issue 64 november 2005

Parvanov Met Bush AmCham Interviews: Analysis: AmCham Events: President Georgi Parvanov Sofia’s New Mayor Real Estate Committee Atanas Paparizov, MP EU Annual Report CSR Committee Launch

American Chamber of Commerce in Bulgaria

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

Dear Members and Friends, Dear Reader,

There were two political events in You, just like me, are perhaps surprised by the mayoral October that made the top news choice of Sofia voters. Yes, it's true - during the next year for Bulgaria: the visit of President and a half the Bulgarian capital will be ruled by a general. Purvanov to US and his meeting If Bulgaria was not in Europe, but in South America, inter- with President Bush and the national news agencies might be commenting that a mili- issuance of the monitoring report tary junta had taken over. of the European Commission on the progress of Bulgaria to its We are in luck, though, that the democratic processes in fully fledged membership in EU. our country are flourishing under the supervision of the It is clear however that strength- European Union and our NATO partners. The election of ening the relations with US is as a general to the mayor's seat has been regarded as an important for Bulgaria as its EU exotic decision of Sofianites, so let us congratulate Gen. membership. Boyko Borisov with his success. He received his new posting legally and undisputedly. The meeting between President Purvanov and President Bush is a new momentum in US-Bulgaria relations. Both presidents I think our readers who have come to Bulgaria recently or have not paid much marked that both United States and Bulgaria have common inter- attention to Bulgarian politics deserve a more detailed explanation why the city ests in stability and peace in the world and face many of the where Bulgarian democracy was born made such a strange choice. In a word, same challenges. These interests are the interests of EU as well the culprit is the low voter turnout (see more on Page 14). A distinct pattern and the values that both sides of the Atlantic share are the same. emerged at the polls.

But besides the common values in democracy and common You may have noticed that Sofia is, in effect, two cities. One comprises areas interests in security Bulgaria and the United States have common you all know well: the large, flashy downtown office buildings and banks; streets economic interests. And that was clearly shown at the lunch that where the Hilton, Sheraton, Grand Hotel Sofia, Radisson are located; the President Purvanov had with representatives of leading US cor- 'embassy row' by the Doctors' Square and down Oborishte Street, Boulevard porations and business circles in Washington D.C. The priority Russki, the 'yellow cobblestones'; Sofia Business Park; the renovated airport; areas of interest were in the sectors of power engineering, infor- luxury houses in expensive neighborhoods. mation technologies, the modernization of Bulgarian defense and security sector, tourism and agriculture. Besides these concrete Denizens of this Sofia have learned long time ago not to rely on the mayor or issues the businessmen showed interest in Bulgaria's upcoming city services, so they are solving their problems as they see fit. These people membership to EU. No doubt that joining EU Bulgaria will enter buy humongous 4X4 to navigate the potholes, hire private security to repel into the world largest trade and investment partnership -the one crime, install air conditioner units in the windows of homes and offices to shed between US and EU. Therefore Bulgaria's membership to EU dependency on an erratic central heating. They even move into a hotel in the meets full support on behalf of Unites States. country or abroad when piles of garbage swell on city streets because of waste management disputes. AmCham Bulgaria Magazine November 2005 President Purvanov noted that the messages of friendship and trust that he received at all political levels in Washington D.C. The other Sofia is the one some of us pass on the way to work. It boasts send a clear signal to the U.S. business for more active oper- old autos with non-functioning tail lights - really dangerous when hopping in ations in Bulgaria. However the role of presidents is to create and out of potholes. That city has prefab apartment buildings with peeling the necessary political climate, reveal the opportunities and sides that seem to become uglier and uglier with every winter. The alterna- encourage the greater closeness between nations. Though the tive Sofia features horse-drawn farm carts loaded with any pieces of metal political stability and continuity in Bulgaria give good grounds scrap their gypsy owners could scavenge. They rumble over the yellow cob- for sustained economic development there is still a lot of work blestones toward their final destination in a slum at the capital's outskirts. page for the state to create more favorable conditions for business. 1 Exactly this alternative Sofia went to the polls and elected the new mayor. As it is the time for the Government to give evidence for more Let us not be worried about it. For AmCham Bulgaria Magazine readers life transparent and open business climate it is the time for the goes on as usual. And if someone wants to know how much of Sofia's sub- Chamber to increase its leadership role in promotion, advocacy way construction has been completed - sorry, I don't know. Just like most of and support for more US investments in the country. us, I have not used public transportation in this city since 1989.

Sincerely, Sincerely,

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

issue 64 november 2005

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

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

2 AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria amcham bulgaria

Board of Directors of the American Chamber of Commerce in Bulgaria President Mr. Kenneth M. Lefkowitz NECA/Balkan Data, Inc. Contents Vice President Mr. Stefan Dimitrov Allied Pickfords Bulgaria Treasurer Mr. Anthony Hassiotis Bulgarian Postbank cover story To the Oval Office, Boston, Members Mrs. Olga Borissova AUBG, Director European Programs Chicago - and back ...... 4 Mr. Borislav Boyanov Borislav Boyanov & Co By Boyko Vassilev Mr. David Hampson Grenville Financial interview Mrs. Tanya Kosseva Landmark President Parvanov: I Received Messages Mr. George Randelov IBM Bulgaria of Friendship and Trust From Washington ...... 10 Mrs. Elitsa Tsaneva Ideal Standard Bulgaria By Milen Marchev Mrs. Maria Vranovska Eli Lilly and Company eu accession Ex-Officio Member Mr. James Rigassio US Senior Commercial Officer Sofia and Bucharest Marshal Executive Director: Valentin Georgiev All Forces for EU Accession ...... 13 . . . . By Yuliana Boncheva 3M (East) AG . AA KRES EOOD ABB Bulgaria. Ltd. . AbC.R.O. - Bulgaria. EAD Abrotea Bulgaria AD Accor Services Bulgaria. Acsior. ACT Soft Ltd. Address Bulgaria local elections Holding JSCo.- A real estate company ADIS Ltd. Advance International Transport (Balkan) EAD . AES Corporation . AFA OOD . AGS Bulgaria Ltd. . AIG Bulgaria . AIG Life Sofia Elects General for Mayor ...... 18 Bulgaria . AIMS Human Capital . Alexandrov Ltd. . Allan Collautt Associates, Inc. . Allied By Marina Tzvetkova Pickfords Bulgaria . Alter Ego Company . American College of Sofia . American Construction Products JSC . American English Academy . American University in Bulgaria events (AUBG) . Amylum Bulgaria EAD . Anglo-American School of Sofia . Anton Preslavski, Economic Forum Closed Gap Between Liebert Hiross . APIS - BULGARIA Ltd. . APOLO Ltd. . Aries Commerce . ARGENTO State and Business ...... 22 Human Resource Solutions . Association of Bulgarian Broadcasters - ABBRO . AT Engineering 2000 Ltd. . AUDITING COMPANY VERSI & PARTNERS OOD . Avendi Ltd. . By Marina Georgieva AVON Cosmetics Bulgaria Ltd. . Balkan News Corporation Plc. . Balkan Star . BalkanData / Lefkowitz & Co. . Banque Internationale pour le Commerce et le Developpement (BICD) . analysis Baxter AG . Bayer Bulgaria . BearingPoint Inc. . BG Radio . Bodyguard-Fire-K Ltd. . IMF Delays Performance Review ...... 26 Borislav Boyanov & Co. . Braykov's Legal Office . Bristol-Myers Squibb . Brown Forman Beverages Worldwide Sofia Branch LLC . BTC-NET Ltd. . Bulbank . Bulgarian American amcham events . . . Enterprise Fund Bulgarian Charities Aid Foundation. (BCAF) Bulgarian. Post Bank Paparizov Admits Hot Issues Bulgarian. Telecommunications Company. EAD Business. Media Group. Business Park Sofia on Bulgaria's Agenda After EU Report ...... 28 .EOOD Business to Business. CA IB Bulinvest CableTel. Car Rental Bulgaria Ltd. . Cefin Bulgaria EOOD IVECO. Chelopech Mining EAD Center. for the Study of. Democracy amcham interview . Cisco Systems Bulgaria . Citibank, N.A.- Sofia Branch .City University Clockwork MPs to Closely Monitor Government's . CMS Cameron McKenna. Coca Cola H.B.C Bulgaria SA . Coca-Cola Bulgaria EOOD Work Prior to EU's Spring Report ...... 29 COLLIERS International. Commercial Bank. Investbank Plc. ConsulTeam. Recruitment and Selection Ltd.. Contex Drouzhba Ltd.. Corsa Logistics .Ltd. Corstjens Worlwide By Irina Bacheva .Movers Group .CPM International Ltd.. Curtis / Balkan Ltd. David .Hampson, Grenville DeConi. M&A Deloitte & Touche. DHL International. (Bulgaria) Ltd. Diageo Bulgaria committee reports Ltd. Dimitrov, Petrov and. Co. DIMON Bulgaria Djingov,. Gouginski, Kyuchukov, &. Velichkov Condominium Associations Domaine Boyar AD Dr.. Emil Benatov & Partners . DynCorp International LLC. Effekten Should Be Voluntary ...... 32 Und Finanz - Bulgaria EAD Electron Progress AD Eli Lilly and Company Elido (Lamel Ltd.) . Ellen Ruth Greenberg, Ph.D., Dr. I.S. Greenberg Medical Center . Elmek Spor Bulgaria By Tanya Kosseva-Boshova, Landmark . Elta consult AD associated partner of CB Richard Ellis for Bulgaria . Emerson Process Management AG . Encouragement Bank AD . Engineeringservice Sofia Ltd. . EQUEST Responsible Business Is a Potential EAD . ERATO HOLDING PLC . Ernst & Young Bulgaria . EURO RSCG New Europe Sofia 'Win-Win' Opportunity If Designed . Expo Team Ltd. . First Global Health Corporation . Flying Cargo Bulgaria Ltd. - Licensee and Managed in the Right Way ...... 33 of FedEx . Force Delta Ltd. . Forem Consulting Bulgaria . General Electric International . Genmark Automation Bulgaria . GEO - CAR Ltd. . Glaxo SmithKline . Goleminov & EU Affairs Committee - Goleminov . Goodyear Dunlop Tires Bulgaria . Grand Hotel Sofia . Group 4 Securitas Focus on Public Procurement ...... 34 (Bulgaria) Ltd. . Hayhurst Robinson . HEBROS Bank AD . Hewlett-Packard Bulgaria EOOD . Hilton Sofia . Honeywell EOOD . Horizon . IBM Bulgaria . Ideal Standard Bulgaria By Gergana Maneva, Antoaneta Boeva, . In Time Ltd. . Infoguard - Stefan Nedkov . ING Bank Sofia Branch . Intel Czech Tradings Center for European Programs, American University in Bulgaria Inc. . Interbrands Marketing & Distribution Inc. EOOD . Interdean.Interconex . IP Consulting Ltd. . ISI Emerging Markets (Internet Securities, Inc.) . Janssen-Cilag (division of Johnson & member news Johnson) . Junior Achievement Bulgaria . Kaliakra AD . Kamenitza AD . Kamor Auto Avon Tops List in Working Mother Magazine . . . . .36 Ltd. . Kolbis International Transfer Corporation . KPMG Bulgaria . Kraft Foods Bulgaria .

. . . . AmCham Bulgaria Magazine November 2005 LANDMARK Lexim. Sofia Ltd. Lindner Bulgaria OOD. Lirex BG Ltd. Lowe Swing Marsh Presents New Home Communications M. & M Air Cargo Service BG. Ltd M3 Communications Group,. Inc. A Hil Warranty and Insurance Program ...... 36 & Knowlton Associate . Maersk Bulgaria Ltd. Magnetic Head. Technologies . Management Systems International. Maritza East III Power Company. AD Marsh EOOD .McDonald's Postbank Reduces Interest Rates Bulgaria Ltd.. Merck Sharp. & Dohme .IDEA Inc. Meridian. Hotels Bulgaria. Microsoft on House Loans ...... 36 Bulgaria Miltech Ltd. MobilTel AD Monbat PLC Moten Sport Moto Pfohe Ltd. . Motorola Bulgaria EAD . National DISTRIBUTORS . NATO Defense College (NDC) . Enterprise Аpplications Leader NDT Equipment Supplies LTD . Neterra Communications . Net Is Ltd. . NET IS SAT Ltd. . Neumann International AG . New Europe Corporate Advisory Ltd . Nexcom Bulgaria EAD Oracle Demonstrates Best Practices ...... 37 . Opet Aygaz Bulgaria EAD . Oracle East Central Europe Limited - Branch Bulgaria . Orbit Ltd. . ORKIKEM Ltd . Pain D'or Ltd. . Paxar Bulgaria. Pfizer H.C.P. Corporation, Ian Jacob Is the New Representation Office Bulgaria . Pioneer Semena Bulgaria EOOD . Popov Legal Office . Commercial Director of TeleLink ...... 38 Pratt & Whitney . PricewaterhouseCoopers . Prima Soft Ltd. . Procter & Gamble Bulgaria page . ProSoft . PSG Payroll Services Ltd. . Radisson SAS Grand Hotel . Rising Force Co., 3 new members ...... 38 Ltd. . Rockwell/Intelpack . S&D Chemicals Bulgaria . S&T Bulgaria . Sante AGS Bulgaria Ltd. International OOD . Schering - Plough Central East - Bulgaria . Sciant . SEAF Tishman Management Company Ltd. Management Bulgaria EOOD . Seplex Law Offices . Sheraton Sofia Hotel Balkan . Sherita M Ltd. . Sienit Ltd. . SigmaBleyzer Investment Group LLC . Sofia Echo Media travel Ltd. . Soravia Bulgaria . Stefan Dimitrov, Norman Management Co. Ltd. . TechnoLogica . TeleLink AD . Tero Halmari, EBRD . The Atlantic Club of Bulgaria . The Executive South Africa's World Heritage Sites - Part II . . . . .40 Centre . Tishman Management Company Ltd. . Tissue Bank Osteocenter Bulgaria EAD By Gerhard Visser, Ambassador of South Africa to Bulgaria . TM Auto Ltd. . TMF . Tumbleweed Communications EOOD . Unimasters Logistics Group AD . Unisys Bulgaria Branch . Urban 3000 Ltd. . Vector Management Bulgaria music . Via Expo Ltd. . Videolux Ltd. . Visa International . VOCA Consult Ltd. . VSK The Top Fender® Females - Part III ...... 43 Kentavar Ltd. . Westinghouse Energy Systems Bulgaria Branch . Wrigley Bulgaria EOOD By Snejanka Natcheva . Xerox Bulgaria Ltd. . Zlati Dinev Studio . cover story To the Oval Office, Boston, By Boyko Vassilev

