g. 13.5% of the total number of small water supply zones. The most common are variations to and about twice the rate for nitrate of 50 mg/l, but in some water sources and reach up to 4-5 times higher than permissible. Mineral waters in Bulgaria have a different composition and properties that determine different possibilities for their use. This is not data for posing a risk to the environment. Also no evidence of investment intentions for the use of water for activities that pose a potential risk for contamination and damage to the environment. Environmental risks are not the activities themselves and objects that use mineral water and non-utilization of the resource and free pouring mineral water, which can lead to thermal pollution of fresh groundwater and surface water and soil salinity. Conclusions: The water potential in Republic of Bulgaria is formed by the flow of the inland rivers, groundwater and part of the Danube River. The long-term average natural flow of the inland rivers is 20.7 billion cubic meters. Freshwater resources of Bulgaria are estimated at 106.7 billion m3 per year, including and the Danube River and they are unevenly distributed throughout the country. Freshwater resources in Bulgaria are about 14 thousand m3/a year per capita, which puts the country among the top 10 of the European countries. 83 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Taken the major users of water are agriculture, industry and domestic sector (households and services). 2.1.4. Groundwater status А) General information on groundwater status The main factors which determine the conditions of formation, dynamics and ground water physico-geographic are: topography, climate, hydrology and hydrography and geology (geology, lithological composition of the rocks and tectonic structures). Groundwater in Bulgaria have spread widely and play an important role in shaping the environment. To assess the role, place and importance of groundwater as a water resource and environmental factors, they need to be considered depending on origin/infiltration, sedimentogenen mixed/. It defines their physico-chemical properties and composition. Groundwater in Bulgaria are divided into three main types - fresh, mineral and highly mineral, depending on groundwater’s origin, physico-chemical properties and targets use. Depending on the environment in which they are formed, groundwater can be classified as scientific searches (pore and fissure), pressure and karst. Proceeding of the main factors that determine the distribution, origin, quantity, modes and dynamics of different types of groundwater Bulgaria can be divided into three hydrological regions: Moesian, Balkanides and Rila-Rodopi. They separate the hydrogeological areas subregions, regions and basins /Antonov, H., D. Danchev. Groundwater in the NRB. Sofia.1980/. Hydrogeological characteristics of the most common freshwater resources with active water exchange are predetermined by water- trucking processes between surface water bodies and aquifers. In Bulgaria several types of water- trucking are summarized:  Water- trucking between the surface and fracture groundwater. Such a water-trucking is formed by rock complexes (siliceous and limestone) with fracture groundwater.  Water-trucking between the surface and karst water. This type is formed in karst carbonate rocks, where underground pools are formed with a total water level.  Water-trucking between the surface and pore groundwater. It emerged in the aquifer of the Quaternary and Pliocene sediments, which are formed or unconfined groundwater pore pressure. There are 177 distinct groundwater bodies in Bulgaria representing independent and significant portions of fresh groundwater. 50 bodies of these 177 are in the Danube district, 40 bodies - in the Black Sea district, 48 bodies - in the East Aegean district and 39 bodies - in the West Aegean district groundwater management.

84 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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B) Chemical status of groundwater quantitative status, etc..;  Chemical status of groundwater There is a growndwater monitoring in Bulgaria. There are monitoing stations of control and operational monitoring of the chemical status of groundwater monitoring stations for areas of water protection and monitoring stations of the quantitative status of groundwater - measurement of water level in wells and springs flow. Observe the condition of: active reaction (pH), conductivity, total hardness, Mn, ammonium, nitrates, nitrites, sulfates, chlorides, phosphates, sodium, magnesium, zinc, mercury, cadmium, copper, nickel, lead, chromium, iron, manganese, arsenic, tetrachlorethylene and trichlorethylene and pesticides. Dynamics of climate indicators chemical status of groundwater in Bulgaria for the period 1997 – 2011 is shown in Figure 2.1.4.1 (source MOEW- National State of Environment Report 2013)

Fig. 2.1.4.1 Dynamics of climate indicators chemical status of groundwater in Bulgaria for the period 1997 – 2011

It is evident that the main contaminant of groundwater in the country are nitrates. The percentage of monitoring stations which establish abnormal values of annual average concentrations of nitrate is 13.27% of the total monitoring stations of the country in 2011. Exceeded mainly in stations attached to the shallow groundwater-Quaternary and

85 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Neogene sediments, as well as part of the karst and fissure groundwater vulnerable to contamination. Figure 2.1.4.2 shows the groundwater bodies and monitoring stations with indicators above quality standards for groundwater in 2011.

Fig. 2.1.4.2 Groundwater bodies and monitoring stations with indicators above quality standards for groundwater in 2011 In the period 1997 – 2011 gradual improvement in the quality of the ground water is observed for most of the indicators. Total iron, ammonium, phosphate and chloride show reducing the annual average concentrations. The lack of pronounced trends observed in nitrates, nitrites, manganese and sulfates. The percentage of stations with exceedances of quality standard (QS) in most years is less than 10% or lower. Indicators for total iron and manganese are significantly lower percentage points in excess of the QS since 2005. In the period 2001-2011 seven out of the nine ground water indicators (ammoni, nitrite ions, permanganate oxidation, sulfates and hlorides, total iron and manganese) show a decrease. There is a decrease in the average concentrations of nitrites, permanganate oxidation and chlorides compared to 2010.

86 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The trends of change for the nitrate contents in the ground water during two triennial periods 2004 – 2007 and 2008 – 2011 showprevailing of the percentage of rapid increase in the nitrate contents in the open ground water while for the karstwater sources significant decrease or lack of trend is observed.  Groundwater quantitive status Fresh groundwater quantitive status (resources available permitted abstraction and available resources), according to the River Basin Management of water is reflected in Table 2.1.4.1. Table 2.1.4.1 Fresh groundwater quantitive status for 2011

River Basin Available Permitted Available Districts within the Basin Management of groundwater abstraction groundwater Directorate water resources resources l/s l/s l/s

Danube district with 74 770 20 486 54 284 Northwestern region; headquarter in Pleven North central region; Nothwesterns part of the Northeastern region; along the Iskur River of Southwestern region.

Black sea district 24 648 2 800 21 848 Northeastern region (without with headquarter in the Northwestern part); Varna Eastern part of Southeastern region.

East Aegean district 54 680 13 557 41 123 South central region; with headquarter in Western part of Southeastern Plovdiv region.

West Aegean district 8 202 688 7 514 Southwestern region (without with headquarter in along the Iskur River) Blagoevgrad

Total 162 300 37 531 124 769

Indicators of change in quantitative status of groundwater levels measured in wells and spring discharge.

87 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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It is found a large spatial diversity and a very distinctive downward trend in the change of water resources in 2011. The trend is recorded in 74 observation posts - springs or about 73% of cases representing different groundwater basins. There was no notable trend of change in 2% of cases. It is found a great variety of spatial variations in water levels in wells compared to the monthly average long monthly norms and values and much better defined trend of decreasing levels recorded in 45 observation points or 67% of the cases. During most of the year, 83% of the observed groundwater basins, the average monthly flow values are below the respective average monthly deviations from 3 to 99%. Conclusions: Groundwater in Bulgaria have spread widely and play an important role in shaping the environment. Groundwater in Bulgaria are divided into three main types - fresh, mineral and highly mineral, depending on groundwater’s origin, physico-chemical properties and targets use. There are 177 distinct groundwater bodies in Bulgaria representing independent and significant portions of fresh groundwater. 2.1.5.Subsoil status The modern look of the natural geographic territory of Bulgaria is the result of long and complex development, the beginning of which is placed in the geological past. Elements of the naural landscape: relief-climate-water-soil-vegetation-animals are connected with a tendency in palaeogeographic development of the Bulgarian lands. The main factor in this development is morpho-tectonic, e.g. the movement of the earth's crust and related morphogenesis. Fast or moderate changes in the nature of tectonic movements were brought changes in physiographic conditions. In areas subjected to orogenic movements at different times occurred mountain systems with highly indented relief, and in areas with negative movements of the earth's crust was formed flat low relief of pools, which have been accumulated in various type and composition of sediments. Bulgaria is separated with different physiographic specifics according to its geological history: Pre-Paleozoic (Precambrian), Caledonia-Hercynian, Alpine and Non-tectonic. They cover relatively long periods of time, during which physiographic conditions were modified. Peculiarities of the natural geographic environment during these stages is reflected on the nature and extent of the age rock formations established in the country. The territory of Bulgaria is in the young Alpine - Himalayan folded area and Moesian platform. Clearly different: Moesian platform Balkanides, Kraishte, Rilo-Rhodope Massif and part of the Serbo-Macedonian Massif. Moesian platform, occupies the Danube valley, has a block structure. It is represented by two structural complexes: 88 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 Lower with late-paleozoic origin;  Upper constructed of early-paleozoic, mesozoic and kaynozoic complexes. It revealed deposits of oil, gas, coal, fire clay, kaolin, gypsum and manganese. Balkaniddes are a curled complex system formed by the late Palaeozoic to Neogene. Characterized by intense tectonic, implementation of plutonic bodies, volcanic activity, horizontal and vertical crustal movements with large amplitude. To them in different geological periods were accessions parts of neighboring areas. Balkanides, their section East and West Fore Balkan Mountains are composed of fault structure /so-called Yura relief type / formed mainly during the Paleogene. Consist of pre-Mesozoic and Mesozoic rocks. With a complex geological structure differ Central and Eastern Balkan. At the lower end of the Crayon during Paleogene were subjected to folding. As a result, on Mesozoic sedimentary rocks were clad south older Paleozoic granite tables / Botevvrashki granite thrust /. In the Western Balkan and Eastern Balkan areas are found deposits of iron, copper, lead, zinc and coal ore. In Srednogorian area - copper deposits. Strandja-Sakar have deposits of iron, copper, lead and zinc ores. Krayshtenska area has a complex fold-thrust structure. It is made of metamorphic and igneous rocks. In Paleogene crust was divided by faults with direction NW - SE. As a result, have formed depressions graben filled with young sedimentary rocks. Rilo-Rhodope Massif is composed of system thrust structures composed of igneous rocks /granite, gneiss, schist, marble, etc./ and shaped at the end of the Early Cretaceous. After implementation of granitoid plutonic bodies in the early Paleogene he was subjected to stretching and faulting. This leads to the formation of depressions filled with sedimentary and volcanogenic rocks. Associated with lead - zinc deposits flyuorit, ores, etc. Sakar-Strandja area consists of several fold-thrust structures and consists of folded and metamorphosed Paleozoic, Triassic and Jurassic igneous, volcanic and sedimentary rocks. Serbo-Macedonian Massif covers Malashevska Mountains, Ograzhden and Belasitza. It is made of metamorphic rocks and housed them in separate granite or granodioritni bodies. The majority of falls are linearly oriented and constrained by faults. They are well expressed in the contemporary landscape and they are called lineamenti. The lineament is a system of Neogene-Quaternary graben fell north-northwest and south-southwest. Pronounced lineamentite are the valleys of Struma and Mesta Rivers. Behind -Balkan lineament is a chain of young grabens with sub-parallel direction of spreading. They are distributed in the south of the Balkan Mountains, within the Behind- Balkan valleys.. Figure 2.1.5.1 shows the main deposits of minerals in Bulgaria.

89 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.5.1 Deposits of minerals in Bulgaria

А) Engineering geology division of the country Engineering geology conditions reflect that part of the geological environment, which is important for the design, construction and operation of engineering structures. Assessment of engineering geological conditions is a graphic expression in engineering geological maps and it is based on the following information:  construction of the subsoil (stratigraphic origin, genesis, lithological composition, terms of occurrence and tectonic features);  hydrogeological conditions;  geodynamic processes;  physical and chemical characteristics of the lithological variations and construction experience of the foundation in them. In engineering geological mapping of special importance are the Quaternary sediments as they are mostly done construction. The study of Quaternary sediments, however, is hampered by their specific characteristics, such as the wide range of genetic types, depending

90 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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on the narrow construction of the relief, rapid facial variability difference Geotechnical behavior and hence the variety of conditions for construction. On the other hand construction is the foundation of enhancing the competitiveness of the Bulgarian economy. Bulgaria’s territory is divided into 5 engineering geological areas and 12 engineering geological regions. Upon differentiation are taken into account tectonic, geomorphological and lithological characteristics of the country. Figure 2.1.5.2 shows the engineering geological areas and regions in Bulgaria, as well as these which are important for building physical-geological and engineering-geological phenomena.

91 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.5.2 Engineering geological areas and regions

92 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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B) Basic geological phenomenas related to the provisions of the program. Bulgaria’a territory is with a complex tectonic structure, various geological and uneven relief, it is an arena for the development of destructive processes. They have been studied to varying degrees, as a map with a summary of the geological hazard was made by a collective with editor Ilia Iliev - Brutchev (Figure 2.1.5.3).

Figure 2.1.5.3 Map of geological hazards in Bulgaria, by I. Brutchev and collective

Bulgaria’a territory is characterized by a variety of geomorphological and geological conditions and high energy relief. Therefore, the level of natural risk is higher than most European countries. According geotechnical terminology under a landslide is seen displacement of earth (rock) masses on the slopes under the action of their own weight and other external forces. Occurrence or activation of landslides is possible to combine the right conditions with the effect of certain factors (processes). Conditions for the occurrence of landslides sloping terrain, the presence of weak strata or layers in cross section, the shallow groundwater. Activating factors are fluctuations in groundwater levels, changes in the geometry of the 93 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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slopes due to erosion and abrasion processes or anthropogenic impacts, heavy rains, the fluctuations in the levels of surface waters, modern tectonic movements. Landslide problem is further complicated by the high realized and estimated earthquakes in the country (Figure 2.1.5.4).

Figure 2.1.5.4 Map of seismic sources in Bulgaria It is quoted a variety of figures about the number of active landslides in Bulgaria – from 1000 to 10000. Landslides in Bulgaria are divided into several landslide regions. The largest of these is the Black Sea landslide region. The landslides along the North Sea coast, whose dimensions are of the order of a few kilometers, and depths of slipping surfaces reaching 280-300 m are particulary impressive. In south direction landslide risk decreases, but remains higher than the national average. Key factors for the occurrence of landslides in the region are marine abrasion rising groundwater levels in urban areas and seismic events in Shablenska earthquake zone. The second largest landslide region is the Danube region. Landslides are attached to the high Danube shore. Major factor in the emergence and their periodic activation is river erosion. Pre-Balkan landslide area is with a high present activity. It is developed in sub-parallel strip between Etropole and Targovishte. The landslides in the areas of Trojan, Sevlievo,

94 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Veliko Tarnovo, Strazhica, Antonovo and Targovishte are special hazards. A major activating factor is the rise in groundwater levels, river erosion and technogenic effects. Landslide area of the sub-Balkan valleys includes areas Zlatitza Pirdop, Kazanlak and Sliven. Landslides are located in the surrounding slopes of the valleys. Key factors include groundwater and technical activities. Sofia landslide area is developed mainly at the periphery of the depression (Bankia, Ivanyane, Gorna Banya, Kniazhevo, Boyana, Dragalevtzi, Simeonovo Bistrica, Pancherevo, Kokalyane, Lozen, Gnjilane, Novi Iskar, Dragovishtitsa Bozhurishte) but aren’t rare and landslides in its central part (Lozenets, West Park, Zemlyane, Vurtopo). Southwestern landslide region includes areas of Pernik, Kyustendil and Blagoevgrad. Landslides have developed surrounding slopes of the Neogene basins (Pernik, Bobov Dol, Blagoevgradsi, Simitliisko). Rhodope landslide region is the most exotic but relatively poorly studied. The landslides in Smolyan, Krichim, General Geshevo are impressive. There are serious reasons to believe that large landslides are the result of modern orogenic processes. Conclusions: The territory of Bulgaria is in the young Alpine - Himalayan folded area and Moesian platform. Bulgaria’s territory is divided into 5 engineering geological areas and 12 engineering geological regions. Landslides in Bulgaria are divided into several landslide regions. The largest of these is the Black Sea landslide region. 2.1.6. Status of soils and land use Agroecological zoning of Bulgaria The present soil cover of Bulgaria is quite diverse. Formation and distribution of various soils is determined exclusively by the specifics of the physiographic conditions and complex combinations between them. In Bulgaria enters the influence of four major soil provinces characteristic of Europe: East European steppe and forest-steppe, South European Mediteranean, Western European Atlantic Forest with its mountainous variety and humid subtropical Black Sea province. According to the geobiological complex considerations of principle and interpenetration of major soil provinces in Bulgaria identifies three large- scale soil regions. The north Bulgarian forest-steppe region includes the Danubian Plain and the Fore- Balcan. The altitude is 650-750 m. In this region climate, vegetation, soil foming rocks, relief, etc. change from north to south. The chernozems (Chernozems, WRSSR, 2006, Teoharov, 95 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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2004) are legitimately replaced with brown forest soil (Luvisols, WRSSR, 2006). In the zone 600-700 m the transition is from grey-brown to brown forest soils (Cambisols). South Bulgarian kserotermal region covers the territory of Southern Bulgaria to altitude 750-850 m. It has a very diverse topography and vegetation. The main types of soils in the area are cinamon forest soils (Luvisols), part of which is surface waterlogging during certain seasons of the year. Mountainous region - covering the mountains above altitude 700-800 m, which are covered with deciduous and coniferous forests and vast grasslands with different variations and combinations of mountain climate. This area is dominated brown forest soils and mountain meadow soils (Umbrisols) from alpine mountains. Widespread in the country have primitive soil (Leptosols and Regosols), (Boyadziev, T., Teoharov, M., 2005). Bulgarian scientists and soil scientists have done over the last 50 years working on a huge inventory of land resources. As a result of large-scale soil surveys are available in soil map M 1:400 000, 100% of the country have been mapped in M 1:25 000 and about 40 million acres - in M: 10 000 with morphological, physical and chemical characteristics of soils. It is this information was a prerequisite for the development of a methodology for assessing the land that was created based on the results of large-scale soil surveys. The topography influence is into account in partly genetic in soil classification, but to some extent by factors erosion. Their value varies from one country, depending on the degree of erosion or accumulation (at the foot of the slopes) soil, and on the other hand - they are grouped into four groups according to erosion (susceptibility of soil to erosion) and the suitability of soil for agricultural use. Erosion is the most serious factor in soil degradation, leading to desertification. Other degradation processes that cause adverse properties of the soil and reduce or destroy the productive capacity of the soils are stony, swamping temporary surface waterlogging, salinization and acidification in. The last two lead to serious conditions of desertification and they are taken into account (Kabakchiev, I. , Yolevski, V. Kristeva, P. Bozhinova 1986) in the assessment as corrected by coefficients. Practical realization of production in agriculture requires specific, differentiated approaches to solving complex territorial issues and above all the use of comprehensive information about the natural conditions of different areas, e.g. most comprehensive agri- environmental assessment of the environmental conditions. Detailed agroecological zoning is an essential prerequisite for intensive and rational use of natural resources, and greater specialization of agricultural production. Based on extensive information about soils, climate, geomorphology and vegetation (including crops) 50 agro-ecological regions are defined, of which 40 include agricultural land, but 10 - the forest. All agro-ecological regions are divided into 7 groups of regions that largely correspond to major geographic soil and soil-climatic zones and sub-zones in the country. In 1982 was published a map of agroecological areas. 96 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Structure and land use Structure of land use in Bulgaria is variable in the period (2005- 2011). The utilized agricultural area (UAA 1) is 45.8% of the country in 2011 and towards 2010 it is increased by 0.3%. Uncultivated lands (2), occupying 3.6% of the country represent 7.3% of the agricultural areas. Some of them are included in the UAA in 2011 and decreased by 9.6% over the previous year. In 2011 the area of land for agricultural use (AU 3) is 5,486,572, representing approximately 50% of the country (Fig. 2.1.6.1).

Fig. 2.1.6.1 Employment land, %

Status of soil resources Soil as a component of the environment is an indispensable practical organic and non- renewable natural resource, which requires its protection from harmful influences and destruction and its sustainable use. The most common forms of soil degradation are chemical pollution with heavy metals, various forms of degradation processes such as erosion, acidification and salinisation. Soils in the country are in good environmental condition in terms that the availability of nutrient/organic matter as well as contamination with heavy metals and metalloids. There are no known soil contamination by persistent organic pollutants. The assessment is carried out within the National Soil Monitoring Network based on uniform grid 16x16 km, which surveys in 397 points, through analysis and evaluation of the content of the three nutrients: nitrogen, organic carbon and phosphorus. The stations are located in agricultural lands. When 97 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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choosing the exact location, the requirements for distance from the focal point of no more than 2 km and soil unit and method of use, which corresponds to the respective proportion nationally. Sampling the full network is carried out every five years, while in other years, sampling 25% of the points. The availability of nutrients The total number of analyzes in 2011 is 2196 from 122 points. Evaluating data on nutrients is carried out by statistical processing of all available data from two depths of 397 points for the period 2005-2011. Figure 2.1.6.2 shows the distribution of points in degrees the availability of nutrients in 2011 on five-point scales in assessment points in arable and non-arable land.

Fig. 2.1.6.2 Distribution of points in degrees the availability of nutrients in 2011

The results for 2011 show relatively good availability of nutrients. The values for the three observed indicators are above the national average, and the ratio C / N showes favorable conditions for degradation / mineralization of organic matter. In the arable lands dominate stations with high contents of organic carbon (50%), the average nitrogen availability (47%) and phosphorus (50%), while in grassland dominate points in which the organic carbon and nitrogen are high, but phosphorus is characterized by averages, similar to trends in 2010.

98 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Various forms of implementation of these elements are possible only in the presence of water, e.g., level of humidity of the soil plays a role in the absorption of nutrients. Only water-soluble forms of these elements can be absorbed by plants. The spatial distribution of water resources in the one-meter soil layer at the beginning and end of the growing season of 2010 and 2011 gives an idea of the regions with a strong deficit of soil moisture. In 2011 at the beginning of the growing season there is a shortage of water in the soil across North Bulgaria; the Struma River valley and Central South Bulgaria. At the end of the vegetation period critical values of water supplies are again in Northern Bulgaria, along the Struma River in the extreme southeast of the country. Good or very good were water supplies in southeastern Bulgaria - at the beginning of vegetation early growing season in Central Southern Bulgaria - at the end of vegetation. According to the methodology, which determines the water reserves in the soil, measurements were performed on three fixed dates 7,17 and 27 of each month of the warm part of the year from March to October incl. March 7 date is considered the beginning of the vegetation period in the country and it is determined by the continued transition of average daily temperatures above 10°C. National average fluctuations in moisture content of the soil (expressed in %) in layers 20, 50 and 100 cm during the growing season of 2011. Compared to the same period of 2010. is as follows: 1. At the beginning of the growing season: 20 cm = -3%; 50 cm = -3%, 100 cm = 0%; 2. In the middle of the growing season: 20 cm = -14%; 50 cm = -12%, 100 cm = -7%; 3. At the end of the growing season: 20 cm = 5%; 50 cm = 9%, 100 cm = 9%. State of humidity of soil meter soil layer at the beginning and end of the vegetation period in 2010 and 2011 is presented in fig.2.1.6.3 to Fig. 2.1.6.6. Insufficient moisture content at the beginning of vegetation indicates a warmer and winters with no precipitation, and lack of moisture at the end of the period is explained by the increased cost of plants and evaporation in summer and minimum expansion of precipitation from August and September. The reason for the insufficient water content of the soil in the fall can be explained by the relatively high daily average (up to 17,8°C) and maximum (up to 31,3°C) temperatures.

99 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.6.3. Spatial distribution of water reserves in the soil layers up to 1 meter - at the beginning of the growing season - 2010.

Figure 2.1.6.4 Spatial distribution of water reserves in the soil layers up to 1 meter - at the beginning of the growing season - 2011.

100 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.6.5 Spatial distribution of water reserves in the soil layers up to 1 meter - at the end of the growing season - 2010

Figure 2.1.6.6 Spatial distribution of water reserves in the soil layers up to 1 meter - at the end of the growing season - 2011.

101 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Soil contamination In 2011 analyzes were conducted on 732 soil samples collected from 122 points of the base network for assessment of soil pollution with heavy metals. The results show that the number of points with concentrations of heavy metals exceeding the maximum allowable concentrations (MAC) (under Ordinance № 3 on content of harmful substances in the soil/ limit values) in the surface layer is 4 for arsenic in agricultural lands. In grassland pollution is mainly nickel (5 points) and lead (3 points). The overall percentage of points with exceedances of MAC is 6.55% of the total number of sampling points, 3.53 % fall on arable land and 3.02% - in the uncultivated lands (pastures and meadows). Concentrations of pollutants exceed of 1.03 to 4.45 times the maximum concentration in arable soil and 1.02 to 3.1 times the MAC in the uncultivated lands. In some points exceedances of MAC are more than one item. The pollution is in Smolyan due to the mining industry and the natural contamination due to shallow deposits; Pazardzhik, Sofia as a result of Kremikovtzi; Vratsa, Vidin, Pleven, Kardzhali – OZP – Kardzhali is pollutant with heavy metals and Haskovo. In the period 2005-2011 the soils in the country have very good ecological status as regards the pollution with heavy metals, metalloids and persistent organic pollutants. There is no data of pollution with mercury. 3660 analyzes of 122 points of the base netwok were carried out for persistent organic pollutants for 2011. The concentrations of PAHs 16, PCB-6 and chloro-organic pesticides are determined in soil samples. Values are evaluated under Ordinance № 3 on content of harmful substances in the soil/ limit values, adopted on 12.08.2008. Soil pollution with persistent organic pollutants is not accounted in 2011 mainly due to the introduced requirements in Bulgarian agriculture in recent years with reduced use of plant protection products and fertilisers. Only one point is exception, it is result of contamination in the past. Contents measured in the period 2005-2011 are several times lower than the maximum allowable concentrations. PCBs are below the limit of detection, and 98.9% of PAHs are below the MAC. Soil erosion The erosion is a process of destruction. The integrity is distorting and the physicochemical properties are modifing in the upper layers of the soil and other substrates. Erosion is usually accompanied by removal of particles. Arises from the effects of wind, water, temperature, geological, anthropogenic, etc.. factors. About 60% of the country is affected in varying degrees by erosion. The most widespread are the wind erosion which is typical in large and open plains and the water erosion, which is characteristic of mountainous and hilly areas.

102 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The wind erosion occurs mainly in large and open plains - mainly deforested. In 2011 wind erosion relatively stable area of distribution 34.4% (3,820,589 ha) of arable land in the country are at risk of wind erosion - in varying degrees by an average intensity of 0,6 t / ha / y. In 2011 not observed areas with very high and high risk of erosion due to specific atmospheric circulation (wind erosion) during the year and improved soil erosion control in the country. Affected areas with moderate to high erosion risk are 108 571ha, moderate - 154 081ha, and a weak - 3,554,163 ha. Fields in Dobrich, Pleven, Bourgas and Veliko Tarnovo are at higher risk of wind erosion. Soil losses are greatest in the areas of Dobrich, Montana and Veliko Tarnovo, Burgas, Varna, Yambol, Sofia and Silistra. Over the last six years (2005- 2011) it is observed a slight tendency of limit wind erosion, both in terms of its distribution area, and in terms of average annual soil loss.

Figure 2.1.6.7 Wind erosion risk on areas

103 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.6.8 Water erosion risk on areas In 2011 the total area of agricultural land affected by water erosion is 6 115 630 ha with an average intensity of 7,36 t/ha. Estimated average erosion during the year is 54 million tons as manifested in varying degrees and intensity. The average intensity of water erosion in agricultural land use varies depending on the type of land use from 6 t/ha/y in pastures, 7 t/ha/y in fields up to 20 t/ha/y on perennials. The areas with low and high erosion risk are increasing (by 18 000 ha and 9920 ha), while those with medium erosion risk decreased by 27 680 ha. The highest risk of water erosion of soil are the agricultural lands in Lovech, Kardzhali, Gabrovo and Targovishte with medium forecast intensity of 12 to 16 t/ha/y, followed by Sofia and Blagoevgrad (10 to 12 t/ha/y); Pazardzhik, Sliven, Pernik, Vratsa, Veliko Tarnovo, Razgrad, Sofia-city, Rousse and Bourgas (7-12 t/ha/y). According to the latest forest management projects the total classified area by degree of erosion in forest areas is 292 000 ha. Most of eroded areas are in the Regional Forest Managements: Blagoevgrad, Kardzhali, Kyustendil, Sofia, Smolyan.

104 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.6.9 Potential risk of water erosion in agro-ecological regions

Soil acidification A major factor in soil acidification in Bulgaria is one-sided fertilization with nitrogen fertilizers. Acidification is accompanied by a change in the mobility and accessibility of many soil elements that have a direct and indirect impact on the soil-plant-human system. The degree of base saturation (V3%) in the monitoring stations is relatively high, requiring the implementation of melioration and good agricultural practices, tailored to the specific soil conditions. The proportion of soil with acidic reaction occupies approximately 11% of the arable area. 500 000 ha agricultural land of these are acidic and toxic to most crops.

105 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.6.10 Soil acidification in Bulgaria, 2009

Soil salinisation The soil salinisation is a process in which increases the content of water-soluble salts and/or exchangeable sodium in the soil in quantities degrade the properties respectively of their productive potential. Degree of development of salinisation processes is determined by climatic, hydrological and economic conditions. About 35 500 ha arable lands are registered in Bulgaria as affected by salinisation processes and 252 ha are salinated with normal sodium and chlorides. Processes affect mainly the districts: Burgas, Varna, Veliko Tarnovo, Pleven, Plovdiv, Sliven, Stara Zagora and Yambol. The monitoring of the salinisation process is held in 12 constant points which are + 2- representative of saline soils. Measured indicators are 8 – water-soluble Na , Cl, SO4 , 3- 2- + HCO and CO3 exchange Na , sorption capacity of the soil and groundwater. The sampling period is twice a year. In most of the points are observed seasonal changes in the content of soluble salts - wash the salts in depth - during the spring and a slight increase - in the autumn season. 106 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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It is recovered a decrease of exchangeable Na+ and somewhere missing salinisation in some of the points of the three-year period (2007-2009) of observation (Plovdiv, Novgrad Brest, Zagrazhden, Dabovan) and decreasing pH values (Zhitnitsa). At other points - highly pH is increased due to the presence of normal carbonates and % of exchange Na+ (Rudnik, Kamenar). At the point Belozem, Plovdiv three-year observation period, there was no reduction in salinity - pH and the content of exchangeable Na remain very high.

Figure 2.1.6.11 Degree of salinity in the period 2007-2009, % Soil compaction This is a process that affects mainly agricultural land. Soil compaction is a result of their improper treatment, e.g. use of heavy farm equipment at high soil humidity. At this stage it is difficult to provide data on the extent of this process in the country due to the specificity of agriculture in Bulgaria. Soil sealing In recent years soil sealing is assessed as a global threat to destruction of the soil. These are soils which are used and permanent housing for urban construction, industrial and infrastructure construction, trade and transport areas, road and rail network and more. For Bulgaria the percentage of permanently built environment accounts for about 5% of the total territory. The growth rate of soil sealing is weak, but at the same time the total population decreases. The process is more pronounced in coastal areas and resorts where construction marks the highest growth.

107 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Landslides and abrasion processes Landslides due to natural and anthropogenic factors. These are geological and tectonic features of the area, traffic faults, earthquakes, fluctuations in groundwater level, intense rainfall, erosion and dynamic effects as a result of human activities making deep digs, road construction, mining of resources, congestion of upper landslides of embankments and new construction. Occurrence of landslide activity is mainly in spring after snowmelt and after heavy rains. In the period 2005-2010 there is a trend for expansion of the landslide processes. The number of land slopes is increased, as well as the area affected. In the period 2000- 2010 1625 landslides are registered in the country with a total area of 20 692 ha. In 2010 68 new landslides are registered with a total area of 170 ha. Landslides are registered in areas that are not carried out design studies and therefore are not fulfilled strengthening activities.

Figure 2.1.6.12 Distribution of areas affected by landslides

Local soil contamination From local sources, posing a threat to the state soil surveys were carried out in terms of warehouses storing prohibited plant protection products. Warehouses with obsolete pesticides are subject of annual inventory by EEA/MEW, NSPP/MAF and the Ministry/Directorate "Fire Safety and Protection of Population." According to current national classification these places are divided into three types - central municipal warehouses, warehouses with obsolete pesticides and BB cubes. In connection with the presence of warehouses with obsolete and/or prohibited products of plant protection, further surveys 108 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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areas/sites in their vicinity - places that are expected contamination of adjacent areas, following of leaking roofs, broken buildings and displaing of weather. 292 warehouse for banned and obsolete pesticides are registered throughout the country till 31 December, 2011, 1939 BB cubes and 74 central and unsafe warehouse storing obsolete plant protection products.

