INVESTMENT DESTINATION PLOVDIV

PUBLISHED BY PLOVDIV MUNICIPALITY Contact: [email protected]

IN PARTNERSHIP WITH INDUSTRY WATCH GROUP LTD. Contact: [email protected]

COPYRIGHT 2017 PLOVDIV MUNICIPALITY WELCOME TO PLOVDIV!

AS A MAYOR OF PLOVDIV, I AM PROUD AND THIS MAY BE YOUR FIRST ENCOUNTER WITH PRIVILEGED TO OPEN THE 2017 EDITION OF PLOVDIV OR YOU MAY UPDATE PREVIOUSLY THE “INVESTMENT DESTINATION PLOVDIV” KNOWN FACTS AND DATA ABOUT THE REGION. CATALOG. THIS BOOKLET IS INTENDED TO IN ALL CASES, IT IS JUST THE FIRST STEP IN A SERVE INVESTORS’ INTEREST IN BULGARIA JOURNEY THAT MY TEAM AND I WILL JOIN AND ITS SECOND BIGGEST CITY, ANSWERING YOU IN. PLEASE MAKE SURE YOU TAKE QUESTIONS ABOUT BUSINESS CLIMATE, ADVANTAGE OF MUNICIPALITY OF PLOVDIV’S LOCAL ECONOMY, LABOUR FORCE, COSTS OF DEPARTMENT FOR BUSINESS DEVELOPMENT EMPLOYMENT, PROPERTY MARKET, ETC. WITH MAIN PURPOSE PROVIDING USEFUL AND PRECISE INFORMATION TO EXISTING AND NEW WITH SOME 70 000 JOBS IN THE INVESTORS IN PLOVDIV. MANUFACTURING SECTOR PLOVDIV IS THE “INDUSTRIAL CAPITAL” OF BULGARIA. BUT ITS ECONOMY IS QUITE DYNAMIC, OPEN TO DEVELOPMENT TOWARDS HIGHER-END PRODUCTIONS. TRAKIA ECONOMIC ZONE – UNDOUBTEDLY THE BIGGEST ORGANIZED AND SERVED INDUSTRIAL ZONE IN THE COUNTRY - MAKES THE WIDER PLOVDIV REGION THE PREFERRED HOME FOR ABOUT 90 MULTINATIONAL COMPANIES.

THE CITY’S VIBRANT START-UP ECOSYSTEM, COMBINED WITH ITS “HIPSTER” CULTURE, MAKES IT A PREFERRED PLACE TO LIVE, WORK AND EXPERIMENT FOR MANY YOUNG ENG. IVAN TOTEV PEOPLE. THE CITY HAS A POSITIVE MAYOR OF PLOVDIV MIGRATION BALANCE, WITH MORE YOUNG PEOPLE STAYING HERE OR COMING FROM ELSEWHERE. WITH OVER 40 000 STUDENTS, PLOVDIV OFFERS GREAT GROUND FOR FURTHER EXPANSION OF THE IT AND OUTSOURCING INDUSTRIES.

1 2 TABLE OF CONTENT

DOING BUSINESS IN BULGARIA 3 4 LOCATION & CONNECTIVITY 5 6 Plovdiv on the map 5 6 Climate & geography 7 8 POPULATION 8 9 LABOR FORCE 9 10 Wages by segment 10 11 EDUCATION 12 14 LAND & PROPERTY MARKET 13 15 Business property prices 13 15 Office and industrial facilities rents 14 17 Construction activity 15 18 Available land for business 15 18 ACCESS TO UTILITIES 16 19 Electricity 16 19 Natural gas 17 20 Water and sewage 17 20 CONSTRUCTION PERMIT 18 21 LOCAL TAXES & FEES 20 23 General tax policy 20 23 Property tax 20 23 Waste fee 21 24 LOCAL ECONOMY 22 25 Manufacturing 23 26 Business services 24 27 MAJOR INVESTORS 25 28 SPECIAL FOCUS 27 30 IT&BPO 27 30 Machine building and R&D 27 30 Automotive 28 31 Transport & logistics 28 31 INDUSTRIAL ZONES 29 32 Trakia Economic Zone 29 32 Industrial Park Markovo 29 32 CULTURE & TOURISM 30 33 The world’s sixth oldest city 30 33 Sports & recreation 31 34 Arts & city events 32 35