Presidents Parvanov and Bush during their meeting in the White House, October 17th 2005. "Excuse me, who's in there? What are journalists asked by the Oval Office in tary elections very closely… The these cameras?" a middle-aged woman the White House, "You are on the formed coalition… An example for the asked in front of the Boston Harvard Caspian Sea, right?" region." In foreign policy, absorbing a Club on the warm afternoon of October detailed briefing is not just good man- 19. But as soon as we entered the Harvard ners. The colleague who had asked Club I felt something different. Inside, about Bulgaria and the Caspian Sea "The President of Bulgaria." President Georgi Parvanov was meeting was taking notes diligently. with young Bulgarian yuppies: boys and "Oh, Bulgaria!" the woman smiled and girls in perfect shape and flawless suits, Bulgarian President Georgi Parvanov walked on. their business cards reading things such and U.S. President George Bush talked as "technologies, IT, business, Harvard, in the Oval Office for 55 minutes, 10 That was a typical American "Oh," which MIT graduate." There were also elderly minutes longer than scheduled. Next to could express admiration for Bulgaria, rich Americans with Bulgarian connec- Bush were four of the most influential 4 recognition of its role in the coalition in tions and investments. Obviously those people in Washington: Richard Cheney, Iraq, but also a sincere surprise at the who have to, know Bulgaria. Condoleezza Rice, Steve Hadley and fact that such a country existed. A Andrew Card. They all heard the most Boston resident who was listening asked A distinguished representative of the important sentence for the United us to enumerate all countries bordering well-informed was George W. Bush. The States: "Bulgaria remains Bulgaria. journalists and the Bulgarian delegation in the Oval Office were surprised to an ally of the international I heard the woman and the man and I hear the President of the United States anti-terrorist coalition,"

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria remembered how two days before we citing details of the Bulgarian political had made sour grimaces when U.S. life. "I watched your recent parliamen- Parvanov said and added, "The cover story Chicago - and back

specifics of this are going to be dis- the Wall Street Journal and the New armament of the Bulgarian forces and cussed at an expert level." York Times, and by critical reactions the U.S. military aid. President from the Libyan foreign minister. From Parvanov's visit to the United States was Bush in turn uttered the most now on, nobody can say that the world at a time when the question of the mil- important sentences for Bulgaria: does not know about the problem with itary bases was already settled princi- "Mr President, your country is a the Bulgarian nurses sentenced to pally, if not formally. strategic ally… The President and I death. discussed Bulgaria's role as a It is clear where the bases will be: the regional leader… Your country is an It became clear later that while in the Bezmer airport and the Novo Selo range example for democracy." And more Oval Office, Parvanov also talked about near the port of Bourgas. The number concretely: "The position of the Iraq's debt of more than $1.5 billion. of troops to be deployed there is also United States government is that This is an issue that Bulgaria now puts clear - 2,700. The United States will not the Bulgarian nurses in Libya ought almost ritually. The fact is that the Paris pay fees for the use of these bases, to be freed." Club has agreed to forgive 80 percent of which will be officially called "shared Iraq's debts. For the time being, Bulgaria military facilities," i.e. they will be used What lies behind this exchange? Even is unwilling to concur, citing its lawful by the Bulgarian side, too. A lot of for- though Bulgaria is withdrawing from Iraq, claims. The more so that it does not malities remain, starting from the move- it remains a part of the coalition. This have money to spare. But the chances ment of U.S. troops on roads and fin- play of words is important: Bush should for a breakthrough are slim: Why should ishing with the accommodation of their not look abandoned by yet another ally, the big ones, having once agreed on a families. while Bulgaria should complete the mis- massive debt elimination, acquiesce to sion with dignity. In fact this could lead Bulgaria's demands? The pending questions are not a prob- to the following outcome: Bulgaria lem, but together with the preceding declares that its mission in Iraq finishes The Bush-Parvanov meeting, however, media fuss they created the illusive feel- on Dec. 31, 2005 (two weeks after the needed a few more specific questions ing that the visit would produce some election in Iraq) and then, by means of and the Bulgarian president named key answer or would at least explain another decision, declares the start and them: why the official signing was still delayed. end of its withdrawal in the first months Instead, the bases were discussed at of 2006. Thus both sides will save face. military technical the bilateral meetings of Foreign Minister "The specifics of this are going to be cooperation, Bulgaria's Kalfin and Defense Minister Bliznakov. discussed at an expert level." energy policy, In other words, work continues. the investment climate. Bush in turn raised Bulgaria's prestige in The re-armament of the army, however, the Balkans, where - needless to say - Each of these difficult collocations has contains many unknowns. The contracts each country sees itself in the role of a a long and problematic history. for delivery of new helicopters and mod- "leader and example for others." The ernization of the old ones have not been delicate Libyan issue is now put to inter- Military technical cooperation includes closed yet; added to the other issues is national attention: Bush's words were at least the following issues: the future the obvious fact that Bulgaria buys immediately followed by comments in U.S. military bases in Bulgaria, the re- mainly European, not U.S. weapons. It AmCham Bulgaria Magazine November 2005

page 5 cover story

was not quite clear whether Boeing and The American interest in the Kozloduy Nuclear Power Plant will Lockheed Martin had any activities dur- the Bulgarian energy sector be shut down following an agreement ing the presidential visit. As far as the with the European Union, but reactors 5 U.S. military aid is concerned, it was is nothing new; it has often given political and 6 remain, as well as Bulgaria's stat- said that the aid did not depend on who dividends to the Bulgarian leaders, espe- ed intention to build the Belene NPP. would supply armament to Bulgaria. cially after the coming to power of the The transportation of oil and gas does Republicans, who are connected to the not yet play a crucial role, but Bulgaria On the energy front, there was news. energy lobbies. In 2001, just before the is too close to the Caspian basin to On the evening after the meeting with parliamentary elections, the then Prime remain out of the game for long. The Bush and before the reception of the Minister Ivan Kostov received an urgent potential of the Bulgarian coal-mining Bulgarian ambassador, Georgi Parvanov symbolic meeting with the newly-elected industry has not been exhausted yet. and Minister of Energy and Economy President Bush. Before, Kostov had hurried Bulgaria exports electrical power to Rumen Ovcharov talked with Michael to sign with the American companies AES some neighboring countries and has Chertoff, the homeland security secre- and Entergy the privatization of a key part repeatedly demonstrated a desire to tary, and Samuel Bodman, the energy of the Maritsa Iztok complex. That was become the region's energy hub. Given secretary. After the meeting, Ovcharov preceded by visits to Sofia of Reagan's this background, the energy messages announced that the United States would former National Security Adviser to Sofia sound serious. support Bulgaria's future nuclear power McFarlane, who today is a high-level ener- plant at Belene and had declared the gy lobbyist with positions in Sofia. For the time being, however, the total interest of U.S. companies to participate flow of U.S. investments to Bulgaria is in the construction, including the coop- In 2005 Bulgaria still attracts consider- not huge. "The privatization of BTC set eration of Eximbank. able energy interest. Units 3 and 4 of the tone for more American investments

letter from america

Dear AmCham members: develop our relationships with the presidency and with the senior cabinet ministers who participated in the delegation - In mid-October I had the opportunity to travel with President - Deputy Prime Minister and Foreign Minister Ivaylo Kalfin, Parvanov's delegation to the United States. This opportunity Economy and Energy Minister Rumen Ovcharov, and was both a precedent and real honor for the AmCham, and Defense Minister Vesselin Bliznakov. In particular, I had the it points to how our public standing as an organization has opportunity to emphasize key concerns of U.S. business, grown over the years. The only other U.S. citizens on the including next steps on the Double Tax Treaty negotiations, president's plane were Ambassador Beyrle and Secret protection of intellectual property rights, transparency in pri- Service escorts. vatization, and reform of the judicial system.

The delegation was highly successful. On the political front, I believe that the Bulgarian side was quite receptive to these President Bush came out strongly in support of the cause of messages, and to similar messages conveyed in official the Bulgarian nurses in Libya, resulting in the first significant meetings with President Bush, the relevant counterparts in media attention this issue has received in the United States. the administration, and on Capitol Hill. The Chamber is now The following day, President Parvanov gave a visionary working hard to capitalize on the deepening of our relation- speech on the long-term prospects for the Balkans at the ships by achieving concrete follow-ups on improving the busi- Center for Strategic and International Studies. Overall, ness climate and promoting U.S. trade and investment. Parvanov came across as a true statesman who has only the national interest at heart. I would like to take this opportunity to thank publicly President Parvanov for the invitation to AmCham to join the On the commercial front, Parvanov was a convincing pro- trip, and to thank U.S. Ambassador Beyrle and Commercial moter of U.S. investment in Bulgaria, emphasizing in partic- Attache Jim Rigassio for their strong support for our partici- ular the country's openness to infrastructure investments. pation in the delegation. Luncheons hosted by the Business Council for International Understanding in Washington and by the American This trip provided a strong example of how AmCham can act Foundation for Bulgaria at the Harvard Club in Boston drew as a platform for members in communicating with the U.S. strong, high-level attendance, demonstrating that Bulgaria and Bulgarian governments. I encourage members to con- 6 has gotten onto the radar screen U.S. business. tact AmCham Board members, including myself, or the rele- vant committee chairs for support on lobbying and advoca- The trip gave me an opportunity to broaden the AmCham cy issues. Let us help you get heard at the right level. network of contacts in the United States, including with the U.S. government, businesses interested in entering the mar- Sincerely yours, ket, and a number of Bulgarian expatriates and Bulgarian- American organizations. Ken Lefkowitz President of the Board of Directors

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria Most importantly, however, I had an extensive opportunity to AmCham - Bulgaria cover story

The Bulgarian delegation met US senator Ted Stevens (first from the right) and other top level U.S. political representatives.

in Bulgaria, it put Bulgaria on the map," Bulgarians meet Bulgarians in the expen- Americans who we can now call "friends Ken Lefkowitz of the U.S. Chamber of sive boutiques, they also keep their eyes of Bulgaria." The security guru, Senator Commerce, who also was a participant in wide open to Bulgaria and use every Richard Lugar, to whom Parvanov was the visit, said to me. But there is business opportunity. one of the Bulgarian statesmen he had received. Congressman Joe Wilson, no boom. Chicago in turn is shaping up as the hub chairing the group for friendship with of Bulgarians of the middle and lower- Bulgaria, who used his one minute in It is curious that in the beginning of the middle class. Bars, churches, community the Congress to talk about the country. Iraqi crisis Americans avoided making life: it is all there. Optimistic assessments The experts from the Center for such promises. At that time I spoke with show that the number of Bulgarians has Strategic and International Studies and Don Evans, Secretary of Commerce and already reached 100,000 - actually a town especially Janusz Bugajski, who invited a close friend of Bush. "Investments will the size of Pleven. There are at least five Parvanov to talk about the future of the come only if you create conditions for Bulgarian newspapers published there, an Balkans and to inquire about the status that," Evans was categorical. Internet publication, a radio, a TV channel of Kosovo. All in all, these are people and a millionnaire: Shefket Chapadjiev, ready to look for a more optimistic out- The conditions are clear. "The message the symbol of the successful working line of the whole region, through of President Parvanov was that the Bulgarian in the United States. Bulgaria: a view undoubtedly flattering Bulgarian institutions are ready to cope for Sofia and disturbing for the other with the judicial reform, the protection of "We realized that we should countries in Southeast Europe. intellectual property and other key get united issues," Lefkowitz said. "We will come and But one does not easily feel the emotion decide then," said cautiously John Grady and organized," says painter Kina of all this without the stories of the of Lehman Brothers, Boston. Bagovska, who has been living in Chicago American Bulgarians. After Georgi for five years with her sister, the musician Parvanov opened an exhibition on Levski One more important thing. Besides the Petya. "Here, if you are not organized, you in Chicago, Kina Bagovska said, her eyes luncheons with potential investors, are nobody." filled with tears: "Send Chicago's greet- Parvanov had a short meeting with two ings to Bulgaria. There is only geography companies that have not yet settled in I open Start BG, the newspaper published between us. The bridge is there." ■ Bulgaria: the database pro Oracle and by Kina Bagovska and the journalist the space and weapons giant Raytheon. Kliment Velichkov. The first thing that What will come out of this meeting, it is catches the eye is the abundance of Correction yet to be seen. advertisements of Bulgarian businesses: The total amount of humanitarian consultancy, real estate, airline tickets. aid provided to Bulgaria from USAID 8 The Bulgarian communities in the United The photographs show determined young to address and help solving the States turned out a real bridge for invest- people, who slowly but perseveringly flood situation in the country is ments and development. The yuppies in make money, without abandoning their $1,450,000. Due to a technical mis- Boston, united and organized, lead a rel- connection to Bulgaria. Shouldn't we take, in issue #63 of The Am Cham atively rich community of some 40,000 to change the idea of the Bulgarian abroad Bulgaria Magazine, the erroneous 50,000 people only in this part of New as someone who is mostly occupied with title "US Gives $450,000 To Under England. They participate in the so-called hiding from the local police and from Water Bulgaria" appeared. The Am Wall Street Club: a community of the suc- other Bulgarians? Cham Bulgaria Magazine wishes to

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria cessful Bulgarians in the United States. apologize to USAID for the mistake. Besides making Boston a city where I count in my mind all high-standing interview

President Parvanov: I Received Messages of Friendship and Trust Bulgaria's head of state assesses his recent U.S. visit and discusses his own role in fostering a business-friendly climate and furthering the EU membership By Milen Marchev

- Mr. President, which are the results of your visit to the USA that you would assess as being the most important for Bulgaria?