Figure 2.1.6.13 Storage of prohibited and obsolete pesticides /number of BB cubes/warehouses

Figure 2.1.6.14 Quantities of banned and obsolete pesticides, t

The total quantity of prohibited and obsolete pesticides in 2011 is approximately 13 737,44 tons as 56.6% of them are permanently disposed in 1939 BB-cubes, and 31.6% are

109 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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re-packed and harvested in 74 central warehouses and only 12% of pesticides are stored in abandoned (unsecured) warehouses. In 2011 steady positive trends are established in the overall management of warehouses and obsolete plant protection products and the areas around them. Conclusions: The present soil cover of Bulgaria is quite diverse. Soils in the country are in good environmental condition in terms that the availability of nutrient/organic matter as well as contamination with heavy metals and metalloids. There are no registered data for soil contamination by persistent organic pollutants. 2.1.7. Vegetation status 2.1.7.1. Phytogeographic division and general characteristics of the flora Bulgaria's territory belongs to the Holarctic floral kingdom, based on the range of floral elements, refers to three plant geographycal areas: European deciduous forest area, Eurasian steppe and forest-steppe area and Mediterranean sclerophyllous forest area. European deciduous forest area includes the provinces Euxeinos, Illyrian (Balkan) and Macedonia-Thrace. Eurasian steppe and forest-steppe area is represented by the Lower Danube province and Mediterranean sclerophyllous forest area - by Eastern Mediterranean province (Bondev 1997,2002). According to biogeographical regionalisation of Europe ETC/BNP (European Topic Center on Biodivesity and Nature Protection), adopted by the European Commission and entered into the Habitats Directive (92/43/EEC), Bulgaria refers to three biogeographical regions: Alpine, Continental and Black Sea. For the purposes of floristic studies (taxonomic composition and distribution) Bulgaria is divided into 20 floristic regions and 14 sub-regions (Yordanov, 1966: Map of the floristic regions), whose boundaries roughly follow their geographical and phytogeographic boundaries: Black sea coast (North, South), Northeastern Bulgaria, Danubian Plain, Fore Balkan Mountains (East, Central, West), Sofia Region, Znepole Region, Vitosha Region (Vitosha and Plana) West Frontier mountains, Struma valley (North, South), Belasitza, Slavianka, Mesta River valley, Pirin (South, North), Rila, Sredna gora (Western, Eastern), Rodopi (Western, Central, Eastern), Thracian plain, Tundzha hilly plain and Strandja. Bulgaria ranks third in the Balkan Peninsula - after Greece and Albania with established around 3900 species of higher plants. Ferns are 45 species, gymnosperms are 17 species, angiosperms are about 3823. Larger number of species in our flora, about 3330, spread spontaneously in the plains and mountains of the country in a more or less natural or modified by human activity habitats. They form a group of indigenous plants, of which about

110 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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500 species of mostly herbaceous perennial plants, shrubs and trees are dominant and subdominant formed in plant communities. About 500 species of trees, shrubs and herbaceous plants are limited spread in Bulgarian flora. Some of them are Bulgarian or Balkan endemic species, other are rare plants, remnant of ancient flora or species whose main areas are outside of Bulgaria. These species have few populations in our country. About 560 species belong to the group of weeds and ruderals that are widespread in places changed under the influence of human activity. Some of them are in their present habitats for thousands of years associated with the development of human culture since the early settlement of the Bulgarian lands. Other latecomers, as a result of resettlement and migration of people and animals, developments in trade and tourism. The group of weeds and ruderals concern the so-called invasive alien species (IAS) that migrate faster and occupy vacant habitats and displace native species. In the documents of the European Union are referred to the following facts: Invasive species are a threat to biodiversity; They reduce the ability of ecosystems to provide ecosystem services; They can carry disease, causing damage to property and affect the cultural heritage; Invasive species incur a charge; Early detection is vital; Invasive species are an international problem. IAS affect businesses and the environment. In the case of SMEs, IAS often affect primary producers in agriculture, livestock, fisheries, aquaculture and forestry, which consequently suffer significant economic damage. Enterprises related to tourism and recreation that rely on pristine landscapes, clean water bodies and healthy ecosystems are also often affected. The created by human habitats - abandoned farmland, roadsides and urban areas, landfills, riverine habitats are most vulnerable to penetration of IAS. 50 invasive plant species are established, 15 of which are potential, the freshwater are 3. 20 of mushrooms are with invasive status. At this stage some special measures are applied primarily concerning invasive species harmful economic consequences. Measures to limit their spread are applied in some sensitive areas along the Danube River and the Black Sea coast. In the Bulgarian flora are set 214 hybrids or hybrid populations of 52 genus in 29 families. Picture of biological and taxonomic diversity of the Bulgarian flora is complemented by a group of missing her 13 species (Petrova & Vladimirov, 2009), some of them found once, other destroyed in anthropogenic highly disturbed habitats. Most of these species are wetland or aquatic plants (hydro-and hydrophytes) that inhabited swamps, wet meadows, riparian areas. Phytogeographic analysis shows that 14 major floral elements are covered in the Bulgarian flora - groups of species with similar habitat and general distribution center. These are Arct-alpine species common in our high mountains. Boreal floristic elements are

111 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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represented by species of Eurasian boreal and subboreal forests forming communities in the coniferous vegetation belt. Medio floral element is widely presented in the mountains of Bulgaria of species that form mixed broadleaved deciduous forests, participate in grasslands. Mediterranean and transitional-Mediterranean elements are represented by small trees and shrubs and a much larger number of perennial herbaceous plants, especially annuals, distributed mainly in the southern regions of the country, and some species following the limestone terrain and southern habitats are found in the north by the mountains. Typical of Mediterranean flora are Quercus coccifera (oak), Juniperus excelsa (juniper), Phillyrea latifolia (mock privet), Pistacia terebinthus (terebinth), two types lavdan (Cistus) and others. Characteristic of Dobrodzha and Black Sea coast are representatives of the Pontic floral element plants in areas north and east of the Black Sea, including the number of steppe species. Floral elements form South Euxeinos plant communities are preserved in the flora of Strandzja, on the Black Sea coast and the Eastern Balkan Mountains. Among them are Fagus orientalis (Oriental beech), Quercus hartwissiana (Strandja oak), Ilex colchica (Colchis holly), Daphne pontica (Strandja rabid tree), Rhododendron ponticum (Strandja periwinkle), Vaccinium arctostaphylos (Strandja blueberry). The relict and endemic plants occupy a special place in floristic diversity of the country. Pre-glacial (Tertiary) relict species are ancient representatives of Acro-tertiary flora preserved in our country for more than two million years. Another group of species distributed mainly in the high mountains of Bulgaria are glacial relicts. Some of them are plants that during the last glaciation in the Northern and Central Europe migrate south in the Balkan Peninsula mountains, turned into their shelters (glacial refuges). Part of glacial relicts are local endemic species resulting from species-formation processes driven by climate change and the dynamics of vegetation cover in the high mountains. The specifics of the Bulgarian flora is largely determined by the Bulgarian and Balkan endemic plants. They are 498 species or 12.8% of the species richness of the country. Bulgarian endemics are 186 species, Balkan - 312. Most endemic areas are small, some of them are with very limited distribution, with small populations and a high degree of vulnerability. Most Bulgarian and Balkan endemics found in the Rhodope Mountains, Rila, Pirin, Stara Planina. Endemic plants are one of the most sensitive and vulnerable points in the natural ecosystems of the country. Bryophyte flora of Bulgaria numbers 719 species, most abundant in species diversity are Rila, followed by Pirin, Vitosha, Western and Central Stara planina, West and Central Rhodopes. Nearly 40% of the species covered in the "critically endangered", "endangered" and "vulnerable" according to the criteria of IUCN (2001). From 173 species of liverworts 11 are critically endangered, 16 are endangered and 33 are vulnerable (Ganeva Natcheva 2005). Established lower plants are about 1300 species. The potential number of fungi in Bulgaria is estimated at 20,670 species and lichens - 709 species.

112 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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In the Red Book of the Republic of Bulgaria Volume I - Plants and Fungi (2011), are involved a total of 810 species, distributed as follows: algae - 6 species (critically endangered – 5, endangered - 1); bryophytes - 102 species (liverworts: critically endangered - 10 endangered - 17 vulnerable - 6; listed on moss: critically endangered – 17, endangered – 25, vulnerable - 27); ferns - 7 species (regionally extinct – 1, critically endangered - 6); gymnosperms - 4 species (critically endangered – 2, endangered - 2); angiosperms - 542 species (with "extinct" – 1, regionally extinct – 11, critically endangered – 198, endangered – 293, vulnerable - 39 selected species - Bulgarian and Balkan endemic species included in Annex 3 of the Biodiversity Act and Habitats Directive); fungi - 149 species (critically endangered – 38, endangered – 103, vulnerable - 8). This volume includes all extinct, regionally extinct, critically endangered and endangered species of plants and fungi, and because of the limited volume edition only selected species (about 20%) with category of threat "vulnerable." The category of threat is defined according to the criteria of the International Union for Conservation of Nature (IUCN). IUCN introduced a new, modern and more precise categorization of the degree of threat from 2000. Instead of the previous three categories (extinct, endangered and rare), there are already seven categories of the degree of threat. They are extinct, critically endangered, endangered, vulnerable, near threatened, least concern and with insufficient data. Nature conservation in Bulgaria is regulated by Biodiversity Act (2002). It governs the relationship of conservation and sustainable use of biodiversity in the Republic of Bulgaria and it is an instrument for the integration of international legislation in the Bulgarian legislation - the Convention on Biological Diversity, the Convention on International Trade in Endangered Species of Fauna and Flora (CITES, Washington Convention) Bern Convention, Directive 79/409 and Directive 92/43 of the European Union, the Bonn Convention and agreements under the Convention, the Ramsar Convention. The law stipulates the construction of the National Ecological Network, defining its objectives. Annex № 2 of the Biodiversity Act includes specific habitat species from Annex II to Directive 92/43, which should be declared Natura 2000 protected sites. These are 23 species, including five species of bryophytes. Annex № 2a of BDA includes habitat specific species whose conservation requires the designation of protected areas under the Protected Areas Act. These include 75 species of high plants, mainly sedges, legumes and cereals; sphagnum and Leucobrium glaucum from bryophytes; 10 species of fungi (macromycetes). Species conservation is regulated by Chapter three. Species of wild flora are protected through: conservation of their habitats in the National Ecological Network; placing under protection or regulated use; maintain or restore habitats according to the ecological requirements of the species involved; develop and implement action plans for species with varying degrees of threat. Annex 3 of the BDA contains the protected species in the country. It is prohibited: picking, collecting, cutting, uprooting, destruction of individuals in their 113 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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natural habitats; possession, transfer, transport, export, trade and offering for sale or exchange of individuals taken from nature. Protected plants which are involved in the Annex are 591 species from 97 families. Annex № 4 of the BDA includes species subject to a use for which provision for regulated use. The law provides to develop action plans for globally endangered species and endangered species listed in Annex № 2, 3 and 4, which are approved by the Minister of Environment and Water. In this connection 125 Important Plant Areas have been identified (Radford & Ode, 2009; http://www.plantlife-ipa.org/Reports; Peev et al., In preparation). The majority of sites - 86 are set for species and habitat, 11 are determined only for endangered species, and the remaining 28 - for habitats. Among the Important Plant Areas in Bulgaria are as significant in size areas with recognized conservation status - Rila, Pirin, Slavianka, territories of the Rhodopes (Dobrostan, Trigrad area - Mursalitsa parts of the valley of Arda river, etc.) Western Balkans, Vratsa Balkan, Central Balkan, Sinite kamuni, but also small teritories, usually with deposits of relict or endemic species or rare habitats (Krusheto, Izvorovo, Sivino, Manole, Taushan tepe). 2.1.7.2.Vegetation and habitat Under the existing specific environmental conditions of topography, subsoil, soil, climate, hydrothermally mode of habitats and different forms of human impact, modern vegetation in Bulgaria is characterized by great diversity. In Bulgaria there are three types of vegetation according to Physiognomic approach: trees (Lignosa); shrubs (Fruticeta); and grass (Herbosa). The trees vegetation is represented mainly by two classes formations: broadleaf deciduous forest (Aestilignosa) and coniferous forests (Aciculilignosa) and class formations with hard evergreen broadleaf forests (Durilignosa) is a potential habitat. Shrub vegetation is represented by three class formations: deciduous shrub formations (Aestifruticeta), coniferous shrubs (Aciculifruticeta) and fragmented evergreen shrub formations (Durifruticeta). There are 4 class formations in grassy vegetation type: Grassy green xerophilic formations (Aestiduriherbosa), Grassy mesophytic formations (Pratoherbosa), Grassy alpine formations (Frigoherbosa) and Weed formations (Theroherbosa). In the dominant approach for the classification of vegetation in the 90s of the twentieth century are described 238 plant formations, 8 groups of associations, 1798 associations, 29 sub-associations and 112 complex of associations (Apostolova Slavova 1997). Throughout the country are distinguished 6 types of vegetation - middle deciduous vegetation type, steppe, boreal-montain, arctic-alpine, mediterranean and water vegetation type (Velchev 1997). Existing information on vegetation dominant approach to classification and distribution of the separate classification units across the country are summarized and presented in developed by I. Bondev (1991) vegetation map at a scale of 1:600 000 with explanatory text. This map natural and secondary vegetation is represented in 150 units, of

114 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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which 22 groups of formations, 40 formations, 66 groups of associations, 19 agricultural land and 3 forest plantations. There are a variety connected with specific natural conditions and anthropogenic changes in vegetation associated with the development of agriculture, forestry, urbanization, etc. As a result of the direct and indirect effects of human activities natural vegetation of large areas is totally or partially destroyed and formed a large number of short, long or derived types phytocenoses.

Data for 39 classes, 67 orders, 96 union, 227 associations and 48 sub-associations in floristic approach of vegetation classification are published (Pavlov, Dimitrov 2011). Analysis of existing information and the availability of specific habitats enables to predict the existence on the territory of Bulgaria phytocenoses from 11 classes more (Tzonev et al., 2009). The classification of vegetation floristic method is based on the typology of natural habitats that are protected within the ecological network of protected sites (Natura 2000) in the European Union. In the Bulgarian part of the European ecological network Natura 2000 have been identified and characterized 90 habitat types, or 38.86% of the total of 231 habitat types identified and adopted at present in the European Union (Annex I of Directive 92/43/EEC). Established in Bulgaria habitats have characteristic distribution by major categories and groups of natural formations. Most of them belong to the category of "Forest" - 27 or 33.75% of the size of this group in Europe. Next in size are relevant to the category "Natural and semi-natural grasslands" - 18 pieces, or 58.06%. Thirdly, habitat category "Coastal and halophytic habitats" - 12 pieces, or 42.86%. Relatively high number of national level are habitat category "temperate wilderness bushes" - 8, or 66% of those in Europe. The other types are distributed as follows: "Rocky habitats and caves" - 7, or 50%; "Freshwater habitats" - 6, or 31.58 percent; "Coastal sand dunes and continental dunes" - 6, or 28.57 percent; "Raised bogs, mires and fens" - 4 or 33.33% and "sclerophyllous shrubs (Matoran) '- 2, or 15.38% of the number in Europe. Under the Habitats Directive (92/43/EEC) and The Interpretation Manual of European Union Habitats - EUR27, determined as priority habitat types in Bulgaria are 27 or 30% of the total habitat subject to protection under the Natura 2000 network in the country. They are 36.62% of the priority habitats in the European Union. Annexes to Directive 92/43 includes 22 species of high plants spread in Bulgaria - 1 fern species, 16 species of seed plants and 5 species of mosses. About 100 of these types of deposits are included in the protected sites network. Plant resources are essential to the livelihood of the population and the economy. Forest vegetation is an important source of wood for industrial use. Forestland includes about 1/3 of the country. The average forest cover is about 30%, but there are areas where it is below 10%. About 34% of forest cover is coniferous forests, and about 66% is deciduous 115 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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forests. Only 18% of deciduous forest area are occupied by tall deciduous species, and about 23% are forests for reconstruction. Young coniferous plantations dominate and they occupy about 60% of the total area of coniferous forests. The forest over 100 years old are with at least part, while the trees over 100 years old dominate in deciduous forests. The average wood reserve is combined with the low average age of the forests, lower average credit rating and low average growth. The forests in the Western Rhodopes, Rila, Pirin and Strandja are with best quality and quantity. More than 250 species of medicinal plants (1/3 of the species with medicinal properties) have economic importance. Medicinal plants are collected annually about 15 000 tons dry herbs, 200 species of edible fungi, 10 of which are industrial or commercial matters. Important economic, cultural and biological importance are plant genetic resources in Bulgaria - the variety of wild and semi-wild relatives of crops, local varieties, many of which are endangered. Since plant resources are essential to the livelihood of the population and the economy of the country, their management is an important element in the context of sustainable development and a means of increasing social welfare. Conclusions: The analysis of the contemporary state of flora, vegetation and natural habitats in the country makes it possible to draw the following general conclusions: - In many cases, the economic activity has had a negative impact on the vegetation and natural habitats. Natural dynamic processes in the vegetation cover of Bulgaria often leads to replacement of grass with shrub and tree phytocenoses. There tends to be a trend to restore closer to the primary grass in place of secondary grass phytocenoses. - The anthropogenic influence has led to the deforestation of significant areas of the country, regardless of altitude, although most changed is the environment in areas with lower altitudes. There has been extensive fragmentation of forests. Have worsened the composition and structure of many forest communities, some of which have acquired scrub character. Dominant part of the deciduous forests are converted seed in creeping. Steppe vegetation type for its most part is destroyed. - The secondary communities of Carpinus orientalis (hornbeam), Paliurus spina- christi (thorn), Juniperus communis (juniper), Poa bulbosa (bulbous meadow grass), Cynodon dactylon (twitch), Chrysopogon gryllus (-), Bothriochloa ischaemum (yellow bluestem), Festuca valesiaca (volga fescue), Pteridium aquilinum (bracken) and others have received wide development. Also the grass- shrub complexes acquired a high prevalence. - The area of Mediterranean vegetation is highly reduced too, some phytocenoses of Quercus coccifera (oak), Acer monspessulanum (mackle), Juniperus excelsa 116 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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(juniper) and others have become a reddy or they were replaced by communities of Juniperus oxycedrus (red juniper), Paliurus spina-christi (thorn) Bothriochloa ischaemum (yellow bluestem), Poa bulbosa (bulbous meadow grass) and others. - The amendments to the aquatic habitats in areas with lower altitudes are significant - ponds are partially or absolutely dried up, river beds are changed and many riparian habitats are destroyed. - Despite of the extremely high lability of natural components in the mountains, especially in the higher parts, implementation of construction projects related to tourism have a negative impact and many valuable species and habitats are highly threatened. - A specific habitats along the Black Sea coast with hygrophilic, hydrophilic and psammophytic vegetation are partially destroyed or they are in danger of destruction. 2.1.8. Status of animals Bulgaria occupies the central and eastern Balkan Peninsula with an area of 111 000 km2. On this relatively small area is the largest displacement of the peninsula (0-2925 m) which together with the location of two distinct climatic zones (continental and transitional- Mediterranean) determines the wide variety of biotopes - from transitional-Mediterranean to High-mountain (Alpine). Bulgarian fauna is formed by the combination of diverse climatic conditions, topography, geology and vegetation, as well as the availability of refuges from the Ice Age, which have been preserved relict species or endemic species have evolved. The country's territory includes parts of three biogeographical regions Alpine, Continental and Black Sea according to biogeographical regionalization of Europe ETC/BNP (European Topic Center on Biodivesity and Nature Protection), adopted by the European Commission and entered into the Habitats Directive (92/43 / EEC). Protection of Bulgarian wildlife is in line with signed by Republic of Bulgaria international conventions and documents for its preservation and identification of conservation status, namely: CONVENTION on the conservation of European wildlife and natural habitats - Ratified by the Grand National Assembly by resolution adopted on 25.01.1991 - SG. 13 of 1991 in force in the Republic of Bulgaria on 1.05.1991 issued by the Ministry of Environment, publ., SG. 23 of 03.10.1995 on item 5, p 4.: The aims of this Convention are to conserve wild flora and fauna and their natural habitats, especially those species and habitats whose conservation requires the co-operation of several states, and to promote such cooperation. Particular emphasis is given to endangered and vulnerable species, including endangered and vulnerable migratory species. 117 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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CONVENTION on the conservation of migratory species of wild animals - Ratified by a law passed by the 38th National Assembly on 23.07.1999 - SG. 69 of 3.08.1999 issued by the Ministry of Environment and Water, prom. SG. 16 of 25.02.2000, effective from 11.01.1999.: The Parties recognize the importance of protecting migratory species and the consent of the states in the region to take action to this end whenever possible and appropriate, paying special attention to migratory species whose conservation status is unfavorable, and taking individually or in co-operation into appropriate and necessary steps to conserve such species and their habitats. CONVENTION on Biological Diversity - Ratified by a law passed by the 37th National Assembly on 29.02.1996 - SG. 22 of 15.03.1996 issued by the Minister of Environment and Water, publ., SG. 19 of 2.03.1999, in force from 16.07.1996: The objectives of this Convention, to be pursued in accordance with its relevant provisions, are the conservation of biological diversity, the sustainable use of its components and the fair and equitable sharing of the benefits arising out of the utilization of genetic resources, including by appropriate access to genetic resources and by appropriate transfer for relevant technologies, taking into account all rights over those resources and to technologies, and by appropriate funding. CONVENTION on Wetlands (Ramsar Convention) international importance especially as waterfowl habitat. Established by Decision 389 of the Council of Ministers of 11.18.1974 Prom. SG. 56 of 10.07.1992, in force for Bulgaria on 24/01/1976 Amended by the Protocol of 12.03.1982, in force for Bulgaria on 27.02.1986: Each contracting party shall designate suitable wetlands within its territory for inclusion in a List of wetlands of international importance. Other international agreements and other documents related to the environment: Council DIRECTIVE 92/43/EEC of 21.05.1992 on the conservation of natural habitats of wild fauna and flora: Whereas the preservation, protection and improvement of the quality of the environment, including the conservation of natural habitats and of wild fauna and flora, are an essential objective of general interest pursued by the Community. Council DIRECTIVE 79/409/EEC of 2 April 1979 on the conservation of wild birds: This Directive relates to the conservation of all species of naturally occurring birds in the wild state in the European territory of the Member States to which the Treaty applies. It covers the protection, management and control of these species and lays down rules for their exploitation. Strategy for establishment of NATURA 2000 network in Bulgaria: The strategy combines the decisions about the way that will be achieved biodiversity conservation through the establishment of the Natura 2000 network. Agreement on the conservation of populations of European bats (EUROBATS).

118 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Biological diversity act (SG 77/2002) (Annex №2 includes species for which conservation protected sites are declared, Annex №3 includes strictly protected species throughout the country) is fully harmonized with the European and global practice. Over 29 000 species of animals are established in our country. Conservation status of species is determined by the International Union for Conservation of Nature and Natural Resources (International Union for Conservation of Nature, IUCN) (World Red Book species). Categories of threat are seven: extinct, critically endangered, endangered, vulnerable, near threatened, least concern and data deficient. The European red list – it is compiled with the same criteria as the World red list of threatened species of the International union for conservation of nature and natural resources (IUCN), but only for Europe - an overview of the conservation status of about 6 000 European species (mammals, reptiles, amphibians, freshwater fishes, butterflies, dragonflies, and selected groups of beetles, molluscs, and vascular plants). It defines endangered species from extinction at the regional level so that the improvement of the status to be able to take action. The species are assigned to one of eight categories of threat. More specifically listed as "critically endangered", "endangered" or "vulnerable" species fall under the general description "endangered" (http://ec.europa.eu/environment/nature/conservation/species/redlist). The Red data book of the republic of Bulgaria, Volume 2: Animals (Golemanski and others, 2011) presents an information for over 30 000 species of animals from a large number of taxonomic groups had been registered, and their real current numbers in the country are probably over 60 000. An assessment of the degree of threat with a view to their inclusion in the Red Data Book, and more than 400 species of which correspond to the criteria of IUCN. A total of 288 animal species are described - 51 species are invertebrates, including: 41 species of fish (2 cyclostomes and 22 bony fish); 2 species of amphibians; 9 species of reptiles; 100 species of birds found in the country and 19 species of mammalians. 12 species by them were in the category of " extinct " and 39 species are "critically endangered". Bulgarian fauna includes 94 species of mammals, 383 birds, 36 reptiles, 16 amphibians, 207 Black Sea and freshwater fish, about 27 000 insects and other invertebrates. So Bulgaria is among the countries with the greatest biodiversity in Europe. A significant is the number of endemic species and subspecies. From invertebrate taxonomic groups 8.8% of non-insect species and 4.3% of the insects are endemic. The degree of rarity varies considerably in the taxonomic groups. In Bulgarian fauna are categorized 567 species of non-insect invertebrates (about 23% of all known species); over 1500 species of insects; 29 species of Black Seas and freshwater fish; 2 kinds of snakes; 78 birds (including 16 species from the list of globally threatened species in 1993 by the International union for conservation of nature [IUCN]); and at least 10 large mammals, including the Black Sea monk seal, dolphin endemic subspecies: porpoise and bottlenose dolphin, chamois, brown bear, wolf, otter and European marbled polecat.

119 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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As a result of anthropogenic pressure over the last few decades a number of Bulgarian species have declined to the point of extinction. These include at least 7 invertebrates, 3 fish species, two snakes, three birds, two (possibly three) species of mammals and 6 local animal breeds. The extraordinary diversity of animal species in Bulgaria is of international significance. Bulgaria has been described more than 20 000 invertebrates. In this overall figure are included more than 1 800 taxa of protozoa and over 2500 arachnids, molluscs living nematodes other non-insect invertebrates. About 85% of known invertebrate insects described are almost 17 500 species and subspecies of insects, and the total number is estimated at 27 000. Diluted in some insects (eg Ephemeroptera, Heteroptera, Orthoptera) in Bulgaria there are more species than in the whole of Central Europe. Especially it should be noted unusually diverse cave invertebrate fauna of Bulgaria. Vertebrates has been studied most thoroughly and it comprises 730 species: 94 species of mammals, 383 species of birds, 36 reptiles, 16 amphibians and 207 freshwater and Black Sea fish. Hiropterofaunata numbers 29 species - almost all existing species in Europe. Of large mammals at 23 existing species, is among the richest in Europe and includes a wolf (Canis lupus), brown bear (Ursus arctos), badger (Meles meles), pine marten and stoat (Martes martes and M. foina), three types of ferrets (Mustela eversmanni, M. rutorius and Vormela peregusna), three types of deer (Dama dama, Cervus elaphus and Capreolus sapreolus) and three marine mammal (Delphinus delphis, Phocoena phocoena relicta and Tursiops truncates ponticus). A marine mammals - Black Sea monk seal, which is a different form of the Mediterranean monk seal (Monachus monachus) - is considered extinct (http://chm.moew.government.bg/nnps/IndexDetails.cfm?vID=10) . A large number of species are included in international conventions and directives in the global and European lists of endangered species aimed at conservation of biodiversity at the global and European scale. Invertebrates From 27 000 species of invertebrates 1606 species are of protozoa, 20 900 species are insects, arachnids - 1090 species, mites - 1583 species, molluscs - 445 species. The cave fauna of Bulgaria is rich. Balkan cave fauna is the richest on the Earth. This is due to the presence of large terrestrial karst areas and the lack of catastrophic climate changes of the antiquity. A total of 13 species of invertebrates are protected in Bulgaria under BDA in Annex № 2 are included eight species of invertebrates, in Annex № 3 - 7 species and in Annex № 4- 5 species. Vertebrates

120 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The vertebrate fauna of Bulgaria amounts to 770 species: 207 species of fish and cyclostomes, 16 species of amphibians, 36 species of reptiles 405 species of birds and 100 species of mammals, 33 species of bats. Fish The modern fish fauna of Bulgaria amounts to 207 Black sea and freshwater fish species. 122 species of them inhabit fresh and brackish waters. The level of endemism is relatively high - 13 species, of which 5 are Bulgarian. Annex № 2 of BDA includes 21 species, Annex №3 – 1 species and Annex № 4 - 16 species. A total of 24 fish species are included in the Red book of Bulgaria, 3 of them are extinct, 16 are endangered and 5 are rare species. Amphibians and Reptiles account to 52 species. Amphibians are a total of 18 species (4 tailed species and 14 tailless species). Reptiles account to 36 species (17 species of snakes, lizards – 13, turtles are 4 species). In the Red data book of Bulgaria are included a total of 15 species of them, 2 of them are extinct, 9 are endangered and 4 are rare species. In Annex № 2 of BDA are included 9 species of amphibians, in Annex № 3 - 11 species and in Annex № 4 - 3 species. In Annex № 2 are included 7 species of reptiles, in Annex № 3 - 23 species and in Annex № 4 - 1 species. Birds 327 species from 409 birds of established species in Bulgaria are protected. Extinct are 9, 57 are endangered and 34 are rare species. 100 are included in the Red data book. Annex № 2 of BDA includes 334 bird species, in Annex № 3 - 133 species, in Annex № 4 - 24 species. Through the country pass routes of migratory birds. Bulgaria is one of the European countries with the greatest biodiversity, especially in terms of birds, with the highest concentration of bird. So far, Bulgaria has registered and recorded 397 bird species, 59 of which were seen for the first time in 50 years. Two of the main migration routes of birds: "Via Pontica" (Black Sea coast) and "Via Aristotelis" (the Struma River valley) pass through our country. There are 90 important ornitological areas in Bulgaria, 57 of which are wetlands. In Bulgaria Natura 2000 (European network of protected sites) includes 114 protected sites for the conservation of wild birds, 20.3% of the country. Mammals - The total number of mammals in Bulgaria is 94 species (29 species of bats, 10 species of insectivores, 2 species of lagomorphs, 30 species of rodents, 14 species of carnivores, 1 species of seal, 3 species of dolphins, 5 species of hoofed), 2 of them are extinct; 8 are endangered and 9 are rare species. Annex № 2 of BDA includes 46 mammal species in Annex № 3 - 48 species and in Annex № 4 - 5 species.

121 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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In the Red data book of Bulgaria (v.ІІ Animals) are recorded 19 mammals as marten, marbled polecat, monk seal, brown bear, otter, wild cat, some species of bats, and more. http://chm.moew.government.bg/nnps/IndexDetails.cfm?vID=10 The habitats and the natural environment for the existence of many of them are located within the Western Rhodopes, Pirin, Rila and Central and Western Stara Planina. The great fauna diversity of Bulgaria is territorially unified in the following zoogeographic regions: І. The Danubian region. Covers the Danube plain (without Dobrogea). In zoogeographic the land belongs to the Danube area of the Euro-Siberian subregion. There are about 1 100 species of animals, including zooplankton and 99 250 zoo-benthos species and over 770 species of invertebrates (35 species of snails and 16 species of mussels). There are 11 species of amphibians, 5 of which are protected. Reptile - There have been 19 species of reptiles. Over 200 bird species are described of which 130 are under the protection of the Birds protection act and the Red data book of Bulgaria. 66 species of mammals have been identified. Five nests of sea eagle (Haliaeetus pelagicus) are registered on the territory of NP Persina. Important area along the Danube which is of importance for birds is the Sreburna Lake. 50 species inhabiting the region are included in the Red data book. The only colony of Dalmatian Pelican (Pelecanus crispus) for the country is here. ІІ. The Stara planina region. Covers the Fore-Balkan and Stara planina. The species composition of the fauna is Euro-Siberian or European type, while Mediterranean species are few, due to the barrier role of the Stara planina. The fauna is a mixture of lowland and mountain species. The entomofauna is interesting and prerequisites for high conservation value due to the karst and south exposed balconies and niches. About 100 species of butterflies are established on the massive Sinite kamuni in Eastern Stara planina, which it ranks among the top places in the country in species diversity of the group. Common inhabitants of amphibians and reptiles are open landscapes, which can be considered as components of the steppe biome. Representatives of ornithofauna: the golden eagle (Aquila chrysaetos), lesser spotted eagle (Aquila pomarina), eurasian woodcock (Scolopax rusticola), stock pigeon (Columba oenas), black woodpecker (Dryocopus martius), southern woodpecker (Dendrocopos leucotos) – species from the Red data book of the Republic of Bulgaria. The common kestrel (Falco tinnunculus) and saker falcon (Falco cherrug) are highly dependent on habitats of alpine character.