23 DOING BUSINESS IN BULGARIA

As a parliamentary republic with a functioning market economy, Bulgaria joined NATO in 2004 and EU in 2007. The laws and regulations in almost all spheres LAWS AND REGULATIONS WERE of life were harmonized with EU legislation. HARMONIZED WITH EU LEGISLATION A currency board establishes a fixed AS THE COUNTRY JOINED EU IN exchange rate (to EUR) regime under which 2007 the Central Bank cannot finance the government or the commercial banks. Bulgaria will keep the fixed rate until the BULGARIA’S 10% CORPORATE AND adoption of the Euro which is part of its EU PERSONAL INCOME TAX RATES ARE accession agreement. THE LOWEST FLAT RATES IN EU Since 1997, all governments maintained a conservative fiscal policy, with low deficits IN THE 2016 EDITION OF THE or even surpluses. The public debt went down from over 100% of GDP to about ECONOMIC FREEDOM OF THE 29% at present. WORLD INDEX, BULGARIA RANKS The third lowest ratio in EU of government 45TH (OUT OF 159 COUNTRIES) debt-to-GDP was recorded in Bulgaria (28.7%) next only to Estonia's and N THE EDITION OF THE OING Luxembourg’s according to Eurostat’s 2016 I 2017 D report. The euro area’s total public debt BUSINESS INDEX, BULGARIA RANKS stands at about 90.1% of Eurozone's GDP. 39TH (OUT OF 190 COUNTRIES) Government spending in Bulgaria was the 6th lowest in EU - 40.7% of GDP, compared to 48.5% in the entire Euro area according to Eurostat’s 2015 report. In comprehensive tool that measures the addition, Bulgaria’s 10% corporate and microeconomic and macroeconomic personal income tax rates are the lowest foundations of national competitiveness. In flat rates in EU and one of the lowest in the the 2016-2017 GCI, Bulgaria ranks 50th world according to Eurostat’s 2015 report. overall (out of 138) as compared to Serbia In comparison, Romania holds 16% (90th), Romania (62th), Greece (86th), corporate and personal income tax rates, Turkey (55th), and Poland (36th). This is a Serbia - 15%, and the Czech Republic positive trend since the country took 62nd respectively 19% and 15%. place in the 2012-2013 edition and 74th place in the 2011-2012 edition. Bulgaria Since 2005, The World Economic Forum in scores best in “Technological Davos (www.weforum.org) has based its readiness” (38th) and “Macroeconomic competitiveness analysis on the Global environment” (42th). Competitiveness Index (GCI), a

34 Since 2003, the World Bank has prepared Since 1996, the index published in the Doing Business Report Economic Freedom of the World Report (www.doingbusiness.org). It objectively (www.freetheworld.com) by the Fraser assesses regulations affecting domestic Institute (Vancouver, Canada) has been firms in 190 economies and ranks the measuring the degree to which the economies in 10 areas of regulation. The policies and institutions of countries are report provides quantitative measures of supportive of economic freedom. The regulations affecting areas in the life cycle cornerstones of economic freedom are of a business: starting a business, dealing personal choice, voluntary exchange, with construction permits, getting freedom to compete, and security of electricity, registering property, getting privately owned property. 42 variables are credit, protecting minority investors, used to construct a summary index and to paying taxes, trading across borders, measure the degree of economic freedom enforcing contracts, and resolving in five broad areas - size of government, insolvency. In the 2017 edition Bulgaria legal system and property rights, sound ranks 39th out of 190 countries as money, freedom to trade internationally, compared to Hungary (41st) and Greece regulations. In the 2016 edition of the (61st). The best scores that Bulgaria Index Bulgaria ranks 45th (out of 159). The receives are in "Protecting Minority best scores are in "Sound money", Investors" (13th), "Trading across Borders” "Freedom to trade internationally" and (21th), and "Getting Credit" (32rd). “Regulations”.