- First of all I would like to express my gratitude to the edi- torial staff of your magazine for the opportunity to address directly the representatives of the US business in Bulgaria. Moreover, this is a good opportunity to express my gratitude to the US companies, who have ventured to invest in this country and thus provide material evidence of the relations of strategic partnership between Bulgaria and the United States of America.

But let me get back to your question. I would say that the messages of friendship and trust that we received at all lev- els in Washington DC are of an exceptional importance to me. These messages mean more than a mere recognition of Bulgaria as a reliable ally in NATO, in the fight against world terrorism, and as a stabilizing factor in our region. They mean that our relations with the USA have reached a new, higher level. I think that the friendship and trust at a politi- cal level will send a clear positive signal to the US business for more active operations in Bulgaria.

- Did Bulgaria receive any specific promises from US companies?

- The President could hardly be the proper addressee of such a question. The role of presidents is to create the nec- essary political climate, to reveal opportunities and indicate the need for active trade and more investments, as well encourage the processes of greater closeness between their nations. The role of the state is to provide more information and transparency about the economic climate; to organize ness community was attended by companies in various lines and dispatch more commercial missions that could analyze of business. The companies and concerns, which were inter- on-site the possibilities for doing business. In this sense, I ested in Bulgaria's power engineering and defense industry, would say that my visit to the USA has achieved its objec- in the Bulgarian and regional infrastructure, and in the devel- tives. opment of high technologies were definitely prevailing. 10 According to me, however, there are still untapped opportu- It is the business however that must decide where the prof- nities in various other spheres like tourism and agriculture. I it is. I do not think it is possible to boost trade and economic would like to share my conviction that the trust and friend- cooperation by political appeals and urges alone. At least ship between Bulgaria and the USA will find its specific this is how I see the relations between state and business. manifestation in an increase of trade turnover and invest- ments. - Which are the spheres of Bulgaria's economy that have attracted the interest of US businesses? - Did you assume any specific commitments for improv-

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria ing the business environment in Bulgaria for our partners - There are many spheres. The meeting with the US busi- and for investors from the USA? interview

- I heard no critical remarks on the business environment that the reform of the judiciary, curbing corruption and in Bulgaria during my meetings. My task was to present the effective measures against organized crime have been capabilities of my country and its positive economic per- expected with impatience by the Bulgarian people for too formance over the last several years, without however con- long. Besides, I believe in the potential of the state, the cealing the difficulties and outstanding problems. I know incumbent government, and the ruling majority to deal with that a large number of issues must be resolved in order to these challenges. improve the business climate in Bulgaria - a more efficient judiciary system, higher economic transparency, more I would like to add something. We shall comply with the aggressive measures against intellectual property violations, commitments we have made in the Accession Treaty. At the etc. But I do believe in the will and the capabilities of same time, however, I do believe that the European Union Bulgarian institutions to find the proper solutions and give will not turn the Republic of Bulgaria into a hostage of its the green light to a more enhanced presence of US com- own problems and will honor its own commitments under panies on the Bulgarian market. the Accession Treaty.

- Together with President Bush, you demonstrated the - How would a possible postponement of Bulgaria's presence of political will in both states concerning the accession affect the political and social developments in pull out of the Bulgarian contingent from Iraq. Has a the country? specific formula been decided for this already? - I think that this would have a serious impact on the polit- - You are aware that Iraq is one of the most sensitive ical climate and the Bulgarian public. The consensus on issues in Bulgarian politics. It was not easy to take the the European future of Bulgaria is one of our most impor- decision to pull out our combat unit - we had to analyze tant victories for the whole period of transition. There is no developments in Iraq, our relations with the allies in the major political force in Bulgaria that has not worked active- Multinational Forces, and the attitudes of the Bulgarian ly for Bulgaria's accession to the EU during the last 15 public. I think that I found understanding on this difficult years. Many people will be disappointed if one of the most issue during my visit to the USA. And this is of exception- unfair chapters of the modern history of the old continent al importance for allies and partners like Bulgaria and the - its division - will not be closed. The Bulgarian underworld, USA. This has a great significance for the strategic part- the "grey economy" will emerge as victors in the war they nership between the two states. I expect, from now on, that wage against Bulgaria's EU membership. Moreover, a post- the relevant institutions and authorities in this country will ponement of Bulgaria's and Romania's accession will have coordinate with our American partners the forms of our an adverse effect on our neighbours in the Western future participation in the anti-terrorist coalition. We are Balkans who have been following in our footsteps on the convinced that Bulgaria must continue to contribute - by path to European membership. political, economic or humanitarian means - to the stabi- lization and restoration of Iraq. At the same time I do not accept the forecasts that a pos- sible delay till 2008 will lead to a radicalization or a surge - While it is obvious that the developments in our rela- of Euro-phobia among the Bulgarian public. Our traditional tions with the other side of the Atlantic are positive, do tolerance is well known and could hardly be jeopardized by you see a genuine opportunity for a favourable outcome such an outcome, as the European idea has many staunch also in the process of Bulgaria's accession to the EU? supporters in Bulgaria.

- First of all I would like to express my gratitude for the - What are the specific steps that you, within your pre- adamant support extended by the USA and by President rogatives, would initiate in order to strengthen Bush personally for Bulgaria's EU membership. This Bulgaria's position on its way to the European Union? demonstration of solidarity is of crucial importance for us. AmCham Bulgaria Magazine November 2005 These steps have been identified in the 2005 monitoring The political climate in Europe has changed over the past report of the European Commission on Bulgaria. Most of few months. The attitude of the European public towards them are the prerogative of the National Assembly and the the enlargement has also changed. We ourselves have a Bulgarian Government. My main objective is to mobilize the lot of work to do in order to implement the EU membership Bulgarian institutions and the Bulgarian society for the requirements. The monitoring report of October 2005 on implementation of our commitments to the European Union Bulgaria's headway provided a realistic picture of the in the shortest possible term. My second aim is to per- page developments in this country, as well as fair criticism con- suade our partners to have our Accession Treaty ratified as 11 cerning the delayed reforms in several spheres. These are soon as possible. I expect that by the end of the year most real issues that we have to keep in mind and account for. of the European states will follow the example of Slovakia, Hungary, Slovenia, Cyprus and Greece. Next, I would try to However, the monitoring report marked the end of only one allay Europe's fears of our accession, to overcome the stage of our efforts to join the EU. We have a lot of work suspicions of the European public opinion towards enlarge- to do during the next several months, most of all in the ment, and to promote the image of Bulgaria as a stable, sphere of judicial reform, and in combating corruption and predictable and democratic state. This is why the focus of crime. I will support all efforts of the National Assembly my visits scheduled for late 2005 - early 2006 is on our and the Government in these spheres, as I am convinced relations with the EU member states. ■ eu accession Sofia and Bucharest Marshal All Forces for EU Accession Bulgaria received the expected ultimatum, Romania delirious after positive appraisal By Yuliana Boncheva The period of nervous expectations is over - Bulgaria received from the European Union its next expanded assessment, a.k.a. annual monitoring report. There were no surprises in the report - you have made some progress, but do not get distracted by success, you still have a lot of things to do.

Generally, the report sounds like a sup- port to Bulgaria's accession according to the approved schedule - Jan. 1, 2007. However, a clear ultimatum becomes apparent if you are reading between the lines. Bulgaria either has to compensate for the lag in the prob- lematic spheres, or will simply get stranded in the EU waiting room.

The 2005 report is definitely less diplo- matic than previous issues. And regard- less of the fact that some cabinet min- isters described it as benevolent and expected, the wording sounds quite threatening: "Urgent actions are needed," Dimitris Kourkoulas, Head of the European Commission Delegation to Bulgaria handles the annual moni- toring report to the Bulgarian Prime Minister Sergey Stanishev. "We shall not hesitate to activate the protective clause," "A limited but uncon- dums held in France and the will accept the candidates according to vincing progress has been achieved" are Netherlands. schedule, on Jan. 1, 2007, or will post- the messages we received, which are pone the enlargement. quite straightforward for the excessively On their way to Brussels, both officious EU protocol. Bulgarians and Romanians have scored The annual EU Commission report indi- AmCham Bulgaria Magazine November 2005 major successes, whereas Romania cates that Bulgaria has lost some The same formulations were included has managed to make up for the momentum in preparing for member- in the monitoring report on Romania, delays, while Bulgaria has slowed down ship. It is not by chance that the report but our northern neighbors took them the pace, wrote many Western publica- circumvents the promised 2007 date this time as a good reason to cele- tions in their comments after the mon- and left the highly probable option brate. Romania saw in the report the itoring reports were made public. "postponement" firmly in place. most positive assessment that the page country has received since it embarked Hurdles The message from Brussels is more 13 on talks with Brussels in 1999. than clear: The two countries will have to dedicate Both Sofia and Bucharest feared that all their efforts over the next several "A limited number of specific omissions the monitoring reports of the European months to preparations to join the EU in the preparation for European Union Commission would be much more crit- in order to become eligible for better Membership made by both Bulgaria ical than usual because of the domi- ratings in the spring, when the next EU and Romania are causing a serious nant attitudes against the expansion of Commission reports are expected. This concern. Unless they initiate urgent the EU, caused by the rejection of the will be a key point - as by that time it measures, Bulgaria and Romania will European Constitution at the referen- will become clear whether the Union most probably not be able to comply eu accession

tice, include a former minister of jus- Areas in which Bulgaria was shown a "red card": tice, more than 1,100 medical doctors Bulgaria must initiate immediate and decisive measures in areas, which are the and school teachers, 170 police offi- source of a serious concern for the European Commission. These are: the pro- cers and three generals. Romania has tection of intellectual and industrial property, the insurance of motor vehicles, the established a specialized anti-corrup- establishment of a payments agency for the agricultural sector, the system of tion authority with the prosecution as veterinary control and control over animal illnesses, the trade in live animals and an independent organ charged by the animal products, institutional structures and financial management in the sphere government to fight corruption. of regional policies. If Bulgaria wants to be ready for membership, it will be necessary to take urgent measures for the application of the Schengen Still, Brussels will wait for the outcome Agreement and the protection of the external borders of the EU, as well as in of the investigations of the big fish of the combat against organized crime, fraud and corruption. Romanian corruption. Premier Kalin Popescu-Taricanu recently boasted to "Yellow-card" areas: Le Figaro that corruption is not the rule The spheres, in which Bulgaria has to make positive efforts, in order to complete but the exception. The European its preparation for membership, include: public procurement, the recognition of Commission however does not share professional qualification, investment services, the protection of personal data, the same view. money laundering, air and sea transport, labor law, privatization and restructur- ing, especially of steel industry, nuclear safety, protection against irradiation and Problems with bribes in Romania, as in waste treatment, the visa policy, the cooperation within the system of justice, the Bulgaria, are attributed also to the fact provision of refuge, the fight against drugs, and the protection of the EU finan- that judges and state officials in both cial interests. countries are receiving the lowest salaries in Europe, which makes them with their commitments in these specif- Management," and "Protection of the vulnerable to temptations, Western ic areas by Jan. 1, 2007." Environment." More than 50 percent of newspapers wrote. the monitored spheres were ranked in What are the deficiencies? The report the "green zone," one third fell in the Fighting corruption is on the top of the contains a detailed list of serious "yellow zone," and another 10 percent list of tasks, as - in case of failure - the remarks - a total of 14 addressed to are still blocked by the red light. EU common market and the programs, Romania and 16 addressed to Bulgaria financed by the Union, will be threat- (see text in the box). Serious corruption and weak adminis- ened. This is the reason why the EU is tration persist as the major problems concerned that Bulgaria and Romania A serious concern related to five dis- for both Bulgaria and Romania, accord- do not have the professional personnel tinct spheres was expressed in the ing to the bottom-line findings of the in charge of controlling the two coun- monitoring report on Bulgaria. These European Commission. Both countries' tries' borders. Additional measures will are: free access to services, corporate infrastructure is far below European be necessary to protect the EU against law, justice and internal affairs, and standards. The reports indicate that animal diseases which are still not regional policies. The Commission veterinary control in Bulgaria and eliminated in the two countries. highlighted one more group of issues, Romania is plagued by omissions and Bulgaria and Romania are still to estab- which require further efforts. These that neither of the two states has the lish the agencies that will distribute the include 14 of the 29 negotiation chap- capacity to utilize EU billion-euro sub- agricultural and regional subsidies from ters, including "Transport," "Social sidies. It is also noted that it is already the EU. Otherwise they risk losing bil- Policies," Energy" and "Environment." high time to implement in practice the lions of Euro set aside for the two white paper on modernizing administra- countries by the rich Euro-funds. On 10 of the topics Bulgaria will have tion, which was approved by the cabi- no problems at all, as it has done its net in April 2004. The critical remarks did not come as a job properly. surprise, Bulgaria's Minister of the Justice is seen Interior Roumen Petkov admitted. European Affairs Minister Meglena as major challenge According to him, the assessment of Kuneva announced that her colleagues, the European Commission of the com- who are in charge of internal affairs, for both countries - their justice sys- bat against organized crime and cor- finance, justice and agriculture, will tems remain plagued by corruption and ruption fully match the views of the 14 have to do most of the work over the abuse. Romania, however, has made public and his own ministry's top bras. next several months. definitely more headway on this front, and it was made obvious in the Authorities announced after the latest Romania received seven "red cards" by European Commission report. round of public assassinations that vig- the European Commission - first of all orous measures would follow against in the spheres of the combat against President Trayan Basescu, who was organized crime. Minister Petkov said corruption and border control. The elected in the autumn of 2004, made that all measures have already been other six areas are "Agriculture," "Free the fight against corruption his trade- initiated, so that the police forces,