122 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Conservation significance mammals are represented by chamois (Rupicapra rupicapra), bear (Ursus arctos), martes (Martes martes), (Martes foina), marbled polecat (Vormela peregusna). ІІІ. The West Bulgarian region. Covers the south lands of Western Stara planina and north of Osogovo and Rila. The fauna in the Western Stara Planina is with predominantly Euro-Siberian and European distribution, while Mediterranean species are much less. Insectivorous mammals of the first category are 81%, while these of the second are only 11%. In the Iskar Gorge birds in the first category are 60%, these in the second category - 19%, while butterflies ratio is 53% to 35%. Palaearctic and Euro-Siberian species have considerable superiority over the Mediterranean in all altitudinal zones of the region. Invertebrates The West Stara planina is very rich in endemic species - 197. There are several Balkan endemics and dozens of Bulgarian endemics of the underground fauna: representatives spiders harvestmen (Opiliones) and Brachythele denieri - Mediterranean), millipedes (Diplopoda and Chilopoda) and runner- beetles (Carabidae). There are also a significant number of Carpathian elements (some snails, centipedes, grasshoppers, the endemic grasshopper - Poecilimon affinis ruenensis etc.). Fish representatives are Maritsa barbel (Barbus cyclolepis), chub (Leuciscus cephalus), nase (Chondrostoma nasus) and others. 9 species of amphibians and 14 species of reptiles are found in the region. The Hermann's Tortoise (Testudo hermanni) is included in the Red data book of Bulgaria The global IUCN Red List include two species - Hermann's tortoise (Testudo hermanni) and ordinary pond turtle (Emys orbicularis). Under the Bulgarian legislation (Biodiversity Act) in Annex 3 are included 18 species (Annex 1). 158 species of birds are identified (Spiridonov and others., 2007), of which 51 species are of European conservation concern (BirdLife International, 2004). In category SPEC1 - 2 species are included, in SPEC2 - 17 and in SPEC3 - 32 species. The Red data book of Bulgaria include 40 species. West Balkan maintains one of the most numerous breeding populations of rock partridge (Alectoris graeca) and corncrake (Crex crex) in Bulgaria (Spiridonov et al., 2007). There are 4 species of globally threatened birds - saker falcon (Falco cherrug), corncrake (Crex crex), imperial eagle (Aquila heliaca) and lesser kestrel (Falco naumanni). Western Balkan is representative of the alpine biome due to the complex of alpine nesting species - the alpine chough (Pyrrhocorax graculus) and alpine accentor (Prunella collaris). The Western Balkan is among the most important places in Bulgaria on a European Union level for the conservation of 31 species. 61 species of mammals have been identified in the Western Balkan (Spiridonov order., 2007). Bats are 18 species (nearly 2/3 of the group in the country and almost as many

123 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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of the species in Europe). Some of the most important caves for bats are Suhi Pech, Mishin kamuk and Vodni pech where they are established one of the most important breeding colonies in Europe (Spiridonov order., 2007). In the Red data book of Bulgaria (Golemanski and others., 2011, II animals) are included 13 species of which: in category critically endangered (CR) - lynx (Lynx lynx); in category vulnerable (VU) are included 9 species; in category endangered (EN) are included 3 species. The species are protected by the Bulgarian environmental legislation, as in Annex II of the Biodiversity Act are included 14 species and in Annex II - 26 species (Appendix 3). The Western Balkan is an important bio-corridor for migration of large mammals, especially for lynx (Popov et al., 2007). ІV. The Dobrudzha region. The steppe fauna elements are dominating. This region is inhabited by 345 species of invertebrates and over 240 species of vertebrates. The fish fauna accounts to 23 species. The amphibians are represented by 9 species and the reptiles are represented by 10 species. About 248 species of birds inhabit the Ludogorie; 96 species of them are nesting. During migration were observed 185 species. Rare species are semi-collared flycatcher (Ficedula semitorquata) and sombre tit (Parus logubris), which are Balkan endemics. Rare species is the black woodpecker (Dryocopus mantius) and extremely rare for the country bustard birds - great bustard or little bustard (Tetrax tetrax). There have been 28 species of mammals and typical steppe species. Species from the Red data book of Bulgaria (Golemanski and others., 2011, II animals) are ground squirrel (Spermophilus citellus), marbled polecat (Vormela peregusna), wolf (Canis lupus), otter (Lutra lutra), Dobrudzha hamster (Mesocricetus newtoni), steppe polecat (Mustela eversmanii) and critically endangered steppe birch mouse (Sicista subtilis). 20 species of bats been identified. V. The Central highland region. Covers the mountains of Rila, Pirin, Western Rhodpoes, Vitosha, Slavianka and others. Invertebrates fauna: 2 934 species are established only in Rila, 242 of which are endemic, and 244 relics. This defines the park as an important world center of speciation. Rila The NP Rila is an important conservation reservoir. It contains 80% of invertebrates, 80% of the glacial lake flora and fauna and 20% of terrestrial vertebrates. In Pirin are established 2091 species and subspecies of invertebrates (50 species of spiders, millipedes, insects, snails, etc.). 294 of which are rare, 216 are endemics, 176 relicts and 15 species presented in the world and European lists of endangered species. Vitosha is characterized as a place of unique communities of invertebrates in the National strategy for biodiversity conservation. Vitosha takes second place by number of endemic rare and relict species led by the Southern part of the Struma Valley. There are 148 endemic species, 300 rare species and 85 relict species of invertebrates, 18 species are typical arctic-alpine glacial relicts. The subterranean invertebrate fauna in Bosnek karst region is

124 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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unique. Typical insects are large long-horned beetle (Cerambyx cerdo), beech long-horned beetle (Morimus funereus), red forest ant (Formica rufa) and others. 247 species of vertebrates are found in this region. This includes 6 species of fish, 8 species of amphibians, 11 species of reptiles, 177 species of birds, 45 species of mammals. Pirin is a representative place for a set of species which are typical for high mountain areas and natural coniferous and beech forests. 130 breeding bird species are found in Rila and Pirin, 20 of which are listed in the Red data book of Bulgaria. 44 of them are of European conservation concern. One is a globally threatened species; 24 species are listed in Annex 2 of the Biodiversity Act; 31 are listed in Annex I of the Directive 79/409 of the EU. In the Western Rhodopes are identified 130 species of birds, mainly nesting, 21 of which are listed in the Red data book of Bulgaria. 43 species of them are of European conservation concern. This region provides suitable habitats for 26 species, which are listed in Annex 2 of the Biodiversity Act, which require special protection measures. About 200 bird species are established in Vitosha, of which about 120 are nesting. Mammals. The territory of Rila is one of the most important places in Europe habitats of the brown bear (Ursus arctos), the wolf (Canis lupus), the Balkan chamois (Rupikapra rupikapra balkanika) - the largest in Bulgaria, the largest alpine populations of the European ground squirrel (Spermophilus citellus). 5 species of mammals are included in the Red data book of Bulgaria, in the Red List of IUCN - 12 species, in the Bern Convention - 37 species, under the Directive 92/43/EEC - 24 species. The brown bear and the Balkan chamois need special attention and protection. There have been 11 species of bats, the most numerous in the caves of the Bosnek karst area. VІ. The Thracian region. It is situated between the Stara planina and Rhodope Mountains. The fauna of the region is composed of European, Euro-Sibirian and Holopale- arctic species. Along with them are common a lot of thermophilic mediterranean, transitory- mediterranean pre-asian and steppe species. The extent of occurrence of rare species and endemism are most pronounced in certain minor invertebrate fauna population. According to Houbenov (2002) the invertebrates are primarily Mediterranean species: lepidopteran insects - about 50%, beetels - 54%, orthopteran – 64%, some beetles, such as weevils - 44% and chafers - 45%. A large number of Mediterranean species of amphibians and reptiles are distributed across the Thracin valley. 149 bird species are identified, of which 44 are species of European conservation concern. Globally threatened include 2 species and 3 are included in the Red data book – common pheasant (Phasianus colchicus), rock partridge (Alectoris graeca), rosy starling (Sturnus roseus). The area provides suitable habitats for 25 species which are listed in Annex 2 of the Biodiversity Act. They require special protection measures.

125 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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VІІ. The Black sea region. Covers the coastline. Typical representatives of the fauna are by the Euro-Siberian, Mediterranean and Iran-Turan faunal areas. Bulgarian Black Sea coast occupies less than 2% of the country. However, this is a region with specific differentiation and species density in terms of the organic world. There are mainly thermophilic species. The uniqueness of the coastal zone is determined by the direct contact between aquatic and terrestrial ecosystems and the associated variety of natural habitats. Invertebrates. A lot of conservation concern species - 119 species are endemic and 164 are rare for the country. Protected species BDA – 26, species of the Directive 92/43 – 19, species of the Red data book of Bulgaria - 28 (CR - 12; EN - 14 ; VU - 1; NT - 1); BERN - 12, IUCN – 14, endemic – 3, rare - 7. 40 species of freshwater and fish passage been identified. With high conservation significance are 15 species. Areas with a concentration of important fish species are Shabla, Dourankoulak, Cape Kaliakra (marine area), the Kamchiya River, the Mandra dam, the Burgas Lake, the Diavolska river, the Karaagach River, the Ropotamo River, the Butamiata River, the Veleka River, the Silistar River and the Rezovska River. There have been 40 conservation amphibian and reptile species: endangered - 1 species (IUCN: VU), BDA - 34 species (Annex II - 9 species; Annex IV - 34 species), Directive 92/43 - 28 species (Annex II - 9 species; Annex III - 28 species), RB - 9 species (CR - 1 species; EN - 5 species; VU - 3 speces), CITES - 3 species. The birds are especially numerous. During certain periods of the year, the number of birds reaches 257, which represents 68% of all poultry which can be observed in Bulgaria. 17 bird species are included in the Red data book of Bulgaria, and one - in the World Red data book. Birds of all taxonomic categories were registered during migration along Via Pontica: soaring birds - 5 species of Pelicans (Pelecaniformes), Storks (Ciconiiformes) and Cranes (Gruiformes) and 35 species of the Hawk (Accipitriformes). Soaring birds are full and partial migrants. They move mainly bottleneck. There are 5 globally endangered species in the region during migration . The mammals are 54 species, a special attention deserve bats - 21 species are included in the World "Red data book" and in the lists of various conventions. Total number of conservation species – 29, species protected under BDA – 29, species of Directive 92/43 - Annex II - 21; Annex IV – 17, species of the Red data book of Bulgaria - 22 (CR - 1; NT - 3; VU - 16; DD - 2); BERN - 28 endemic – 2. VІІІ. The Struma-Mesta region. Covers the valley of the Struma and Mesta Rivers. The volcanic hill Kouzhuh to Roupite, Struma valley, Petrich, Sandanski valley (the hottest place in Bulgaria) are some of the most xerothermal biotopes throughout the country. In the Kresna gorge of Struma River passes an important biological corridor for the migration of large mammals between the mountains of the Balkan peninsula and the famous since antiquity bird migration route (Via Aristotelis). Identified are 3970 species of invertebrates, 231 of which are with conservation significance. Of the insects: Bulgarian endemic species – 36, Balkan endemic species – 21, relict species - 6. 31 species of amphibians reptiles are 126 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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found. They are represented by Mediterranean, Anatolian and Pontic species, some of which are included in the Red data book of Bulgaria: worm (Typhlops vermicularis), the leopard snake (Zamenis situla), striped lizard (Lacerta trilineata), two species of tortoises – greek tortoise (Testudo greaca) and Hermann's tortoise (Testudo hermanni). Along the Struma River are identified 147 species of birds, mainly nesting. 22 species of them are listed in the Red data book of Bulgaria. 64 species are of European conservation importance. The corncrake (Crex crex) is globally endangered. There have been 58 species of mammals - 8 species of the Insectivora, 13 species of Bats, 18 species of Rodent, 8 species of Artiodactyla. ІХ. The Lower Thracian region. Covers the valleys of the Maritsa and Tunja Rivers. Of invertebrates, 3 of the 11 protected species of insects are identified here. The Herpetofauna is rich. The composition of the ornithofauna is depending on the season. A lot of species of high conservation status have a rest, eat and sleep here during migration and wintering. About 10% of the population of the endangered pygmy cormorant (Phalocrocorax pygmeus) wintering in the area. Mammalian fauna includes 35 species, 20 species of which are included in the Bern Convention on the conservation of European wildlife and flora. The otter (Lutra lutra) is included in the Bulgarian and European Red data book. Conclusions: 29 000 animal species are identified in Bulgaria. The Bulgarian fauna includes 94 species of mammals, 383 species of birds, 36 species of reptilas, 16 species of amphibians, 207 Black sea and freshwater fish, about 27 000 insects and other invertebrates. Bulgaria is among the countries with the greatest biodiversity in Europe. 2.1.9. Status of protected sites under the Biodiversity Act The preserved nature is a capital for the development of successful business - eco tourism, bioagriculture and sustainable forestry. For local people and communities, the Natura 2000 network is an opportunity for profitable livelihoods for farmers, the possibility of obtaining EU funds in the form of compensation. The creating process of Natura 2000 network in Bulgaria started in 2002 with the adoption of the Biodiversity Act. Networking is a system of interconnected territories and water areas of high conservation value, which implement coordinated action to safeguard biodiversity. It is part of the European ecological network Natura 2000. The National ecological network consists of protected sites, which are made according to the requirements of the Directive 92/43/EEC on the conservation of natural habitats and wild fauna and flora and the Directive 2009/147/EEC on the conservation of wild birds. These are sites of the territory and water area of the country that qualify for the presence of important biodiversity of plant and animal species and habitat types listed in the Annexes of the Habitats Directive and the Birds Directive. Generally, the ecological network includes 4 127 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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main components: core zones where there are restrictive regimes of human activity; ecological corridors, which allow human activities; recovery areas in which natural elements are damaged and there is an application of actions to improve the restoration and buffer zones that include both natural and modified or created by man territories. Restrictive activities are allowed. Figure 2.1.9.1 shows the territorial location of protected sites for birds and protected sites for habitats, some of which overlap.

128 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.9.1 Protected sites, approved by the Council of Ministers, November, 2013 , *Source MOEW 129 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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At the end of 2013 the number of protected sites in Bulgaria designated under the Birds Directive is 119 and their total area is 22,7% of Bulgaria. The number of protected sites designated under the Habitats Directive is 233, which cover 30% of the country (there are some differences in data of the official sources). There is a tendency to increase the size of protected sites under the Birds Directive after 2010. In 2011 they increased by 244 935 ha and their count – by 4. (Figure 2.1.9.2). The situation in the protected sites under the Habitats Directive is similar – a significant increase of their area and count after 2009, and in 2011 sites remained unchanged from 2010. (Figure 2.1.9.3). "Sufficiency Index," which shows the evaluation of the European Commission (EC) how close the Member States are in having sufficient proposed sites for the period 2008 - 2011 remained at 94.3. (Figure 2.1.9.4).

Figure 2.1.9.2 Change in the number and size of protected sites designated under the Birds Directive for the period 2007-2011, ha Source: EEA

130 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.9.3 Change in the number and size of protected sites designated under the Habitats Directive for the period 2007-2011, ha Source: EEA

Figure 2.1.9.4 Sufficiency Index (State of progress by Member States in reaching sufficiency for the Habitat Directive Annex I habitats and Annex II species) Source: EEA

More detailed information on protected Natura 2000 sites in 2012 is shown in Table 2.1.9.1. 131 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Table 2.1.9.1 Protected Natura 2000 sites in 2012*

Number Areas, ha Share of PS of the total Total Territory Aquatory country territory %

Under the Birds Directive

Approved by the NA2 118 2 566 588 2 512 559 54 029 22.6

Including announced by 114 1781 026 1 729 192 51 937 15.7 the Minister of Environment and Water

Under the Habitats Directive

Approved by the NA 231 3 391 225 3 330 115 61 110 30.0

Including announced by - - - - - the Minister of Environment and Water

Total on both Directives

Approved by the NA 3 336 3 905 989 3 808 430 97 559 34.3

Including announced by 114 1781 026 1 729 192 51 937 15.7 the Minister of Environment and Water

*Source: The Statistical Reference Book, 2013 2NA Decision №335 from 26.05.2011 г. (SG., 41/2011 ) 3Boundaries coincide under the two directives for 13 sites

352 are the protected sites on Natura 2000, which represents 34,4% of the country, falling into three biogeographical regions - Continental, Black sea and Alpine. Boundaries coincide under the two directives for 13 sites.

132 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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According to the Information system of protected sites Natura 2000 network, target species/habitat for conservation are as follows: 1. Invertebrates – 40 species 2. Fish – 24 species 3. Amphibians – 6 species 4. Reptiles – 6 species 5. Mammals – 24 species 6. Plant species – 22 species 7. Natural habitats – 90 species 8. Birds – 239 species. Conclusions: Bulgaria, as a member state of the EU, is applied a significant percentage of the country under protection. The protected sites that construct the Ecological network include a sufficient number of habitat types and the most important habitats for a significant number of plants and animals. These sites provide mechanisms for their management in order to maintain and sustainable use. The Bulgarian part of the European ecological network Natura 2000 amount to 34.4% of the country and it is one of the highest rates in Europe. 2.1.10. Status of the protected areas under the Protected areas act Since 1933 when the first protected area in Bulgaria was announced (reserve "Silkosia" Strandja), and in 1934 - the first national park in the Balkan Peninsula - "Vitosha", a consistent policy is conducted to expand and strengthen the network of protected areas. In the Protected Areas Act, passed in 1998, are defined the following categories of protected areas, which correspond to the categories of the International Union for the Conservation of Nature (IUCN): reserve, national park, natural monument, managed reserve, nature park, protected area. Over the last decade, the implementation of sustainable management schemes is the aim of many of the policies related to the use of biological resources. Gained significant experience in the approaches, methods and management tools. In this respect, protected areas offer a unique opportunity to stimulate the development of the regions in which they are located. They represent a guarantee of preserved nature and quality of the environment, which in combination with a variety of high-quality products, services and processes are a prerequisite for sustainable and environmentally sound development. The protected areas and their effective protection contribute to meeting the requirements of international conventions and agreements to which Bulgaria is a part. Some 133 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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of them have received recognition and they are involved in various international networks of protected areas: 10 Ramsar sites, 16 biosphere reserves, 2 sites of World Heritage of UNESCO - managed nature reserve "Sreburna" and national park "Pirin". The other two national parks - "Central Balkan" and "Rila" are members of the European network of national parks PAN Parks. The majority of protected areas are included in the Natura 2000 network, proving their conservation importance and their effective contribution to biodiversity conservation. Comparative data on the total number and size of protected areas show that for the period 1991-2011 there is a tend of increase both the number and the total area (Figure 2.1.10.1). In recent years the number of "protected areas" is increasing and in 2011 they increased up to 504. It is observed an announcement of a small number of natural monuments during the same period. The total number of protected areas included in this category remains unchanged due to the deletion of the same number of existing " natural monuments " lost use and conservation significance.

Source: EEA Figure 2.1.10.1 Changes in the number and areas of protected areas for the period 1991- 2011, ha

In different categories, changes in the number and area for 2010, 2011 and 2012 are shown in Table 2.1.10.1. The data show that there is a stability in the protected areas network for the last few years.

134 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Table 2.1.10.1 Protected areas in the period 2010-2012 *

Category Number Area, ha Number Area, ha

2011

Existent 31.12.2010 till Newly declared in Covered 2011 in Existent 31.1.2011 till Existent 31.12.2010 till Included 2011 in Covered 2011 in Existent 31.12.2011 till Existent 31.12.2012 till Included 2012 in Covered 2012 Existent 31.12.2012 till Included 2012 in Covered 2012 in

Protected 953 3 2 954 582458.1 38.5 374.5 582122.2 973 21 2 583876.3 1762.9 8.8 areas - total

Reserves 55 - - 55 77022.0 12.8 - 77034.8 55 - - 77044.1 9.3 -

National parks 3 - - 3 150362.3 - - 150362.3 3 - - 150362.3 - -

Natural 346 - - 346 16876.1 - 0.8 16875.3 344 - 2 16916.8 42.6 1.1 monuments

Managed 35 - - 35 4510.6 - - 4510.6 35 - - 4518.0 7.4 - reserves

Nature parks 11 - - 11 256455.7 - - 256455.7 11 - - 256455.7 - -

Protected sites 503 3 2 504 77231.4 25.7 373.7 76883.5 525 21 - 78579.3 1703.5 7.7

*Source: Statistical Yearbook ,2012 and The Statistical Reference Book, 2013

135 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The same is confirmed by Figure 2.1.10.2, which show the proportion of protected areas to the total area of the country for the period 2002 - 2012.

Figure 2.1.10.2 The proportion of protected areas to the total area of the country

A map of the protected areas in Bulgaria, divided by categories according to the Protected Areas Act, is presented on Figure 2.1.10.3.

136 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Source: MOEW Figure 2.1.10.3 A map of the protected areas in Bulgaria

137 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The analysis of the spatial location of the protected areas shows that the majority are in the mountainous regions and on the Black Sea coast. National parks: „The Pirin“ National park was announced in 1962 with an area of 40 332,4 ha. It is exclusive state ownership and it is bordered by seven municipalities - Gotse Delchev, Bansko, Razlog, Simitly, Kresna, Strumiani and Sandanski. Since 1983 the park is a World Heritage Site under the The Convention concerning the protection of the world cultural and natural heritage of UNESCO. There are two reserves in the park: "Bayuvi Dupki Djindjiritsa" with an area of 2 873 ha and "Yulen" with an area of 3156,2 ha. The reserve "Bayuvi Dupki Djindjiritsa" was declared as a biosphere reserve in 1997 under the “Man and the Biosphere Programme” designated by UNESCO. “The Central Balkan” National park was announced in 1991 with an area of 71669,5 ha. Since 2003 the park has been a member of the European network of protected areas PAN Parks, since 2005 “The Central Balkan” protects and maintains the full PAN Parks certificate and since 2006 it was adopted in the Federation of European parks EUROPARKS. Nearly one third of the park is represented by 9 reserves - "Boatin" with an area of 1597,2 ha, "Djendema" with an area of 4220,2 ha, "Koziata stena" with an area of 604,3 ha, "Peeshti skali" with an area of 1465,7 ha, "North Djendem" with an area of 1610 ha, "Sokolna" with an area of 1250 ha, "Stara reka" with an area of 1974,7 ha, "Steneto" with an area of 3578,8 ha and "Tsarichina" with an area of 3418,7 ha. „The Rila“ National park was announced in 1992 with an area of 81046,0 ha. “The Rila” is the largest National park in Bulgaria and one of Europe's largest parks. The park has four reserves - "Parangalitsa" with an area of 1509 ha, "Central Rila" with an area of 12393,7 ha, "Skakavitsa" with an area of 70,8 ha and "Ibar" with an area of 2248,6 ha. Reserves correspond to the Its category Protected Areas (IUCN). All of the reserves and the park are generally included in the "UN List of National Parks and Equivalent Reserves." The reserves "Parangalitsa" and part of the "Central Rila" are declared as biosphere reserves under the "Man and the Biosphere Programme ". Nature parks: Vitosha Nature Park was declared in 1934 as a „National park“ and it is reclassificated as a “Nature park” in 2000. The park’s area is 27079,114 ha. In its boundaries are the reserves "Bistrishko branishte" with an area of 1061,6 ha, which is declared as biosphere reserve under the "Man and the Biosphere Programme" of UNESCO and "Torfeno branishte" with an area of 782,8 ha. Zlatni Pyasatsi Nature Park - declared in 1943 as a „National park“ and it is reclassificated as a “Nature park” in 2001 with an area of 1320,7 ha. Rusenski Lom Nature Park - declared in 1970 as a „National park“ and it is reclassificated as a “Nature park” in 2002 with an area of 3408 ha. 138 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Nature Park Shumensko plato - declared in 1980 as a „National park“ and it is reclassificated as a “Nature park” in 2003 with an area of 3895,87 ha. Nature Park Sinite Kamani - declared in 1980 as a „National park“ and it is reclassificated as a “Nature park” in 2000 with an area of 11 380,8 ha. Within the park is the reserve "Kutelka" with an area of 645,1 ha. Nature Park Vrachanski Balkan- declared in 1989 as a „National park“ and it is reclassificated as a “Nature park” in 2003 with an area of 30 129,9 ha. Within the park is the reserve “Vrachanski karst” with an area of 1438,9 ha. Nature Park Strandzha - declared in 1995 as a „National park“ and it is reclassificated as a “Nature park” in 2000 with an area of 116084,5 ha. Within the park are the reserves „Silkosia“ with an area of 389,6 ha, „Uzunbudzhak“ with an area of 2529,6 ha, which is declared as biosphere reserve under the "Man and the Biosphere Programme "of UNESCO, “Vitanovo” with an area of 1112,4 ha, „Sredoka“ with an area of 607,8 ha and „Tisovitsa“ with an area of 749,3 ha. Nature Park Rila Monastery was declared in 2000 with an area of 27 370,7 ha. Within the park is the stict nature reserve “Rilomanastirska gora” with an area of 3676,5 ha. Nature Park Persina was declared in 2000 with an area of 21 762,2 ha. Nature Park Bulgarka was declared in 2002 with an area of 21 772,2 ha. Nature Park Belasitsa was declared in 2007 with an area of 11732,4318 ha. On Black sea coast are located reserves: “Ropotamo”, which is declared in 1992 with an area of 1000,7 ha and „Kamchia“ declared in 1951 with an area of 842,1 ha and “Kaliakra“, declared in 1941 with an area of 687,5 ha. Managed reserves are „Atanasovsko ezero“ declared in 1951 with an area of 842,1 ha “Velyov Vir“ declared in 1951 with an area of 842,1 ha „Piasachna lilia“ declared in 1962 with an area of 0,6 ha и „Baltata“ declared in 1978 with an area of 197,7 ha. Reserves along the Danube are „Kitka“ declared in 1981 with an area of 25,4 ha and „Milka“ declared in 1948 /1956 with an area of 30 ha. Managed nature reserves are „Srebarna“ declared in 1992 with an area of 902,1 ha, „Persina“ declared in 1999 with an area of 385,2 ha and „Ibisha“ declared in 1999 with an area of 34,3 ha. There are another 35 reserves, 346 natural monuments and 503 protected sites in the country. Conclusions:

139 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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In the Protected Areas Act, passed in 1998, are defined the following categories of protected areas: reserve, national park, natural monument, managed reserve, nature park, protected site. There is stability in the network of protected areas for the last few years. The analysis of spatial location of protected areas shows that the majority are in the mountainous regions and on the Black Sea coast. 2.1.11. Landscape condition Implementation of projects under OPIC must meet the growing needs of society, and also to protect and improve environment-forming functions of the landscape. Operational Programme covers entire territory of the country. Landscape classifications are used for description on their operation, internal structure and organization in their use. Based on the conclusions of classifications can be evaluated optimal organization of use and storage for given territory. It is possible to synthesize all solutions for rational use of natural resources and environment that can be realized.  European Landscape Classification European Landscape Convention perceives the landscape as "an area, as perceived by people, whose character is the result of the action and interaction of natural and/or human factors" (ELC, 2000). This is basis of the European landscape map LANMAP2 (Mücher et al., 2007). It was developed on the basis of four main layers in a GIS containing information - topography, climate, soil forming rocks and land use (Fig. 2.1.11.1). On the basis of these layers is made classification of landscapes. The purpose of this European landscape map is to provide a practical and easy tool for European policy implementation.

140 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.11.1 European landscape map LANMAP2 - Bulgaria

LANMAP2 is a hierarchical classification with four levels and has landscape types at its lowest level (level 4). The highest level of the classification is determined by climate. According to LANMAP2 Bulgaria has 2 classes – Continental and Mediterranean. The second level is determined by climate and topography. There are 4 classes in the country – highland, mountain, hilly and plane. The third level, determined by climate, topography and parent material. At this level the country has two classes - sedimentary and hard rock. The lowest level is last – type of ground cover. Six types are determined in Bulgaria – forests, arable lands, agricultural lands, anthropogenic lands (permanent crops), waterlogged lands, shrubs. On this base 26 landscape types are determined. They are shown in fig. 2.1.11.1. which includes urban areas and waters. Two landscape classifications are developed in the country for more detailed characterization of landscapes. National landscape classification

141 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The country has developed two landscape classifications - typological and regional with respective cards to them (Petrov, 1997). In the typological landscape classification complexes are classified in homogeneous analogy among them. Major taxonomic units and criteria for their separation are: class landscapes - makromorpholitogenus are separated, type landscapes - based on zonal hydroclimatic indicators, group of landscapes – mezomorpholitogenus criterias are used (type and properties of the rock substrate, exposed slopes, soil types and plant associations, etc..), landscape species - based on morphological peculiarities of the landscape and their vertical structure. Assembled typological landscape map of Bulgaria is at scale of 1: 400 000. It consists 4 classes, covering 13 types with 30 subtypes, 78 groups and over 7500 species of landscapes (Fig. 2.1.11.2.).

Figure 2.1.11.2. Typological landscape map of Bulgaria

Typological classification is suitable for characterization of smaller areas and regions in the country. The landscape regionalization is suitable for large-area regions such as territory of the country. Conception of landscape is seen as "regional, unique in time and space unit, each 142 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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landscape has its own specificity and can be differentiated in landscape regionalization." In regional landscape classification taxonomic units are 3 – area, subarea and region. Landscape areas are defined in mainstream classes landscapes. In lowland areas subareas are defined by combinations of types or subtypes landscapes and landscape regions – by the prevailing landscape groups. In mountainous landscape subareas and regions are defined by altitude landscape zoning. Areas are 4, subareas - 24 and regions are 127. It is composed a map of the landscape regionalization at scale of 1:400 000 (fig. 2.1.11.3)

Figure 2.1.11.3 Landscape regionalization of Bulgaria

There are 24 distinct landscape subareas throughout the country. They are combined into 4 areas. The boundaries of subareas are selected to detail country’s landscape. North area of the Danube Valley (A) has 4 landscape subareas and 33 landscape regions within the plane. The area of Stara Planina (B) has 4 subareas and 21 regions based on the altitude differences in landscape. South-Bulgarian mountain hollow area (C) covers 10 landscape subareas and 47 landscape regions. These are almost all of the mountain and

143 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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valleys in Bulgaria south of the Balkan region, including the highest mountain landscapes, the coldest and warmest valleys landscapes. Mountainous area of South Bulgarian lowlands and low mountains (D) covers the area between the mountainous areas of Sredna gora north and the Rhodope massif south. There are six subareas within 17 determined landscape regions. This area is characterized by a lot of hydro-thermal differences because of the altitude differences. This is due to the regional characteristics in this area (Petrov, 1997).  Environmentally sensitive landscapes Environmentally sensitive landscapes are areas along rivers, protected sites, wetlands and other sites under the Natura 2000. Each interference could have irreversible consequences on the sustainability of landscape complexes. Conclusions: The country has developed two landscape classifications - typological and regional.There are 24 distinct landscape subareas throughout the country. 2.1.12. Status of material assets Assets, which may be relevant to OPIC 2014-2020 are tangible and intangible assets of the Bulgarian economy. Sectors that are important for the Bulgarian economy are energy, engineering, food and chemical industry, production of building materials, metallurgy and so on. A major factor for the growth of Bulgarian economy are SMEs, which are the focus of OPIC 2014-2020. In the period 2005-2010 as regards the SMEs following trends are observed:  The number of SMEs increases, while the number of large enterprises decreases  The number of persons employed in SMEs is growing faster than the number of employees in large enterprises The structure of non-financial enterprises in Bulgaria is very similar to the same in the EU-27 in 2009, also and the average size of enterprises by size classes. Typical Bulgarian company is a micro - with an average 2-employed. SMEs lagging behind in competitiveness compared to large enterprises with about two times lower productivity, lower profit margins and lower wages. Bulgarian SMEs have from 2 to 7 times lower rate of labor productivity in comparison to the new member states and 15-30 times lower than EU-15. This means that workers in the Bulgarian SMEs create low added value and therefore lower paid. As number of companies and number of employed in them, Bulgarian SMEs are comparable to those in Denmark and Austria. Australia create 12-13 times higher added value.

144 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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There is a large regional disparities in the distribution of the number and activity of SMEs. SMEs share in the turnover of non-financial enterprises continues to grow reaching 69% of total turnover in 2009. This is a characteristic of all economic activities except of mining industry. SMEs contribution to added value is 62%. The most significant share is of large enterprises (38%), followed by medium (24%), small (21%) and micro (17%). In recent years there is faster input share of gross investment in the added value by SMEs - 63% against 37% for large enterprises. Leading contributor to this development are micro-enterprises with a share of 131%, considerably above the average for the economy level of 65%. For small and medium enterprises this indicator amounts to 68% and 59%. Important in terms of OPIC 2014-2020 are SMEs, data which relate to innovation, internationalization, intellectual property:  Innovations. 80% of SMEs innovation activity is low. Only 10% of SMEs have sufficient funds to finance innovation.  Internationalization. In the last year 95% of enterprises have a low degree of internationalization of the company. Degree of internationalization increases with innovation activity of SMEs. In 2010 12% of SMEs have imported, and 5% of SMEs have achieved exports of goods and services.  Intellectual property. Almost all SMEs in the country have a low degree of patent activity. Patent activity among Bulgarian SMEs is a direct consequence of the innovation activity, and the implementation of best practices. 10% of enterprises have a registered trademark in the country.Abroad they are 6%. Very low proportion of SMEs have sufficient funds for the registration of intellectual property. Very low proportion of entrepreneurs known for the registration of a trade mark in the EU. In 2009 SMEs invest in fixed tangible assets (FTA) funds amounting to 65 538 thousand Levs. This represents 63% of total investment of non-financial enterprises in the economy. In large enterprises investments amounted to 38 246 thousand Levs. Almost half of the acquired FTA in SMEs (47% or 31 384 thousand Levs) belong to the micro, while at small (25%) and medium (28%) this proportion is approximately equal and corresponds to 16 105 and 18 047 thousand Levs. The highest share of investments in the SME sector funds for FTA has "Real Estate Operating - 21% or 13 532 thousand Levs, which belongs entirely to micro-enterprises. The "Trade” has leading influence (16% or 10 394 thousand Levs), where the contribution of different sized enterprises is comparable to - 3617 thousand Levs (micro), 3573 thousand Levs (small) and 3204 thousand Levs (medium). The share of "Manufacturing” of invested in SMEs is 16% or 10 060 thousand Levs due primarily to medium-sized enterprises (5770 thousand Levs). In the "Construction” issued share is 12% or 7712 thousand Levs, of which 145 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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more than half are made from micro (3959 thousand Levs). The FTA structure by economic activities is an evidence of the dominant SME influence to the sector in services. The sector share is highest in the "Professional activity and Research (99%). The same trend is observed in " Administrative and support activity (88%), "Hotels and restaurants (82%)," Trade (81% ) and "Real estate operating (79%). Leading impact on SMEs is observed in the "Construction” (89%). In other economic activities the share of FTA in large companies dominate. Representatives of industry are "Mining industry (79%)," “Production and distribution of electricity (69%)”, "Water supply (60%)” and "Manufacturing (54%)”. "Creating and spread of information” is the single activity in services where large companies have a leading contribution (76%). The FTA structure by planning regions testifies to the leading contribution of the SME sector in all of them. Most amount of investments in FTA are made in South-Western region - 57 282 thousand Levs. 60% of which belong to the SMEs. A leading influence by them have micro-enterprises (30%), followed by medium (16%) and small (14%). The FTA value is significantly lower in South-Eastern and North-Eastern region - 14 714 Levs and 12 481 thousand Levs, where the share of SMEs is respectively 62% and 68%. The FTA level in South Central region is 11 053 thousand Levs, 70% of which are made by SMEs, but here the contribution of different sized enterprises is comparable - 28% (micro), 21% (small) and 21% (medium enterprises). In the other two planning regions - North Central and Northeastern invested funds in FTA are very low - approximately 5.4% or 58 154 and 57 606 thousand Levs respectively. The SMEs have highest proportion in the North Central region (76%), of which 28% (micro), 21% (small) and 21% (medium). A significant proportion of SMEs are seen in Northeastern region (72%), with a guiding influence of micro-enterprises (34%). Adopted National Strategy for Promotion of Small and Medium Enterprises 2014- 2020 is an important factor for the development of SMEs. It was established under Art. 5 para. 1 of the Law on Small and Medium-Sized Enterprises. It is a political document with medium-term character. The Government of the Republic of Bulgaria has demonstrated its vision of government policy through it in supporting small and medium-sized enterprises. The strategy was developed in accordance with both the government's "statehood, development, justice," and with EU policy in this area. The strategy is aimed at small and medium enterprises in the extractive industry, the processing industry and services. Implementation of the Strategy is based on the annual program approved by the Minister of Economy and Energy (Article 5, paragraph 2, item 4 of SMEL). Annual program contains proposals for measures to promote the development of SMEs. The main financial instruments for the formulated measures are EU funds and national budget.