INDICATOR RANK SOURCE YEAR

GOVERNMENT DEBT 3rd lowest in the EU Eurostat 2016 (% OF GDP) (28.7%)

PERSONAL AND 1st lowest in the EU CORPORATE INCOME Eurostat 2016 (10%) FLAT TAX RATES

DOING BUSINESS 39th World Bank 2017 INDEX (out of 190)

2016 ECONOMIC FREEDOM 45th Fraser (calculating the index in OF THE WORLD INDEX (out of 159) Institute the 2016 edition with data from 2014)

GLOBAL World 50th COMPETITIVENESS Economic 2016-2017 (out of 138) INDEX (GCI) Forum

45 LOCATION & CONNECTIVITY Plovdiv on the map

Plovdiv is a major link in the chain of the transport routes connecting Europe and Anatolia (Asia Minor) and an intersection point of three Pan-European corridors: Corridor IV (Dresden–Bucharest–Sofia- Plovdiv- Istanbul), Corridor VIII (Durrës- HIGHWAY CONNECTION TO CENTRAL Sofia-Plovdiv-Varna/Burgas) and Corridor AND WEST EUROPE X (Salzburg–Belgrade-Plovdiv-Istanbul). Two highways connect Plovdiv with Istanbul and Black Sea ports to the east, WELL DEVELOPED RAIL NETWORK and to Sofia and Europe to the west - OFFERS CONNECTION TO NEAREST Trakia Motorway and Maritza Motorway. PORT First class roads connect Plovdiv with the main cities in the region. The nearest port – Burgas Port, located 280 km away from the A ROAD INTERSECTION POINT OF region, is easily reachable through THREE PAN-EUROPEAN CORRIDORS highway, first class roads or railway. The (IV, VIII, AND X) second nearest port is the Thessaloniki Port in Greece, 330 km away from the region. Plovdiv Airport Transfer serves Plovdiv airport and the other nearby towns, ski and sea resorts in Bulgaria and offers transfers to Thessaloniki and Istanbul Ataturk airports.

56 The Bulgarian capital’s airport – Sofia Airport is at a 140 km distance from the region. Plovdiv station has a strategic location in the national railway system with the capacity of handling 32 trains daily and unloading 2000 wagons per day. 18 transport companies have been issued licenses by the Bulgarian "Railway Administration" Executive Agency for providing transport services of cargo. The intermodal terminal at T. Kableshkov railway station constructed in 2015 is a part of Plovdiv railway junction. The DISTANCE TO: KM MILES terminal is 15 minutes away from Maritza Commercial and Industrial Zone, 25 Thessaloniki 334 208 minutes away from Kuklen Industrial Zone, Bucharest 392 244 and 30 minutes away from Rakovski Industrial Zone. Istanbul 413 257

The intermodal terminal creates conditions Belgrade 541 336 for a higher quality of freight transport services offering combination of different Athens 834 518 transport types. Built over an area of Budapest 914 568 71,450 m² the terminal has sites for TR operations, two rows containers storage Vienna 1 154 717 site, area for damaged containers and Kiev 1 281 796 equipment, special locations for refrigerating loading units, administrative Prague 1 438 894 building for serving customers, section for Munich 1 475 917 customs control and customs storehouse, parking lots for loading vehicles and cars, Milan 1 558 968 and control checkpoint. The capacity of Berlin 1 786 1 109 the terminal is 80 000 intermodal transport units (UTI). In November 2016 tender for Warsaw 1 787 1 110 granting a 27-year concession of the intermodal terminal was launched. Moscow 2 133 1 325 Plovdiv has a duty-free zone, a customs Brussels 2 265 1 408 terminal and extensive public transport Rotterdam 2 269 1 410 system and well developed infrastructure which link the region with cities and towns Paris 2 318 1 440 all over the country and many European London 2 581 1 604 countries. Madrid 3 128 1 943