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria Movement of Products," "Corporate mark. The list of corrupted persons, together with the Ministry of Finance, Law," "Taxation," "Structural Funds who have already been brought to jus- the prosecution and investigation would eu accession

identify the organized crime groups the Bulgarian society. curred Evgeni Kirilov, observer at the within three months. Besides, he added, European Parliament. additional measures will be taken to "We are well aware that the key to our curb petty crime. membership is in our own hands," According to the London's Times, how- Parvanov said. ever, there is hardly any danger for the We are capable to deal with the rec- two countries' accession. Romania, ommendations, Minister of Justice In practical terms, there are only two with a population of 22 million, has a Georgi Petkanov said. The critical issues that could currently trigger the powerful support, especially by France. remarks related to his sphere of protective clauses regarding Bulgaria Bulgaria, with its 7.5 million population, authority are not that many, but never- and Romania - their failure to address has a very few obvious opponents, the theless are very serious and deal corruption and organized crime or to newspaper wrote. almost exclusively with the judiciary. guarantee safety at their borders. The The report criticizes the poor pace of other spheres, indicated by the What about reforms in the pretrial phase. The jus- European Commission as venues for after the reports? tice system continues to be clumsy and further efforts, do not bear the danger slow, according to the conclusions con- of activating the protective mechanism The European Commission will soon tained in the monitoring report. that would postpone membership by a send to the two countries new warning Brussels is not satisfied with the results year. letters - which is a habitual practice, in the sphere of investigation and with aimed at reminding which the critical the criminal prosecution of corruption "It would be highly irresponsible to points that require serious efforts are. at the high tiers of power. allow any delay after we have reached The next step will be the partnership the final stretch and provide the EU, inspections on-site. There will be con- Additional concerns were attributed to which has its own serious internal sultations on specific spheres in order the theft of intellectual property and the problems, with the motives to postpone to assess the measures taken by lack of compulsory insurance for motor Bulgaria's membership," said Cetin Romania and Bulgaria, and - where vehicles in Bulgaria. More efforts are Kazak, member of the National necessary - the European Union will needed in dealing with the traffic of Assembly and Bulgarian observer at provide specific assistance. humans. The conditions in some social the European Parliament. establishments for children and people The results will be included in the next with disabilities are far from acceptable. Geoffrey Van Orden, who is in charge monitoring report, which the More measures are needed for improv- of monitoring developments in Bulgaria Commission will submit to the ing medical treatment of the mentally ill. for the European Parliament, stressed European Council and the European Further efforts are needed regarding the that Bulgaria should not be made vic- Parliament in April or May 2006. At that integration of the Roma minority. tim of attitudes within the EU. time the European Commission might According to him, this country could recommend to the Council to postpone The European Commission will not achieve the necessary progress over the accession of Bulgaria and Romania hesitate to recommend the delay of the next six months. Van Orden until Jan. 1, 2008 - if it is found that Bulgaria's and Romania's accession to expressed his confidence that the Jan. there is a serious risk that any of the the EU by one year, if the two states 1, 2007 target is fully attainable. two states may be definitely unpre- are not ready, the European pared to comply with the membership Commissionaire on enlargement, Olli "Climatic" Problems requirements in a number of crucial Rehn, said on the day when the reports spheres by January 1, 2007. were made public. Western media comment that the accession of Romania and Bulgaria to The accession agreement must be rat- Bucharest has already announced the EU has emerged as a more sensi- ified by the parliaments of all 25 EU tive procedure after France and the member states. Several states have total mobilization Netherlands turned down the draft of already given their "OK." The rest will the European Constitution. These proceed with the ratification within the in order to guarantee that all institu- results indicated that the current EU next several months. tions would be able to comply with the member states are losing the appetite recommendation of the EU on time. for further enlargement, which would Meanwhile, Sofia and Bucharest have Romania's President Trayan Basescu bring other poor states to the Union. indicated that they have mastered the 16 delivered a passionate appeal to European model of behavior by ending judges and magistrates, stating that "The climate of European enlargement their previous individualistic rivalry they hold the fate of Romania in their is much more hostile today than 18 between them. Bulgaria's Prime hands. months ago, and this is an additional Minister Sergey Stanishev and the challenge," Solomon Passi, former for- Romanian Minister of Foreign Affairs Bulgaria's President Georgi Parvanov eign minister of Bulgaria, said. Mihai Unguryanu made a gentlemen's also announced that complying with agreement to coordinate the efforts of the recommendations requires the "The wind in the European Union the two states and assist each other in

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria highest possible mobilization of the regarding the enlargement has turned attaining the common objective - full institutions and the consolidation of against Bulgaria and Romania," con- membership by Jan. 1, 2007. ■ local elections

SofiaSofia ElectsElects GeneralGeneral forfor MayorMayor Boyko Borissov, the former chief secretary of the Interior Ministry, will manage the capital city's affairs for the next year and a half By Marina Tzvetkova A 30.41-percent voter turnout was registered at the run-off right-wing candidate. His opposition against the BSP during election in Sofia. Just 323,843 people went to the polls. the second round even placed him in a position where he consolidated part of the center-right vote. None of his state- Nearly 70 percent - out of the paltry 30 percent who bothered ments featured views or ideas that could identify him with to vote - elected Gen. Boyko Borissov for mayor of Sofia. the liberal or conservative thought. Borissov's statements Effectively, he won the support of only one-fifth of Sofianites. weren't even political. Just the opposite, his views were a mixture of populism and truth expressed in a form we can The mayor of the capital city is believed to be the fourth high- hear every day in the streets of Sofia. The general has polit- est political office in the state, after the prime minister, the ical charisma and his offhanded comments about different president and the parliamentary chair. public problems appeal to the people.

Though during the campaign Borissov called on citizens to vote Bulgarian voters are sick of the meaningless officialese for him so that he could "give the political class a slap," during used by the majority of politicians. Unlike them, Borissov the second round of election he received the political support first talks about problems in the language of the street. This is of the Simeon II National Movement (SNM), then of the Union of what turned out to be a good campaign message. The gen- 18 Democratic Forces (UDF), the Union of Free Democrats, St eral, of course, has many shortcomings: his frivolous George's Day Movement and VMRO among others. approach to politics and the problems in the public sphere, his neglectful attitude to political parties, his free quotation Leading candidates Tatyana Doncheva (Bulgarian Socialist of thugs' nicknames and his personal acquaintance with Party) and Gen. Boyko Borissov (independent) had a different most of the underworld figures are in sharp contrast to his approach to the elections. One worked, the other did not. crime-fighter halo. The inheritance he left in the field of crime prevention is not that good, but he obviously has high Why Borissov won reputation among the Interior Ministry professionals. The

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria most telling appraisal for Borissov, however, came from the Gen. Borissov, in all honesty, tried to be at least a part-time voters. local elections

Why Tatyana Doncheva lost "I dedicate this victory to all officers, generals and soldiers During the mayoral campaign the candidate of the left, who have sacrificed their lives for Bulgaria," the new Tatyana Doncheva, also broke away from the BSP conven- mayor, Gen. Boyko Borissov, said at the news conference tions. She was the first BSP politician to admit officially that on the election night. "I also dedicate my victory to moth- the left party is strongly influenced by the former State er and father, may they rest in peace, and to my grandfa- Security services and to call for cleansing the BSP from that ther, who was beaten to death in late September 1944." influence. That way she drew a line between the Socialist Then the mayor thanked all his colleagues in the Interior Party and its communist heritage. Ministry, but this time did not mention them name by name. Her accusations against Borissov - that he was a candidate "This victory, with this result, is an assessment of me and of the status quo and that he was backed up by long-estab- of them," he added. "We were the most respected institu- lished economic interests in Sofia - could not be actually tion and we again are, as the election showed. It proved proven in public. that my rating is not hollow." Sofia is no longer the blue city it was in the early 1990s, BSP Borissov pointed out that he garnered the votes of many leader Sergey Stanishev said before the run-off election. right and left constituents and only the Roma support was Stanishev, who is the prime minister, added that the residents smaller. of the capital city had obviously voted for a strong hand per- sonified by Boyko Borissov, hoping that he would manage to He thanked the candidate of the left, Tatyana Doncheva, establish order in Sofia. At the same time Stanishev pre- for her participation in the election and voiced hopes that sumed that the murder of banker Emil Kyulev on the eve of in her face Sofia's residents would find parliamentary sup- the elections also influenced the result. port: for the law on Sofia, for a state aid for the con- struction of landfills and the city's bypass etc. The mayoral vote showed a growing desire in the populace to shun party leaders in favour of a candidate who is not Borissov also thanked and expressed respect for DSB's accepted as part of the elite and who could be expected to candidate Svetoslav Gavriiski, who ranked third, and for act independently. Therefore, such a candidate would score the SNM's candidate, Milen Velchev, who "had the a sweeping victory, sociologist Tsvetozar Tomov of Skala courage to support me as early as last Saturday." agency commented. To a certain extent the situation repeat- ed the 2001 election, when this type of vote brought Simeon After this introduction, Gen. Borissov stood up and left, Saxe-Coburg-Gotha to power. refusing to answer any further questions with the expla- nation that he would be giving interviews all week long. The common thing between the vote for Saxe-Coburg-Gotha

20 AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria Nearly 30 percent of the people who have the right to vote choose Boyko Borissov as a Sofia mayor. local elections

and for Borissov is that it concentrates unrealistic expecta- tions. The main question now is whether Borissov will man- age to live up to these expectations or will suffer a rapid col- lapse of popularity.

Doncheva's loss was even more devastating at the back- ground of the low voter turnout, because she actually won almost no votes. Left candidates in Sofia have always attract- ed about 200,000 votes; now the result was half of that. This cannot be explained away with Doncheva's majority-type campaign. It is also caused by the passivity of the BSP elec- torate, which was prompted by the failure of the government to fulfill its electoral promises and the small likelihood it will ever fulfill them.

Boyko Borissov may become the face of a new right-wing coalition, said sociologist Petar-Emil Mitev. The vote in Sofia repeated the all-against-BSP pattern. According to data from BBSS Gallup, the majority of right constituents who went to the polls at the second round of the election cast a vote for Boyko Borissov. Just 6 percent of those who voted for Democrats for Strong Bulgaria (DSB) - the best performing right-wing candidate at the first round - went to the polls at the run-off election. Only half of the people who voted for the UDF can- didate, Minko Gerdjikov, voted at the second round.

At the run-off election, Boyko Borissov took the votes of 91.8 percent of the SNM electorate, 91.6 percent of the United Democratic Forces (UtdDF) electorate, 58 percent of the The main competitor for the Mayor’s office Tatyana Doncheva and the head of Movement for Rights and Freedoms, 89 percent of the her election campaign - Minister Rumen Ovcharov lost the battle for Sofia. Bulgarian People's Union, 83.3 percent of DSB and 17.5 per- Svetoslav Gavriyski, without taking into account the other right cent of BSP. forces' wishes.