146 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Conclusions: Most important for "tangible assets" are SMEs. Generally facilities are not in good condition and investments in facilities are insufficient. Assets, which may be relevant to OPIC 2014-2020 are tangible and intangible assets of the Bulgarian economy. Typical Bulgarian company is a micro - with an average 2-employed. There is a large regional disparities in the distribution of the number and activity of SMEs. Adopted National Strategy for Promotion of Small and Medium Enterprises 2014- 2020 is an important factor for the development of SMEs. 2.1.13. Heritage including architectural and archaeological heritage Convention concerning the protection of the world cultural and natural heritage was adoped by The General Conference of the United Naions Educational, Scientific and Cultural Organization – UNESCO in 1972, Paris (from 17 October to 21 November 1972). Other conventions adopted under the auspices of UNESCO are: Convention on the Protection of the Underwater Cultural Heritage (2001), Convention for the Safeguarding of Intangible Cultural Heritage (2003), as well as conventions adopted under the auspices of the Council of Europe - Convention on the Conservation of architectural Heritage of Europe (1985), the European Convention for the protection of the Archaeological Heritage (1992) and the European landscape Convention (2000). Bulgaria has ratified the Convention concerning the protection of the world cultural and natural heritage by Order № 13 of the Council of Ministers on February 4, 1974. It is into force from September 17, 1975. The first Bulgarian sites are listed in the UNESCO in 1979, follows a series of projects adopted as monuments of world cultural and natural heritage, mainly in 1983 and 1985. Bulgaria has an enviable wealth of cultural and historical monuments. It ranks third in Europe after Greece and Italy with ammount and variety of cultural monuments. Registered cultural monuments throughout the country are about 40 000 sites, including 10 000 tombs and mounds. 21 000 of the total number of cultural monuments were declared (registered) monuments and 19 000 were declared (rated) monuments. The largest share is of architectural monuments - 20 000, archaeological monuments are 15 500, historical and artistic are 4500, etc. There are about 5.5 million cultural and historical exhibits in over 220 museums in Bulgaria. Bulgaria is rich in monuments located throughout the country from all historical periods. (Figure 2.1.13.1).

147 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.13.1 Map of cultural monuments in Bulgaria Source: National Institute of Immovable Cultural Heritage All newly discovered and undiscovered at the present time archaeological monuments in the country have been declared as cultural monuments in advance category "national significance" - Letter № 545 of the NICM of the Culture Ministry from 27.02.2001. Under Ordinance № 1711 of the Council of Ministers from 22.10.1962 all local and barrow and medieval ramparts in Bulgaria are declared as monuments of national significance – e.g. they have category of "national significance". All commemorative signs erected on the occasion of Bulgaria's participation in the wars since 1885, 1912-1913, 1915-1918, 1944-1945 have been declared as historical monuments - Letter № 4349 of the NICM of the Ministry of Culture from 4.12.1992. In the Republic of Bulgaria National Institute of Immovable Cultural Heritage (NIICH) of the Ministry of Culture (successor to the National Institute for Monuments of Culture - NIMC) on the basis of the current Cultural Heritage Act (CHA) (adopted by the 40th National Assembly on 26.02.2009, promulgated in SG. 19 of 13.03.2009 and effected 10.04.2009, with the exception of Art. 114, para. 2., and Art. 126, effected 10.04.2010, amended and supplemented SG. 66 of 26.07.2013, and replace the current 40 years (1969) Law on Cultural Monuments and Museums) is a "state cultural institution of national significance for research and expert consultants in the field of immovable cultural heritage.

148 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Under the contract of CHA, “Sites which may be identified as immovable cultural values shall be declared as such by an order issued by the Minister of Culture on the basis of a preliminary evaluation.” Identification of scientific and cultural values, preliminary categorization, classification and provisional conservation regimes shall be declared by an order issued by the Minister of Cultue. Where the preliminary evaluation is found that declared immovable objects have values of immovable cultural heritage, there is a proposal to the Minister of Culture from the Director of NIICH about their final classification, categorization and conservation regimes. Main source if information for investigation of the immovable cultural heritage presence and condition (cultural monuments) in Bulgaria, their location and their distance to the nearest settlements, is the Register of NIICH. This Register contains files from the National Archives "Archaeological Map of Bulgaria" providing information on registered cultural monuments (cultural values) - declared and announced, and their categorization. National system of cultural heritage protection National system of cultural heritage protection includes state and municipal authorities to manage and control the activities for preservation of cultural heritage, museums, cultural organizations under the contract of Protection and Development of Culture Act, as the Holy Synod of the Bulgarian Orthodox Church and the other registered religious denominations. They operate in cooperation with the Bulgarian Academy of Sciences, universities, unions, professional associations and other NGOs. These agencies and organizations operating in accordance with the objectives of this Act and the National Strategy for Cultural Heritage, adopted by the Council of Ministers. The Inspectorate for the Preservation of the Cultural Heritage shall be established at the Ministry of Culture. The mayors of municipalities shall organize and coordinate the implementation of the cultural heritage preservation policy within the territory of these respective municipality. The National Institute of Immovable Cultural Heritage (NIICH) shall be a state-owned cultural institute of national importance operating in the field of conservation of the immovable cultural heritage, including research in the field of seeking out and study of the immovable cultural heritage. To perform its functions, NIICH shall have the right to form territorial units. The Underwater Archaeology Centre shall be a state-owned cultural institute of the field of the preservation of the underwater archaeological heritage of the Republic of Bulgaria.

149 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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A museum shall be a cultural and research organization thet seeks out, studies, preservs and presents cultural values, and natural specimens and anthropological remains for cognitive, educational and aesthic purposes. In terms of their ownership, museums shall be state-owned, municipal, private and mixed. Cultural heritage under the CHA Under the contract of CHA, the cultural heritage shall include the non-tangible and tangible immovable and movable heritage as an aggregate of cultural values which bear the historical memory and national identity, and have scientific or cultural importance. Cultural values shall be in the public domain and shall enjoy protection by central and local government authorities in the best interests of the citizens of the Republic of Bulgaria. Cultural values may be either public or private property. They may be owned by the State municipalities, the Bulgarian Orthdox Church and the other registered religious denominations, as well as natural persons or legal entities. The following shall be considered as cultural heritage:  surface, underground and underwater archaeological sites and objects and reserves;  historical sites and compounds;  architectural sites and compounds;  ethnographic sites and compounds;  specimens of garden and landscape architecture;  natural values (specimens), including anthropological remains discovered in site surveys, pale zoological remains and remains of cultivated plants;  industrial heritage;  works of fine and applied arts;  folk crafts;  documentary heritage;  audio-visual heritage;  oral tradition and language;  script and literary values;  customs, rites, festivities, rituals and beliefs;  music, songs, dances;  folk medicine;  culinary and ecological traditions;  folk games and sports. Cultural value shall mean a non-tangible or tangible evidence of human presence and activity, natural sight or phenomen, which is significant for the individual, the community or society as a whole, and has value from a scientific or cultural point of view.

150 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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A cultural value may also be a non-tangible or tangible evidence of human presence and activity, which is significant for the Bulgarian Orthodox Church and the other registered religious denominations. Cultural values shall also include fragments of archaeological or other objects that are in disintegrated form, comprise a small part of the authenic whole of the original object, are largely defaced, devoid of any significant cultural, scientific or artistic value, and can be defined as bulk material. These are not subject to identification but are to be included, where necessary, in the auxiliary research stock of museums. Intangible cultural heritage – the following shall be considered as intangible cultural heritage: 1. oral traditions and expressions, including language as a vehicle of the intangible cultural heritage; 2. performing arts; 3. social practices, rituals and festive events; 4.knowledge and practices concerning nature and the universe; 5. knowledge and skills related to traditional craftsmanship. The Ministry of Culture shall keep a register of the intangible cultural heritage under terms and conditions set out in an ordinance issued by the Minister of Culture. The National Intangible Cultural Heritage Council shall be established with the Minister of Culture. Tangible cultural heritage The classification of immovable cultural values shall be based on: 1. their belonging to a specific historical period 2. the research and cultural field to which they pertain 3. their spatial structure and territorial scope 4. the degree of their exposure to danger In terms of their belonging to a specific historical period, immovable cultural values shall be:  Pre-historic  Ancient  Medieval  Renaissanse  belonging to new and modern times

151 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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In terms of the research and cultural field to which they pertain, immovable cultural values shall be:  archaeological  historical  architectural and structural  artistic  urban  cultural landscape  park and garden art  ethnographic  cultural route In terms of spatial structure and territorial scope, immovable cultural values shall be:  single;  group: ensemble, compound, historical settlement, historical zone and archaeological reserve. In terms of their exposure to danger, immovable cultural values shall be:  cultural values at risk  endangered cultural values In terms of their cultural and research importance and social significance, immovable cultural values shall be:  "of universal importance" – those entered in the World Heritage List;  "of national importance" – archaeological reserves, as well as other cultural values of outstanding impotance to the nation’s culture and history;  "of local importance" – those related to the culture and history of sttlements, municipalities or regions;  "of ensemble importance" – those supporting the spatial characteristics and architectural typology of the group value to which they belong;  "for reference only" –self-contained sites for low individual value that contibuteinformation to the scientific or cultural area to which they belong. The classification of movable cultural values shall be based on: 1. their belonging to a specific historical period; 2. the research and cultural field to which they pertain. In terms of their belonging to a specific historical period, movable cultural values shall be:  Pre-historic  Ancient 152 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 Medieval  Renaissanse  belonging to new and modern times

In terms of the research and cultural field to which they pertain, movable cultural values shall be:  archaeological  ethnographic  historical  artistic  natural  technical  archives  script  literary Depending on their scientific and cultural importance, movable cultural values may aquire the status of national treasure. National treasure shall be considered to be a cultural value of outstanding importance to science, culture, nature or technological progress, whose destruction, damage or loss would constitute irreparable loss to society and which shall meet any or all of the following criteria: 1. to be a unique, most typical or rare specimen of human activity or creativity for the period of its origin; 2. to have proven authenticity and high scientific and artistic value; 3. to be related to or to represent evidence of ideas, beliefs, events or outstanding personalities of decisive importance to the development of society. World Heritage Sites in Bulgaria: Bulgaria has entered the World Heritage List of UNESCO 10 sites (7 in the cultural heritage, 2 in the list of natural heritage, as well as 1 in the list of intangible cultural heritage) from different historical period. They are a testament to the significant contribution of Bulgarian urban planning and architecture of Bulgarian monumental art, the magnificent and unique Bulgarian nature in the European and world cultural and natural space. Bulgarian monuments included in the World Heritage List list (Photo: Wikipedia): Cultural heritage:

153 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The Rock relief – Madara rider – the most impressive and significant Bulgarian monumental art from the early Middle Centuries in Europe. It is the only monumental stone relief from the beginning of VIII century (during the region of Khan Tervel). The Madara horseman is a part of the national history and archaeology reserve of Madara. It was declared as an archaeological monument of "national importance". The monument has been on the UNESCO World Heritage List since 1979.

Boyana Church 1259 – Bulgarian masterpiece with exquisite undeniable contribution to European culture. The church is a monument of the Bulgarian mediaeval architecture and religious pictorial art. 89 scenes with 240 figures are fitted. The church is medieval Christian church, built and rebuilt over the centuries. It was announced a monument of UNESCO in 1979.

154 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The Thracian Tomb of Kazanlak – IV – III century BC one of the most significant and best preserved monuments of Thracian architecture and arts in Bulgaria - an ensemble whose murals chronicle the life of the Thracian aristocracy. It was declared a UNESCO monument in 1979.

The Rock-hewn Churches of Ivanovo, Ruse - medieval monastic cloisters - astonishing treasure trove of Bulgarian artistic heritage. They are situated 20 km south of Ruse. The compound includes a group of monolithic churches, chapels and monasteries hewn out of solid rock situated on both sides of Rusenski Lom river. They are on a height of 6 to 10 m. The ensemble was created in XIII-XIV century. It was inhabited by monks till XVII century.

With Decision of the Committee for Culture and Arts on 30/03/1965 The Rock-hewn churches and their adjacent land were declared as a museum reserve. The mural art in The rock-hewn churches of Ivanovo are a monument of world heritage and are entered in the UNESCO in 1983. By decision of the Council of Ministers № 953 of 04.11.1997 The rock- hewn churches and their adjacent land are declared as archaeological reserve.

155 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Ancient city (antique and Renaissance) of Nessebar – an amazing story, showing the layers of ancient history in Bulgarian lands, real encyclopedia of church building, an extraordinary symbiosis of antiquity and Renaissance stored for the future, a unique architectural and urban archaeological reserve. In 1956 Nessebar was declared “a museum-town”. by Decision of the Council of Ministers № 243 (18.07.1956). It reads: "Declares the city of Nessebar museum and tourist resort. Area of the ancient city is declared an architectural and archeological reserve". It was listed as a World Cultural Heritage Monument of UNESCO in 1983. With Decision of the Council of Ministers № 174 within the reserve "Ancient Nessebar” are defined.

Rila monastery – it is the largest monastery in Bulgaria and on the Balkan Peninsula (out of Aton). The monastery is a complex of Christian, cultural and enlightened centre – recognised peak in church architecture, urban planning and painting of the Bulgarian Revival. The monastery was declared a national museum in 1961. The Rila Monastery was included in the World Cultural and Natural Heritage List of UNESCO in 1983.

Thracian tomb of Sveshtari – III century BC – one of the vertices of painting and sculpture from that distant era in human history, most notable among ancient Thracian tomb in the Bulgarian lands. The Thracian tomb of Sveshtari was included in the World Cultural and Natural Heritage List of UNESCO in 1985.

156 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Natural heritage:

The Srebarna Nature Reserve – an unique existence of rare plants and rare representatives of national and global gene pool - birds and amphibians. The reserve is one of the most interesting wetlands in Europe. The Srebarna Nature Reserve was included in the World Cultural and Natural Heritage List of UNESCO in 1983.

Pirin National Park - beautiful Bulgarian mountain which stores unique ecosystem. It is part of the Rila- Rhodope massif located between the valleys of the Struma and Mesta. Pirin mountain is separated from the Rila mountain by Predela saddle. It was declared a national park in 1962. The Pirin National Park was included in the World Cultural and Natural Heritage List of UNESCO in 1983.

Intangible cultural heritage: Bistritsa Babi (The Bistritsa Grannies) - Bistritsa Babi are the most famous Bistrish formation, famous worldwide for their performances of archaic folklore from Shoplouk region of Bulgaria. They are listed on the Representative List of the Intangible Cultural Heritage of Humanity of UNESCO in 2005.

157 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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"Old Plovdiv" is in advanced work on submission of the application of architectural reserve for listing in the World Cultural and Natural Heritage List of UNESCO - one of the clearest examples of ancient urban planning in the Bulgarian lands and the architecture of the Bulgarian National Revival, its logo and business card. It features a unique archeology and amazing buildings and ensembles, street and square spaces. It is situated on three hills (Nebet Tepe, Taksim Tepe and Dzhambaz Tepe) in the central part of Plovdiv and occupies an area of about 35 hectares. It includes more than 190 cultural monuments. Only the The Bistritsa Grannies are listed on the Representative List of the Intangible Cultural Heritage of Humanity of UNESCO. The sites listed in the National representative list of the Intangible Cultural Heritage "Living Human Treasures - Bulgaria" are 15. Archaeological Heritage Archaeological sites are all movable and immovable tangible traces of human activity from past periods which are located or found in the rock layers, on the surface, on land and under water, for which the main sources of information are the fieldwork. Movable and immovable archaeological sites have the status of cultural values in the category of national importance or national wealth to their establishment as such under the CHA. The information from archaeological activities is included in the AIS "Archaeological Map of Bulgaria", which is stored in NAIM BAS, NIICH and the Ministry of Culture. According to the CHA, Bulgaria has 33 archaeological reserves. Conclusions: Bulgaria has ratified the Convention concerning the protection of the world cultural and natural heritage by Order № 13 of the Council of Ministers on February 4, 1974. It is into force from September 17, 1975. The first Bulgarian sites are listed in the UNESCO in 1979. Bulgaria has an enviable wealth of cultural and historical monuments. Registered cultural monuments throughout the country are about 40 000 sites. Bulgaria is rich in monuments located throughout the country from all historical periods. 2.1.14. Health and hygienic aspects of the environment  Demographic features of the country Dynamics in the development of demographic processes and changes in the structure of population over the past two decades strongly influence on domestic main systems - economic, educational, and health insurance. This determines demographic status of the

158 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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population as an important factor for the realization of OPIC as well as the effect of realizied activities of OPIC on it. Territorial distribution. At the end of 2012 settlements in the country were 5278, of which 257 are cities and 5021 are villages. As of 31.12.2012 5 306 233 persons live in cities or 72.9% of the population. 1 978 808 persons or 27.1% of the population live in villages. Distribution of population is a result of its natural and mechanical growth, and to a lesser extent of administrative changes in urban structure of the country. Picture of population distribution by region is roughly the average data for the country. The Northwest region is with the lowest percentage of urban population and the highest percentage - Southwest. Structure by age. Men in the country are 3543 606 or 48.7%, and women are 3738 435, or 51.3%. The share of men prevails. Share of men prevails in age to 52, with increasing age increases the number and proportion of women. The process of demographic aging continues. At the end of 2012, the population aged 65 years and older is 19.2%. For EU countries proportion of population over 65 years was 17.8%. The highest share is of the population in Germany and Italy - 19.7%, followed by Greece - 19.7%, Portugal - 19.4% and Bulgaria - 19.2%. The country's population under working age at the end of 2012 was 14.4%. For comparison, in 2001 and in 2005 it was respectively 16.1% and 14.8% . Migration. Mechanical growth. Migration of the population includes all persons declared change by address within the country and beyond. Structure of migration by age shows that the largest proportion of migrants is in the age group of 20-29 years. The lowest number of migrants is in the age grou 50-59 years. Migration among cities is stronger in comparison with the migration from villages to cities (rural population is older and without migration attitudes). In 2012 with positive mechanical growth are the districts of Sofia (capital), Plovdiv, Stara Zagora and Shumen. As a result of negative mechanical growth most decreased the population of the districts of Blagoevgrad, Pleven and Vratsa. Natural movement of the population. Natural growth. Natural movement of the population is based on processes of birth and death rates. Both processes are biological and social. A lot of factors influence them - biological, health, economic, political and others. Fig.2.1.14.1 shows dynamics of the two processes over the past decade.

159 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Figure 2.1.14.1 Natural movement of the population over the past decade

In ten years period birth rate shows fluctuations from 9.0 to 10.7 ‰, and it is below 10.0 ‰ in the larger period. In territorial terms the highest birth rates are in the regions of Sliven, Sofia (capital) and Targovishte, and lowest - in Vidin and Smolyan. and Targovishte, and lowest in Vidin and Smolyan. The curve of mortality among the population during this ten-year period ranged from 14.2 ‰ to 15 ‰. Among all regions in the country with the highest mortality rate in 2012 are regions of Vidin, Montana, Vratsa and Kyustendil. The lowest is one indicator of the District Kardjali, Sofia (capital), Blagoevgrad, Varna. Over the last decade natural population growth, with the exception of 2009 (-3.5 ‰) remained persistently below -5 ‰. In 2013 natural population growth in the country is -5.2 ‰. In territorial terms the country's natural growth is lowest in the Northwest region - 10,5 ‰. It is two times lower than the average data. For region of Vidin reaches - 14, 3 ‰., Montana - 11,7 ‰, Lovech and Vratsa respectively - 10.13 ‰ and -10.1 ‰. Second largest negative natural population growth is I North Central Region - 7.7 ‰, for the region of Gabrovo negative growth reaches -10.7 ‰. With better natural growth indicator of the average data for the country in 2013 are: Southwestern, Northeastern and Southeastern, where the natural growth of the settlement is - 3.7, respectively - 4.1 and - 4.1 ‰. Among the areas of these regions with the best indicators are Sofia (capital) - 1-5 ‰, Kardzhali - 1.8 ‰ and Blagoevgrad - 2.7 ‰. The average data for the natural growth in the country and by regions and areas are different in urban and rural areas. Overall, the natural growth of rural population is several

160 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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times lower than the natural growth for the population of cities. Furthermore, between statistical areas there are significant differences (Figure 2.1.14.2).

Figure 2.1.14.2 Negative growth of urban and rural population by regions in 2013

Natural growth in the urban population of the Northwestern and the North Central region (-5.4 and -5.1 ‰) is about two times lower than the average country data (-2.8 ‰). In the Northwest region natural growth among the rural population is almost two times lower (- 19.7 ‰) than the country data (-11.8 ‰). For the region of Vidin it reaches a value of -29.0 ‰. With better performances than the average data for the country and for urban and rural populations are Northestern and Southeastern regions.  Population health status and connection with the predictions of OPIC 2014-2020. The most commonly used criteria for health status is frequency of mortality, morbidity and morbidity of socially significant diseases, infant mortality.

161 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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2000 г. 2011 г. 1012 г. Figure 2.1.14.3 Mortality per 100 000 persons

Recent data on the mortality frequency per 100 000 persons compared to 2000 are presented in Figure 2.1.14.3 The figure demonstrates a tendency for increased frequency of mortality in 2011 and 2012, these data firstly related to the changes in the age structure population. In the structure of causes of death are primarily diseases of the circulatory system (66.3% in 2000 and 67.0% in 2011). Second malignant diseases which in 2000 occupied 13.3% of causes of death, and boar 2011 - 15.7%. The third and fourth reasons causes death ranked respiratory disease with an incidence of 3.9% and 3.7% and digestive system with frequency 2.7 and 3.0%, respectively for 2000 and 2011. After diseases of the circulatory system as socially significant and structural setting of the population prevalence are malignant diseases. First in incidence of diseases and newly registered in 2011 are the region of Plovdiv, followed by the region of Rousse, Pleven, Gabrovo, Veliko Tarnovo and Stara Zagora, and Yambol in terms of newly malignancies (Table 2.1.14.1).

Table 2.1.14.1 Regions with higher levels of registration and newly malignant neoplasms in 2011 - X per 100 000 persons

162 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Total Veliko Gabro Pazar Pleven Plovdi Rou Stara Shoume Yambo Tunovo vo dzhik v sse Zagora n l

Regist ered 3602.7 4088.3 4381.0 4026.9 4349.8 5143.0 4333 3604.7 4013.6 3014.4 .6

Newly 448.7 464.4 452.8 419.9 532.5 496.4 531. 497.7 407.4 573.4 9

Spread of tuberculosis is associated with socioeconomic condition. Bulgaria continues to occupy an intermediate level compared to the high incidence of tuberculosis in the countries of Eastern Europe and Central Asia and the low prevalence of flooded among the countries of Western Europe. In 2005, 2010 and 2011 the incidence of reported cases in the country is respectively 127.7, 90.5 and 74.3, and the newly ones - 40.1, 30.3 and 27.9 per 100 000 persons. Distribution shows the ratio 2/1 between men and women. For comparison, in the EU the prevalence of the disease in 2010 is averaged 15.8. Spread of tuberculosis is different in different regions of the country (Table 2.1.14.2).

Table 2.1.14.2 Regions with higher levels of disease and newly registered tuberculosis in 2011 - X per 100 000 persons

Total Vidin Vratsa Gabrovo Dobrich Kiystendil Lovech Montana Sofia

Registered 74,3 55,8 127,0 114,6 132,8 203,0 118,8 78,2 102,6

Newly 27,9 43,8 56,5 41,8 22,2 52,2 32,7 44,2 28,4

The data presented in Table 2.1.14.2 show very different geography prevalence of tuberculosis compared to that of malignancy. The regions of Vratsa, Vidin, Montana, Lovech, Gabrovo have frequency of registered and newly discovered diseases significantly higher than the average data for the country. These areas of the Northwest and North Central regions are the poorest and with the highest negative natural population growth. 163 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The rate of child mortality in the country (the number of deaths by age 1 year per 1 000 live births) is still about twice above the average EU data. According to the Ministry of Health in 2000 infant mortality rate in the country was 13.3 ‰, in 2005 - 10,4 ‰, in 2011 - 8,5 ‰, in 2012 - 7,8 ‰. In 2013 it reached 7,3 ‰. A higher rate of infant mortality rank: Lovech - 16.5 ‰, Shumen - 12.9 ‰, Sliven - 12.8 ‰, Pazardzhik - 11.1 ‰, Vidin - 10.7 ‰, Stara Zagora - 9.6 ‰, Yambol - 9.4 ‰, Gabrovo - 9-4 ‰, Dobrich -9.3 ‰. Conclusions: It can be concluded that the demographic situation in the country shows a steady trend of negative natural population growth due to both determining processes - low birth rates and a trend towards a higher incidence of mortality and low birth rate. These processes are not the same as the whole rural and urban population and for individual regions and districts in the country. Health status evaluated by indicators of mortality and spread of socially significant diseases also showes some differences in different parts of the country. Deteriorating indicators of demographic and health conditions coincide in some regions and districts and that geography should be considered in the implementation of OPIC. 2.1.15. Harmful physical factors  Environmental noise Environmental noise is increasing as well as duration, and as a coating. Noise is associated with many human activities, but the noise from the movement of road, rail and air traffic is the one that has the greatest impact. This is a problem especially for the urban environment. About 20% of the EU population suffer from noise levels that health experts consider to be unacceptable, e.g. which can lead to irritability, sleep disturbances and serious health consequences. The World Health Organization estimates that about 40% of the EU population is exposed to traffic noise at levels exceeding 55 dB (A), and that more than 30% are exposed to levels superior to 55 dB (A) at night. Quantitative change of diseases related to environmental noise is becoming more challenging. Noise exposure not only leads to sleep disturbance, irritability and hearing impairment, but also to other health problems such as cardiovascular disease. The prevalence of environmental noise has not yet been clarified. The Protection from Environmental Noise Act (PENA) and the relevant regulations ensure compliance of Bulgarian legislation with the requirements of Directive 2002/49/EC relating to the assessment and management of environmental noise. Directive aims to define a common approach intended to avoid, prevent or reduce on a prioritised basis the harmful effects, including annoyance, due to the exposure to environmental noise through noise 164 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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mapping and the development of action plans based on results. Strategic noise maps are made under the contract of the Directive. They are intended for a global assessment of noise levels in an area caused by a variety of sources and for the previous, current and expected noise situation. They reflected the population, housing, childcare, educational, medical, research institutions and public buildings that are at different levels of noise pollution. The equivalent continuous noise level is Leq, dBA is for three periods of the day: day period (from 7 to 19 pm), evening period (from 19 to 23 hours) and night time (from 23 to 7 am). Practical implementation of Directive 2002/49/EC on the part of Bulgaria, is related to the initial stage of development of strategic noise maps and action plans for them: 1. agglomerations with more than 250 000 inhabitants; 2. fundamental ways - with traffic of over 6 million crossings per year; 3. main railway lines - with more than 60 000 crossings per year; 4. the main airports with over 50 000 aircraft movements a year. Agglomerations with more than 250 000 inhabitants are three – Sofia, Plovdiv and Varna, fundamental ways - with traffic of over 6 million crossings per year are with total length of 89,260 km. The country there aren’t currently main railway lines - with more than 60 000 crossings per year and main airports with over 50 000 aircraft movements a year. In implementation of Directive 2002/49/EC on the assessment and management of environmental noise are drafted, approved and reported noise maps and action plans for cities: Sofia, Plovdiv, Varna, Ruse, Burgas and Pleven. Also developed strategic noise map and action plan for management, prevention and reduction of environmental noise for 89,260 km main road sections in Bulgaria. Problems associated with excessive noise levels in Bulgaria and their impact on the environment and human health are as a result of: road traffic flows and rail transport; Air transport; Local facilities - industrial, landfills, wastewater treatment plants, parks, playgrounds, shops, retail outlets, entertainment, restaurants, service stations and other services. European Environment Agency (EEA) maintains a database NOISE (Noise Observation and Information service for Europe), which includes data from noise maps developed by the EU Member States. Analysis of the data shows that in European cities (including Bulgaria) major source of excessive noise is road transport. Technical parameters of the existing roads in the country often can not meet the load of the class time, no bypasses many settlements, which puts heavy transit traffic in them. Bad condition of the road pavement. These are basic prerequisites for higher noise emissions from road transport. The railway transport is more friendly in terms of noise influence compared with road transport, as it appears only in passing the individual trains. Obsolete railway groups and

165 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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routes do not allow movement at high speed, which limits the effective mass using a train transport. Bulgaria operates a National noise monitoring system with the Ministry of Health. Within the National systems RHI present the data from the 2011 surveys in relation to the control of urban noise in general 727 points. The measurements show that regulated limit noise levels are exceeded in 522 points in the country, representing 72% of the total number of control zones. It is established a weighted acoustic environment in the urban environment for the occurrence of health risk.  The cities of Sofia, Plovdiv and Varna remain leading at risk noise operation. They were joined and Rousse, Bourgas and Veliko Tarnovo. Aggravated acoustic climate is determined by the large density of construction and density of occupation, the presence of large number urban highways, located near the residential area, increasing number of old cars moving in the country and not least the lack of adequate measures towards of reducing the noise levels. The greatest influence on acoustic environment in the cities of the country has traffic noise - its share is 80-85% of the total noise pollution in cities. In 2011 there was a deterioration of the acoustic environment single most notably in areas subject to intense noise protection adjacent to children, health, education, housing and places for relaxation and recreation.  In the period 2006-2011 the prevailing noise levels are in range 63 ÷ 65 dBA and 68÷72 dBA at relevant hygiene standards (55, 60, 65 dBA) for different areas and sources of noise. Analysis of existing data for the last seven years shows that the overall level of noise in cities remained high amounts, especially in their central parts. Increased number of motor vehicle in motion, poor technical condition, intensity and speed of movement, poor throughput of the road network condition and the type of road surface, defects in the built, and insertion of transit in urban areas are major factors affecting upward of noise pollution in them. The extent of noise impact from air transport is determined by the noise characteristics of the aircraft, the intensity of flight directions of air corridors, distance from airport locations. For Sofia the aircraft noise is a serious problem because of the proximity of the airport to the city, leading to the creation of unfavorable acoustic environment for nearby residential area. Automated monitoring of aircraft noise of MOEW operating in Sofia airport from several years.MEW. Although equivalent daily noise levels do not exceed the limit values individual noise event creates a problem, namely the aircrafts flying over residential areas. There is a general tendency to move the maximum residue percentage noise events to a low noise bands, despite

166 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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the increased number of movements from / to Sofia Airport. This is due to increased flights to / from the airports of EU member states whose fleet is with improved noise characteristics.  Environmental radiation A permanent gamma-background monitoring is implemented by 5 authorities on the territory of Republic of Bulgaria. The National automatic system for continuous monitoring of gamma-background is not registered values of the gamma background different than natural. Not tended to increase the specific radioactivity of natural and anthropogenic radionuclides in air, except for the period from 21.04.2011 to 23.03, after the accident at the nuclear power plant "Fukushima-1" when were recorded in low value activities of some technogenic radionuclides (131I, 134Cs and 137Cs), far below the annual average limit values for volumetric activity in the environment. It is not observed values different than natural characteristic of that post. The lowest annual average dose rate is defined in local monitoring stations Silistra and Tervel - 66 nGy / h, while the highest - on Mount Orelyak - 144 nGy /h. Conclusions: About 20% of the EU population suffer from noise levels that health experts consider to be unacceptable, e.g. which can lead to irritability, sleep disturbances and serious health consequences. Problems associated with excessive noise levels in Bulgaria and their impact on the environment and human health are as a result of: road traffic flows and rail transport; Air transport; Local facilities - industrial, landfills, wastewater treatment plants, parks, playgrounds, shops, retail outlets, entertainment, restaurants, service stations and other services. Bulgaria operates a National noise monitoring system with the Ministry of Health. The measurements show that regulated limit noise levels are exceeded in 522 points in the country, representing 72% of the total number of control zones. The National automatic system for continuous monitoring of gamma-background is not registered values of the gamma background different than natural. 2.1.16.Waste The long-term goal of the European Union (EU) is to become a recycling society that will prevent waste and promote the practice of using waste as a resource. EU seeks to "improve the efficiency in the use of resources to reduce the overall use of non-renewable natural resources and the relevant impacts of the use of materials on the environment through the use of natural resources at a rate that does not exceed their regeneration potential" (Upgrade EU Sustainable Development Strategy, 2006).