67 Climate & geography

Plovdiv is situated on the bank of Maritza The region offers one of the best River. The wider Plovdiv region consists of conditions for vineyards and wine making vast flat terrains with no natural borders all has a long tradition here. One of the best the way to the Black Sea and Turkey. Most spa resorts Hissar is located just about 40 of the region’s territory is situated in the minutes away from Plovdiv. Upper Thracian Plain – a fertile agricultural The climate is moderately continental with region. Its average elevation is 160 meters. traces of a mountainous climate in the The region consists mostly of plains. highland areas. The region is characterized Natural advantages of the region include with warm summer (maximum average also close proximity to main Mountain reaching 31 degrees Celsius, 88 degrees Chains - Rhodopes and Balkan - as well as Fahrenheit, in June-August) and relatively to the rich in ores Sredna Gora Mountain. tolerable winter (average lows just a bit below 0 degrees Celsius, 32 degrees Plovdiv is located in a close proximity to Fahrenheit, in December-February). The two of the major ski resorts in Bulgaria - mean monthly sunshine hours are 2,445. Borovetz and Pamporovo - about an hour Climate is accommodating for both and a half drive from each. The city is industrial and construction activities. connected by highway to the Black Sea Winters normally bring no major disruption coast - to some of the most developed of transportation with average depth of seaside resorts one may reach in about 2.5 snow cover about 2 to 4 cm. hours by car. Also a few hours drive away is located the North shore of the Greek Temperatures and precipitation rates are Sea. The Rose Valleys in the footsteps of favorable for construction activities, which Balkan are world famous among tourists. normally take place throughout the year without big interruptions, industrial processes and transportation services. TEMPERATURES AND PRECIPITATION RATES ARE Average low Average high FAVORABLE FOR CONSTRUCTION 40 °C ACTIVITIES

30 °C THE WIDER PLOVDIV REGION CONSISTS OF VAST FLAT 20 °C

TERRAINS ALL THE WAY TO THE 10 °C BLACK SEA AND TURKEY 0 °C HE MEAN MONTHLY SUNSHINE T -10 °C Jul Apr Oct Jan Jun Feb Mar Sep Aug Nov Dec HOURS ARE 2,445 May

Source: stringmeteo.com

78 POPULATION

Approximately 534 000 people live in the city of Plovdiv and in the closest settlements. The total population in wider 783 000 PEOPLE LIVE IN Plovdiv region, including people living in COMMUTABLE DISTANCE commutable distance to the city (up to 45 minutes by car in one direction), is 783 000 people. 477 000 of them are in the age TREND FOR POSITIVE NET 20-64 years. Out of those living in the MIGRATION RATE wider Plovdiv region, 78% are located in the Plovdiv district, while the rest live in the Pazardzhik and Stara Zagora districts. number of people in the age group 15-19 For the period 2011-2015, Plovdiv district to the number of people aged 60-64 years) has a trend for a positive net migration rate of 66.5%, which is one of the highest in the (difference of immigrants and emigrants country. Taking into consideration children per 1 000 inhabitants). As of 2015, its net aged 5-9, in 2025 this coefficient is migration rate is 1.4‰, while that of expected to rise up to 73.3% (without Bulgaria on average is a negative number – taking into account the net migration rate, -0.6‰. In 2015, 11 408 people have which is also a positive number). immigrated in Plovdiv district, against 10 436 emigrants. The age group 0-19 years (incl. persons entering working age) has POPULATION WIDER PLOVDIV REGION the biggest positive net migration rate – 3.4‰. 45 min. from Plovdiv district has a coefficient of Industrial demographic replacement (ratio of the Zones

POPULATION STRUCTURE IN WIDER PLOVDIV REGION (distance 45 min.)