BBSS Gallup data show that 63 percent of the university Gavriiski, an experienced economist, said that in the financial graduates who went to the polls voted for Borissov and 37 field he has achieved more than any other person in percent for Tatyana Doncheva. Also, 73.7 percent of the peo- Bulgaria's history. His opponents, however, pointed out as a ple with high-school education cast their votes for Borissov. disadvantage that he was not familiar with the problems of Sofia. The general was also preferred by 60 percent of all age groups, except for the electorate in the over-60 years cohort, The acting mayor of Sofia, Minko Gerdjikov, who was nomi- where Doncheva had a small advantage. nated by the UDF and backed up by several right-wing orga- nizations, undoubtedly felt at home. The acting mayor had the AmCham Bulgaria Magazine November 2005 According to Andrey Raychev of BBSS Gallup, the results advantage of being well-informed about the municipal affairs. show the catastrophe of the bipolar model in the capital city. However, he was also accepted as the successor to He underscored that the success established Boyko Borissov Sofianski's government model: a phrasing used with a nega- as a political factor in Bulgaria. tive connotation. One of the things Gerdjikov inherited from Stefan Sofianski was the crisis with the Suhodol waste dump. Sofia has been a blue Nobody in Sofia can forget the piles of decaying rubbish on stronghold for 13 years, the streets in the summer of 2004. page 21 says Raychev. But what we have been seeing, especially in All parties of the right were put to a demanding test. The UDF, recent years, does not show that this is making things better which just recently suffered yet another crisis and accused its in the capital city. Just the opposite, from day to day former leader Nadezhda Mihaylova of inability to further the Sofianites are becoming more and more aware that most of party's performance, was faced with a genuine existential cri- the important problems of Sofia have not been solved yet. sis. Ivan Kostov had been gathering strength with his DSB. The good reputation, unobtrusiveness and untarnished public The mayoral election became yet another election where the record of DSB's candidate gave good chances for possible right ran divided. The possibility for a common candidate was rehabilitation of the right idea. However, that failed to materi- ruined after DSB nominated its own candidate, ex-banker alize. ■ events Economic Forum Closed State and Business Competitiveness of small and medium enterprises, infrastructure issues and real estate were in the focus of discussions at the 7th Southeast Europe Economic Forum By Marina Georgieva "We must start opening doors Southeast Europe states, The economic growth rate in the countries of Southeast and making borders less impor- regardless of the different Europe will remain high in 2005 as well and will closely tant to people and businesses," stages in the development mar- match last year's levels - an average of 5.4 percent for the Bulgaria's Prime Minister ket-oriented countries, have whole region. This statement was made by Georgi Tabakov, Sergei Stanishev said in his made a substantial progress chairman of the Bulgarian Economic Forum Association, at address at the opening of the over the last several years, the the opening of the 7th Southeast Europe Economic Forum. Southeast Europe Economic President Philip Buyanovic of Forum, which was held for the seventh time in the National Montenegro said. He defined as "precious" the experience of Palace of Culture in Sofia. Bulgaria and of other countries in the region in the process of accession to the EU. By an already established tradition, the forum is attended by cab- inet ministers, representatives of branch and nongovernmental Bulgaria and Romania must curb the corruption in the state organizations, economic analysts, businessmen from Bulgaria, administration and to improve their roads in order to attract invest- Romania, Croatia, Serbia and Montenegro, Macedonia, Bosnia ments and become competitive on the common market, Kalman and Herzegovina, Greece, among others. Mizsei, assistant secretary general of the United Nations told the participants in the forum. "The level of corruption is the major This year the emphasis was placed on enhancing the competi- challenge, it must be curbed. Infrastructure is the second most tiveness of small and medium enterprises, on information tech- important challenge. The two countries lag far behind, especial- nologies, on the development of the financial markets, on trans- ly Bulgaria, as it is more isolated from the European market and port networks, energy efficiency, and the real estate market the European investors," Mizsei said. developments in the region. Bulgaria will reduce business regimes, Bulgaria's prime minister stressed that the countries from Southeast Europe must build a common infrastructure, designed Minister of Economy and Energy Rumen Ovcharov said in his to facilitate communications, trade and investments. The govern- address to the Economic Forum. He promised that the govern- ment supports the initiative of companies in the region for more ment will analyze all regulatory regimes again. More than 160 dif- frequent meetings, cooperation and joint projects, Stanishev said. ferent regimes have been either revoked or eased over the last

22 AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria Bulgarian Prime Minister Sergey Stanishev (right) and Filip Vujanovic, President of Montenegro at the opening ceremony of the 7th Southeast Europe Economic Forum. events Gap Between

two years in line with the provisions of the act on reducing the made to turn the business into a genuine participant in the leg- scope of administrative regulation. At the same time, however, islative process in this country, Ovcharov said, adding that there due to the requirements of harmonizing Bulgaria's legislation with are proposals to limit the timeframe for adopting legislative the legislation of the EU, more than 160 new regimes have been amendments to twice a year in order to make the live of entre- introduced. That is why Bulgaria's legislation must be simplified preneurs easier. while the registration of companies must be as soon as possible removed from the courts of justice. Besides, attempts are being Besides the administrative barriers, businesses most often com- Bulgaria Is Among the Most Attractive Destinations for Real Estate Investments The emerging markets in Southeast nomic and political stability in the the effective Investments Incentives Europe provide the best opportunities region, will improve the business envi- Act, the rules on its application and for investments in real estate in the ronment and will push up the prices of the Strategy for Investment Incentives 21st century, said Bill Franks, vice- real estate, Franks said. in Bulgaria. Investments dedicated to president of U.S. company Sigma the acquisition of long-term assets Bleyzer, during a panel discussion "We are monitoring the Bulgarian mar- with the objective to create a new titled "High yield or low risk - the dilem- ket and we assess the precise moment company, expand or upgrade an ma for international real estate to enter this country," said Stewart existing enterprise manufacturing investors and the chances of Bulgaria International Vice-President Gill Urban- goods or providing services, whereas to emerge on their maps." The panel Carr. She made a presentation of the the project creates new jobs and is was on the agenda of the 7th methods her company is using to facil- scheduled for completing the invest- Construction and Investments Forum. itate the developments on the real ment plan within three years, are eli- estate market. Property title guaranty is gible to receive the incentives, Bulgaria's advantages and the defi- one of the major aspects in the oper- Naidenov said. ciencies in attracting foreign real-estate ations of Stewart International, Urban- investors were discussed also by Carr said. That means that each client The Sofia Hilton housed for the sev- James Ignatio, commercial attache submits his or her requirements before enth time the Construction and with the U.S. Embassy in Sofia; Gill purchasing a specific real estate. The Investments Forum. This event gath- Urban-Carr, vice-president of Stewart company then tries to find the most ered in Sofia the managers of foreign International; Georgi Kirov, senior con- suitable offer and to analyze all poten- and of Bulgarian investment compa- sultant at the investments department tial risks for the buyer - the existence nies and funds, financing institutions, of Colliers International; Michael of potential claims by other owners and investment projects contractors and Hansberger, managing director for real heirs, the existing of tax arrears etc. subcontractors, hotel owners and man- estate at the Bulgarian-American Thus, when the client acquires a real agers, tour operators, consultants and Investment Fund; and Svetoslav estate, the company guarantees in real estate agencies. Naidenov, representing the investment advance the client's right to acquire AmCham Bulgaria Magazine November 2005 policy department of the Ministry of the said property. According to the organizers of the Economy. forum, the success of investment pro- Bulgaria is among the countries with jects in Bulgaria is still hindered by var- Bill Franks went on to say that the fact the lowest cost of starting a new busi- ious obstructions, which were proposed that the economies in the region are ness, said Svetoslav Naydenov of the for discussion to the various panels. among the most vigorously developing Economic Ministry. He pointed out that The organizers assumed the commit- in the world constitutes one of the the average rates for the acquisition of ment to consolidate all issues and rec- advantages of Southeast Europe in industrial land in this country vary from ommendations in a 'white book,' which page attracting the investors' interest in real 8 Euro to 40 Euro per square meter, will be presented to the government. 23 estate. He supported his statement with and for office space - between 700 Each future forum will include an data revealing that the average GDP Euro and 1400 Euro. Rents for office analysis of the progress and of the growth rate for the region between space vary from 14 Euro to 16 Euro measures initiated with the objective to 2000 and 2004 stood at 5 percent. per sq.m. find a solution to the outstanding prob- lems, in order to establish a feedback The expected EU accession of Naydenov presented the measures link and contribute to the dialogue Bulgaria and Romania in 2007 will taken by the Bulgarian government to between the business and the execu- serve as an additional boost to eco- stimulate investments. He pointed out tive. ■ events

plain about lack of usable information and difficult access to Real estate prices on the Balkans financing. Steps have been made towards the establishment of Rent a guarantee fund for small and medium businesses, which is City Yield (Euro/ Sale price expected to simplify the procedures for extending credits, said (%) sq.m./month) (Euro/sq.m.) Ovcharov. The restricted access to bank credits due to the lim- Belgrade 5 - 8 10 - 15 1500 - 2100 ited resources of these companies to provide collateral, and the Bucharest 9 11 700 - 2500 still cumbersome regulations are seen as the major obstacles for Istanbul 6.9 8 - 12 300 - 1400 small and medium enterprises. Skopje no data 10 700 - 1000 Sofia 8.5 3.25 - 5.25 535 - 1500 Bulgaria has some 216,000 small and medium businesses, which Source: ADIS employ 1.1 million people, according to data released by the Centre for Economic Development. About 90 percent of these tory, which will link Plovdiv to Svilengrad, will start before the end companies have a personnel of up to 10 people, 8 percent have of 2005. The total project cost is estimated at 340 million Euro. a personnel of up to 50, and the medium-sized enterprises with The work must be completed in 2009, after which the maximum a personnel of up to 250 persons amounts to 1.5 percent. The speed of trains will be increased to 160 km/h. number of large companies is estimated at about 600. Romania outpaced Bulgaria in the Small companies account for 56 percent of the assets in private real estate sector as well companies. At the same time, small companies generate 75 per- cent of turnover and account for 70 percent of foreign trade, Romania is already considered as a much more attractive des- according to the report. tination for real estate investments than Bulgaria because of the larger size of the market - 22 million people, and lower The other major issue, discussed at the Economic Forum, cov- prices, said Deyan Kavrakov, manager of the Diplomatic Real ered the development of knowledge economy and the applica- Estate Agency (ADIS, by its Bulgarian acronym). tion of the so-called Lisbon Strategy, which - according to the participants in the forum - is still not implemented. Besides maintaining a high GDP growth rate, direct foreign investments in Romania during the first quarter of 2005 alone Bulgaria is at the bottom of the list of EU member and candi- were 35 percent higher than the same period of last year. The date states in terms of the development of the information soci- most important reason for this is seen in the flat 16-percent ety, Minister of State Administration Nikolay Vassilev said. Some tax rate, introduced by Bulgaria's northern neighbour, which 15 million Leva have been allocated by the budget for next year served as an additional boost to improving the economic envi- to electronic government. The Ministry of Education is drafting ronment, Kavrakov said. curricula, according to which IT-related courses will be taught to students as early as elementary and middle school level, Deputy He added that rental payments for office, commercial and res- Minister of Education Ekaterina Vitkova said. Bulgaria has scored idential premises in Bulgaria still remain lower than elsewhere a substantial progress by establishing close to 3000 computer in the region, and this is perhaps the only advantage Bulgaria studios at schools. still has.

The construction of Danube Bridge 2 Various experts said during the conference that they expected will be launched mid-2006 the prices for prefab apartments and low-quality housing facil- ities in regions without viable perspectives to continue falling, The news about the start of the strategic infrastructure project while the prices of luxurious apartments to continue rising. was disclosed by Minister of Transport Peter Mutafchiev. The Brokers have been claiming for some time now that the real contract with the company, which will build Danube Bridge 2 estate market in Bulgaria has calmed down and offers already between the towns of Vidin and Kalafat, will be finalized in the match demand. Theodora Ivanova, head of the managers summer of 2006. board of Address Group, said she expects the rate of con- struction in large towns and cities to continue to rise next year The price tag for the whole project has been set at 226 million as well. Euro, financed by the European Investment Bank, by the budget and by the EU pre-accession funds. The updated short list of Construction along the Black Sea shore at resorts like Sunny candidates to take part in the construction of Danube Bridge 2 Beach, Golden Sands, etc., already exceeds twice the capa- will be submitted by mid November. The consulting company for bilities of the relevant infrastructure, Kavrakov said. This will 24 the project will be appointed by the middle of December, the inevitably affect prices, that is why even now six hotels on the transport minister said. "first line" from the seashore have been offered for sale, he added. A similar tendency is observed in winter resorts - in Peter Mutafchiev stressed that because of the complex proce- Bansko, for instance, the scope of construction exceeds more dures for selecting the company to build the bridge, the actual than two times the capacity of the existing infrastructure. work will not start before the autumn of next year. The Danube Bridge 2 should be completed by 2010. According to data compiled by Address Group, the volume of housing credits released by the banks this year is some 50 per-

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria He added that the electrification of the first 37-kilometer railroad cent higher than in 2004. The number of construction permits section of European Transport Corridor No. 9 on Bulgarian terri- issued this year has increased twice. ■ analysis IMF Delays Performance Review

The IMF team for Bulgaria ended a two-week visit in the country on October 26 without full agreement on the budget programme for next year. The mission also announced that it would hold another visit at the end of the year before finalising the second performance review under the 2-year precautionary standby agreement expiring September 2006. The new monitoring plan means that the Fund has practically delayed its conclusions on line benchmarks and performance criteria of the standby programme, as the IMF executive board has been ini- tially expected to wrap up the review in mid-December while the act will appar- ently not take place before the end of the year under the new circumstances. Hans Flickenschild has stated in an practically continue to have enormous Although the IMF is often blamed of interview for the local Capital weekly impacts on consumer and import statis- being too conservative on the fiscal that the best fiscal response should be tics. Finally, the government plan for a part of its policy guidelines, its push for intuitively put in the surplus zone of fully balanced budget next year would more radical fiscal tightening next year some 5% but the Fund is realising that have been more sustainable if coupled is fully reasonable in view of the rapid- this would be impossible in political with more aggressive tax and expendi- ly deteriorating CA deficit, seen at terms. At the same time, the govern- ture cuts, but the state authorities are some 12% of GDP in annualised terms ment is unwilling or unable to realise still pushing for higher budgets and the as of August and likely to hit 15% by the risks, insisting on a fully-balanced senior ruling partner BSP (left-wing) the end of the year. This will mark a budget with options for shifting to a has little arguments to step away from two-fold deterioration in relation to a surplus of up to 1-2% of GDP only in its generous pre-election commitments. year ago along with steady foreign debt case of continued CA deterioration. Rumours of hidden wage hikes in some accumulation in the private sector. state structures are adding new prob- Moreover, the large seasonal gaps in It is quite important to note that the lems, as the IMF has warned that the the external balance in the last quarter problems with the fiscal programme are overall expenditures have surged by of this year and the first quarter of next not related to balance targets only, but more than 8% in real terms this year year could result into a big loss of for- also to the size fiscal expenditures and and the government has no acceptable eign reserves which could be very the fiscal loosening linked to this year's explanations for this expansion. Part of alarming for the central bank's capaci- general elections and extraordinary the fiscal expansion is apparently relat- ty to maintain the fixed exchange rate transfers to flood relief. The former gov- ed to severe flood damages but there regime against the euro. Taking into ernment has indeed allowed very steep are many other budget items that are account all these risks on the external hikes in social transfers and minimum running out of control. Huge flows are balance, the IMF stance for targeting a wages before the general elections and also pouring into new social compensa- general budget surplus of 3% of GDP these costs have expectedly appeared tions paid to disabled persons and next year against an estimated surplus closely correlated to import demand. many analysts, including government 26 of around 1.5% of GDP this year looks They have also established a very high officials, are confident that higher-than- like a strictly compulsory fiscal expenditure base and relatively small projected costs in these accounts result response. Moreover, IMF mission chief upward adjustments next year would from numerous corrupted practices.