167 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The main objective laid down on the Framework Directive 2008/98/EC on waste is to reduce the use of resources and to promote application of waste management hierarchy so as to reduce negative impact on the environment and to enhance the effectiveness of resources use. Under Directive 2008/98/EC on waste, to assess the environmental impact is necessary to apply an approach that takes into account the entire life cycle of materials, which examines the environmental impacts from raw material extraction to waste generation. This means that waste is "think" faster, even at an early stage of the development of technological solutions by making eco-techno-economic analysis based on a 'cradle to grave', which is a preventive waste step. Official data published in the National Report on the status and protection of the environment in the Republic of Bulgaria for 2012 ExEA, five-year period (2007-2011) amount of waste is reduced by 20%, mainly due to reduced growth in construction activities in the country, mainly due to economic reasons.

Source: NSI and ExEA Fig. 2.1.16.1 Generated waste by type, kt

Between 2007 and 2011 the amount of hazardous waste decreased by 73% (the main decrease was in 2011 compared to 2010). In 2011 hazardous waste are 69% less compared to the formed in 2010. The reason is the procedure for reclassification on Fayalite waste from the company with economic activity "Metallurgy and manufacture of metal products, except machinery and equipment".

168 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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In the Republic of Bulgaria in 2011, the total quantity of generated waste is 1 5 897 kt, (202 kt hazardous and 15 695 kt non-hazardous, incl. 2753 kt household). Quantities of waste (hazardous and non-hazardous including household) by type for the period 2004-2011 are presented on (fig. 2.1.16.1.) Amount of generated waste can be viewed as an indicator of how effectively society is, particularly in terms of resource use and selection of the most appropriate methods of waste treatment. One of the objectives of the EU is "break" the relationship between the amount of waste and consumption of materials and resources, respectively economic growth.

Source: ExEA Fig. 2.1.16.2. Feedback consumption-waste

Increasing consumption and developing economies continue to form large quantities of waste - as more efforts are needed to reduce and prevent their formation. Waste is environmental, social and economic problem. In accordance with the official data published in the National Report on the status and protection of the environment in the Republic of Bulgaria for 2012,EEA, In 2011quantity delivered for recycling waste is 16% by the total generated, 5% more than the previous 2010. In 2011 84% of the waste delivered for disposal including land disposal.

169 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Source: NSI Fig. 2.1.16.3 Activities waste treatment,%

Disposal including land disposal is still the most applying activity of waste treatment. However, a trend of increasing quantities of waste delivered for recovery including recycling.

Fig. 2.1.16.4 Waste managemen hierarchy, t 170 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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In the hierarchy arrangement of waste field waste prevention and breaking the causal link between waste generation and economic growth and environmental impact are priorities. Scheme on (Fig. 2.1.16.4 ) presents the ranking of waste treatment methods for national level reporting / assessment of their impact on the environment. Though waste were accepted as junk in the past, today they are increasingly seen as a resource and it is clearly visible from the change of focus in waste management from disposal to recycling and recovery. Preventing waste mainly occurs through limiting unnecessary consumption and through design and consumption of products that generate less waste. Prevention also includes actions that can be taken after the product reaches the end of its life, cycle by recycling and recovery of waste materials. Historically, recycling started with metal recycling and recycling of packaging waste. According to officially data published in the National Report on the status and protection of the environment in the Republic of Bulgaria for 2012 ExEA, the trend is for largest share of paper and board packaging consumption, followed by plastic and glass containers.

Source: ExEA Fig. 2.1.16.4. Generated packaging waste by type of material, t

In 2011 the country has made a total of 65% material recycling and 66% recovery of packaging waste. The country has met national targets for recycling materials for all types of packaging: glass, plastic, paper and cardboard, metal and wood. There is a development of systems for separate collection of packaging waste - the population is 6 286 569 inhabitants. Meanwhile with 14% increased consumption of plastic packaging. 171 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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In 2011, the country produced 314 639 t. packaging waste, 2% less than in 2010. In 2011 country recovered total 206 314 t of packaging waste as 204,938 t of them are recycled material, recycling 3% more than in recycled packaging waste in 2010.

Source: ExEA Fig. 2.1.16.5. Recycled packaging waste, t

Source: NSIИ Fig. 2.1.16.6. Structure of packaging waste by material type generated in 2011,%

In 2011 the largest is share of produced paper and cardboard packaging (including composites). In 2011 consumption of paper and cardboard packaging increased, and this

172 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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trend is useful as this waste material has advantages in environmental terms and recycled more efficiently. The Republic of Bulgaria has overall national targets for recycling and recovery of packaging waste. For 2011 the country has met national targets for recycling materials, as follows:  Glass packaging waste -59.45% in regulatory set -55%;  Waste by plastic bottles - 39.17% in regulatory set 20%;  Waste paper and cardboard packaging - 98.13 in regulatory set-60%;  Metal waste containers - 69.94 percent - in regulatory set -50%;  Waste of wooden packaging - 41, 52% in regulatory set - 15%. Typical indicator measuring the effectiveness of the system for managing packaging waste is the amount of recycled waste per inhabitant per year. In 2011 this indicator is 28 kg per capita. Over the past two years have seen a trend towards improved models of packaging consumption and recycling of packaging waste generated - there is an inverse connection between reducing consumption and increasing recycling made serious steps towards achieving resource efficiency and recycling society.

Source: NSI,ExEA Fig. 2.1.16.7. Recycled packaging compared consumed, t

Packaging consumption in the Republic Bulgaria is among the lowest in Europe, where the average generated is 166 kg / year / per capita, but closer and closer to developed countries. 173 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Packaging a product presents an indirect way using resources with a short life cycle. Change towards sustainable consumption patterns and behavior of society requires to consume products and services that meet effectively and efficiently the needs of users while using less resources and cause less pollution. This applies largely to the packaging. It is a population shift to the use of reusable packaging, and to minimize the use of unnecessary packaging.

Source: NSI Fig. 2.1.16.7. Reusable packaging, t

Waste Framework Directive 2008/98/EC in order to achieve a recycling society, expands the scope of waste that can be recycled. In this regard, this European normative document regulates composting recycling as part of the biological matter. Transposition of the Directive to the Waste Management Act 2012 in Bulgaria, will likely lead to changes in situation that Bulgaria does not utilize waste vegetable origin so-called "green" waste and typical industrial waste wood industry is mainly used as fuel (91%) and only 3% for briquetting and 6% composted (Operational Programme "Environment 2007 - 2013", MEW, Sofia, 2007). In 2010 was developed and approved by the Minister of Environment and Water National Strategic Plan for diversion of biodegradable waste going to landfill 2010-2020. The plan should ensure that the requirements for a phased reduction in the amount of biodegradable municipal waste going to landfills pursuant to Directive 1999/31/EC on the landfill of waste. Applying the Waste Framework Directive 2008/98/EC in order to extend the scope of recyclable materials and achieve the goal of recycling 70% of construction waste by 2020 the 174 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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country adopted the National construction and demolition waste management strategy (NSDWMS, MOEW, 2011). In defining and prioritizing the measures outlined in the National Strategic Plan, the fundamental principles of waste management regulated in Bulgaria, according to the common European and national policy in this area. The main principles underpinning the Strategic Management Plan CSF are as follows: 1. Sustainable development; 2. Prevention principle; 3. Principle of self-sufficiency and proximity in waste management; 4. Waste managemen hierarchy; 5. Best available techniques not entailing excessive costs; 6. Polluters must take full responsibility; 7. Integrated waste management. Conclusions: Based on the current situation can be concluded that waste management in the existing hierarchy adopted by the Waste Framework Directive 2008/98/EC, is a prerequisite for the development of new activities in the industrial sector related to treatment and recovery of waste. Regardless of the adaptation of SMEs and their orientation in economic activities related to waste management, there is still "niche" for economic development, in which the companies will have to demonstrate in practice their competitiveness based on the use of waste as "raw "and" energy "resources. 2.2. Possible environmental development without application of OPIC 2014- 2020 It is made an analysis on the possible environmental development, including human health without the application of OPIC 2014-2020. It is based on detailed characterization of environmental aspects in Section 2.1. Assessment/analysis is presented in the following form:

175 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Environmental aspect Development without application of OPIC 2014-2020

Weather conditions and climate In the last two decades have seen a positive anomaly of change the average annual temperature versus air rate of the base period according to NIMH. The climate is a complex system. It is influenced by a lot of factors, among which is the amount of greenhouse gases into the atmosphere, which is dependent on the emission to the atmosphere at the global level. The upward trend in mean annual temperature in the country will continue for a while. This assumption is confirmed by the results of modeling the climate by the end of the 21st century. Without realizing of OPIC 2014-2020 the opportunity for financial assistance to activities that reduce greenhouse gas emissions will be missed.

Air quality In the period 1990 to 2013 there is a significant decrease in the levels of emissions of all main ambient air pollutants, followed by improvement in the ambient air quality. Emissions of nitrogen oxides, non-methane hydrocarbons and ammonia are lower than the goals set in the National Programme for progressive reduction of annual emissions. Only sulfur dioxide emissions does not yet reach the national goals, but are lower than the objectives of Directive 2001/81/EC. At present it can be said that Bulgaria has a large enough pool of emissions for future economic development. This is proved by data on the ceilings of harmful emissions and greenhouse gas emissions and actual emissions. Development of Bulgarian economy without applying OPIC 2014 - 2020 would not lead to a significant increase in the emission load and the deterioration of air quality in Bulgaria. Reasons for this statement: - Preventive activities and requirements for the application of best available techniques in the implementation of investment projects in various sectors of the economy, which is an important mechanism for reducing the impact on the

176 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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environment through the introduction of low-emission and energy-intensive technologies. - Bulgaria has undertaken international commitments to reduce emissions of pollutants and greenhouse gases. These commitments are reflected in the Council of Ministers and various line ministries strategies, plans, programs, laws and other normative documents. Many of these documents are directly or indirectly related to air quality, by implementing policies, specific measures and regulations affecting the emissions of pollutants and greenhouse gases emitted from various sectors of the economy (Europe 2020 Strategy, The National Development Programme: Bulgaria 2020, Energy Strategy of the Republic of Bulgaria till 2020, Third National action Plan on Climate Change for the period 2013- 2020, the National Programme for the reduction of total annual emissions of sulfur dioxide, nitrogen oxides, volatile organic compounds and ammonia in the air, 2007, the National action plan to promote green public procurement for the period 2012-2014, the National action Plan for renewable energy by 2020, municipal programs to reduce emissions and reach the standards of air quality, etc.). In carrying out preventive activities and implementation of measures to reduce emissions of pollutants and greenhouse gases in particular sectors of the economy and household activities would be expected to improve air quality in the future despite the implementation of OPIC 2014-2020. The contribution of the program consists in the provision of financing and facilitating business to meet the requirements in terms of emissions of harmful substances, including greenhouse gases.

State of surface waters Without application of OPIC 2014-2020 the existing status of surface waters will largely maintain, but the benefits from the activities providing eco-innovation and resource efficiency will be missed. The trend in terms of wastewater treatment will continue.

177 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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State of groundwater Without application of OPIC 2014-2020 the existing status of groundwater will largely maintain. The trend in terms of wastewater treatment will continue.

State of subsoil Without application of OPIC 2014-2020 the existing condition of subsoil will largely maintain.

State of soils and land use Without application of OPIC 2014-2020 the existing condition of soils and land use will largely maintain.

Vegetation condition There are regulations and initiatives that ensure protection of flora, vegetation and natural habitats, but it is possible process of degradation. It is associated with different types and intensity of local and regional anthropogenic interference with natural process and secondary succession, the threat of invasion of alien invasive species, global climate change, which could cause the extinction of species and degradation of natural habitats.

Condition of the animal world The development of Bulgarian economy without applying OPIC 2014 - 2020 would have no significant impact on wildlife.

State of protected sites and There are problems associated with the conservation of protected areas biodiversity in protected areas and sites located in different parts of the country. It is expected that these problems can be overcomed with better collaboration between different legal documents related to The Convention on Biodiversity and conservation, evaluation and rehabilitation in the best way areas in developing plans for their management.

Landscape condition OPIC 2014-2020 non-application will not affect landscape condition.

Material assets condition Trends in terms of material assets in enterprises will continue, e.g. expected improvement and innovation, which is a necessity.Without application of OPIC 2014- 2020, enterprises will face severe financial difficulties for renovation of material assets, especially those associated with high tehhnology, energy and resource efficiency. As 178 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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a result of non-aplication of the program the possibility of effective development will be postponed , and in some enterprises will be prevented, including in terms of environmental protection.

Cultural heritage including OPIC 2014-2020 non-application will not affect the architectural and archaeological cultural, architectural and archaeological heritage. heritage

Environmental sanitation and Without application of OPIC 2014-2020 won’t be hygiene realized expected indirect beneficial effect on the health status of the population, and especially on the population of the North West and North Central regions.

Harmful physical factors Without the application of OPIC opportunities related to improving production processes in enterprises will be missed, which as an indirect effect is expected to lead to reduction of production noise, improved working conditions and health and safety for workers and the population.

Waste SMEs will continue to work in the economic activity related to waste treatment, but without necessary support. Entrepreneurship will be impeded and the competitiveness probably will not be based on the objectives, set at European level for the conversion of waste into raw material and energy resources and to reduce the amount of waste generated by the use of low- waste and other innovative technologies. Innovations connected with application of new technologies for the production of devices with "short livecycle", such as packaging for single use, will be difficult to realize. Resource availability will find its alternative in wastes more difficult. The extension of the scope of the green economy, which will include environmental friendly methods for the use of bio-waste as a renewable resource, will be a slow and complex process. Harder to reach recycling targets that will lead the society to become a recycling society.

179 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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3. ENVIRONMENTAL CHARACTERISTICS OF TERRITORIES WHICH ARE LIKELY TO BE SIGNIFICANTLY AFFECTED BY THE REALIZATION OF OPIC 2014-2020 Based on the characteristic of environmental aspects at the time (which is made in Section 2 of the report on SEA) and the predictions of OPIC 2014-2020 in this section are addressed to those areas that will be most significantly affected by the program.The sensitive areas as protected sites of the ecological network "Natura 2000", settlements and other objects assessed to health protection, sanitary protection zones around water sources and others are reviewed in detail. The territorial scope of the program is national - includes whole country as it is provided for two specific projects - the construction of the Gas Interconnection Bulgaria- Serbia and Phase 2 of the project for Sofia Tech-park. An assessment procedure of environmental impact was conducted for the project to build Gas Interconnection Bulgaria-Serbia and a Decision № 48-PR/2012 was issued, by which the Minister of Environment and Water has determined EIA shouldn’t be carried out for the proposal, which is unlikely to have a significant negative impact on natural habitats, populations and habitats of species subject to conservation in protected sites. Targeted support for Sofia Tech-Park aims to create the first completely new innovative scientific and technological eco-system of advanced level where the business can identify, promote and develop innovative ideas and projects; to create a focal point for co- active interaction of international and Bulgarian partners to support connections between existing knowledge-based institutions and the private sector to improve the commercialisation of R&D activities. It would establishd a national innovation environment on a global level in order to stimulate the development of sectors with significant added value. The establishment of 20 000 square meters new and renovated areas on the territory of the former property of the Ministry of Defence in Sofia, Iskar behind Aviation square (4th kilometer of Tsarigradsko road) where to locate applied research laboratories, general incubator, innovative lecture, education, discussion forums, places for demonstration of new technologies, office space, car parking and pedestrian green spaces. The activities are not associated with a negative impact on the environment and human health. 3.1. Protected sites, protected areas and other areas of biodiversity importance Provided in OPIC construction of gas connection with Serbia in direction Bozhurishte- Sofia-Dragoman-Slivnitza with deviations gasification Godech-Kostinbrod does not affect protected sites and protected areas, but passes near 2 protected sites, one under the Habitats Directive - PS BG 0000322 Dragoman, and 1 site under the Birds Directive - PS BG 0002001 Rayanovtsi.

180 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Protected site "Dragoman" covers 213571.80 acres wide karst region in the southwestern foothills of the Balkan Mountains. The site is threatened by drainage of Dragoman and Aldomirovska swamps. This site is threatened by the decline of conditioned existence extensive grazing of semi-natural dry grassland on deeper soils and therefore the best habitats for Spermophilus citellus. Protected site Rayanovtsi covers 131 804 acres located in the wet meadows decrease the pitch between Dragoman and the village of Tsruklevtsi including Dragoman swamp, hill Chepan and the South - karstic hills from Dragoman to the villages Bezden, Bogyovtsi and Ponor. Eastern boundary of the site runs along the main road Sofia-Godech from the village of Belidie to the locality of Vartopa. Project was conducted EIA procedure, based on which it is stated that the project does not involve a significant negative impact on the goals and objectives of the conservation of protected sites. Planned construction of a tech-park Sofia does not affect protected sites, protected areas and other areas of biodiversity importance. The possible establishment of technology parks even in other cities are not expected to be affected PS and PA 3.2, water and water bodies, including safeguard zone. 3.2. Water The main characteristic of surface and groundwater is made in Section 2 of the report on SEA. Activities that are eligible and lead to the realization of the main objectives of OPIC 2014-2020, affecting surface and groundwater can be identified as follows: Investment priority 1.1. "Technological development and Innovation" provide “Support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises” including investment and advisory support for the development of business enterprises in relevant R & D / innovation, technology transfer in the country, implementation of innovation in enterprises. Investment Priority 3.1. “Energy technologies and energy efficiency” Investment Priority 3.2. “Resource Efficiency” It provides support for increasing energy efficiency and flexibility of the country through financing the project "Construction of Gas Interconnection Bulgaria-Serbia ". Under Decision № 48-PR/2012 of the Minister of Environment and Water eligible variants of the pipeline route cross the Blato River and its tributaries and the Slivnishka River. An significant impact in respect of authorization solvable under the Water Act is not expected. 3.3. Objectives of health protection The Ordinance on conditions and procedures for Environmental Impact Assessment Process (SG 3, 2006) defines “objectives of health protection”. These objectives are: 181 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 Residential areas;  Hospitals;  Schools;  Kindergartens and nurseries;  Higher educational institutions;  Sports facilities;  Temporary accommodation units; (hotels, hostels, holiday homes, holiday villages, campsites, cabins, etc.);  Recreation and Entertainment (swimming pools, beaches, parks, recreation areas, parks, amusement parks, water parks;  Objects for food production. Residential areas and other objects of health protection falls under the direct impact of the production, which are the main beneficiaries of the program. The territorial scope of OPIC is the entire country. Start beneficiaries - micro, small, medium and large enterprises are required to comply with the legal requirements for the protection of the occupants of the above objects. Protection starts in the design phase (compliance nature of production and all the consequences that environmental impacts on protected site) and continues. OPIC 2014- 2020 does not state specify investment projects (except of building the Gas Interconnection Bulgaria-Serbia and Phase 2 of Sofia Teh-park project) can not define a specific area affected by program activities, the existence of objects of health protection, distances to them and the potential negative impacts. Regarding the project of construction a gas connection, in accordance with Decision № 48-PR/2012 was not expected occurrence of health by the project. In terms of Sofia-Tech Park estates are urbanized long ago. They have buildings that will be renovated. The buildings are not located near any object of health protection. Activities of Technopark does not undermine the population and the impact on human health. 3.4. Areas at risk of flooding During the application of activities under OPIC 2014-2020 it is possible their location to be situated in areas at risk of flooding. In this respect, the choice of location and solutions for the design and sustainability of buildings, facilities and equipment to take note of the RBD estimates of flooding risk and management plans of flood risks (when drawing). 3.5. Areas of valuable landscapes Areas along the rivers, protected sites, wetlands and other sites of national ecological network Natura 2000 are identified as sensitive landscapes. Any intervention in them could have irreversible consequences on the sustainability of landscape complexes. Therefore, any activity that is planned in OPIC should allow for staging and monitoring. 182 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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3.6. Lands of high natural value In such lands should be avoided development activities for the purpose of their preservation and conservation of biodiversity. Affecting such areas by OPIC 2014-2020 is not expected.

183 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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4. EXISTING ENVIRONMENTAL PROBLEMS IDENTIFIED AT DIFFERENT LEVELS, HAVING REGARD TO THE OPIC 2014-2020, INCLUSIVE RELATING TO AREAS OF PARTICULAR ENVIRONMENTAL IMPORTANCE, SUCH PROTECTED SITES IN BIODIVERSITY ACT Weather conditions and climate change Climate change and the reasons for it are environmental problems and they are discussed in section 2 of the report on SEA. The relation of OPIC 2014-2020 to them is expressed in a significant positive effect from the implementation of the program activities through resource and energy efficiency, improvement of manufacturing processes, leading to restraint of emission of greenhouse gases and contributes to the adaptation to changing climate. Atmospheric air Almost all types of human activity are related to emissions of various harmful substances, which more or less have impact on air quality on the surface layer. The main reasons for the creation of high level of air pollution in some areas of the country are: Choosing the wrong place for construction of technological capacities. The construction of large projects of the heavy industry in irrelevant orographic and climatic conditions, in close proximity to urban areas is associated with the most significant negative impacts on the air quality. Recent examples of this are development of the industry in Kardzhali, Pirdop, Sofia and even in Burgas. Outdated technologies and poor resource base. This is the reason for the increased emissions of certain pollutants and greenhouse gases due to the use of energy technologies and low quality raw materials. Examples are the use of local lignite coal with high sulfur content and low calorific value in the TPP "Maritsa Iztok" Bobov Dol and others.; the quality of mined ores of nonferrous metals characterized by high sulfur unit and a lower percentage of useful (production) and metal. Waste gases in road transport are major cause of air pollution around urban roads and settlements. The reasons are related to outdated authomobile park in Bulgaria, the poor condition of the road infrastructure, the diminished share of rail transport at the expense of the road in the course of transportation of people, commodities, and more. Waste gases by combustion plants of office buildings and households are another important factor leading to the deterioration of air quality, especially in smaller settelmens. This is due to outdated heating boilers quality of the solid and liquid fuels by households and others.

184 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Diffuse emission sources are the main sources of significant amounts of dust and PM. Such sources are surface mines, quarries, construction sites, landfills for different types of waste, the roads on which the flooring is damaged and others.

The high content of PM10 is a major problem for Bulgaria in most of the settlements. EEA reports that 51% of the population lives in conditions of air pollution with PM. The reasons are many: poor condition of the road network and poor and maintenance; neglected parks, bare spaces between buildings, parking on lawns, etc.; intense construction activity and lack of control of the state of construction and transport equipment serving construction sites, use of poor quality fuels and others. On the application of Article 27 of Air pollution control act and order of the Minister of Environment and Water in 2010-2011 municipalities update and implement community programs that are legislatively established tool for the management and maintenance of air quality within their territory. The programs are developed by municipalities which establish excessive levels of air pollutants. Such programs have been adopted and implemented in the following municipalities: Asenovgrad, Blagoevgrad, Burgas, Varna, Veliko Tarnovo, Vidin, Vratsa, Gorna Oryahovitsa, Devnia, Dimitrovgrad, Dobrich, Vidin, Lovech, Montana, Nessebar, Pazardzhik, Pernik, Pirdop, Pleven, Plovdiv, Radnevo, Ruse, Smolyan, Sofia (Sofia Municipality), Sliven, Stara Zagora, Haskovo and Shumen. Excess levels of PM10 have been found in all municipalities. The following reasons are identified according to developed programs:  domestic heating during the winter season, in most cases combined with the transport impact;  an emphasis on the transport sector - in largest cities;  an emphasis on the diffuse sources -towns near large industrial areas;  complex nature of pollution - only for some towns. Includes domestic heating, transport, regional background, diffuse sources (landfills, quarries, etc.), industry and energy; Water Water status is presented in detail in section 2 of the report on SEA. The analysis of existing environmental problems in component "Water" for past and future water needs until 2035 showes the following:  Future water resources in Bulgaria in the projected level of consumption of water from various water uses are sufficient to cover the needs of future climate change on the expected rainfall in the short (2015), medium (2021) and long term (2035) perspective, as in the case of extreme drought.

185 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 The country is not threatened by water stress on the whole - the pressure of water against the total seized surface (including the flow of the Danube) and groundwater resources is less than 10%. In river basins to inland river runoff no water stress in West-Region and expected low water stress in the Danube District and medium water stress on the Black Sea and the East Aegean District.  Problems of water scarcity during dry years and during normal wet years associated with the introduction of perennial and seasonal water rationing cover mainly settlements, which are not supplied with water from tanks around the clock, seasonal and perennial storage of surface water resources and in rare cases, settlements with water from the dam, but the water system problems - leaks, accidents;  Variations in the quality of drinking water supplied in some regions, mainly due to lack of treatment facilities (WWTP) and modern facilities for disinfection (decontamination) of drinking water, old water network, water pollution in water sources of anthropogenic impact and pollution from natural origin;  Deterioration of the quality of surface and ground water bodies due to the insufficient number and capacity of treatment plants for waste water, environmental outdated land use and industrial activities.  Bulgaria is one of the richest lands of mineral water in Europe, allowing different application. Reported significant problems in water management in river basin districts:  All of the 39 underground water bodies in the Western Aegean District, and 64% of the 50 underground WB in the Danube District are in good chemical condition. This percentage is 60% of the 48 underground WB in the Eastern Aegean District and 57% of the 40 underground WB in the Black Sea District. Quantitative condition of groundwater bodies in the Danube region is 86%, which is due to the constructed shaft wells. 56% of all groundwater bodies are in good chemical condition.  Main pollutants of growndwater bodies in Basin water management East Aegean District are nitrates, sulfates, manganese, iron, phosphates, calcium, magnesium, ammonium, hardness (total) and permanganate oxidisability. High nitrate content is mainly related to over-fertilization of crops in the past, the development of environmentally unfriendly livestock (lagoons, liquid waste) and lack of wastewater treatment plants in many settelments. Phosphate pollution is mainly due to the uncontrolled use of fertilizers and industrial activity. The settlements without sewage and landfills provide the greatest impact on the poor quality of groundwater in the Basin water management of East Aegean District. They emit ammonia and nitrates resulting in poor management of landfills or absence of bottom insulation layer.

186 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 The assessment of the undergrownd WB chemical status in the Danube basin water management shows poor chemical status for 18 underground WB (36%), with the greatest nitrate pollution (14 underground WB), manganese (4 underground WB), iron (in 1 underground WB), phosphates (in 1 underground WB) and chromium (in 2 underground WB). This contamination of underground water bodies is associated with pollution from diffuse sources: agriculture, old dumpsites for waste and settlements without WWTP. The assessment of underground water bodies at risk shows 44% are at risk from diffuse sources and land use, while 10% are at risk from point sources of pollution. It was found that 21 underground water bodies are "at risk" of a load of land use, due to the large share of arable land (> 75%) within these bodies.  The agricultural activities (agriculture and livestock) and settlements without sanitation that issue nitrates and ammonium are the most relevent diffuse sources of pollution in the Black Sea District. The significant impact of diffuse sources on underground water is found in bodies of Quaternary, Neogene, Cretaceous and Lower Cretaceous aquifers. Waste National level Large quantities of waste are formed because of increasing consumption and developing economies. Increasingly more efforts are needed to reduce and prevent their formation. Waste is a environmental, social and economic problem. OPIC 2014-2020 provides to stimulate innovation, including those which are based on the close relation between business and science will contribute to the development of science oriented research and implementation activity for products, which have clearly followed treatment in order to reach the "end of waste" and thus solve the problem of the impact of waste on the environment in an environmentally and economically relevant way. OPIC 2014-2020 provides to enterprises in the target groups based on competitiveness to seek innovation. An opportunity is currently being established, industrial symbiosis between businesses where waste from one plant is a raw material for another cause permanent and reliable solution to the waste problem. Regional level There are 52 regional associations of municipalities for waste management in Bulgaria. They were created in connection with work on the "Operational Programme 2007 - 2013." They were aimed at creating conditions for the implementation of integrated systems for waste management in their respective localities. Resulting in their activities proved the feasibility of such systems, the nature of which is the disposal of the vast majority of the waste by the landfill of waste. It is not enough to solve the problems of waste and compliance with European regulations.

187 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Associations should implement a legislatively defined targets, which leads to limiting the scope of waste that can be landfilled. Regional associations should make decisions and contribute to the establishment of centers for reuse, repair and preparation for reuse of waste. OPIC 2014-2020 provides an opportunity for real innovation for alternative waste treatment based on recycling and the possibility of practical use of waste as a raw material and energy resources. Selected target groups can compete among themselves in searching for waste and disposal of the products of their processing, in compliance with legal requirements. Municipal level Waste Framework Directive 2008/98/EC which is transposed into Bulgarian law by the Waste Management Act (2012) gives to municipalities the general requirements for solving the waste problems in reaching the targets for recycling as follows: • separate collection of waste shall implement at least the following materials: paper, metal, plastic and glass by 2015. Based on the organization of the work and the contractual relationship between municipalities and waste recovery, probably there will be no problems implementing European objectives; • preparation for reuse and recycling at least paper, metal, plastic and glass from households, shall be increased with at least 50% by weight of household waste by 2020. The mechanism underlying the WMA, to satisfy this requirement, the introduction of interim targets in the years up to 2020, for a smoother transition to the ultimate target. • till January 1, 2016 - at least 25% of their total weight. • till January 1, 2018 - at least 40% of their total weight. • till January 1, 2020 - at least 50% of their total weight. This is an opportunity for the target groups of OPIC 2014-2020 to develop innovative and increasingly competitive activities for waste utilization through recycling, in order to reach the "end of waste". This is possible by implementing the experience of Sofia TechPark and on the basis of a better cooperation between business and science to develop new technologies to convert waste into raw resource. As an existing problem, having regard to the OPIC 2014-2020, waste from the construction and demolition might be indicated, which main method is landfilling. Through innovation and resource efficiency OPIC 2014-2020 may contribute to the significant reduction of the quantities of construction waste to landfill by developing methods for their reuse after proper processing and/or recycling.

188 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Based on the regulatory requirements and the hierarchy of waste management that considers composting as a way to recycle the organic part of the matter to the municipalities has the following requirements for the separate collection and storage of household biodegradable waste, including determining locations for deployment of the necessary elements for separate collection and delivery for composting or anaerobic digestion, which the waste will be turned into raw material or energy resource. To stimulate municipalities in achieving the recycling targets for household waste and reducing the amount of biodegradable waste to landfill allowances are reduced by 50% for each of the objectives, independently of each other. Other obligations of municipalities which are connected with the implementation of the National Strategic Plan for Gradual Reduction of Biodegradable Waste Intended for Landfilling (2010-2020) which sets targets for reducing the amount of biodegradable municipal waste going to landfill: • till 2010 - up to 75% of the total amount by weight of biodegradable municipal waste produced in 1995; • till 2013 - up to 50% of the total amount by weight of biodegradable municipal waste produced in 1995; • till 2020 - up to 35% of the total amount by weight of biodegradable municipal waste produced in 1995; This is another opportunity to attract target groups (micro, small and medium enterprises) in OPIC 2014-2020 because municipalities could have contracted this work to them. Through its priorities and targets OPIC 2014-2020 will lead indirectly to assist municipalities to achieve them by promoting innovation in the "green economy" through the application of modern scientific and technical solutions for environmentally sound waste treatment. The target groups will be placed in a competitive environment not only for the use of waste as raw material and/or energy source, but also in the implementation of waste derived products. In a conclusion it can be said that OPIC 2014-2020 will lead to solving some environmental problems related to waste, because:  Enterprises – OPIC beneficiaries should comply with the European hierarchy of waste treatment and opportunities there based on the introduction of new innovative technologies based on global experience to reach the "end of waste";  Methods related to the recovery of waste by means of recycling can be the basis of the "green economy."