30 min. AGE NUMBER SHARE OF from (YEARS) (‘000) TOTAL Downtown PLOVDIV Under 20 125 19% 20 – 44 229 34% 0.5 million 45 – 64 183 27%

65 – 74 77 11% 0.8 million

75 + 59 9% Source: NSI (data on district level)

89 LABOR FORCE

Companies that choose Plovdiv as their investment destination have access to human capital, consisting of well prepared 477 000 PEOPLE IN WORKING AGE workers and specialists who can create LIVE IN COMMUTABLE DISTANCE value for various manufacturing and service sectors. 70 000 PEOPLE WORK IN THE The labor market in Plovdiv has been more MANUFACTURING SECTOR robust than most other regions in Bulgaria since the onset of the global economic crisis. Plovdiv district has an activity rate LABOR COSTS FOR ENTRY LEVEL for 2015 (ratio of the number of the labor PRODUCTION ASSEMBLY WORKERS force aged 15-64 to the number of people in the same age group) of 68.8% or a rise WILL BE ABOUT €520 PER MONTH of 2.7 p.p. since 2008. The unemployment IN 2018 rate fell with 3.5 p.p. since 2014. However, in the age group 15 – 64 there are still 30 000 registered as unemployed, as well as 138 000 people who are currently economically inactive.

POPULATION IN WORKING AGE There are approximately 70 000 jobs in the manufacturing sector or 34% of all 45 min. employed in the Plovdiv district. Plovdiv is from also the district with most people working Industrial Zones in the manufacturing sector in Bulgaria. In addition to the production of food, drinks and cigarettes (20% of all manufacturing jobs) and textile, apparel & leather (20% of industrial jobs), Plovdiv has specialized in the production of metals and metal parts, 30 min. chemical products, automotive, machinery from and equipment. Plovdiv has a long-lasting Downtown PLOVDIV tradition in producing computer, optical, electronic and electrical equipment, which employ almost 6 200 people or 9% of all 332 000 employed in the manufacturing sector. Plovdiv also has competitive edge in furniture, paper and wood manufacturing, 477 000 whose exports from Bulgaria surged in the post-crisis period.

Source: NSI (data on district level)

109 Plovdiv has a well-developed service sector, which complements the local NUMBER OF INDUSTRY-COMPATIBLE manufacturing cluster. The service sector EMPLOYEES in Plovdiv is closely linked to the local industry and provides all the high-quality 34,000 services a manufacturing company might need. About 33 000 employees are working 25,500 in retail, but there are also 10 000 construction workers and more than 13 17,000 000 transport and logistics specialists.

Plovdiv has also one of the best developed 8,500 business service sectors in Bulgaria. 33,678 26,501 17,317 The labor force in Plovdiv is very diverse 0 machine operatorsskilled industrial workerstechnicians according to the qualification of machine skilled technicians operators employees. Plovdiv employs 26 500 skilled industrial workers industrial workers and 17 300 technicians. The labor force is specialized but nevertheless readily adaptable and can Source: NSI (data on district level) easily work in different segments of industrial production.

Wages by segment LABOR COST LEVELS IN PLOVDIV BY

In services, wages on average are highest QUALIFICATION in information technology, one of the (Skilled workers = Index 100) fastest growing industries in recent years, providing opportunities for highly skilled 140 labor. Hiring labor for the “light industries” such as manufacturing of food and 105 beverages as well as clothing and shoes is on average cheaper than employing a 70 worker in the “heavy” industries, which typically require more specialized skills 35 and knowledge, such as manufacturing of 90 87 100 136 machines and equipment or metal parts. 0 AdministrativeAdministrative personnelMachine Machine operators Skilled Skilled workers TechniciansTechnicians By occupations, wages for specialists, personnel operators workers incl. engineers, are two times higher than those for skilled workers. Source: Industry Watch based on data from NSI