This article is based on extracts from ISI Emerging Markets IntelliNews publications: Bulgaria This Week and Bulgaria Country Report. For more detailed information please contact ISI Emerging Markets office in Sofia at +359 2 8160404 AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria [email protected] analysis

arrangement. The high external risks could make the Fund more cautious in its conclusions and we could not exclude new delays in the IMF proce- dures under the second performance review. The final stance for completing or freezing the standby arrangement may depend on the new CA develop- ments by the end of this year or early next year but the outlook here seems unfavourable given the high oil prices and the weakening business senti- ments. On the other hand, the current arrangement with the Fund is sup- posed to be the final programmatic one and the Washington experts would try to end their successful experience with the country over the past 8 years Apart from the problems on the fiscal topical study showing that the credit in a positive mood. The final stance policy targets, the IMF mission and the growth fuelled by commercial banks is may depend on the stock of foreign central bank have outlined certain dis- even better correlated to import reserves, as large financial inflows may agreements in the field of bank credit demand than fiscal expenditures. still keep the country's external bal- restraints but the problems here Nevertheless, the difference in the tar- ance sustainable despite the huge CA appear less important. Both sides geted growth ceilings is small and deficit. The forthcoming winter months agree on promulgating new lending would hardly serve as a major impedi- will undoubtedly serve as a key stress restraints but the IMF is recommending ment to completing the 2-year pro- test for the external liquidity and for- a target ceiling of 15% y/y on the cred- gramme with the IMF.All in all, the IMF eign reserve dynamics is apparently it growth rate while the central bank mission remains largely optimistic on turning into a major early warning wants a higher target band of 16-20%. the country's economy and the gauge to be monitored by policy mak- The IMF reasons its view on a recent prospects of continuing the 2-year ers and investors. ■ AmCham Bulgaria Magazine November 2005

page 27 amcham events Paparizov Admits Hot Issues on Bulgaria's Agenda After EU Report Chairman of the EU integration committee meets Am Cham Members

Atanas Paparizov, Chair of the EU Integration Committee in the Bulgarian Parliament was welcomed by Valentin Georgiev, AmCham Executive Director and Dennis Fiehler, Bulgarian American Credit Bank. Atanas Paparizov, chair of the EU Integration Committee in the Paparizov said there would be new peer reviews of the Bulgarian Parliament, met on Oct. 27h with AmCham members European Commission in Justice and Home Affairs area as at a business lunch to mark the main issues that should be well as whether Bulgaria has secured its borders and how it tackled by the Bulgarian government and parliament with tackles with asylum issues. "greatest possible urgency" after the regular EU report on Bulgaria. Dimitris Kourkoulas, head of the European "It is not acceptable for the EU and for Bulgaria that no big Commission delegation to Bulgaria, attended the gathering as criminal has been put behind bars and yet no big corruption well. case went to court", Paparizov stated. He presumes that the 28 new Criminal Procedure Law would help speed up the process. The European Commission had sent a letter to the Bulgarian The new peer reviews will concentrate on how effective the Government on Oct. 28 outlining five areas of great concern judicial system is and to what extent it is accountable in its according to the monitoring report, Paparizov explained. On activities, for example whether the judges work or not, the this basis there would be a very strict timetable on what the AmCham guest said. Bulgarian government should do in the next months. In the let- ter one more issue of concern was added to the previously Among other issues of importance, Paparizov mentioned that mentioned five, Freedom to Provide Services. The remaining Bulgarian economy should overcome the difficulties with the

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria topics were Company Law, Agriculture, Regional Policy, Justice contract enforcement which will make the business environ- and Home Affairs, Environment. ment more efficient and predictable. "In addition we have to amcham interview

MPs to Closely Monitor Government's Work Prior to EU's Spring Report Sofia has to observe the legislative schedule of the European Commission for 2006, says Atanas Paparizov, chair of the parliamentary Dimitris Kourkoulas, Head of European Commission Delegation to Bulgaria said committee on European integration it is very important for Bulgaria to absorb EU structural funds after becoming member of the Union, as far as they will be around 7% of the country's GDP. By Irina Bacheva adopt a new code related to the administrative law, to ease the - Mr. Paparizov, what would be the priorities of the burden for domestic and foreign companies when dealing with Committee on European Integration in response to the the clumsy administrative procedures", in the opinion of 'red cards' in the Oct. 25 EU monitoring report? Paparizov. As the EU report stated the envisaged amendment to the Administration Law has still not been adopted, as well - On top of all are the issues concerning justice and home as the draft code of administrative procedure. affairs, company law, agriculture and freedom to provide ser- vices, plus intellectual property rights issues. There is a sub- Another area for Bulgaria's hard work is the functioning of the stantial progress in these areas, but in terms of the legisla- internal market and the area of services. Somewhat 45 per- tion, the legislative mechanisms are not implemented in cent of the Bulgarian cars have insurance and the rest remain practice. This concerns especially the measures against unregistered. Issues of concern remain in the areas of priva- pirated CDs. I hope the Bulgarian government and the par- cy, retail and manufacturing of illegal CDs. liament will work on these problems. The government has already prepared its "to do" list, prior to the EU report in Paparizov predicted there would be a problem with the acad- order to compensate the slowdown in reforms until the next emic degrees and professions, like doctors, medical nurses crucial EU report in April-May 2006. and their diplomas, which are currently not compatible on the EU market. In addition, there are lots of technical problems which con- cern the freedom to provide non-financial services, with the He stressed that a national development plan containing the range of the civil insurance. Some 45 percent of Bulgarian Bulgarian issues in regard with the EU membership should be cars have been insured for civil liability; so that the real developed to tackle with all these projects. It has been mapped problem remains with lots of old cars that still have active out in a formal way so far, Paparizov said. Dimitris Kourkoulas registration. Only formally these cars are usable and that is agreed that a national development plan is very important for why the percentage remains so low in the official statistics. Bulgaria. ■ There are technical procedures concerning the Agriculture AmCham Bulgaria Magazine November 2005 chapter that have to be undertaken in order to start func- tioning of the Payment Agency. In short periods we have to develop the common markets of the agriculture goods, especially the common milk products market. I would add there are also a lot of organizational measures that have to be done. For example, the food safety and the activities of the veterinary control organs, border food safety guarantees. page The majority of issues flagged by the EU's five 'red cards' 29 are perfectly solvable if the government and the parliament are efficient enough.

There is a need of a new consumer protection law and the parliament has already passed it on first reading.

The most serious problems concern the justice and home Stefan Dimitrov, Allied Pickfords Bulgaria and David Butts, Hayhurst Robinson affairs, the judicial reform and the preparations for imple- /right/ discussed the latest events in Bulgaria. mentation of the Criminal Procedural Code which will come amcham interview

into force in six months. The prime minister and the govern- ment have already declared the political will to fight the orga- nized crime and corruption, which have been the Achilles' heel for Bulgaria during the whole period of EU accession talks. These problems are also harming the security of Bulgarian cit- izens during the transition period.

- Does it mean that your team will closely monitor the activities of the government?

- Adding to the extensive legislative program, we will monitor the work of the government in the aforementioned problem areas in anticipation of the new EU peer reviews due in the coming months. In addition, Bulgaria has to participate in the adoption of the new EU legislation. In this regard Sofia has to agree with the initiative of the Danish speaker of the Parliament this year to closely observe the legislative sched- ule of the European Commission for 2006. In the period Nov. 14 - Dec. 16h this will be done by the national parliaments in the EU and in the EU Parliament in order to be aware of the EU directives and acts in 2006.

I think it is possible for Bulgaria to simultaneously start the same process in November. The EU-Bulgaria Joint Committee will meet on Nov. 28 to discuss the latest achievements in reforms. After the committee takes into account the previous remarks in the EU report and also the progress on human rights issues, minorities' issues and gender equality, it will pre- pare common conclusion and recommendations to the safety facilities. Such problems are discussed in great details. European Parliament and the Bulgarian Parliament, I hope, It is very important to defend a position in front of the com- with reference for Bulgaria to join the Union on Jan. 1 2007. mittee having in scope all the fears, all the questions that might come up with a specific project. I believe that there would be That is why the contacts of the 18 Bulgarian observers into the more solutions in the near future in regard with the safety of European Parliament are so important because they provide a nuclear power stations, moreover with the rising prices of the kind of additional information to the European MPs, so that the energy resources, like petrol and gas on the world market. name of Bulgaria is well known within the EU Parliament. Every one of the European observers, including the Bulgarian - Earlier you have commented you are going to support the ones has contacts within his political group and can partici- Belene nuclear project within the Industry Committee in EU pate in every meeting of the European parliamentary commit- Parliament. Are you well prepared for the critics of the tees. We have the opportunity to observe the activities and the Green Party and the other conservative parties which debates in every committee, especially when it concerns oppose the building of new nuclear power stations? Bulgaria. - If there is well presented and transparent project in Bulgaria, - Could you be more specific on what is the influence of why not backing it in Brussels. The nuclear energy has its the Bulgarian observers into the European Parliament and future in Europe. Though the renewable energy resources like in the committees? solar and wind energy become popular, they still have a small share of the energy consumption all over of the world - The political groups are the main structures of the European economies. Parliament, so that every one has its contacts and influence within this group. I am a member of the group of the European - The EU is discussing the adoption of a third directive Socialists and our representatives participate in the especially against money laundering and financing of terrorists. It formed working group in regard with the EU report. We discuss envisages strict control of politicians and their families. 30 issues prior to the report and after that. How do you see Bulgaria applying this directive when becoming the EU member? I would say the Industry, Energy and Research Committee which I participate in, is a very dynamic one and it is chaired - When Bulgaria becomes an EU member it will have the oblig- by a very influential British MP, Gile Chichester. The commit- ation to apply the directive. I suppose the EU working groups tee is partnering with the European Energy Forum and both fol- of the Bulgarian government in the Ministry of Finance and in low issues of nuclear energy in Bulgaria and in Europe. the Ministry of Internal Affairs are familiar with the directive and the EU debate. Bulgaria has to adopt the new legislation

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria Recently, Finland presented a project for a new nuclear power of the Union simultaneously at the moment it becomes a fact station, but with an extensive plan for nuclear waste storage for the other EU member states. ■ committee reports Condominium Associations Should Be Voluntary A working condominium law will suit the needs of most players on the market By Tanya Kosseva-Boshova, Landmark Residential real estate market has probably been the fastest tion of a specific apartment block creates a contractual growing sector of the Bulgarian economy during the past few agreement between the neighbors, probably from similar years. The sea coast, mountain resorts and many residential social or economic status. This allows them to be able to neighborhoods in Sofia have experienced a revival with qual- impose rules and most importantly to create ways to collects ity developments. dues from all members of the association. The new legisla- tion in Bulgaria should be applicable only to new residential This exponential growth has brought the needs of different developments or existing apartment blocks that want to cre- players on the market - developers, investors, buyers and ate a better living environment for their occupants. That will tenants alike - to the forefront. They all have a vested inter- set apart these developments, which are targeted at the high est in quality maintenance and care for the property, keeping end of the market and will ensure the value of these build- and even increasing its value over time. In most European ings is preserved and increased. and North American countries, the legal framework that ensures this is a condominium law in one form or another. At Another argument in support of the idea of making condo- the beginning of the year, the Ministry of Regional minium associations voluntary rather than obligatory to all Development of Bulgaria prepared a draft of such a law. Bulgarians is the fact that one of its main goals - to provide ways to collect dues is not going to be achieved with an The Real Estate and Construction Committee at AmCham across-the-board introduction of the condominium associa- has taken an active position on the government's draft and tion. Bulgarian law protects the single and only dwelling of a has organized several meetings with the responsible deputy person from expropriation for any kind of receivables. ministers. Here we would like to present the key features of Therefore, the properties of most poor people, that do not pay a good condominium law that in our opinion would suit the their dues because of financial difficulties, can not be put up needs of most players on the market. These recommenda- for sale for unpaid repair and maintenance fees. tions of the committee are based on the experience of other more developed countries in Europe and North America. A On the other hand, if the owner has agreed voluntarily to be complete study of these legislations can be found at a member of the condominium association, the receivables AmCham's office. from him can be imposed as a pledge or security on the property, and the property can even be force sold to cover Condominium laws provide for the creation of a condominium the outstanding payments. In most countries this mechanism association that manages the condominium apartment build- acts as a better deterrent than an actual threat of sale of the ing. Different people own their individual units in the apart- property. The situation is very similar to a mortgage loan - ment block and the association owns the common areas. per your contractual agreement the bank can take away the Usually, there is a condominium declaration that sets out the property for missed payments, but most people find a way to rules and regulations for the particular property, including cover their payments over time in order to protect their own- maintenance, cleaning, security, etc., and the fees to be paid ership. by the owners. The document is called declaration as this is a voluntary act of acceptance of the rules of the building by The building rules as well as all the outstanding payments for each individual person before buying into it. In other words, common areas maintenance and repairs should be accessi- the declaration is obligatory only to the members of that spe- ble and transferable to all potential buyers by registering them cific condominium. at the Register of Real Estate Properties or the Cadastre when it is ready. In this way the dues will be collected at the This voluntary acceptance allows people to have freedom of transfer of the ownership of properties, the association will choice, rather than imposing a single set of rules to all prop- be able to impose the building rules to new members of the 32 erty occupiers across the country. In Bulgaria, where home association and buyers will be able to make an informed ownership is very high, many apartment blocks are currently decision whether they want to abide by these rules. home of families from different social strata and therefore with different needs and different financial abilities. Actually, If designed properly, the condominium association is an excel- this is the reason why most of the multifamily properties in lent mechanism to help willing and able owners of multifamily Bulgaria look awful, the common areas are not taken care of properties take care of the value of their real estate assets. and therefore the value of the properties is not maintained This can be done with a combination of property and con- and increased adequately. tractual laws that reflect the new needs of real estate occu-

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria piers in Bulgaria. Freedom of choice and enforceable mecha- On the other hand, the voluntary acceptance of the declara- nisms are the basis of a successful condominium law. ■ committee reports Responsible Business Is a Potential 'Win-Win' Opportunity If Designed and Managed in the Right Way

AmCham congratulates the long-expected initiative and gives full support to the recently launched Corporate Social Responsibility Committee.