189 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 Stimulates the development of innovative activity among small and medium-sized enterprises based on the hierarchy in the Waste Framework Directive 2008/98/EC, combined with some European programs, eg. purpose of "Horizon 2020", and economic realities in the country can make industrial symbiosis in which waste from one undertaking to be raw material for another company, which will increase the competitiveness of both companies.  Implementation of Sofia Tech Park could serve as a model for replication of best practices for environmentally solving the waste problem.  A fair opportunity to solve existing environmental problems and reduces the possibility of new environmental problems associated with waste. Protected sites and areas  The construction and development of tourism infrastructure in sensitive areas of protected Natura 2000 sites in some cases represent a serious environmental problem for the conservation status of many habitats and species. In the recent decades, the majority of protected areas are subject to human impact, leading to degradation processes occurring at different intensities, depending on the degree of influence in the respective territories.  Absence of developed management plans for most of the protected sites and protected areas does not allow for effective measures to protect the conservation status of habitats and species they target.  The majority of protected areas are subject of human impact in recent decades, leading to degradation processes occurring at different intensities depending on the degree of influence in their respective territories.  The introduction of invasive alien species in protected sites and protected areas threatens biodiversity and it is a prerequisite for the deterioration of the conservation status of species and habitats and degradation on existing ecosystems.  In recent years there has been a growing desire to maintain and restore biodiversity, which is expressed in a number of strategic documents at national and European level: Operational Programme Environment (OPE), the National Development Programme: Bulgaria 2020, the National Biodiversity Strategy, the National Biodiversity Action Plan, the Biodiversity Strategy by 2020 of the European Union and others.  In the performance of the underlying objectives are expected to substantially restore ecosystems, improve environmental infrastructure, reducing the number of invasive species, maintaining the favorable conservation status of the habitat types and species of local (site level), biogeographical and national level which will also help prevent global loss of biodiversity;

190 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 OPIC 2014-2020 will contribute indirectly to the conservation of biodiversity, including protected sites and areas through the activities related to the improvement of components and environmental factors. Population and human health The majority of the population lives in conditions of poor air quality, noise pollution, water supply not meeting the quality and insufficient quantity. Special attention should be given to the impact of climate change on human health associated with:  Increasing diseases and deaths from - strong and frequent heat waves, especially in urban areas;  Increase of injuries, deaths and post-traumatic stress due to extreme weather events;  Increased risk of infectious diseases;  Harmful effects of drought to people in rural and remote areas. Conclusions: Application of OPIC 2014-2020 will contribute to solve some environmental problems related to climate change, air, water, waste, biodiversity, population and human health. These components and environmental factors are expected to be positively affected during the implementation of OPIC 2014-2020.

191 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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5. THE ENVIRONMENTAL PROTECTION OBJECTIVES, ESTABLISHED AT NATIONAL AND INTERNATIONAL LEVEL, WHICH ARE RELEVANT TO OPIC 2014 - 2020 AND THE WAY THOSE OBJECTIVES AND ANY ENVIRONMENTAL CONSIDERATIONS ARE TAKEN INTO ACCOUNT DURING PREPARATION OF THE PROGRAMME Objectives of environmental protection at national and international level related to OPIC 2014-2020, and the way they have been taken into account during preparation of the program, are presented in the following table:

192 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020

National Development Programme: Bulgaria 2020: OPIC 2014-202 has provided in its scope activities to achieve Priority 3. OPIC has contributed to the achievement of sub-priority 3.1, 3.2 and 3.3, by integrating Priority 3 Achieving sustainable integrated regional development and use measures under the National Strategy for the stimulating of SMEs and innovation of local potential with sub-priorities: strategy for smart specialization of the Republic of Bulgaria by 2020. 3.1 Improving and integrating the national system for planning and OPIC has contributed to the achievement of sub-priority 3.4 through planned activities management of regional development and spatial planning system for SMEs in the tourism and related sectors for promotion, marketing and information 3.2 Stimulating the development of cities and improving the integration of the activities in the field of tourism, including positioning and promotion of Destination Bulgarian nationwide Bulgaria by national tourism marketing to diversify tourism products and markets and 3.3 Support for the development of regions lagging behind and improving the creating sustainable forms of tourism (including. development and promotion in quality of life in rural areas territorial aspect PPP). 3.4 Support for efficient and sustainable utilization of the tourism potential of Contribution to the achievement of sub-priority 3.5. is direct, through the activities of the regions and the development of cultural and creative industries in the resource and energy efficiency which are top priority in the program. region With regard to the sub-priority 3.6. OPIC's contribution will be implemented through 3.5 Creating conditions for the conservation and improvement of the activities related to the improvement of cooperation in innovation - IP 1, the promotion environment in the regions, adapting to the advancing climate change and of entrepreneurship in areas related to European and regional challenges in IP 2.1. and achieving sustainable and efficient use of natural resources improving information and communication technologies in enterprises to Priority axis 2 3.6 Strengthening the territorial cohesion through the development and and to the IP 3.2. "Resource efficiency" expansion of cross-border, interregional and transnational cooperation

193 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 OPIC 2014-2020 is directly involved in achieving the sub-priorities under Priority 7 Priority 7: Energy security and increasing resource efficiency, with sub- through PA 3 "Energy and resource efficiency." The contribution under sub-priorities priorities: 7.2 and 7.5 is direct. The contribution under the other sub-priorities - indirect. 7.1 Ensuring energy security of the country 7.2Increasing energy efficiency 7.3 Reaching 16% of energy from renewable sources (RES) in the gross end energy consumption by 2020 7.4 Creating an integrated internal market for energy 7.5 Increasing the efficiency of resource use In accordance with the Strategy’s Action Plan OPIC provides support for the creation of EU Strategy for the Danube Region, with priority in four areas: laboratories for development, validation and implementation of new products and A. Connecting the Danube Region services through joint participation of consumers, academia and businesses in the 1. Improve mobility and intermodality innovation process, and facilitate the stay on of knowledge by funding centers and 2. Stimulating more sustainable energy schemes to stay on knowledge. 3. Stimulating of culture, tourism and people contacts B. Restoration and maintenance of water quality 1. Restore and maintain water quality 2. Managing environmental risks 3. Preservation of biodiversity, landscapes and the quality of air and soils. B. Creating Prosperity in the Danube Region 1. Development of society based on a knowledge through research, education and information technology. 194 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 2. Supporting the competitiveness of enterprises. 3. Investing in people and skills. D. Strengthening the Danube Region 1. Enhancing institutional capacity and cooperation 2. Collaborate to ensure the security and tackle organized crime

Interventions by Guidelines for the integration of environmental policy Guidelines are used as a guiding document in the preparation of the OPIC 2014-2020 and policy on climate change in the funds for Cohesion Policy, the Common Agricultural Policy and the Common Fisheries Policy for 2014- 2020 – programming phase, determined for inclusion in the OPIC 2014- The activity is not expressly provided in OPIC 2014-2020 due to lack of financial 2020: resources. Construction activities on water infrastructure, including WWTP are 1.3. Construction of water infrastructure companies - industrial wastewater treatment plants and / or leading facilities to existing sewer systems provided in OPE and RDP 2014-2020, Intervention is included in OPIC as a 2.4. More efficient water use, incl. eco-innovation, new technologies in the permissible activity which provides development of eco-innovation and resource field of water and methods in the condition evaluation, monitoring and efficiency management, water treatment 3.10. Improving the management of construction, hazardous and other OPIC (PA 3, investment priority 3.2 "Resource Efficiency") will support the specific waste streams: implementation of high tech solutions for optimizing production processes and reduce 3.10.1. installations / facilities for recovery / disposal of construction waste or the use of raw materials; implementation of modern technologies for use of waste as a hazardous waste 3.10.2. installations / facilities for recovery / disposal of packaging waste raw material in new production and / or other alternative uses; introduction of low- (paper, plastic, cardboard, glass), obsolete motor vechile, spent primary waste technologies, innovative manufacturing materials, technologies for production of batteries and spent electric accumulators, spent electrical and electronic, "green products", introduction of rotations for water use in production processes pneumatic tires, waste oils and others in all sectors of the economy. 195 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 3.10.3. waste as a resource: more effective waste management, incl. packaging (resource efficiency of waste) 3.12. Prevent and reduce waste generation

4.1.4. Increasing energy efficiency and fuel switching in production enterprises (companies) 4.2. Interventions for implementation of Directive 2010/75/EC on industrial Provided funding for activities to improve energy efficiency by PA 3 of OPIC 2014- emissions 2020. 5.4. Gasification projects funded by OPRD as enshrined in the energy audit Promoting the introduction of rotations for water use in production processes on the PA 3, investment priority 3.2 "Resource efficiency". Within investment priority projects for resource efficiency will be supported, not intended

prioritization of individual resources, as there is no available analyzes and / or

assessments to justify it in terms of the overall objectives of OPIC (strengthening research and innovation activity of enterprises and enhancing the capacity for growth of SMEs). Planned activities account the requirements of Directive 2010/75/EC, as for innovation and resource and energy efficiency will contribute to reducing emissions from industry, including greenhouse gases. As a key approach identified to reduce the energy intensity of the economy of Bulgaria is taken to create opportunities to diversify the energy mix and efficiency in its particular natural gas. Which directly contributes to the ability of enterprises to 196 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 implement energy savings actions on resource and energy efficiency, including project implementation Gas Interconnection "Bulgaria - Serbia" will contribute to the reliability and flexibility in the supply of gas realization of energy efficiency in business, in support of the main priorities of the Energy Strategy of Bulgaria by 2020 Seventh Environment Action Programme of the EU by 2020 "Living well OPIC accounts the priorities of the program and contributes directly to the within the limits of our planet," with priority objectives: 1. to protect, conserve and enhance the Union’s natural capital; implementation of the priority objectives 2 and 7 (through activities in PA 1, 2 and 3, 2. to turn the Union into a recourse-efficient, green and competitive low- and mostly 3). Indirect contribution to the achievement of the other objectives of the carbon economy; program 3. to safeguard the Union's citizens from environment-related pressures and risks to health and wellbeing; 4 Maximizing the benefits of EU legislation in the field of the environment by improving its implementation; 5 Improving the knowledge base and data on EU policy in the field of environment; 6 Provision of investment policy environment and climate and reporting of environmental costs in all community activities; 7 Better coverage of environmental issues into other policy areas and ensuring consistency in the development of new policies; 8 Increasing the sustainability of major cities of the Union; 9 Increasing the effectiveness of the Union in dealing with international challenges related to the environment and climate. EU Biodiversity Strategy to 2020, with the objectives: OPIC has no specific projections for biodiversity conservation, but PA,IP and SO of 197 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 1. Preservation and restoration of nature the program does not conflict with the objectives of preserving biodiversity. Indirect 2. Maintaining and improving ecosystems and their services positive contribution that will be achieved in the implementation of the program is 3. Ensure sustainable development in agriculture and forestry related to the sustainability of enterprises in terms of their impact on the environment, including biodiversity. 4. Ensure sustainable use of fishery resources 5. Invasive alien species 6. Measures against global crisis in biodiversity OPIC has a direct contribution to the objective 4 of the plan and does not conflict with Strategic Plan for Biodiversity Conservation 2011-2020, including Aichi other objectives. Biodiversity Targets

Strategic Objective A - Address the underlying causes of biodiversity loss by mainstreaming biodiversity across government and society Objective 1: By 2020, at the latest, people are aware of the values of biodiversity and the steps they can take to conserve and use it sustainably. Objective 2: By 2020, at the latest, biodiversity values have been integrated into national and local development and poverty reduction strategies and planning processes and are being incorporated into national accounting, as appropriate, and reporting systems. Objective 4: By 2020, at the latest, Governments, business and stakeholders at all levels have taken steps to achieve or have implemented plans for sustainable production and consumption and have kept the impacts of use of 198 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 natural resources well within safe ecological limits. Strategic Objective B - Reduce the direct pressures on biodiversity and promote sustainable use. Objective 5: By 2020, the rate of loss of all natural habitats, including forests, is at least halved and where feasible brought close to zero, and degradation and fragmentation is significantly reduced. Goal 6: By 2020 all fish and invertebrate stocks and aquatic plants are managed and harvested sustainably, legally and applying ecosystem based approaches, so that overfishing is avoided, recovery plans and measures are in place for all depleted species, fisheries have no significant adverse impacts on threatened species and vulnerable ecosystems and the impacts of fisheries on stocks, species and ecosystems are within safe ecological limits. Goal 7: By 2020 areas under agriculture, aquaculture and forestry are managed sustainably, ensuring conservation of biodiversity. Objective 8: By 2020, pollution, including from excess nutrients, has been brought to levels that are not detrimental to ecosystem function and biodiversity. Objective 9: By 2020, invasive alien species and pathways are identified and prioritized, priority species are controlled or eradicated, and measures are in place to manage pathways to prevent their introduction and establishment. Objective 10: By 2015, the multiple anthropogenic pressures on coral reefs, 199 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 and other vulnerable ecosystems impacted by climate change or ocean acidification are minimized, so as to maintain their integrity and functioning. Strategic Objective C - To improve the status of biodiversity by safeguarding ecosystems, species and genetic diversity Objective 11: By 2020, at least 17 per cent of terrestrial and inland water, and 10 per cent of coastal and marine areas, especially areas of particular importance for biodiversity and ecosystem services, are conserved through effectively and equitably managed, ecologically representative and well connected systems of protected areas and other effective area-based conservation measures, and integrated into the wider landscapes and seascapes. Objective 12: By 2020 the extinction of known threatened species has been prevented and their conservation status, particularly of those most in decline, has been improved and sustained. Objective 13: By 2020, the genetic diversity of cultivated plants and farmed and domesticated animals and of wild relatives, including other socio- economically as well as culturally valuable species, is maintained, and strategies have been developed and implemented for minimizing genetic erosion and safeguarding their genetic diversity.

200 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 Strategic Objective D - Enhance the benefits to all from biodiversity and ecosystem services Objective 14: By 2020, ecosystems that provide essential services, including services related to water, and contribute to health, livelihoods and well-being, are restored and safeguarded, taking into account the needs of women, indigenous and local communities, and the poor and vulnerable. Objective 15: By 2020, ecosystem resilience and the contribution of biodiversity to carbon stocks has been enhanced, through conservation and restoration, including restoration of at least 15 per cent of degraded ecosystems, thereby contributing to climate change mitigation and adaptation and to combating desertification. Objective 16: By 2015, the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization is in force and operational, consistent with national legislation. Strategic goal E - Enhance implementation through participatory planning, knowledge management and capacity building Objective 17: By 2015 each Party has developed, adopted as a policy instrument, and has commenced implementing an effective, participatory and updated national biodiversity strategy and action plan. Objective 18: By 2020,

201 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 the traditional knowledge, innovations and practices of indigenous and local communities relevant for the conservation and sustainable use of biodiversity, and their customary use of biological resources, are respected, subject to national legislation and relevant international obligations, and fully integrated and reflected in the implementation of the Convention with the full and effective participation of indigenous and local communities, at all relevant levels. Objective 19: By 2020, knowledge, the science base and technologies relating to biodiversity, its values, functioning, status and trends, and the consequences of its loss, are improved, widely shared and transferred, and applied. Objective 20: By 2020, at the latest, the mobilization of financial resources for effectively implementing the Strategic Plan for Biodiversity 2011-2020 from all sources, and in accordance with the consolidated and agreed process in the Strategy for Resource Mobilization, should increase substantially from the current levels. This target will be subject to changes contingent to resource needs assessments to be developed and reported by Parties. Roadmap to a Resource Efficient Europe OPIC includes separate priority for energy and resource efficiency, taking into account the guidelines of the Roadmap.

202 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020

The plan for the conservation of water resources in Europe by 2020 OPIC 2014-2020 provides activities for resource efficiency and innovation that will (Blueprint) have a direct positive impact on water mainly on sustainable use of water resources.

Eco-innovation action plan by 2020 of the EU PA 1 of the program focuses on innovation, including eco-innovation in enterprises. EU Strategy for the Black Sea In a PA 1 OPIC has provided support for innovation in enterprises, incl. development Sets guidelines for coordination of activities, creation of mechanisms for monitoring, evaluation, follow-up and reporting the involvement of relevant and introduction of new products, processes and business models, incl. best practices in human resources encourages priority financing of small projects. The main innovation. For this group of measures will support all activities in the innovation chain objectives were security and good governance and energy, transport and - from conception to commercialization of R&D activities. Consideration will be given environment. opportunities to develop the potential for "blue" growth and innovation - "blue" bio- technology, marine mineral resources, surveys of the seabed, deepwater drilling, etc.

EU strategy on adaptation to climate change PA 1 contributes mostly to adaptation to climate change,in part of innovation development (in which will be eligible for innovation and adaptation to climate change) and activities for resource and energy efficiency, restricting GHG emissions and hence climate change.

Green infrastructure – Enchancing Europe’s natural caital The document is taken into account during programming of OPIC 2014-2020 and the objectives for the development of green infrastructure will be achieved by the activities provided for innovation, including eco-innovation in enterprises and energy and

203 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 resource efficiency of the same.

Strategic Implementation Plan of the European Innovation Partnership OPIC 2014-2020 provides activities for resource efficiency and innovation, including on water for partnership and cooperation that will have a direct positive impact on water mainly on sustainable use of water resources

Thematic Strategy on Air Pollution OPIC 2014-2020 will have a direct contribution to the reduction emission of harmful substances into the atmosphere through activities supporting the energy and resource efficiency, including Innovation activities.

Third National Action Plan on Climate Change 2013 - 2020 OPIC 2014-2020 will have direct contribution to reducing greenhouse gas emissions, primarily through the activities of the PA 3 for energy and resource efficiency, and In Section 6 of the plan are presented intended sectoral measures for second - through the activities of innovation. implementing the objectives of the plan in the energy sector and households, industry, waste, agriculture, land use, land use change and forestry, transport, education and science National Priority Action Framework for Natura 2000 OPIC has no specific provisions for the protected Natura 2000 sites, but PA, IP and SO of the program does not conflict with the objectives of preserving biodiversity. There is Priority 1: Management planning of protected sites of Natura 2000 with 9 an indirect positive contribution that will be achieved in the implementation of the sub-priorities; program is related to the sustainability of enterprises in terms of their impact on the Priority 2: Sustainable management of protected sites of Natura 2000 with 5 environment, including biodiversity. sub-priorities; 204 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 Priority 3: Sustainable use of ecosystem services for optimum public benefits, and other factors for socio-economic development of the regions, with 8 sub- priorities; Priority 4: Build, develop and maintain a shared vision for the ecological network Natura 2000 in Bulgaria, with 4 sub-priorities; Priority 5: Technical assistance, with 2 sub-priorities National information and communication strategy for Natura 2000 - OPIC does not provide operations strategy, but does not interfere with it 2014-2023 Common goal: the establishment, development and maintenance of a shared vision for the ecological network Natura 2000 in Bulgaria; Specific objective 1: Increase awareness, understanding and public support for the Natura 2000 network as a leading factor in the socio-economic development Specific objective 2: Formation of conscious communication behavior for participation in processes of biodiversity conservation in Natura 2000 network; Specific Objective 3: Motivating active public participation in achieving the objectives of Natura 2000 to 2020 Management plans for the River Basin Directorates of the East Aegean, OPIC 2014-2020 provides activities for resource efficiency and innovation that will Danube, Black Sea and West Aegean Districts for 2010-2015 have a positive impact on water mainly on sustainable use of water resources. 205 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 Main objective: Sustainable use of water resources, prevent deterioration of In the implementation of activities under OPIC should be ensured compliance against their condition and to achieve good status in all waters by 2015 years RBMP and relevant to the specific activity measures of Section 7 of the plans. Measures in Section 7 of the program of measures to RBMP Flood risk management plans The plans are prepared at the time for the purposes of environmental assessment are used only the results of a prior assessment of flood basin of the four directorates. FRMP is relevant to OPIC that the program should comply investments and their realization of the risk of flooding and to ensure sustainability of the objects of funding flood.

National water resources management strategy by 2037 OPIC has a direct contribution towards sub-priority 1.2 activities through innovation Objective 1: To ensure the water provision for households and businesses and resource efficiency. in terms of climate change, leading to drought

1.1. Ensuring continuous water supply through rehabilitation of existing and construction of new dams and reservoirs, rehabilitation of the water supply network and water sources. 1.2. Reducing the total amount of water used by investment in water development infrastructure and measures to improve efficiency in the use of water resources. Objective 2: Maintain and improve the condition of surface and groundwater 2.1. Remove the discharge of untreated wastewater into natural and artificial water basins and the Black Sea. 2.2. Strengthening the institutional system for monitoring and control to 206 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 ensure good status of surface and groundwater. 2.3. Making Plans for river basin management in major planning document in integrated water management. Objective 3: Improve the efficiency of the integrated management of water as an economic resource Objective 4. Reducing the risk of flood damage

Strategy management and development of water and sanitation of the OPIC 2014-2020 will contribute to environmental friendliness and efficiency of the Republic of Bulgaria 2014-2023, the strategic objectives: sector through the activities of resource efficiency and eco-innovation. -Plumbing industry complies with national / European requirements;

-Plumbing industry is environmentally, financially and technically viable; -The prices of water and sewerage services are affordable for consumers; Quality of services and the effectiveness of plumbing operators comply with the best European practices.

National Strategic Plan for a phased reduction in the amount of The activities for innovation, resource and energy efficiency will support the biodegradable waste going to landfill 2010 – 2020 implementation of national targets for reducing the amount of biodegradable waste going to landfills.

National Strategic Plan for waste management of construction and The activities for innovation, resource and energy efficiency will support the demolition waste in the Republic of Bulgaria for the period 2011 – 2020 implementation of national targets for treatment and reuse of waste by construction,

207 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

Strategic document and environmental objective relevant to OPIC 2014- Way in which the objective is taken into account 2020 which will reduce construction waste disposal.

National program to reduce the total annual emissions of sulfur dioxide, OPIC 2014-2020 will contribute to the limitation emission of harmful substances into nitrogen oxides, volatile organic compounds and ammonia in the air the atmosphere through activities supporting the energy and resource efficiency, including for innovation.

208 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Conclutions:  OPIC 2014-2020 complies and integrates within its objectives to protect the environment at national and European level, which are relevant to the program  OPIC 2014-2020 contributes to relevant of the program objectives for environmental protection at national and European level;  OPIC 2014-2020 does not contradicts with the objectives of environmental protection goals at national and European level.

209 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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6. LIKELY SIGNIFICANT IMPACTS ON THE ENVIRONMENT, INCLUDING BIODIVERSITY, POPULATION, HUMAN HEALTH, FAUNA, FLORA, SOIL, WATER, AIR, CLIMATE FACTORS, MATERIAL ASSETS, CULTURAL HERITAGE INCLUDING ARCHITECTURAL AND ARCHAEOLOGICAL HERITAGE, LANDSCAPE AND THE RELATIONSHIP BETWEEN THEM An assessment on the environmental impacts of the level of priority axes, investment priorities, specific objectives and eligible activities is made at this section. The assessment is made as likely significant environmental impacts are defined as: secondary, cumulative, synergistic, short, medium and long-term permanent and temporary, positive and negative effects of the activities on the priority axes of the program. A detailed analysis and evaluation of the components and environmental factors on the potential impact and risk to human health, including characteristics of the affected areas and expected impacts, including the quality of water intended for drinking water and other factors of environment was done. It is analized the possible transboundary effect of the provisions of the program on the environment and human health in other countries. 6.1. Impact on climate condition and change

Priority axes (PA), investment priorities (IS) Description of the impact and specific objectives (SO) Priority axis is not expected negative impact on PA 1: "Technological development and climate. Innovation" Investment priority 1.1. "Technological Nature and type of impact: positive, due to: development and Innovation" - implementation of advanced technology to increase production potential based on Specific objective 1.1. Increasing innovation 7 improved resource efficiency and effectiveness activity of enterprises by at least 3.5% by in manufacturing process. 2023 - implementation of best practices to reduce  development of cooperation for consumption of natural resources and innovation between enterprises, utilization of secondary raw materials and between business and academia, and manufacturing waste. between business and other carriers of These activities will lead to the reduction of innovation capacityholders, incl. greenhouse gas emissions and improve the internationalisation of innovation microclimate in urban areas, which will have a process;

210 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 support for innovation in enterprises, positive impact on climatic factors. incl. development and introduction of Duration of effects: long-term; new products, processes and business models in enterprises; Impact scope: national and regional.  support for the development of environment and infrastructure for innovation and research. Priority axis is not expected negative impact on PA 2: „Entrepreneurship and Capacity for climate. growth of SMEs“ Nature and type of impact: positive, due to: Investment priority 2.1. „Access to finance - implementation of advanced technology to for supporting entrepreneurship” increase production potential based on improved resource efficiency and effectiveness Specific objective 2.1. Encouraging in manufacturing process. entrepreneurial activity by at least 2% till 2023 - implementation of best practices to reduce  financial instruments for support of consumption of natural resources and entrepreneurship; utilization of secondary raw materials and manufacturing waste.  encouraging entrepreneurial ideas in These activities will lead to the reduction of areas related to European and regional greenhouse gas emissions and improve the challenges; microclimate in urban areas, which will have a positive impact on climatic factors. Duration of effects: long-term; Impact scope: national and regional It is not expected negative impact on climate. Investment priority 2.2. „Capacity for SMEs to grow ” Specific objective 2.2.. Strengthen the export potential of Bulgarian SMEs by at least 10% by 2023  support for enhancing the production capacity for growth through effective and efficient use of the factors of production and through creation opportunities for adoption and adaptation of European and international knowledge and technology;  support for the growth of businesses by 211 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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improving quality and by using information and communication technologies;  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export. It is not expected negative impact on climate. PA 3: Energy and Resource Efficiency Planned activities for green and efficient Investment priority 3.1. "Energy technologies economy are focused on the use of RES in and energy efficiency" enterprises and deployment of low carbon Specific objective 3.1. Reducing energy technologies in manufacturing, which will lead intensity by at least 5% by 2023 to a reduction of greenhouse gas emissions and reduce air pollution. This in turn is a  support for increasing the energy prerequisite for improving urban microclimate efficiency in enterprises; by reducing the thermal pollution of the urban atmosphere. These events will lead to slow  support for increasing the flexibility of climate change. the supply aiming at additional opportunities for enterprises to achieve Duration of effects: long-term; energy savings; Impact scope: national and regional;  institutional support for sustainable energy development. Investment priority 3.2. „Resource Efficiency” Specific objective 3.2. Increase the resource efficiency of SMEs by at least 0.4% by 2023  support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises. PA 4: Technical Assistance No expected impact. SO 4.1: Support for effective and efficient implementation of actions related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; 212 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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SO 4.2: Provision of adequate and timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; SO 4.3: . Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better use of its financial resources.

Summary: Expected activities under Priority Axis 1, 2 and 3 would lead to a reduction of greenhouse gas emissions and reduce air pollution. This in turn is a prerequisite for reducing thermal pollution of the urban environment and improve the microclimate in urban areas, which will have a positive impact on climatic factors and slow climate change.

213 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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6.2. Impact of air quality

Priority axes (PA), investment priorities (IS) Description of the impact and specific objectives (SO)

PA 1: "Technological development and In terms of priority axis impact of air quality Innovation" will result entrepreneurship in implementation Investment priority 1.1. "Technological of new products and activities in small and development and Innovation" medium enterprises. Development of new, advanced technologies in Specific objective 1.1. Increasing innovation SMEs applicable to different sectors as a result activity of enterprises by at least 3.5%8 by of collaboration between business and 2023 academia, as well as supporting innovation of Eligible activities: enterprises should not have impact on the air. Activity - development of the innovation  development of cooperation for cooperation between education, research innovation between enterprises, institutes and enterprises to improve the between business and academia, and conditions of commercialization of research - between business and other carriers of No expected impact. innovation capacityholders, incl. internationalisation of innovation Activity – support for innovation in process; enterprises, incl. development and introduction of new products, processes and business  support for innovation in enterprises, models in enterprises. incl. development and introduction of new products, processes and business Nature and type of impact: positive and direct, models in enterprises; due to:  support for the development of - replacement of old technologies with new environment and infrastructure for and modern - low emission and energy in innovation and research. order to enhance the enterprises competitiveness.

- a legal requirement on implementation of best available techniques;

8 According to data from NSI for the period 2006 – 2010 the expenditures (public and private) for R&D in enterprises had icreased for about 77.6 million Euro (from 30.8 million Euro in 2006 to 108.4 million Euro in 2010) as for the same period the share of innovation enterprises in Bulgaria had increased by 6.9% (in absolute rate ) – from 20.2% to 27.1% (which makes 34% relati ve increase).Taking into account, that the provided under OPIC funds,in IP 1.1. for support of enterprises is 254% (196.7 million Euro/77 million Euro) from these for the period 2006 – 2010. If the tendency of the period 2006 – 2010 is retained, then the increasing of the innovation enterprises share could reach 17.5% (6.9/77.6/196.7). Nevertheless only about 15% - 20% from the beneficiaries under OPIC 2014 – 2020 by IP 1.1.will be enterprises, which currently han’t introduced any innovation, that is way the expected effect of IP 1.1. will lead to about 3 % increasing share of innovation enterprises in Bulgaria when the tendency retained the same, which is the specific objective ot the Investment priority. 214 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Long-term impact of territorial coverage throughout the country. Activity – support for the development of environment and infrastructure for innovation and research. Nature and type of impact: indirect, positive due to the creation of new technologies and products with scientifically proven and experimental efficiency by: - Creation, development and accreditation of thematically focused laboratories for certification, testing which reduces the risk of introduction of new products and ideas to market before showing them to return. - Creation of Sofia Tech Park to identify, promote and develop innovative projects and ideas which will create an environment for business cooperation and technology transfer. Long-term impact of territorial coverage throughout the country.

PA 2: „Entrepreneurship and Capacity for In terms of priority axis impact of air quality growth of SMEs“ will result entrepreneurship in implementation of new products and activities in small and Investment priority 2.1. „Access to finance medium enterprises. for supporting entrepreneurship” Creation of new enterprises and Specific objective 2.1. Encouraging implementation of new business ideas in small entrepreneurial activity by at least 2% till 2023 and medium enterprises should not affect the atmosphere.  financial instruments for support of entrepreneurship; Activity – investments in support of entrepreneurship.  encouraging entrepreneurial ideas in areas related to European and regional Nature and type of impact: positive and direct, challenges; due to: - new enterprises need to be build on the best available techniques under the legal requirements.

215 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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- priority sectors for funding from the National Strategy for the Promotion of SMEs do not include industries with significant emissions of harmful substances. - the creation of modern, sustainable enterprises will force existing SMEs in that sector to take action on improving production through the introduction of low-emission and energy-intensive technologies to be competitive. Long-term impact of territorial coverage throughout the country. Activity – promoting entrepreneurship in areas related to European and regional challenges. Nature and type of impact – no expected impact on the atmosphere. This activity includes investments in companies providing services in the field of ICT, health. This is associated with aging, cultural and creative industries.

Investment priority 2.2. „Capacity for SMEs Development of small and medium enterprises to grow ” should have a direct or indirect impact on the air. Specific objective 2.2.. Strengthen the export potential of Bulgarian SMEs by at least 10% by Activity – support for improving the 2023 production capacity for growth and creating competitive advantage through the effective  support for enhancing the production and efficient use of the factors. This activity capacity for growth through effective affects SMEs. and efficient use of the factors of production and through creation Nature and type of impact – direct, positive, opportunities for adoption and due to: adaptation of European and - in introducing new technologies they need international knowledge and to meet the requirement of best available technology; techniques for the respective processes and  support for the growth of businesses by activities; improving quality and by using - regeneration of waste-free technologies. information and communication 216 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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technologies;  support for the implementation of Implementation of new activities and services for direct benefit technologies/practices/methods/systems for of the business development and improving the resource efficiency and opportunities for SMEs export. effectiveness in the production costs; reducing the consumption of natural resources, recycling

of secondary raw materials, industrial waste.

Long-term impact of territorial coverage throughout the country. Activity – support for the growth of businesses by improving the quality and by use of information and communication technologies; Nature and type of impact: indirect, positive, due to: - optimization on the management of SMEs, which reflects on the management of environmental components. Long-term impact of territorial coverage throughout the country. Activity – support for provision of services of direct benefit for the business. Nature and type of impact: It is not expected.

PA 3: Energy and Resource Efficiency Positive impact due to the planned activities and energy efficiency systems and equipment Investment priority 3.1. "Energy technologies for utilization of RES in buildings will reduce and energy efficiency" energy consumption from conventional sources Specific objective 3.1. Reducing energy and respectively reducing emissions of harmful intensity by at least 5% by 2023 substances into the atmosphere. Activity – support for increasing the energy  support for increasing the energy efficiency in enterprises efficiency in enterprises; Nature and type of: direct, significant, positive  support for increasing the flexibility of impact on air, due to: the supply aiming at additional opportunities for enterprises to achieve - implementation of technologies and energy savings; production lines, which lead to increased

217 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 institutional support for sustainable energy efficiency; energy development. - increasing energy efficiency; - improving the energy and thermal performance of buildings. - promoting the use of energy by renewable energy in enterprises.

As a result, reducing use of conventional fuels,

leading to reduced emissions of harmful greenhouse gases and substances Long-term impact of territorial coverage throughout the country. Activity – support for enhancing energy security, energy independence and energy efficiency that. This activity includes funding for the project "Construction of Gas Interconnection Bulgaria- Serbia".

Nature and type of impact: direct, positive impact on the air due to: - providing energy resource with smaller share in the emissions of pollutants. - allowing for the expansion of SMEs gasification of administrative and

residential sector.