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offi[email protected] 1, “111, August-ti Avgus 11t“ Str.,Stre etPlovdiv,, Plovdi 4000,v 400 Bulgaria0, Bulgaria 1517,, “H Henrikenrik Ibs Ibsenen“ S Str.,tree Sot, Sofifia, 1407,a 100 0,Bulgaria Bulgaria +359 32 396 428 www.programista.bg Wages in manufacturing, both in Plovdiv district and Bulgaria in general, typically ANNUAL WAGE GROWTH have a slightly higher growth rate than the average. Even though Plovdiv has one of the highest wage growth rates in Average Manufacturing manufacturing (7.9% per year), wages in 7.9% absolute terms are still lower than those in 0.08 7.4% 7% Sofia, Varna, Burgas and Stara Zagora. 6.6% 6.7% 6.3% The total cost of labor includes the salary 0.06 of the worker and the contributions to the state budget which both the employee and the employer have to make. In 2018 0.04 the labor costs in manufacturing are expected to be still one of the most competitive in Europe. The total cost of hiring an entry level production assembly 0.02 worker will be about €520 per month. Labor cost for workers without qualification will start from €430, while 0 AverageManufacturingPlovdiv AverageManufacturingSofia AverageManufacturingBulgaria those for the administrative positions will start from €650 and will typically increase up to €900 for skilled administrative staff. Source: NSI (data on district level)

EXPECTED TOTAL LABOR COSTS IN MANUFACTURING IN 2018 (EUR per month)

Entry level Skilled workers

Other qualified workers 600 810

Production assembly workers 520 680 550 CNC machine operators 760 720 First-line managers, supervisors, technicians 1,050 570 Natural sciences specialists 830 690 Electrical engineers 890 780 Engineers - constructors 1,150 790 Engineers - industrial machines and systems 1,100 0 400 800 1,200

Source: Industry Watch based on survey among HR companies & industrial employers

1113 EDUCATION

Plovdiv is a leading university center of national significance, second in Bulgaria, behind only to capital city Sofia. The ABOUT 8 000 UNIVERSITY educational system is well developed, STUDENTS GRADUATE EACH YEAR preparing many students in technical and AND ARE READY TO JOIN THE LABOR applied disciplines, which has contributed FORCE to establishing the region as a prominent industrial center. Plovdiv is home to one of the biggest universities in Bulgaria – the Plovdiv There are also two agricultural universities University Paisiy Hilendarski with 16 743 both providing education currently to 7 000 students. The university offers degrees in students and the University of Food fields such as Mathematics and Informatics Technology, which provides specialists for (2043 enrolled in the program), Natural the vibrant food industry with 4 345 sciences (1788 students enrolled), and students enrolled in different programs. Economics (2097 students enrolled). 8,030 Plovdiv branch of Technical University 6,022.5 Sofia offers programs in 2 faculties: Faculty of Electronics and Automation (545 4,015 students), where Industrial Engineering is 2,007.5 1,997 2,188 8,030 being taught in English, and Faculty of 0 Mechanical Engineering and Instrument Vocational Vocationalhigh schoolGeneral graduates highGeneral schoolUniversity high graduates andUniversity college graduates Engineering. Over 443 students are high school school and college enrolled in Communications and Computer graduates graduates graduates technologies. Source: NSI (data on district level for 2015) 29 vocational high schools 40 519 students in universities

9 universities

10 639 pupils in 82 vocational education vocational centers schools

Source: NSI; Ministry of Education and Science, Plovdiv Regional Office; NAVET (data on district level for 2016/2017)