The new committee started its activity on Oct. 25 with a meet- ing at the AmCham offices and received prompt and con- structive feed back from AmCham members. Elitza Barakova, executive director of Bulgarian Charities Aid Foundation (BCAF), was appointed as committee's chair.

The establishment of the committee is an important step for the AmCham policy as the CSR issue is very slightly devel- oped in the Chamber's activities until this moment. The com- mittee members approved ambitious goals to follow in the future program which will boost the information exchange among AmCham members. The committee will focus mainly on social investment and The main goals of the AmCham CSR committee are to encour- community outreach activities and will cooperate with other age and facilitate responsible business practices and to sup- committees, such as Business Development, EU Affairs and port members to improve the quality and effectiveness of their Human Resources, in other aspects of CSR as corporate gov- CSR programs and actions. ernance, environmental stewardship, employee health and safety. The committee will work to increase awareness on SCR issues and support companies' leadership and staff through spread- All AmCham members are welcome to participate and con- ing information, ensuring learning and access to novelties, and tribute with their ideas and experience to the new committee's generally creating a platform for sharing best practices in activities. For more details about the CSR Committee work achieving CSR goals. contact Milena Milenkova at [email protected]. ■ AmCham Bulgaria Magazine November 2005

page 33

Elitza Barakova (first from right), executive director of Bulgarian Charities Aid Foundation (BCAF), was appointed as committee's chair. committee reports EU Affairs Committee - Focus on Public Procurement By Gergana Maneva, Antoaneta Boeva, Center for European Programs, American University in Bulgaria

Public procurement has been an area In addition to the above, the discussion preparation for in the EU Regional Policy traditionally in the focus of attention of during the meeting aimed at raising fur- (the Structural Funds Regulations), both businesses and governmental insti- ther awareness of the important EU building capacity with regards to law tutions in the light of the shared under- issues that Bulgaria will have to cope enforcement, fighting corruption, etc. standing that it stays at the heart of with in the future - sustainable develop- major economic activity and is a deter- ment, competitiveness, increased pro- The transposition and efficient imple- minant for steady market growth and ductivity, e-governance, etc. To that end, mentation of the Public Procurement sustainable development. the introduction and explanation of e- legislation and the adaptation of the Procurement and Green Public national public procurement system in It is a common belief that transparent Procurement is essential for Bulgaria, as Bulgaria is an important part of the and competitive procurement proce- this can be taken into account already overall EU enlargement process. Public dures lead to a stronger marketplace, in the early stages of transposition and procurement rules can contribute to bet- more efficient allocation of public implementation of the EU legal frame- ter achievement of the social and eco- resources, and improved quality of pub- work. nomic policy objectives, and the sus- lic services. Transparent public procure- tainable development of the country. ment procedures and adequate regula- The EU public procurement is an area, tory supervision and control are crucial which is horizontal to the whole process Proper and rapid harmonization, as well for creating a stable and investor-friend- of European Integration. As a funda- as the implementation of the new EU ly economic environment. mental part of the Internal Market it is directives into the national framework, is governed by rules intended to remove required to further and sustain the With this view, the AmCham EU Affairs barriers and open up new, non-discrimi- reform of the Bulgarian public procure- Committee's meeting, which took place natory and competitive markets, which ment system already successfully on Oct. 11, 2005, discussed the current is one of the fundamental principles of launched by the governmental authori- status of the Bulgarian public procure- the EU Integration. The principle of pub- ties. At present, it is important to inten- ment system. A particular focus was lic procurement is to open up the choice sify efforts with regards to both the rein- placed on the present institutional set- of potential suppliers to the public sec- forcement of the judicial system, as well ting and the future challenges, which the tor and utilities resulting in reduced cost, as strengthen the institutional and future accession of Bulgaria to the EU while at the same time, opening up administrative capacity for the imple- imposes upon the country. Mrs. Miglena potential markets for companies. The mentation and enforcement of Public Pavlova, executive director of the rules aim to ensure the free movement Procurement legislation. Bulgarian Public Procurement Agency, of goods and services within the EU and delivered a presentation on the agency, that public sector purchasing decisions AmCham's EU Affairs Committee noted its mandate and functions, and the ser- are based on value for money achieved that the existence and consistent uni- vices it renders to businesses. through competition. The principles are form implementation of uniform stan- applied through information across the dards for carrying out public procure- In the context of the meeting Dr. Olga EU, treating all enquiries equally to avoid ment is a clear signal to companies and Borissova, chair of the AmCham EU discrimination on the grounds of nation- other economic agents for efficient Affairs Committee and director of the ality or the origins of goods and ser- functioning of the market structures and Center for European Programs at the vices, encouraging the use of EC based is a crucial factor for generating eco- American University in Bulgaria, pre- technical standards as opposed to nomic interest and investment activities. 34 sented the book issued as a follow-up to national ones, and using objective crite- the conference titled 'Regulating Public ria in tendering and contract award pro- The EU membership of Bulgaria would Procurement Internal Market Acquis: cedures. bring about benefits for local and foreign European Experience and National businesses operating in the country in Perspectives,' which was held earlier Furthermore, public procurement is not terms of opening up a wider, more com- this year in the framework of the PHARE only a horizontal issue in the framework petitive, and thus more innovative mar- Small Projects Programme of the of the Internal Market, but is also basis ket and granting access to considerable European Union and with the support of for a number of Community policies and financial resources. Upon accession, the

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria the Open Government Initiative Project areas, i.e. effective administration and country is expected to receive over 4 of the USAID. utilization of pre-accession funds, billion Euro from the structural and committee reports

Procurement Register is accessible on- line and provides broad possibilities for a quick and advanced search for spe- cific public procurement procedures. Implementation is ensures through the functioning of the Arbitration Court under the Agency, which performs its mandate in accordance with a special Regulation, adopted in October 2004.

Nevertheless, the proper functioning of the Agency requires further effort to clearly separate its advisory and review From left: Kenneth Volandes, legal advisor, USAID Commercial Law Reform Program, Olga Borissova, functions and strengthening the profes- AUBG and Miglena Pavlova, Public Procurement Agency at the panel of the committee. sional skills of its experts. cohesion funds in the first three years issues, such as establishment of a fully of membership. This will significantly efficient remedies mechanism, align- Following its mission to promote eco- increase and broaden existing business ment of the internal concessions legis- nomic initiatives and investments within opportunities but at the same time put lation with the acquis and acceleration Bulgaria, AmCham will seek to continue additional pressure upon state authori- of the transposition of the new 2004 fostering business-government dialogue ties to swiftly and efficiently deal with package of EU procurement directives. in order to help develop a more trans- pending shortcomings in the national parent and efficient business environ- public procurement system. Mrs. Pavlova explained in her presenta- ment. With this in mind, public procure- tion before the AmCham EU Affairs ment will stay in the focus of the future As the 2005 EU Commission Committee that the Public Procurement industry-related discussions in the Comprehensive Monitoring Report on Agency has been continuously improv- framework of the EU Affairs Committee Bulgaria underlines, the country needs ing its administrative capacity and devel- with governmental officials, MPs, repre- to come up with an overall strategy and oping instruments to help businesses sentatives of the private sector and an action plan to tackle outstanding and potential bidders. The Public think tanks. ■ AmCham Bulgaria Magazine November 2005

page 35 member news Avon Tops List in Working Mother Magazine Avon makes its ninth appearance on Working Mother maga- particular weight to three issues: flexible scheduling, childcare zine's annual survey of 100 Best Companies for Working options and time off for new parents. Avon was recognized for Mothers. The influential list, now in its 20th year, recognizes programs that help employees balance work/life issues, such the most family-friendly companies in America. Avon is the as flextime, compressed workweeks and telecommuting. Avon only beauty company to make the 2005 list. was also lauded for initiatives that assist employees with home buying, paying for higher education and long-term financial In compiling this year's list, the editors of Working Mother gave planning. ■ Marsh Presents New Home Warranty and Insurance Program Marsh Bulgaria leads the initiative to implement and create a protected more than 30 percent of existing homes in the brand new model for providing home warranty and insurance. NHBC Home Warranty & Insurance program. Buildmark cover Mr. Andrew Howard, head of corporate communications for is a 10 year warranty insurance providing the homeowners United Kingdom's National House-Building Council, was invit- with premium security through two major methods: ed to present the project on Oct. 19. NHBC is the standard setting body and leading warranty and insurance provider for 1. Cover before completion. If, due to insolvency or fraud, the new and newly converted homes in the United Kingdom. builder does not start building or converting the home or fails to finish it, NHBC will reimburse the money owners have paid The role of NHBC is to work with house-building and gener- the builder for the home where the money cannot be recov- al construction industry to provide risk management services ered from him. that raise the standards of new homes, and to provide con- sumer protection to new home buyers. Prominent Bulgarian 2. Cover after completion. Any defects or damage due to banks and credit institutions, real estate investors, construc- construction work should be reported to the builder or to tion companies, architects and insurance companies, have NHBC to be put right or paid for repair. declared their interest in that project. NHBC is internationally recognized as an example of best Around 1.6 million homeowners are currently covered by practice in Australia, Japan, China, South Africa, Netherlands, Buildmark policies, and over the past 40 years, NHBC has Sweden, Spain, Poland and Turkey. ■ Postbank Reduces Interest Rates on House Loans Postbank announced new, promotional interest rates for its loan procedure. In terms of timing, pre-approval is granted in housing loans at 1.75 percent, fixed for the first year both in two days. 36 Euro and Leva for the period until Dec. 31, 2005. The bank has already announced two more products that give to the Postbank's house loans finance up to 100 percent of the customers the choice of prolonged stability in their monthly value of the deal, their maturity is up to 25 years with option installment. The new home loans are the two-year fixed and for a grace period up to 24 months and cover all purposes the three-year fixed available both in Euro and in Leva. such as purchase of immovable property, repairs and improve- ments, construction and completion, as well as refinancing of With a constant eye on the servicing of the customer, loans extended by other banks. Postbank - with its mortgage lending officers present in every

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria office of the Bank - provides clients with advice on the solu- Clients are also given the possibility to withdraw an addition- tion that best suits them and assists them during the whole al consumer loan with preferential conditions. ■ member news Enterprise Àpplications Leader Oracle Demonstrates Best Practices Oracle Bulgaria ran its first Applications Day in Sofia on October points by making the most of their applications. With its appli- 26th. Before more than 120 guests - customers, prospects and cations, Oracle provides greater business insight for better deci- partners, the largest enterprise software vendor demonstrated its sion-making and adaptive business processes for optimal best practices in the implementation of Oracle business appli- responsiveness to dynamic market conditions, with a low cost, cations in different types of industries and organizations. low risk infrastructure.

Opened by Klod Kolaro, Managing Director, Oracle Bulgaria, Oracle Industry Leadership Serbia and Montenegro, the event rolled out with presentations addressing the messages of Oracle's E-Business Suite towards 17 of the top 20 banks run Oracle applications the top management representatives of different organizations 12 of the top 15 insurers run Oracle applications and businesses. The Oracle business applications overview was 10 of the top 10 telcos run Oracle applications presented by Orlin Dochev (account manager - business appli- 11 of the top 15 retailers run Oracle applications cations, Oracle Bulgaria) and Sorin Mindrutesku (Sales manag- All top 25 electronic OEMs run Oracle applications er, business applications, Central and South-Eastern Europe). 7 of the top 10 semiconductor companies run Oracle applica- tions Mike Stone briefed the audience on how the consulting organi- 27 of the top 30 pharmaceutical companies run Oracle appli- zation within Oracle is operating, and experts from Oracle Czech cations Republic, Slovakia and Turkey communicated in further detail the 9 of the top 10 engineering and construction companies run main trends and drivers in Oracle's strategy. The four major local Oracle applications Oracle partners - Fadata, Rila Solutions, Sirma Solutions, and Over 100 US federal organizations run Oracle applications Intracom Bulgaria supported the event and contributed to its con- 7 of top 10 aerospace & defense companies run Oracle appli- tents by presenting their experience with Oracle applications. cations 9 of top 10 automotive manufacturers run Oracle applications All topics reflected the current challenges in the marketplace 27 of top 30 pharmaceutical companies run Oracle applica- and addressed how companies can handle their specific pain tions ■ AmCham Bulgaria Magazine November 2005

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Klod Kolaro, Managing Director, Oracle Bulgaria, Serbia and Montenegro, opened the event. member news Ian Jacob Is the New Commercial Director of TeleLink Ian Jacob has joined TeleLink as its commercial director. He work went into selecting a company that could meet require- is British and his working experience includes 12 years as ments. TeleLink was selected because of the complete set an officer in the British Army, 10 years with Cable & Wireless of skills needed. The result was that the project was deliv- - responsible for outsourcing corporate voice and data net- ered error-free, on budget and ahead of time, said Mr. works, two years in Lucent's Messaging Division as a direc- Jacob. tor, outsourcing for EMEAI, and three years with Alcatel as a sales director for the U.K. utilities sector. Over the length of the project it became clear that TeleLink has a very strong growth in revenues, with FY 2004 report- Mr. Jacob said he discovered TeleLink when a year ago a ing gross revenues over 20 million Euro, and the forecast for company he was involved with was doing a complex com- 2005 is significantly higher and expected to be in excess of munications equipment R&D project. In particular, the team 30 million Euro. The company has grown from being a needed help with the complete development of a network mobile network installer into a highly competent computer management system that was going to be able to handle an and communications systems integrator with an estimated 16 innovative and complex new networking concept. A lot of percent of the Bulgarian market. ■

new members

AGS is one of the major internatonal moving Tishman International Companies owns and oper- company worldwide with a real network (no ates commercial and retail real estate, and is active franchise). The AGS - Four Winds network is in the acquisition, development and financing of real now covering all the continents and we are estate assets. The company is headquartered in Los proud to inform you that the number of our AGS branches is Angeles, California, with a European office in London, England. 160 at the moment, with also more than 1400 agents around the world. AGS Sofia is pleased to help you with the interna- Prominent clients and partners are: tional and local moves of your personal effects and household goods along with office relocations. Our clients include corpo- Metropolitan Life, New York Life, Equitable, Teachers, Security rate, diplomatic (Embassies), private sectors and international Pacific Bank, Bank of America, Grosvenor International, organisations (UN, ...). All our packing material is imported Citibank. American Express, Shearson Lehman, Arco, Fidelity from France, this guaranty you the best packing services all Investments, Kajima, IKEA, lend Lease, HVB Real Estate, and over Bulgaria. many others.