As a result, reducing the proportion of solid and liquid fuels used in industrial, commercial sector and households and reduce harmful emissions. Long-term impact of territorial coverage throughout the country

Investment priority 3.2. „Resource Positive impact due to the envisaged support Efficiency” measures for sustainable use of raw materials, Specific objective 3.2. Increase the resource and the introduction of low-waste technologies efficiency of SMEs by at least 0.4% by 2023 and technologies for waste recovery in new production due to reduced emissions of harmful

218 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 support for pilot and demonstration substances into the atmosphere as a result of innitiatives to increase the resource resource efficiency. efficiency in enterprises/or group of Activity – support for increasing the efficient enterprises. use of resources in enterprises. Nature and type of impact: indirect, positive impact, due to: - implementation of waste-free technologies; - impelemntation of high-tech solutions for optimizing the use of raw materials. - implementation of technologies for the use of waste as raw materials in new industries; - new technologies must meet the BAT As a result of improved resource efficiency a reduction will be achieved in emissions of pollutants and greenhouse gases into the atmosphere from the extraction of raw materials, and reducing emissions from storage of waste products that can be included as inputs in the production. Long-term impact of territorial coverage throughout the country Activity – partnership projects. Nature and type of impact: It is not expected.

PA 4: Technical Assistance It is not expected impact. SO 4.1: Support for effective and efficient implementation of actions related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; SO 4.2: Provision of adequate and timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; 219 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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SO 4.3: . Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better use of its financial resources.

Summary: Expected activities under Priority Axis 1, 2 and 3 shall lead to development of the economy, particularly renovation of old and new SMEs by introducing new advanced, low-emission and energy-intensive technologies, which will lead to reduced emissions of harmful substances and greenhouse gases. This in turn is a prerequisite for improving air quality and create better living conditions for the population. 6.3. Impact on surface water

Priority axes (PA), investment priorities (IS) Description of the impact and specific objectives (SO)

PA 1: "Technological development and This priority axis is expected positive impact Innovation on the quality and quantity of surface water and drinking water and domestic purposes in

enterprises and buildings of schools falling within the scope of the axis. Duration of effects: long-term; Scope of impact: local;

220 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Investment priority 1.1. "Technological Support for innovation in the field of development and Innovation" wastewater treatment undoubtedly will improve the overall condition of surface water in Specific objective 1.1. Increasing innovation Bulgaria. activity of enterprises by at least 3.5%9 by 2023 Construction of Sofia Tech Park in no case will not lead to a negative impact on the water, Eligible activities: because it will be built in urban areas with infrastructure.  development of cooperation for innovation between enterprises, Duration of effects: long-term; between business and academia, and Scope of impact: local; between business and other carriers of innovation capacityholders, incl. internationalisation of innovation process;  support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research.

PA 2: „Entrepreneurship and Capacity for This priority axis is expected positive impact growth of SMEs“ on the quality and quantity of surface water and drinking water in the enterprises and domestic Investment priority 2.1. „Access to finance purposes in enterprises within the scope of the for supporting entrepreneurship” axis. Specific objective 2.1. Encouraging Duration of effects: long-term; entrepreneurial activity by at least 2% till 2023 Scope of impact: local;  financial instruments for support of No activities that would influence on the

9 According to data from NSI for the period 2006 – 2010 the expenditures (public and private) for R&D in enterprises had icreased for about 77.6 million Euro (from 30.8 million Euro in 2006 to 108.4 million Euro in 2010) as for the same period the share of innovation enterprises in Bulgaria had increased by 6.9% (in absolute rate ) – from 20.2% to 27.1% (which makes 34% relati ve increase).Taking into account, that the provided under OPIC funds,in IP 1.1. for support of enterprises is 254% (196.7 million Euro/77 million Euro) from these for the period 2006 – 2010. If the tendency of the period 2006 – 2010 is retained, then the increasing of the innovation enterprises share could reach 17.5% (6.9/77.6/196.7). Nevertheless only about 15% - 20% from the beneficiaries under OPIC 2014 – 2020 by IP 1.1.will be enterprises, which currently han’t introduced any innovation, that is way the expected effect of IP 1.1. will lead to about 3 % increasing share of innovation enterprises in Bulgaria when the tendency retained the same, which is the specific objective ot the Investment priority. 221 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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entrepreneurship; quantity and quality of water.  encouraging entrepreneurial ideas in Duration of effects: long-term; areas related to European and regional Scope of impact: local; challenges;

Investment priority 2.2. „Capacity for SMEs No activities that would influence on the to grow ” quantity and quality of water. Specific objective 2.2.. Strengthen the export Duration of effects: long-term; potential of Bulgarian SMEs by at least 10% by Scope of impact: local; 2023

 support for enhancing the production capacity for growth through effective and efficient use of the factors of production and through creation opportunities for adoption and adaptation of European and international knowledge and technology;  support for the growth of businesses by improving quality and by using information and communication technologies;  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export.

222 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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PA 3: Energy and Resource Efficiency Generally, the priority axis is not expected to affect the quantity and quality of surface wate. Duration of effects: long-term; Scope of impact: local;

Investment priority 3.1. "Energy technologies No activities that would influence on the and energy efficiency" quantity and quality of water. Specific objective 3.1. Reducing energy The implementation on construction of the gas interconnection Bulgaria-Serbia is consistent intensity by at least 5% by 2023 with the areas of water protection under Art.  support for increasing the energy 119a, item 1 ÷ 4 of the Water Act. efficiency in enterprises; Duration of effects: long-term;  support for increasing the flexibility of Scope of impact: local; the supply aiming at additional opportunities for enterprises to achieve energy savings;  institutional support for sustainable energy development.

Investment priority 3.2. „Resource No activities that would influence on the Efficiency” quantity and quality of water. Specific objective 3.2. Increase the resource Duration of effects: long-term; efficiency of SMEs by at least 0.4% by 2023 Scope of impact: local;  support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises

SO 4.2: Provision of adequate and timely 223 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; SO 4.3: . Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better use of its financial resources.

Summary: On the level of priority axes, investment priorities and specific objectives, the impact of OPIC 2014-2020 on waters as a whole is a complex positive character. Realization of the priority axes will improve the overall condition of surface water in Bulgaria. 6.4. Impact on groundwater

Priority axes (PA), investment priorities (IS) Description of the impact and specific objectives (SO) As a whole priority axis are expected positive PA 1: "Technological development and impact on the quality and quantity of water for Innovation drinking purposes in enterprises covered by the axis. Duration of effects: long-term; Scope of impact: local;

224 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Investment priority 1.1. "Technological Support for innovation in the field of development and Innovation" wastewater treatment undoubtedly will improve the overall condition of groundwater in Specific objective 1.1. Increasing innovation Bulgaria. activity of enterprises by at least 3.5%10 by 2023 Construction of Sofia Tech Park in no case will not lead to a negative impact on the water, Eligible activities: because it will be built in urban areas with infrastructure.  development of cooperation for innovation between enterprises, Duration of effects: long-term; between business and academia, and Scope of impact: local; between business and other carriers of innovation capacityholders, incl. internationalisation of innovation process;  support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research;

PA 2: „Entrepreneurship and Capacity for As a whole priority axis is expected positive growth of SMEs“ impact on the quality and quantity of water for drinking purposes in enterprises and school Investment priority 2.1. „Access to finance buildings falling within the scope of the axis. for supporting entrepreneurship” Duration of effects: long-term; Specific objective 2.1. Encouraging Scope of impact: local; entrepreneurial activity by at least 2% till 2023

 financial instruments for support of

10 According to data from NSI for the period 2006 – 2010 the expenditures (public and private) for R&D in enterprises had icreased for about 77.6 million Euro (from 30.8 million Euro in 2006 to 108.4 million Euro in 2010) as for the same period the share of innovation enterprises in Bulgaria had increased by 6.9% (in absolute rate ) – from 20.2% to 27.1% (which makes 34% relati ve increase).Taking into account, that the provided under OPIC funds,in IP 1.1. for support of enterprises is 254% (196.7 million Euro/77 million Euro) from these for the period 2006 – 2010. If the tendency of the period 2006 – 2010 is retained, then the increasing of the innovation enterprises share could reach 17.5% (6.9/77.6/196.7). Nevertheless only about 15% - 20% from the beneficiaries under OPIC 2014 – 2020 by IP 1.1.will be enterprises, which currently han’t introduced any innovation, that is way the expected effect of IP 1.1. will lead to about 3 % increasing share of innovation enterprises in Bulgaria when the tendency retained the same, which is the specific objective ot the Investment priority. 225 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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entrepreneurship;  encouraging entrepreneurial ideas in areas related to European and regional challenges;

PA 3: Energy and Resource Efficiency Generally, the priority axis is not expected to affect the quantity and quality of groundwater. Duration of effects: long-term; Scope of impact: local;

Investment priority 3.1. "Energy technologies No activities that would influence on the and energy efficiency" quantity and quality of water. Specific objective 3.1. Reducing energy When possible use of geothermal heat recovery into buildings planned activities for utilization 226 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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intensity by at least 5% by 2023 of RES will be an impact on the amount of underground geothermal water. There are  support for increasing the energy technologies in which after removal of heat, efficiency in enterprises; water is returned to where the impact will be  support for increasing the flexibility of negligible. the supply aiming at additional The implementation on construction of the gas opportunities for enterprises to achieve interconnection Bulgaria-Serbia is consistent energy savings; with the areas of water protection under Art.  institutional support for sustainable 119a, item 1 ÷ 4 of the Water Act. energy development. Duration of effects: long-term; Scope of impact: local;

Investment priority 3.2. „Resource No activities that would influence on the Efficiency” quantity and quality of water. Specific objective 3.2. Increase the resource Duration of effects: long-term; efficiency of SMEs by at least 0.4% by 2023 Scope of impact: local; support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises.

Summary: On the level of priority axes, investment priorities and specific objectives, the impact of OPIC 2014-2020 on groundwaters as a whole is a complex positive character. 227 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Realization of the priority axes will improve the overall condition of groundwaters in Bulgaria. 6.5. Impact on the subsoil

Priority axes (PA), investment priorities (IS) Description of the impact and specific objectives (SO)

PA 1: "Technological development and Generally, the priority axis is not expected to Innovation affect the subsoil. Duration of effects: long-term; Scope of impact: local;

Investment priority 1.1. "Technological Construction of Sofia Tech-Park will result in development and Innovation" minor impacts on the subsoil for the construction of new buildings. But they will be Specific objective 1.1. Increasing innovation in urban areas with infrastructure. activity of enterprises by at least 3.5% by 2023 Duration of effects: long-term; Eligible activities: Scope of impact: local;  development of cooperation for

innovation between enterprises, between business and academia, and between business and other carriers of innovation capacityholders, incl. internationalisation of innovation process;  support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research;

PA 2: „Entrepreneurship and Capacity for Generally, the priority axis is not expected to growth of SMEs“ affect the subsoil. Investment priority 2.1. „Access to finance Duration of effects: long-term; for supporting entrepreneurship” Scope of impact: local; 228 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Specific objective 2.1. Encouraging No activities that would influence on the entrepreneurial activity by at least 2% till 2023 subsoil.  financial instruments for support of entrepreneurship;  encouraging entrepreneurial ideas in areas related to European and regional challenges;

Investment priority 2.2. „Capacity for SMEs No activities that would influence on the to grow ” subsoil. Specific objective 2.2.. Strengthen the export Duration of effects: long-term; potential of Bulgarian SMEs by at least 10% by Scope of impact: local; 2023

229 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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PA 3: Energy and Resource Efficiency During the implementation on construction of gas interconnection Bulgaria-Serbia subsoil Investment priority 3.1. "Energy technologies would be affected in insignificant part. and energy efficiency" Duration of effects: long-term; Specific objective 3.1. Reducing energy Scope of impact: local; intensity by at least 5% by 2023

Investment priority 3.2. „Resource No activities that would influence on the Efficiency” subsoil. Specific objective 3.2. Increase the resource Duration of effects: long-term; efficiency of SMEs by at least 0.4% by 2023 Scope of impact: local; support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises.

PA 4: Technical Assistance Implementation of the activities under priority SO 4.1: Support for effective and efficient axis: Technical assistance will have an indirect implementation of actions related to the positive impact on subsoil in Bulgaria. programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; SO 4.2: Provision of adequate and timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; SO 4.3: . Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better use of 230 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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its financial resources.

Summary: On the level of priority axes, investment priorities and specific objectives, the impact of OPIC 2014-2020 on the subsoil would be insignificant. Construction of Sofia Tech-Park and gas interconnection Bulgaria-Serbia would result in insignificant part subsoil.

231 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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6.6. Impact on soils and land use

Priority axes (PA), investment priorities (IS) Description of the impact and specific objectives (SO)

PA 1: "Technological development and Generally, the priority axis is not expected to Innovation affect the soil and land use. Duration of effects: long-term; Scope of impact: local;

Investment priority 1.1. "Technological Construction of Sofia Tech- Park will result in development and Innovation" insignificant impacts on soils in the construction of new buildings. But they will be Specific objective 1.1. Increasing innovation in urban areas with developed infrastructure. activity of enterprises by at least 3.5% by 2023 Subject to the Bulgarian and European Eligible activities: legislation on soil impacts will be limited to within the site.  development of cooperation for innovation between enterprises, Nture of impact: direct; between business and academia, and Duration of effects: long-term; between business and other carriers of Scope of impact: local; innovation capacityholders, incl. internationalisation of innovation process;  support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research

PA 2: „Entrepreneurship and Capacity for Generally, the priority axis is not expected to growth of SMEs“ affect significantly the soil and land use. Duration of effects: long-term; Scope of impact: local; Investment priority 2.1. „Access to finance for supporting entrepreneurship” No activities that would influence on the soil and land use. Specific objective 2.1. Encouraging 232 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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entrepreneurial activity by at least 2% till 2023 It is possible to influence soil during realization of new investment proposals in the  financial instruments for support of construction phase. entrepreneurship; Nture of impact: direct;  encouraging entrepreneurial ideas in areas related to European and regional Duration of effects: long-term; challenges; Scope of impact: local;

Investment priority 2.2. „Capacity for SMEs No activities that would influence on the soil to grow ” and land use. Specific objective 2.2.. Strengthen the export Nture of impact: direct; potential of Bulgarian SMEs by at least 10% by Duration of effects: long-term; 2023 Scope of impact: local;  support for enhancing the production

capacity for growth through effective and efficient use of the factors of production and through creation opportunities for adoption and adaptation of European and international knowledge and technology;  support for the growth of businesses by improving quality and by using information and communication technologies;  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export.

233 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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PA 3: Energy and Resource Efficiency There is a possible negative impact on soils and land use during realisation of gas Investment priority 3.1. "Energy technologies interconnection Bulgaria-Serbia, depending on and energy efficiency" the areas that will be used for realization of the Specific objective 3.1. Reducing energy project resulting by the urbanization of areas. intensity by at least 5% by 2023 Nature of impact: direct; negative  support for increasing the energy Duration of effects: long-term; efficiency in enterprises; Scope of impact: local;  support for increasing the flexibility of the supply aiming at additional opportunities for enterprises to achieve energy savings;  institutional support for sustainable energy development.

Investment priority 3.2. „Resource Expected impacts on soils and land use are positive in the implementation of IP 3.2. The Efficiency” result of IP implementation will be reduced Specific objective 3.2. Increase the resource consumption of raw materials and therefore - efficiency of SMEs by at least 0.4% by 2023 less impact on the soil. support for pilot and demonstration innitiatives Nature of impact: secondary; positive to increase the resource efficiency in Duration of effects: long-term; enterprises/or group of enterprises. Scope of impact: local;

PA 4: Technical Assistance Implementation of the activities under priority SO 4.1: Support for effective and efficient axis: Technical assistance will have an indirect implementation of actions related to the positive impact on soils and land use in programming, management, monitoring, Bulgaria. evaluation and control of OPIC in accordance with the current legislation and existing best practices; SO 4.2: Provision of adequate and timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; SO 4.3: . Strengthening the capacity of the beneficiaries of OPIC for participation in the 234 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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programme implementation and better use of its financial resources.

Summary: On the level of priority axes, investment priorities and specific objectives, the impact of OPIC 2014-2020 on the soil and land use would be insignificant. Construction of Sofia Tech-Park and gas interconnection Bulgaria-Serbia would lead to a direct impact on soil, which is limited in scope. 6.7. Impact on vegetation

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

PA 1: "Technological development The impact would be secondary, positive, long-term, and Innovation permanent.

Investment priority 1.1. OPIC 2014-2020 will lead to development of "Technological development and cooperation for innovation between enterprises, between Innovation" business and academia, and between business and other carriers of innovation capacityholders, incl. Specific objective 1.1. Increasing internationalisation of innovation process; support for innovation activity of enterprises by at innovation in enterprises, incl. development and least 3.5% by 2023 introduction of new products, processes and business Eligible activities: models in enterprises; support for the development of environment and infrastructure for innovation and  development of cooperation research; for innovation between The implementation of objectives set in PA 1 will lead enterprises, between business to increase the number of innovative enterprises, and academia, and between developing products with high added value, which will business and other carriers of reduce the negative impacts on the environmental innovation capacityholders, components through generation of less waste gas, waste incl. internationalisation of water, solid waste and invade new territories. These innovation process; positive impacts will indirectly reduce the pressure on  support for innovation in biodiversity as a whole, incl. flora, vegetation and enterprises, incl. development habitats. and introduction of new products, processes and business models in enterprises;  support for the development of

235 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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environment and infrastructure for innovation and research.

PA 2: „Entrepreneurship and The impact would be secondary, positive, long-term, Capacity for growth of SMEs“ permanent.

The impact would be secondary, positive, long-term, Investment priority 2.1. „Access to permanent as OPIC 2014-2020 will contribute to the finance for supporting creation of new sustainable enterprises and encouraging entrepreneurship” entrepreneurial ideas in areas related to European and Specific objective 2.1. Encouraging regional challenges, in line with European entrepreneurial activity by at least 2% environmental legislation and strategies developed at till 2023 European and national level.  financial instruments for It is possible direct, negative, short-term impacts support of entrepreneurship; resulting from the implementation of new investment proposals when they are located in areas outside  encouraging entrepreneurial settlements in resort areas or near objects with protected ideas in areas related to mode under BDA and PA. European and regional challenges;

Investment priority 2.2. „Capacity No expected direct or indirect activities that would for SMEs to grow ” influence on vegetation and habitats. Specific objective 2.2.. Strengthen the export potential of Bulgarian SMEs by at least 10% by 2023  support for enhancing the production capacity for growth through effective and efficient use of the factors of production and through creation opportunities for adoption and adaptation of European and international knowledge and technology;  support for the growth of businesses by improving quality and by using information and 236 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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communication technologies;  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export.

PA 3: Energy and Resource The impact would be secondary, positive, long-term, Efficiency permanent. Funding this PA will lead to increasing the energy and resource efficiency in enterprises. This Investment priority 3.1. "Energy would indirectly lead to a reduction of generated waste technologies and energy efficiency" emissions from industries and related energy production Specific objective 3.1. Reducing and mining, which in turn will indirectly reduce the energy intensity by at least 5% by pressures on biodiversity. 2023  support for increasing the energy efficiency in enterprises;  support for increasing the flexibility of the supply aiming at additional opportunities for enterprises to achieve energy savings;  institutional support for sustainable energy development. Investment priority 3.2. „Resource Efficiency” Specific objective 3.2. Increase the resource efficiency of SMEs by at least 0.4% by 2023  support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises.

237 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Summary: Overall impact of OPIC on flora and vegetation will be positive in nature, secondary, permanently. It is not expected negatively impact on flora and vegetation in compliance with the Bulgarian and European legislation. 6.8. Impact on wildlife

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

PA 1: "Technological development The impact would be secondary, positive, long-term, and Innovation permanent.

238 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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models in enterprises; support for the development of Eligible activities: environment and infrastructure for innovation and  development of cooperation research; for innovation between The implementation of objectives set in PA 1 will lead enterprises, between business to increase the number of innovative enterprises, and academia, and between developing products with high added value, which will business and other carriers of reduce the negative impacts on the environmental innovation capacityholders, components through generation of less waste gas, waste incl. internationalisation of water, solid waste and invade new territories. These innovation process; positive impacts will indirectly reduce the pressure on  support for innovation in biodiversity as a whole, incl. fauna. enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research.

PA 2: „Entrepreneurship and The impact would be secondary, positive, long-term, Capacity for growth of SMEs“ permanent.

challenges;

Investment priority 2.2. „Capacity No expected direct or indirect activities that would for SMEs to grow ” influence on fauna. 239 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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240 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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PA 3: Energy and Resource The impact would be secondary, positive, long-term, Efficiency permanent. Funding this PA will lead to increasing the energy and resource efficiency in enterprises. This Investment priority 3.1. "Energy would indirectly lead to a reduction of generated waste technologies and energy efficiency" emissions from industries and related energy production Specific objective 3.1. Reducing and mining, which in turn will indirectly reduce the energy intensity by at least 5% by pressures on biodiversity. 2023  support for increasing the energy efficiency in enterprises;  support for increasing the flexibility of the supply aiming at additional opportunities for enterprises to achieve energy savings;  institutional support for sustainable energy development. Investment priority 3.2. „Resource Efficiency” Specific objective 3.2. Increase the resource efficiency of SMEs by at least 0.4% by 2023 support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises.

PA 4: Technical Assistance Activities under this priority axis (organizational, SO 4.1: Support for effective and administrative, etc.) are associated with indirect impact efficient implementation of actions on the environment as a result of taken decisions. related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; SO 4.2: Provision of adequate and 241 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; SO 4.3: . Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better use of its financial resources.

Summary: Overall impact of OPIC on fauna will be positive in nature, secondary, permanently. It is not expected negatively impact on fauna in compliance with the Bulgarian and European legislation. 6.9. Impact on protected sites under the Biodiversity Act

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

PA 1: "Technological development Impact would be secondary, positive, long-term, and Innovation permanent.

Investment priority 1.1. OPIC 2014-2020 will lead to development of "Technological development and cooperation for innovation between enterprises, Innovation" between business and academia, and between business and other carriers of innovation capacityholders, incl. Specific objective 1.1. Increasing internationalisation of innovation process; support for innovation activity of enterprises by at innovation in enterprises, incl. development and least 3.5% by 2023 introduction of new products, processes and business Eligible activities: models in enterprises; support for the development of environment and infrastructure for innovation and  development of cooperation research; for innovation between The implementation of objectives set in PA 1 will lead enterprises, between business to increase the number of innovative enterprises, and academia, and between developing products with high added value, which will business and other carriers of reduce the negative impacts on the environmental innovation capacityholders, components through generation of less waste gas, incl. internationalisation of waste water, solid waste and invade new territories. innovation process; 242 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 support for innovation in These positive impacts will indirectly reduce the enterprises, incl. development pressure on biodiversity and thus will help to meet the and introduction of new objectives of designation of protected sites under products, processes and European ecological network Natura 2000. business models in enterprises;  support for the development of environment and infrastructure for innovation and research.

PA 2: „Entrepreneurship and Impact would be secondary, positive, long-term, Capacity for growth of SMEs“ permanent.

The impact would be secondary, positive, long-term, Investment priority 2.1. „Access to permanent as OPIC 2014-2020 will contribute to the finance for supporting creation of new sustainable enterprises and entrepreneurship” encouraging entrepreneurial ideas in areas related to Specific objective 2.1. Encouraging European and regional challenges, in line with entrepreneurial activity by at least 2% European environmental legislation and strategies till 2023 developed at European and national level.  financial instruments for It is possible direct, negative, short-term impacts support of entrepreneurship; resulting from the implementation of new investment proposals when they are located in areas outside  encouraging entrepreneurial settlements in resort areas or near protected sites under ideas in areas related to NATURA 2000. European and regional challenges;

Investment priority 2.2. „Capacity No expected direct or indirect activities that would for SMEs to grow ” influence on protected sites under Biodiversity Act. Specific objective 2.2.. Strengthen the export potential of Bulgarian SMEs by at least 10% by 2023  support for enhancing the production capacity for growth through effective and efficient use of the factors of production and through creation opportunities for adoption and adaptation of 243 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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European and international knowledge and technology;  support for the growth of businesses by improving quality and by using information and communication technologies;  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export.

 support for increasing the energy efficiency in enterprises;  support for increasing the flexibility of the supply aiming at additional opportunities for enterprises to achieve energy savings;  institutional support for sustainable energy development. Investment priority 3.2. „Resource Efficiency” Specific objective 3.2. Increase the resource efficiency of SMEs by at least 0.4% by 2023

244 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises.

Summary: Overall impact of OPIC on protected sites will be positive in nature, secondary, permanently. It is not expected negatively impact on protected sites under Biodiversity Act. 6.10. Impact on protected areas under the Protected Areas Act

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

PA 1: "Technological development Impact would be secondary, positive, long-term, and Innovation permanent.

Investment priority 1.1. OPIC 2014-2020 will lead to development of "Technological development and cooperation for innovation between enterprises, between Innovation" business and academia, and between business and other 245 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Specific objective 1.1. Increasing carriers of innovation capacityholders, incl. innovation activity of enterprises by at internationalisation of innovation process; support for least 3.5% by 2023 innovation in enterprises, incl. development and introduction of new products, processes and business Eligible activities: models in enterprises; support for the development of environment and infrastructure for innovation and  development of cooperation research; for innovation between enterprises, between business The implementation of objectives set in PA 1 will lead and academia, and between to increase the number of innovative enterprises, business and other carriers of developing products with high added value, which will innovation capacityholders, reduce the negative impacts on the environmental incl. internationalisation of components through generation of less waste gas, waste innovation process; water, solid waste and invade new territories. These positive impacts will indirectly reduce the pressure on  support for innovation in plant and animal species subject to conservation in enterprises, incl. development protected areas. and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research.

PA 2: „Entrepreneurship and Impact would be secondary, positive, long-term, Capacity for growth of SMEs“ permanent. Investment priority 2.1. „Access to finance for supporting The impact would be secondary, positive, long-term, entrepreneurship” permanent as OPIC 2014-2020 will contribute to the Specific objective 2.1. Encouraging creation of new sustainable enterprises and encouraging entrepreneurial ideas in areas related to European and entrepreneurial activity by at least 2% regional challenges, in line with European till 2023 environmental legislation and strategies developed at  financial instruments for European and national level. support of entrepreneurship; It is possible direct, negative, short-term impacts  encouraging entrepreneurial resulting from the implementation of new investment ideas in areas related to proposals when they are located in areas with protected European and regional mode under the Protected Areas Act. challenges;

246 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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247 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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PA 4: Technical Assistance Activities under this priority axis (organizational, SO 4.1: Support for effective and administrative, etc.) are associated with indirect impact efficient implementation of actions on the environment as a result of taken decisions. related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; SO 4.2: Provision of adequate and 248 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Summary: Overall impact of OPIC on protected areas will be positive in nature, secondary, permanently. It is not expected negatively impact on protected areas. 6.11. Impact on the landscape

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

PA 1: "Technological development and No expected significant adverse impacts on the Innovation . landscape. Implementation of activities under the priority will improve the aesthetic qualities of the landscape, visual and spatial. Scope of impact will be boundaries of the project implementation. Impact of PA 1 is evaluated as primary, non- cumulative, medium and long-term, temporary, positive.

249 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Investment priority 1.1. "Technological Impact of IP 1.1 and SO 1.1 is evaluated as development and Innovation" primary, non-cumulative, medium and long- term, temporary, positive. Specific objective 1.1. Increasing innovation activity of enterprises by at least 3.5% by 2023 Eligible activities: There are expected impacts on the landscape which are connected with implementation of  development of cooperation for activities related to "Development of innovation between enterprises, environment and infrastructure for between business and academia, innovation and research” and the and between business and other implementation of technological park "Sofia carriers of innovation Tech-park". The project will be implemented on capacityholders, incl. a former military property. Impacts will affect internationalisation of innovation the horizontal and vertical structure of the process; landscape as a result of construction work. The  support for innovation in landscape components subsoil, soil and enterprises, incl. development and vegetation will be affected. Subsoil will be introduction of new products, directly affected as a result of excavation during processes and business models in construction. Impact is evaluated as directly enterprises; negative, irreversible, small in scope only within the site. support for the development of environment and infrastructure for Impact on landscape components - soils and innovation and research vegetation is assessed as direct primary, negative, reversible, small-scale, within the construction site. Impact on landscape components - soils and vegetation is evaluated as direct, primary, negative, reversible, small-scale, within the construction site. Soils are subject of mechanical impact consequence of excavation . Vegetation will be destroyed in sections which are directly affected by the construction works on the technology park. Will be carried out development of the territory as a result of the implementation of "Sofia Tech-park" on the abandoned former military property. Visual perception of the landscape 250 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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will change in positive. Impact on this activity is evaluated as primary, non-cumulative, long-term, temporary, positive. Other activities in IP 1.1. are not expected to have an impact on the landscape.

PA 2: „Entrepreneurship and Capacity Impacts of IP 2.1 and SO 2.1 are evaluated as for growth of SMEs“ primary, non-cumulative, medium and long- term, temporary, positive. Investment priority 2.1. „Access to finance for supporting entrepreneurship” No expected significant adverse impacts on the landscape. Implementation of activities under Specific objective 2.1. Encouraging the priority will improve the aesthetic qualities entrepreneurial activity by at least 2% till of the landscape, visual and spatial. 2023 Scope of impact will be boundaries of the  financial instruments for support project implementation. of entrepreneurship; Impact of PA 2 is evaluated as primary, non-  encouraging entrepreneurial ideas cumulative, medium and long-term, temporary, in areas related to European and positive. regional challenges; Any impacts on the landscape are expected. They are connected with “Financial instruments for support of entrepreneurship”. Imacts are associated with the implementation of new and expansion of existing industries. Scope of the impact will be within the territory of which will be carried out and it is associated with any construction activities. Impact is evaluated as primary, non-cumulative, medium and long-term, temporary, positive. Other activities in IP 2.1. not expected to have an impact on the landscape.

Investment priority 2.2. „Capacity for Impact is evaluated as primary, non-cumulative, SMEs to grow ” medium and long-term, temporary, positive, as it is expected to improve the environmental Specific objective 2.2.. Strengthen the quality and conservation of landscape. export potential of Bulgarian SMEs by at least 10% by 2023 There are expected impacts on landscape within the territory of which will be carried out as a 251 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 support for enhancing the result of implementation of activities under production capacity for growth “Support for enhancing the production through effective and efficient use capacity for growth and creation of of the factors of production and competitive advantages through effective and through creation opportunities for efficient use of the factors of production”. adoption and adaptation of European and international knowledge and technology;  support for the growth of businesses by improving quality and by using information and communication technologies;  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export.

PA 3: Energy and Resource Efficiency No expected significant adverse impacts on the landscape. Implementation of activities under the priority will improve efficiency use of natural resources and contribute to the conservation of landscape. Scope of impact will be boundaries of the project implementation. Impact of PA 3 is evaluated as primary, non- cumulative, medium and long-term, temporary, positive as it will enhance the quality of the environment through the introduction of new technologies, introduction of best practices, improve resource efficiency and effectiveness in the manufacturing process.

Investment priority 3.1. "Energy Impact of IP 3.1. and SO 3.1 is evaluated as technologies and energy efficiency" primary, non-cumulative, medium and long- term, temporary, positive, as it is expected to Specific objective 3.1. Reducing energy improve the environmental quality and intensity by at least 5% by 2023 conservation of landscape.  support for increasing the energy 252 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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efficiency in enterprises;  support for increasing the There are expected impacts on landscape in flexibility of the supply aiming at connection with the implementation of the additional opportunities for action “Support for enhancing energy enterprises to achieve energy security, energy independence and energy savings; efficiency of the country" and project implementation of gas interconnection

 institutional support for Bulgaria-Serbia, Phase 2 on the territory of sustainable energy development. Bulgaria. The landscape components subsoil, soil and vegetation will be affected as a result of construction work on the pipeline. Subsoil will be directly affected as a result of excavation during construction. Impact is evaluated as directly negative, irreversible, small in scope only within the site. Impact on landscape components soils and vegetation is assessed as direct, primary, negative, reversible, small-scale, within the construction site. Impact on landscape components soils and vegetation is evaluated as direct, primary, negative, reversible, small-scale, within the construction site. Soils are subject of mechanical impact consequence of excavation . Vegetation will be destroyed in sections which are directly affected by the construction works on the technology park. After project implementation of the affected areas will be rehabilitated. Impact on this activity is evaluated as primary, non-cumulative, long-term, temporary, positive.

Investment priority 3.2. „Resource Impact of IP 3.2 is evaluated as primary, non- Efficiency” cumulative, medium and long-term, temporary, Specific objective 3.2. Increase the positive. It will improve landscape as a result of resource efficiency of SMEs by at least improving resource efficiency . 0.4% by 2023 Eligible activities under this IP 3.2. are not

253 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 support for pilot and associated with effects on the landscape. demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises. PA 4: Technical Assistance No expected impact on the landscape.

SO 4.1: Support for effective and No expected impact on the landscape. efficient implementation of actions related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; SO 4.2: Provision of adequate and timely No expected impact on the landscape. information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation;

SO 4.3: . Strengthening the capacity of No expected impact on the landscape. the beneficiaries of OPIC for participation in the programme implementation and better use of its financial resources.