Our services include: Tishman's projects in Bulgaria

Full door-to-door service Tishman Management Company EOOD is the Bulgarian sub- Free estimate sidiary of Tishman International Companies and has created a Full origin service (packing material, packing, loading, customs joint venture with its partner Lindner AG, to develop and invest clearance) in commercial and residential properties in and around Sofia. Provision of all top quality and customises packing material Tishman is also looking at projects in the ski resort area and Insurance and storage the Black Sea Coast of Bulgaria. The company is currently in Road/air/sea/rail freight negotiations to acquire an investment property currently being Full destination service (customs clearance, unloading, developed that will be occupied by TNT, and are also joint ven- 38 unpacking, setting up the furniture, removal of debris) ture partners of Sofia Airport Center and for the development of the first phase of Residential Park, Sofia. Contacts: Mr. Cyril Peuch, Director Contacts: Tel: 945 4243, 945 6237 TISHMAN MANAGEMENT COMPANY EOOD Fax: 945 4917 Business Park Sofia, Bldg. 2, Fl. 5 Address: 16 A, 3rd Street, Vrajdebna 1715 Sofia 1839 Sofia Tel: 9769700

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria E-mail: [email protected] Fax: 9769788 Web: www.ags-worldwide-movers.com E-mail: [email protected] travel South Africa's World Heritage Sites - Part II By Gerhard Visser, Ambassador of South Africa to Bulgaria

Continued from issue 63 density and endemism of the flora are Mapungubwe National Park, in the among the highest worldwide. Unique Limpopo Valley. From excavations Cape Floral Region plant reproductive strategies, adaptive to undertaken by the University of Pretoria, fire, patterns of seed dispersal by it's believed Mapungubwe was inhabited A serial site - in Cape Province, South insects, as well as patterns of from 1030 to 1290. However, Africa - made up of eight protected endemism and adaptive radiation found Mapungubwe Hill was only settled in areas, covering 553,000-ha, and the in the flora are of outstanding value to 1220, by which time the kingdom was Cape Floral Region is one of the richest science. already ruling the Limpopo valley, north- areas for plants in the world. It repre- east Botswana and southern Zimbabwe. sents less than 0.5% of the area of Lost Kingdom of The Kingdom of Mapungubwe was also Africa but is home to nearly 20% of the Mapungubwe one of the earliest examples of the continent's flora. The site displays out- class system in practice, where the standing ecological and biological Mapungubwe was southern Africa's first wealthy ruling class lived protected on processes associated with the Fynbos true kingdom. Now it is South Africa's the hilltop and enjoyed the riches pro- vegetation, which is unique to the Cape newest cultural World Heritage site and duced by the poorer working class of Floral Region. The outstanding diversity, lies at the heart of the majestic farmers and craftsmen living down

40 AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria Mapungubwe National Park in the Limpopo Valley. travel

Today tourists can visit the island, see the cells in which these people spent much of the adult years and listen to first-hand accounts of life on what has been called one of the world's great uni- versity's of political struggle and strate- gy. It became a World Heritage Site in December 1999. Other facts

● Blyde River Canyon is the third largest canyon in the world - and the largest green one. The Grand Canyon in the US is the biggest, and the Fish River Canyon in Namibia the second, but both are dry as bones.

● The Tugela Falls is the second high- est waterfall in the world, where the water tumbles down 850 metres. First place goes to the Angel Falls in Venezuela at 979 metres. The hill that inspired the creation of Voortrekker Monument. below. and its prison was to isolate opponents ● South African grasslands have 30 of apartheid and to crush their morale. species per square kilometre, greater Mapungubwe National Park Some freedom fighters spent more than than the biodiversity of rainforests. a quarter of a century in prison for their With newly constructed accommodation convictions. ● Can mountains be folded? Yes they and tourist facilities, the 22 000 hectare can, and you can see such wonders Mapungubwe National Park offers visi- It was home for many years to famous in the Western Cape at the tors unparalleled natural diversity. There South Africans such as Nelson Mandela Cederberg and the Swartberg moun- are magnificent routes to drive in the and Walter Sisulu. The cream of the tains. park, traversing a variety of habitats, country's political leadership spent time from riverine forest to plains. Dramatic here plotting about how they could win ● The Kalahari, which sprawls over natural rock sculptures of sedimentary freedom and independence for their South Africa, Botswana and Namibia, sandstone adorn the area and trees people. is the world's largest mantle of sand. cling to sheer rock faces to create a surreal landscape. Towering baobab trees fill the park and give shelter to a variety of unusual game species, such as dainty klipspringer and sturdy eland. Elephant and leopard are also speciali- ties and there are zebra, wildebeest and numerous other species of antelope to AmCham Bulgaria Magazine November 2005 be seen. But plans are in progress to reintroduce all the game species that naturally occurred in the area. Robben Island

For nearly 400 years, Robben Island - page set in the Atlantic Ocean some 12 kilo- 41 metres from Cape Town - was a place of banishment, exile, isolation and imprisonment. It was here that rulers sent those they regarded as political troublemakers, social outcasts and the unwanted of society. During the apartheid years Robben Island became National Geographic points out that the whole South African coast, sweeping down from the coral reefs of the internationally known for its brutality. Indian Ocean to the rich kelp beds of the Atlantic, is one of the richest, most biologically diverse and most The duty of those who ran the Island oceanographically complex marine environments on Earth. travel

● South Africa and its neighbors are some of the most generously endowed geographic solar hotspots in the world, soaking up just over half of the world's highest category of solar wattage per square metre of land.

● The Fertility Caves, near Clarens

Situated in the Eastern Free State near Clarens lie the Fertility Caves. These caves have served as a spiritu- al gathering place for over 800 years to various tribes and religions in and around Southern Africa. Of course a little jaunt to the arty hub of Clarens could do wonders for your creative spirit…. With newly constructed accommodation and tourist facilities, the 22 000 hectare Mapungubwe National Park offers visitors unparalleled natural diversity and animal species. Lake Fundudzi, Venda Namibia are home to the largest of the Indian Ocean to the rich kelp mainland seal colonies in the world, beds of the Atlantic, is one of the The Limpopo province is home to one with nearly two million individuals. richest, most biologically diverse and of the sacred myths and legends of the most oceanographically complex Venda people. The mystical atmos- ● National Geographic underwater pho- marine environments on Earth. phere, the lush forests and the deeply tographer, David Doubilet, rates South reverent people are all the ingredients Africa's unique annual sardine run South Africans rediscovered the prehis- one needs for a genuine soul journey. "one of the most amazing pulses of toric coelacanth fish and we also have Local legend has it that Lake Fundudzi life in the world's oceans," a phenom- the most accessible coelacanth popula- is protected by a python god, the enon every bit as dramatic as the tions to diving tourists in the world. A Vondo Forest closeby is said to be a migrations of the African savannah. group of seven was recently seen at 113 `holy forest', home to Venda's ancestral m below sea level, off the Greater St fathers. ● National Geographic points out that Lucia Wetland Park. And more recently, the whole South African coast, a few more were seen at a surprisingly ● South Africa's west coast and sweeping down from the coral reefs shallow 54 m bellow the sea. ■ Tugela Falls is the second highest waterfall in the world.

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Many caves have served as a spiritual gathering place to various

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria tribes and religions music

The Top Fender® Females - Part III By Snejanka Natcheva Susan Tedeschi inals. This album won her a Grammy nomination for Best New Artist. Singer/songwriter/guitarist Susan Tedeschi is a big part of the new gener- Better Days, which was originally released ation of blues musicians striving to keep in 1995, was later re-released after the the genre fresh and exciting. Her live success of Just Won't Burn. shows are a potent mixture of blues, R & B, gospel and original material. After a long hiatus, the aptly titled Wait For Me was released in 2002. The album Susan Tedeschi was born on November was described as "a crossover album that 9th, 1970 in Norwell, Massachusetts, USA. oozes with integrity, terrific playing, and a She started singing when she was four, loose yet distinctive direction." Susan played with local bands from the age of scored another Grammy nomination for 13. In 1991, after honing her guitar skills, Alone, (Best Female Rock Vocal Tedeschi graduated from Boston 's presti- Performance) the first single from Wait gious Berklee School of Music. Taking her For Me. A third nomination was gained for influences from Janis Joplin and Bonnie Wait For Me for Best Contemporary Blues Raitt, she started playing with a backing Album. Tedeschi has won numerous W.C. band and between them; they developed Handy Blues Awards, the highest honour into a tightly knit, road-ready group. given to artists by the Blues industry.

The Susan Tedeschi Band's first album, Susan plays a variety of Fender® Just Won't Burn, was released on the Boston-based Tone-Cool Telecaster® guitars through a '64 Fender® Deluxe Reverb® Records in early 1998. The album was a successful mixture of amplifier. well-chosen covers (Mama, He Treats Your Daughter Mean by Ruth Brown and Junior Wells' Little By Little) and powerful orig- www.susantedeschi.com/ AmCham Bulgaria Magazine November 2005

page 43 music

Ana Popovic Turner. Alex Cox's film about Sex Pistols bassist Sid Vicious and his lover Spungen. Ana Popovic has carved a name out for 2003 saw the release of Comfort to the herself with her fiery, passionate blues Soul, which was mixed by Love then relocated to Minneapolis and rock guitar playing, SRV/Santana/Jonny Lang collaborators, formed the all-female post-punk group Jim Gaines and David Z. Babes in Toyland with Kat Bjelland. Love Ana can also be found left the band and returned to Los on guests on Michael Angeles to start her own band - Hole - Hill's 2003 double live in 1989 with Eric Erlandson (guitar), Jill album, Electric Storyland Emery (bass), and Caroline Rue live album. (drums). Hole released their debut album, Pretty on the Inside, in 1991. A In 2003, Popovic was year later, Love married Nirvana front- nominated for a W.C. man Kurt Cobain. Handy Blues Award for Best New Artist of the Soon after Cobain's suicide in 1994, Year and was the first Hole's second album was released. Live European artist to per- Through This, captured the pain and form at the Handy anger of somebody undergoing a tragic Awards. loss.

Ana says "I've always In 1998, Hole released their final album, played Fender® guitars Celebrity Skin. In 1999, Love was nomi- and amps. I'm playing a nated for a Golden Globe for her per- Fender® reissue 57 formance in the movie The People Vs. Strat®, fiesta red, maple Larry Flynt. neck, vintage pickups and a Standard Courtney released her first solo album, Telecaster® (finished in America's Sweetheart, in 2004. Yellow) with a rosewood neck. I've been playing In 1995, Love approached the Fender® Super Reverb® for a Custom Shop in Corona, California and couple of years. I'm now co-designed her own guitar, the Venus. playing a Fender® Vibro Two years later, she saw her Venus King® Amp, and am very become a Squier® production model. happy with it." Love still uses this guitar, as well as a Born in Belgrade, Yugoslavia on May number of Stratocaster® guitars. 13th 1976, Ana was raised on the blues www.anapopovic.com discs of her father's vinyl collection. www.courtneylove.com With the collapse of communism in cen- Courtney Love tral Europe in the mid-nineties, she found herself playing blues festivals in Courtney Love is one of Greece and Hungary and working as an the most notable and con- opening act for American blues masters, troversial figures in alter- including Junior Wells. native rock.

Popovic recorded her debut album with Born on July 9, 1964 in her band Hush in 1999, and moved to San Francisco, California, Holland where she studied at the USA, Love was raised in Conservatory of Music. A number of Oregon. As a teen, Love impromptu performances in Germany began listening to new led to her being signed by German wave and punk, musical 44 record label, Ruf. styles that would influence her band Hole. Her first release on Ruf Records was 2000's Hush!, which was well received After travelling to countries on the blues circuits of Europe, Canada like Ireland, Japan, and and America. England, Love moved to Los Angeles. In 1986, Love In the spring of 2001, she performed at appeared as Nancy

AmCham Bulgaria Magazine November 2005 November Magazine AmCham Bulgaria the Memphis in May Festival alongside Spungen's best friend in Bob Dylan, the Black Crowes, and Ike Sid and Nancy, director