Summary: No expected significant adverse impacts on the landscape. Implementation of activities under the priorities will improve the aesthetic qualities of the landscape, visual and spatial. 6.12. Impact on material assets

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

254 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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PA 1: "Technological development The impact will be direct, positive, long-term, and Innovation permanent. OPIC 2014 - 2020 will lead to the creation of innovative enterprises and related infrastructure (material assets). Investment priority 1.1. "Technological development and Innovation"

Specific objective 1.1. Increasing innovation activity of enterprises by at least 3.5% by 2023 Eligible activities:  development of cooperation for innovation between enterprises, between business and academia, and between business and other carriers of innovation capacityholders, incl. internationalisation of innovation process;  support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research.

PA 2: „Entrepreneurship and The impact will be direct, positive, long-term, Capacity for growth of SMEs“ permanent. Investment priority 2.1. „Access to OPIC 2014-2020 will lead to the creation of new finance for supporting enterpises and thus creating new material assets. entrepreneurship” Specific objective 2.1. Encouraging entrepreneurial activity by at least 2% till 2023

255 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 financial instruments for support of entrepreneurship;  encouraging entrepreneurial ideas in areas related to European and regional challenges;.

Investment priority 2.2. „Capacity The impact will be direct, secondary, positive, long- for SMEs to grow ” term, permanent. Specific objective 2.2.. Strengthen the OPIC 2014-2020 will lead to strengthen export potential export potential of Bulgarian SMEs of enterprises by strengthening the expertise by at least by at least 10% by 2023 10%, which is connected to the creation of material assets for production.  support for enhancing the production capacity for growth through effective and efficient use of the factors of production and through creation opportunities for adoption and adaptation of European and international knowledge and technology;  support for the growth of businesses by improving quality and by using information and communication technologies  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export.

256 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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PA 3: Energy and Resource The impact will be direct, secondary, positive, long- Efficiency term, permanent. Investment priority 3.1. "Energy Implementation of PA 3 will lead to the introduction of technologies and energy efficiency" energy technologies and rehabilitation of existing assets in order to improve energy efficiency. Specific objective 3.1. Reducing energy intensity by at least 5% by 2023  support for increasing the energy efficiency in enterprises;  support for increasing the flexibility of the supply aiming at additional opportunities for enterprises to achieve energy savings;  institutional support for sustainable energy development. Investment priority 3.2. „Resource Efficiency” Specific objective 3.2. Increase the resource efficiency of SMEs by at least 0.4% by 2023  support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises. PA 4: Technical Assistance No direct connection with material assets. SO 4.1: Support for effective and efficient implementation of actions related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; 257 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Summary: Implementation of OPIC 2014-2020 will have a positive impact on the assets, as the priority axes, investment priorities and specific objectives of the program are related to the creation of new enterprises and modernization of existing ones. 6.13. Impact on heritage including architectural and archaeological heritage

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

PA 1: "Technological development The impact would be secondary, positive, long-term, and Innovation permanent.

Investment priority 1.1. OPIC 2014 – 2020 would lead to development of "Technological development and cooperation for innovation between enterprises, between Innovation" business and academia to improve conditions for the research commercialization; support for innovation in Specific objective 1.1. Increasing enterprises, incl. development and introduction of new innovation activity of enterprises by at products, processes and business models in enterprises; least 3.5% by 2023 support for the development of environment and Eligible activities: infrastructure for innovation and research. Implementation of the activities on IP 1 is associated  development of cooperation with acquiring new territory for reconstruction, for innovation between modernization or new construction of facilities enterprises, between business necessary for the development of innovation and and academia, and between entrepreneurship. It can potentially has a negative business and other carriers of impact on unsolved at present cultural heritage sites and innovation capacityholders, particular archaeological heritage. In case that cultural incl. internationalisation of 258 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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innovation process; values are found (mainly archaeological) and meets the necessary measures are expected to impact on the  support for innovation in component positively. enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research.

PA 2: „Entrepreneurship and The impact would be secondary, positive, long-term, Capacity for growth of SMEs“ permanent. Investment priority 2.1. „Access to Expected impacts of the implementation of the activities finance for supporting on IP 2.1. related to reconstruction, modernization or entrepreneurship” new construction are similar to those for IP 1.1. Specific objective 2.1. Encouraging entrepreneurial activity by at least 2% till 2023  financial instruments for support of entrepreneurship;  encouraging entrepreneurial ideas in areas related to European and regional challenges;. No expected direct or indirect impacts on cultural Investment priority 2.2. „Capacity heritage. for SMEs to grow ”

Specific objective 2.2.. Strengthen the export potential of Bulgarian SMEs by at least 10% by 2023  support for enhancing the production capacity for growth through effective and efficient use of the factors of production and through creation opportunities for adoption and adaptation of 259 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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PA 3: Energy and Resource The impact would be secondary, positive, long-term, Efficiency permanent. Funding this PA this will lead to increasing resource and energy efficiency of enterprises, which Investment priority 3.1. "Energy would indirectly reduce the need for energy production technologies and energy efficiency" and mining. This in turn will indirectly reduce the risk of Specific objective 3.1. Reducing seizure new territories and destruction of cultural energy intensity by at least 5% by heritage. 2023  support for increasing the energy efficiency in enterprises;  support for increasing the flexibility of the supply aiming at additional opportunities for enterprises to achieve energy savings;  institutional support for sustainable energy development. Investment priority 3.2. „Resource Efficiency” Specific objective 3.2. Increase the resource efficiency of SMEs by at least 0.4% by 2023

260 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises.

PA 4: Technical Assistance No activities that would have an impact on cultural SO 4.1: Support for effective and heritage. efficient implementation of actions related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; SO 4.2: Provision of adequate and timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; SO 4.3: . Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better use of its financial resources.

Summary: No expected negative impact on the cultural and architectural heritage in the implementation of OPIC 2014-2020. Subject to the requirements of Bulgarian and European legislation expected positive long-term, indirect effects. 6.14. Impact on population and health (health and hygiene aspects of the environment)

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

PA 1: "Technological development The impact would be secondary, positive, long-term, and Innovation permanent.

Investment priority 1.1. PA 1. Intellectual work will droop its share in the 261 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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"Technological development and economy. This would have economic and health -social Innovation" effects. Innovation will find faster and more efficient implementation, economic growth and positively impact Specific objective 1.1. Increasing on health-social status of population. innovation activity of enterprises by at least 3.5% by 2023 IP. 1. Support for different groups of beneficiaries with the introduction of innovative technologies would lead Eligible activities: to increasing their productivity and competitiveness. It is expected positive health and hygienic effect by  development of cooperation improving the standard of living. for innovation between enterprises, between business SO. Development of cooperation between business and and academia, and between academia and commercialization of research products business and other carriers of will lead to faster innovation realization and its increase innovation capacityholders, by at least 4% by the end of the programming period. incl. internationalisation of This, especially in lagging regions will have a positive innovation process; economic, demographic and social impact.  support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research. The impact would be secondary, positive, long-term, PA 2: „Entrepreneurship and permanent. Capacity for growth of SMEs“ Investment priority 2.1. „Access to Support for different groups of beneficiaries would lead finance for supporting to increasing entrepreneurial activity. This will result in entrepreneurship” improving business environment and living standards. By improving the standard of living It is expected Specific objective 2.1. Encouraging positive health and hygienic effect by improving living entrepreneurial activity by at least 2% standards. till 2023

 financial instruments for support of entrepreneurship;  encouraging entrepreneurial ideas in areas related to European and regional 262 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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challenges;.

The impact would be secondary, positive, long-term, Investment priority 2.2. „Capacity permanent. for SMEs to grow ”

Specific objective 2.2.. Strengthen the export potential of Bulgarian SMEs Strengthen the export potential by 10% will increase the by at least 10% by 2023 living standard. This, especially in lagging regions will have a positive economic, demographic and social  support for enhancing the impact. production capacity for growth through effective and efficient use of the factors of production and through creation opportunities for adoption and adaptation of European and international knowledge and technology;  support for the growth of businesses by improving quality and by using information and communication technologies  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export.

263 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The impact would be secondary, positive, long-term, PA 3: Energy and Resource Efficiency permanent. PA 3. Enterprises will achieve greater economic growth Investment priority 3.1. "Energy and will improve living standards by promoting energy technologies and energy efficiency" efficiency and use of renewable energy sources in the energy sector. Specific objective 3.1. Reducing energy intensity by at least 5% by IP. Development of efficient energy technologies and their implementation in enterprises will reduce 2023 production costs and increase the competitiveness of  support for increasing the producers. This will have economic and social-health energy efficiency in impacts. enterprises; SO. Reducing energy intensity by 5% by the end of the  support for increasing the program period will reduce greenhouse gases and flexibility of the supply aiming particulate emissions. Improvement of ecological at additional opportunities for environment will have direct health effects on enterprises to achieve energy population. savings;  institutional support for sustainable energy development. Investment priority 3.2. „Resource Efficiency” Specific objective 3.2. Increase the resource efficiency of SMEs by at least 0.4% by 2023  support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises.

PA 4: Technical Assistance No activities that would have an impact on health status. SO 4.1: Support for effective and efficient implementation of actions related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; 264 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Summary: Implementation of OPIC 2014-2020 will contribute to improving the living environment and living standards, which in turn will contribute to the improvement of health and hygiene aspects of the environment and quality of life. 6.15. Impact of the harmful physical factors

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

PA 1: "Technological development The impact would be secondary, positive, long-term, and Innovation permanent.

Investment priority 1.1. "Technological development and OPIC 2014-2020 will lead to the introduction of Innovation" innovative and advanced technologies, creation of Specific objective 1.1. Increasing innovative enterprises. This type of technology and associated equipment are characterized by noise innovation activity of enterprises by at parameters that meet the highest European standards. least 3.5% by 2023 Eligible activities:  development of cooperation for innovation between enterprises, between business and academia, and between business and other carriers of innovation capacityholders, incl. internationalisation of 265 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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innovation process;  support for innovation in enterprises, incl. development and introduction of new products, processes and business models in enterprises;  support for the development of environment and infrastructure for innovation and research. The impact would be secondary, positive, long-term, PA 2: „Entrepreneurship and permanent. Capacity for growth of SMEs“ Investment priority 2.1. „Access to finance for supporting OPIC 2014-2020 will lead to the introduction of entrepreneurship” innovative and advanced technologies, creation of Specific objective 2.1. Encouraging innovative enterprises. This type of technology and entrepreneurial activity by at least 2% associated equipment are characterized by noise parameters that meet the highest European standards. till 2023

 financial instruments for support of entrepreneurship;  encouraging entrepreneurial ideas in areas related to European and regional challenges;. The impact would be secondary, positive, long-term, Investment priority 2.2. „Capacity permanent. for SMEs to grow ” Specific objective 2.2.. Strengthen the Strengthen the export potential by 10% will increase the export potential of Bulgarian SMEs living standard. This, especially in lagging regions will by at least 10% by 2023 have a positive economic, demographic and social  support for enhancing the impact. production capacity for growth through effective and efficient use of the factors of production and through creation opportunities for adoption and adaptation of 266 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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European and international knowledge and technology;  support for the growth of businesses by improving quality and by using information and communication technologies  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export. The impact would be secondary, positive, long-term, PA 3: Energy and Resource Efficiency permanent. PA 3. By promoting energy efficiency and use of Investment priority 3.1. "Energy renewable energy sources in the energy sector technologies and energy efficiency" enterprises will achieve introduction of - good sources connected with - lower noise levels than conventional Specific objective 3.1. Reducing energy sources. energy intensity by at least 5% by 2023 IP. Development of efficient energy technologies and their implementation in enterprises will reduce reduce  support for increasing the noise generation in the environment. energy efficiency in enterprises;  support for increasing the SO. Reducing energy intensity by 5% by the end of the flexibility of the supply aiming program period will reduce energy use and repectivly at additional opportunities for reduce noise which is connected with generation of enterprises to achieve energy energy. savings;  institutional support for sustainable energy development. Investment priority 3.2. „Resource Efficiency” Specific objective 3.2. Increase the resource efficiency of SMEs by at least 0.4% by 2023

267 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises.

PA 4: Technical Assistance No activities that would have an adverse impact on SO 4.1: Support for effective and physical factors. efficient implementation of actions related to the programming, management, monitoring, evaluation and control of OPIC in accordance with the current legislation and existing best practices; SO 4.2: Provision of adequate and timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; SO 4.3: . Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better use of its financial resources.

Summry: Implementation of OPIC 2014-2020 will contribute directly and indirectly to reduce noise levels. 6.16. Impact in terms of waste

Priority axes (PA), investment Description of the impact priorities (IS) and specific objectives (SO)

PA 1: "Technological development The impact would be direct and positive, long-term, and Innovation permanent, for the following reasons: creation of conditions to encourage investment in the development

of products and services, technology transfer, social Investment priority 1.1. innovation, eco-innovation, including in the field of "Technological development and environmentally waste treatment. Innovation" 268 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Specific objective 1.1. Increasing When the waste from one enterprise can be raw material innovation activity of enterprises by at for another it is a growth potential in the realization of least 3.5% by 2023 industrial symbiosis between enterprises in the target groups of OPIC 2014-2020. The Operational Eligible activities: Programme stimulate approval of products, eg. by waste, advanced manufacturing capabilities and first  development of cooperation production, particularly in key enabling technologies for for innovation between environmentally sound waste treatment. enterprises, between business and academia, and between The implementation of Operational Programme would business and other carriers of lead to increasing the share of innovative enterprises, innovation capacityholders, which develop independently and innovate as a result, incl. internationalisation of these companies will develop their own capacity and innovation process; enhance competitiveness by offering products and services with high added value in use of waste as a raw  support for innovation in material and energy resources, which will contribute to enterprises, incl. development smart growth of the Bulgarian economy. and introduction of new products, processes and Targeted support to upgrade Sofia Tech-Park as a pilot business models in enterprises; project aimed at creating the first completely new innovative scientific and technological eco-system of  support for the development of advanced level where they can identify, promote and environment and infrastructure develop innovative ideas and projects, including the for innovation and research environmentally sound treatment of waste; Operational Programme provides an opportunity to enhance the innovation activity of enterprises in terms of their own or external waste, which will contribute to achieving the specific objective;

PA 2: „Entrepreneurship and The impact would be direct, positive, long-term, Capacity for growth of SMEs“ permanent, for the following reasons: OP contributes to the creation of new sustainable enterprises and work Investment priority 2.1. „Access to places in them by raising and entrepreneurial activity finance for supporting and successful implementation of new business ideas for entrepreneurship” converting waste into raw material and energy resources Specific objective 2.1. Encouraging which is directly related to the sustainable development entrepreneurial activity by at least 2% of society. This will lead to the implementation of the National Strategy for Promotion of SMEs 2014 – 2020. till 2023  financial instruments for support of entrepreneurship;  encouraging entrepreneurial 269 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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ideas in areas related to European and regional challenges;. The impact would be direct, positive, long-term, Investment priority 2.2. „Capacity permanent, because: provides support services for the for SMEs to grow ” direct benefit to business development in the field of Specific objective 2.2.. Strengthen the business resource efficiency and replacement of export potential of Bulgarian SMEs traditional natural resources with raw resource waste. by at least 10% by 2023 This will reduce the consumption of natural resources, recycling of secondary raw materials, utilization of  support for enhancing the industrial waste, reclamation and/or non-waste production capacity for growth technologies, which will affect the quality and export through effective and efficient potential of Bulgarian SMEs. use of the factors of production and through creation opportunities for adoption and adaptation of European and international knowledge and technology;  support for the growth of businesses by improving quality and by using information and communication technologies  support for the implementation of activities and services for direct benefit of the business development and opportunities for SMEs export.

270 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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The impact would be direct, positive, long-term, PA 3: Energy and Resource permanent because: some waste used as energy source Efficiency led to the promotion of energy efficiency. OP with its Investment priority 3.1. "Energy support for industrial transition towards a resource technologies and energy efficiency" efficient, promoting green growth, eco-innovation and environmental performance management in the public Specific objective 3.1. Reducing and private sector promotes environmentally sound energy intensity by at least 5% by development of enterprises in use of waste as an energy 2023 and raw-material resources which will reduce the energy intensity of the economy and increasing resource  support for increasing the efficiency. energy efficiency in enterprises;  support for increasing the flexibility of the supply aiming at additional opportunities for enterprises to achieve energy savings;  institutional support for sustainable energy development. Investment priority 3.2. „Resource Efficiency” Specific objective 3.2. Increase the resource efficiency of SMEs by at least 0.4% by 2023  support for pilot and demonstration innitiatives to increase the resource efficiency in enterprises/or group of enterprises. PA 4: Technical Assistance Activities under this priority axis (organizational, SO 4.1: Support for effective and administrative, etc.) are associated with indirect impact efficient implementation of actions on the environment as a result of taken decisions. related to the programming, The impact would be indirect, positive, short the stage management, monitoring, evaluation of technical assistance, temporarily, because: it would and control of OPIC in accordance help beneficiaries to seek advanced technological with the current legislation and capabilities for environmentally sound waste existing best practices; 271 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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SO 4.2: Provision of adequate and management and implementation of best practices. timely information and raising the public awareness of funding opportunities under OPIC and the criteria, rules and procedures for participation in its implementation; SO 4.3: . Strengthening the capacity of the beneficiaries of OPIC for participation in the programme implementation and better use of its financial resources.

Summary: OPIC 2014-2012 provides activities and opportunities for potential beneficiaries to develop innovative and competitive economic activity that will not have a negative impact on the environment. Moreover actions and efficient alternative resourced activity are stimulated in terms of waste because waste raw material and energy resource that should be used to ensure sustainable developement of our country. The Operational Programme will have positive, long-term and permanent impact in terms of environmental factor “Waste” because it allows for implementation of industrial symbiosis between businesses, introduce new innovative minimal waste or non-waste technologies and deployment of environmentally sound technologies for waste treatment, which will lead to "end of waste". 6.17. Forecast for cumulative impact Not expected negative but only positive cumulative impact of OPIC 2014-2020 with respect to the environment and human health, mainly through the activities under priority axes 1 and 3 of the program. Cumulative impacts are associated with:  reducing emissions of greenhouse gases and pollutants into the air from enterprises through innovation activities, resource and energy efficiency;  reduction of waste, efficient use of water and sanitation through activities of innovation, resource and energy efficiency;  reduce pollution and harmful effects on the environment and human health from the activities of SMEs in general, through the activities of innovation, resource and energy efficiency, including green products, etc..

272 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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6.18. Possible cross-border impact of the provisions of the program on the environment and human health in other countries On the vast project to build a gas interconnection "Bulgaria-Serbia" held within the EIA procedure has been declared by the Republic of Serbia to participate in the procedure (for which Bulgaria has notified the Republic of Serbia under the Convention of environmental Impact assessment in a Transboundary context). By design, the gas connection is planned to be built in the section falling on Bulgarian territory and does not affect the Serbian side. Other activities and projects of OPIC 2014-2020 aimed primarily at SMEs do not suggest a significant impact on the environment and human health both in the country and in other countries. 6.19. Generalizing conclusion Expected under Priority Axis 1, 2 and 3 activities lead to a reduction of greenhouse gas emissions and reduce air pollution. This in turn is a prerequisite for reducing thermal pollution of the urban environment and improve the microclimate in urban areas, which will have a positive impact on climatic factors and slow climate change. Impact of OPIC 2014-2020 to the waters as a whole has a complex positive character as the realization of the priority axes will improve the overall condition of surface and groundwater in Bulgaria. Impact of OPIC 2014-2020, on the geological base will be negligible. Construction of Sofia Tech Park and interconnection Bulgaria-Serbia will lead to minor impacts on the geological basis. Other activities, the level of detail which are formulated in the program, are not associated with effects on the geological base. Impact of OPIC 2014-2020, on soils and land use will be negligible. Construction of Sofia Tech Park and interconnection Bulgaria-Serbia will result in direct impacts on soils, to limit which should implement the measures and conditions laid down by the decisions and acts on the environmental impact assessment and compatibility assessment with the object and conservation objectives of the protected sites. Overall impact of OPIC on flora, vegetation and fauna will be positive, secondary, permanently. Not expected negative impact on flora and vegetation in compliance with the Bulgarian and European legislation. It is announced no negative impact on protected sites under the Biodiversity act and protected areas under the Protected Areas Act. Do not expect significant adverse impacts on the landscape. Implementation of activities under the priority will improve the aesthetic qualities of the landscape, visual and spatial. Implementation of OPIC 2014-2020 will have a positive impact on the assets, as the priority axes, investment priorities and specific objectives of the program are related to the creation of new enterprises and the modernization of existing ones. 273 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Not expected negative impact on the cultural and architectural heritage in the implementation of OPIC 2014-2020. It is expected positive long-term, indirect impact on meet the requirements of Bulgarian and European legislation. Implementation of OPIC 2014-2020 will contribute to improving the living environment and living standards, which in turn will contribute to the improvement of health and hygiene aspects of the environment and quality of life. Implementation of OPIC 2014-2020 will contribute directly and indirectly to reduce noise levels. OPIC 2014-2012, provides activities and opportunities for potential beneficiaries to develop innovative and competitive economic activity that will have a negative impact on the environment. Moreover, in the waste sector stimulate actions for effective and alternative resourced activity because the waste are resource which should be used to ensure the sustainable development of our country. In terms of waste will have positive, long-term and permanent impact because it allows for the implementation of industrial symbiosis between businesses, deployment innovative new technologies with minimal waste or non-waste, and deployment of environmentally sound technologies for waste treatment, which will lead to the "end of waste". Overall, implementation of the operational program, has no significant negative, including cumulative and transboundary impacts, and mostly positive impact on the environment and human health in the country. 7. APPROPRIATE MEASURES ENVISAGED TO PREVENT, REDUCE AND, AS FULLY AS POSSIBLE, OFFSET ANY ADVERSE EFFECTS ON THE ENVIRONMENT AND HUMAN HEALTH RESULTING FROM THE IMPLEMENTATION OF OPIC 2014-2020. Based on analyzes and assessments in the preceding paragraphs of this report, no measures are required to be reflected in the final version of the program, as this account PA, IP, SO and eligible activities do not involve a significant negative impact on the environment and human health. To prevent, reduce and as fully as possible offset any adverse effects of the implementation of the program on the environment and to prevent or reduce the alleged negative health effects the following measures are suggested to be included as conditions/guiding principles for selecting the operations and be used as criteria in the selection of projects for funding:

Measure Expected positive effect

Investment proposals/plans, programs or No significant negative impact on the projects for EIA/SEA (pursuant to the environment. Environmental Protection Act) and the 274 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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assessment of compatibility with the object and purpose of the conservation of protected sites (under the Biodiversity Act) to be approved under the particular law only after a ruling by an act of reconciliation by the competent environmental authorities and to the recommendations of the evaluations, as well as conditions in the act.

To use the results of FRMP of Basin Projects aligning with flooding risk and Directorates during the preparation of flood prevention and consequences. projects.

To include measures for adapting to climate Guaranteed the sustainability of the project change where it is appropriate for the in terms of adverse impacts of climate project. change.

Compliance with the relevant for each Conservation of water and prevent the risk project measures of the Program of of their decay. measures to achieve the objectives of environmental protection in Chapter 7 of each RBMP.

Planning and implementation of projects Protection of the population and its health. and their location should be consistent with the specific activity, expected emissions of harmful substances into the environment and the availability of facilities subject to health protection.

A priority for funding to be given to Achieving maximum environmental effect proposals, providing for the development of by implementation of the programme. new technologies, new products, new processes or new services that contribute to environmental protection or a more efficient use of resources - waste reduction, waste technologies, reduce widespread waste recycling of construction materials, low carbon economy, water purification.

275 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Achieving maximum environmental effect A priority to funding to be given to by implementation of the programme. proposals for IP 2.2 which envisage introduction of systems for environmental management and/or obtain the Ecolabel for products and/or EMAS registration.

A priority to funding to be given to Achieving maximum environmental effect proposals, which envisage implementation by implementation of the programme. of techniques and production practices that limit the adverse effects on human health and environment activities.

276 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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8. THE REASONS FOR THE CHOICE OF THE ALTERNATIVES STUDIED Possible alternatives for OPIC are as follows:  Zero alternative, equivalent to a denial of program implementation  Version 1 – October, 2013;  Version 2 – March, 2014;  Version 3 – May, 2014. The Version 3 – May, 2014 is chosen for implementation of OPIC 2014-2020 on the following grounds: Choosing the "zero alternative" will lead to a loss of environmental benefits of non- realization of investments in innovation and increasing the resource efficiency of Bulgarian economy. All of the three considered alternatives to OPIC 2014-2020 suggest no significant negative impact on the environment and human health. The expected positive impacts on the environment as investment priorities and activities are best - justified and addressed in Version 3 of OPIC 2014-2020 in terms of energy and resource efficiency. Version 3 of OPIC 2014-2020 covers the goals of the strategic documents at national and European level in the fullest possible extent, relating to the protection of the environment and human health, particularly in the areas of innovation and improving energy and resource efficiency. Version 3 of OPIC 2014-2020 is in line with the objectives of environmental protection at national and international level, analyzed in section 5. In Version 3 of OPIC 2014-2020 are reported and included all of the views, recommendations and opinions of the participants in the thematic working group on OPIC 2014-2020 the European Commission and other interested organizations.

277 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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9. METHODS OF CONDUCTING ENVIRONMENTAL ASSESSMENT, USED LEGAL BASIS AND DOCUMENTS AND DIFFICULTIES IN COLLECTING NECESSARY INFORMATION Strategic environmental assessment is a legislatively defined procedure in the following regulations at global, European and national levels:  Protocol on Strategic Environmental Assessment to the Convention to assess the environmental impact in a transboundary context (effective July 2010);  Directive 2001/42/EC on the assessment of certain plans and programmes on the environment;  Environmental Protection Act (EPA);  The Ordinance on the conditions and procedures for environmental assessment of plans and programmes. The purpose of the Strategic environmental assessment is integration of environmental considerations in the development plans, strategies and programs that have potential to impact on the environment and human health with its appling. Thus the environment will be compatible and comply with the actual preparation of the program (OPIC 2014-2020), which contributes to environmental protection and sustainable development as a result of the implementation and realisation of it. Essence of the Strategic Environmental Assessment is to identify, analyse and assess potential impacts on components and environmental factors, incl. human health as a result of implementation of plan / program / strategy at the earliest possible stage of its preparation before its final adoption by the relevant authority responsible. Report on Strategic Environmental Assessment is based on the results of environmental assessment impacts. In the Report on Strategic Environmental Assessment adequate measures are provided for prevention, reduction and mitigation of impacts on the environment and human health, and measures to monitor and control the environmental impact on implementation of the program. Basic methodological documents that were used as required in Section I.9 of Decision № EO-1/2014, were guidelines and methodologies of the European Commission on Strategic Environmental Assessment, published on the Commission's website and the website of the Ministry of Environment and Water:  Manual for Strategic Environmental Assessment of Plans and Programmes in Bulgaria, 2002;

278 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 „Guidelines for the integration of environmental policy and policy on climate change in the funds for CP, CAP and CFP for 2014 - 2020," the stage "Programming of funds to the Common Strategic Framework", approved by a decision in t. 7 of Protocol № 8 of Council of Ministers of the Republic of Bulgaria, held on 01.03.2013.;  Commission's Guidance on the implementation of Directive 2001/42/EC;  Guidance document on ex-ante evaluation, January 2013, published on the website of the European Commission;  Guidance on Integrating Climate Change and Biodiversity into Strategic Environmental Assessment, 2013, published on the website of the European Commission. Regulations that comply with Strategic Environmental Assessment are:  Environmental Protection Act;  Spatial Development Act;  The Air Pollution Control Act;  Water Act;  Forestry Act;  Plant Protection Act;  Biological Diversity Act;  Soils Act;  The Protection from Environmental Noise Act;  Waste Management Act;  Protected Areas Act;  Climate Change Mitigation Act;  Cultural Heritage Act;  Disaster Protection Act;  Health Act;  The Health and Safety at Work Act;  The Ordinance on the conditions and procedures for environmental assessment of planes and programs;

279 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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 The Ordinance on the conditions and procedures for Environmental compatibility assessment of planes, programs, projects and investment proposals with the object and purpose on the conservation of protected sites;  Other secondary legislation on environmental protection, incl. Regulations, Orders, Decrees;  European directives and international conventions (not counted individually as transposed / ratified by national law). There are no difficulties encountered in collecting the required information for reporting on SEA. As difficulty, leading to a low level of detail of made forecasts and makes them more indicative than quantitative, it may indicate a lack of specific investment proposals (except Sofia tehpark and gas connection Bulgaria-Serbia). However, assessments and analyzes in this report are fully consistent with the level of detail of the projections and eligible activities under the chosen priority axes, investment priorities and specific objectives of the project OPIC 2014-2020. 10. MEASURES RELATING TO MONITORING DURING IMPLEMENTATION OF OPIC 2014-2020 In the project of OPIC, Version 3 from May, 2014 to the respective PA, IP and SO were identified outcome indicators and product. Some of them (on PA 3) have explicit environmental focus, namely:  In IP 3.1: Result: Energy intensity of the economy, kg.o.e per 1000 euro GDP, with target by 2023 - decrease by at least 5%a decrease of at least 5%; For product: Enterprises supported for energy efficiency (Activity 1), with a target by 2023 400 units; Projects supported for energy efficiency (All activities incl. executed measures from energy efficiency audits) with a target of 405 units by 2023.; Realized energy savings in enterprises as a result of completed projects (activities 1 and 2), with a target for 2023 130 000 MWh; Reduced greenhouse gas emissions as a result of completed projects (Activity 1) with a target by 2023 - 40 000 t CO2 eq.  In IP 3.2.: Result: Share of SMEs with measures of resource efficiency, with a target of 85.4% by 2023; For product: Realized pilot and demonstration projects - 10.

280 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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We offer the following indicators for the purpose of monitoring the impact of the program on the environment and human health: Measures and indicators for Source of information Priority axis monitoring/unit Measure: Reduction of water consumption of the supported enterprises Indicator: Ratio of quantities consumed water before and after project implementation Beneficiaries PA 2 and 3 Quantities of consumed water per unit of product before and after project implementation

Measure: Reduction of the amount of the waste intended for landfill Indicator: Ratio of amount of waste generated before and after the implementation of the project, m3/year Beneficiaries PA 2 and 3 Quantities of generated waste per unit of product before and after project implementation.

Measure: Funded projects for eco- innovation Indicator: Ratio of the number of projects for eco-innovation to the Managing Authority PA 1 total number of funded projects for innovation PA 1

281 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

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Measures and indicators for Source of information Priority axis monitoring/unit Measure: Implementation of environmental management and/or obtain the Ecolabel for products and/or EMAS registration Indicator: Enterprises with Managing Authority PA 1, 2 and 3 management system standard environment and/or received ecolabel from total number of enterprises

11. CONCLUSION OF THE REPORT ON THE STRATEGIC ENVIRONMENTAL ASSESSMENT Based on the results of the forecasts in the SEA Report and comments received during the SEA procedure, the team of experts assesses Version 3 of the draft OPIC 2014-2020 as permissible and consistent with the objectives of environmental protection and leads generally to positive impact on the environment and human health. Significant negative impacts on the environment and public health during the implementation of the program are not expected. 12. REFERENCE FOR THE RESULTS OF THE CONSULTATION IN THE DRAFTING PROCESS OF OPIC 2014-2020 AND STRATEGIC ENVIRONMENTAL ASSESSMENT ELABORATION The reference is presented as a table in form of an annex to the SEA report. 13. NON-TECHNICAL SUMMARY ON THE STRATEGIC ENVIRONMENTAL ASSESSMENT As a separate appendix to the Report on Strategic Environmental Assessment was commissioned non-technical summary, which presents summary information on the main sections of the Report on Strategic Environmental Assessment, free of technical terms. 14. APPENDIX TO THE REPORT ON STRATEGIC ENVIRONMENTAL ASSESSMENT In the form of Annexes to the Report on Strategic Environmental Assessment are provided copies of the comments received as a result of consultations on Scope of work and content of the SEA report, documents certifying conformity of experts under Art. 16 of SEA Ordinance and others.

282 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."

Investing in your future

OPERATIONAL PROGRAMME EUROPEAN UNION „Development of the Competitiveness ot the European regional development fund Bulgarian Economy” 2007-2013 www.eufunds.bg www.opcompetitiveness.bg

APPENDIX:

Apendix 1 List of declarations of independence under Art. 16, para. 1 of OCPEAPP and diplomas of experts who are involved in the development of SEO

Appendix 2 Draft of OPIC 2014-2020 from 05.2014 on (Version 3) A copy of the Decision № EO-1/2014 of the Ministry of Environment Appendix 3 and Water Appendix 4 Information for results by the consultation and copies of comments received

283 "This document was created with financial support of Operational Programme "Development of the Competitiveness of the Bulgarian Economy "2007-2013, co-financed by the European Union through the European Regional Development Fund. The sole responsibility for the content of this document lies with the P-United Ltd / MA of OP "Competitiveness" as a beneficiary of the project BG161PO003-5.0.01-0003 "Effective management of the Operational Programme "Development of the Competitiveness of Bulgarian Economy "2007 - 2013"- Priority Axis 5 "Technical Assistance" and under no circumstances it can be assumed that this document reflects the official position of the European Union and the contracting authority."