1214 LAND & PROPERTY MARKET Business property prices

The office market in Plovdiv expanded significantly during 2007-2015, as many new office projects were started during AFFORDABLE LAND STARTING FROM that period. Currently there is new supply EUR 250,000 PER HECTARE of modern office space which can be modified to meet the specific requirements of each business. There are offices located AMONG THE LOWEST RENT OF both in the city center and the industrial OFFICE AND INDUSTRIAL SPACE IN zones in the city. Despite the noticeable ASTERN EUROPE improvement in quality, buying business E space in Plovdiv remains very affordable. There is a selection of quality office 3300 HECTARES FOR BUSINESS properties for sale, with asking prices of DEVELOPMENT €700 per sq. m. There is land for industrial use for sale located both in the city itself and the industrial zones in the region. Prices of The prices for office and industrial space in industrial land range from €25 to €40 per Plovdiv are relatively low compared both to sq. m. in the industrial zones Maritza, other major Bulgarian cities as well as Rakovski and Kuklen. other countries in Central and Eastern Europe.

PRICE OF BUSINESS PROPERTIES RENTS OF BUSINESS PROPERTIES in the region of Plovdiv in the region of Plovdiv

EUR PER ORGANIZED EUR PER SQ.M. CITY OF SQ.M. INDUSTRIAL PLOVDIV MONTHLY ZONES land in organized 25 - 40 rent of industrial zone warehouse 4.25 4-5 price of office in 700 - 1 200 rent of office the city (class A) - 9-10

Source: Real estate agencies

1315

Office and industrial facilities rents Renting office space (Class A) costs on average €9 per sq. m. for premium RENTS OF PRIME OFFICE SPACE business properties currently available in in selected locations in Central and Plovdiv. There is also substantial supply of Eastern Europe non-premium office space which could be rented for €4 to €6 per sq. m. monthly. Renting office in Plovdiv is on average Warsaw / Poland 22 30% cheaper than renting similar office Belgrade / Serbia 17 space in the capital Sofia. Having an Bucharest / Romania 18 office in Plovdiv is more affordable Prague / Czech Rep. 19.5 compared to many other locations in Budapest / Hungary 18 Central and Eastern Europe. Premium Zagreb / Croatia 15.5 office rents in Plovdiv are 2 times lower compared to rental rates for high-end Sofia / Bulgaria 13.5 office space in Prague (Czech Republic), Plovdiv / Bulgaria 9 Budapest (Hungary) and Bucharest 0 5.5 11 16.5 22 (Romania). €/sq m/month

Source: Colliers, Plovdiv Municipality Renting a warehouse costs on average €4.25 monthly per sq. m. in the industrial zones Maritza and Rakovski. The rents of RENTS OF PRIME WAREHOUSES warehouses in the city range between €4 and €5 monthly per sq. m. Rents of in selected locations in Central and industrial space in Plovdiv are at least 25% Eastern Europe lower than rents of similar properties in the capital city Sofia. Moscow / Russia 5 Renting a warehouse in Plovdiv costs Zagreb / Croatia 5.5 less compared to other locations in Belgrade / Serbia 5 Central and Eastern Europe. Rents of Warsaw / Poland 5 industrial space in Plovdiv are 10% Kyiv / Ukraine 3.9 lower than rents in Warsaw (Poland), Prague / Czech Rep. 4 and 22% lower than rents in Belgrade Budapest / Hungary 5 (Serbia), Budapest (Hungary) and Bucharest / Romania 4.2 Prague (Czech Republic). The relatively Plovdiv / Bulgaria 4.2 low rents of industrial space and the 0 1.5 3 4.5 6 low operational costs altogether allow €/sq m/month Plovdiv-based companies to achieve cost competitiveness which could hardly Source: Colliers, Plovdiv Municipality be matched by enterprises operating in other regions in Central and Eastern Europe.

1417 Construction activity

Construction activity has been steadily The construction of business properties increasing in the region of Plovdiv over the with total built-up area of 2.2 million sq. m. last 5 years. Building permits for 540,000 has been permitted since 2012. New sq. m. of non-residential properties (office, construction projects in the region of industrial, logistics, agricultural, hospitality Plovdiv consist largely of industrial space and commercial space) were granted in and warehouses, which enhance the rapid 2016 alone. development of Plovdiv as manufacturing leader and transportation hub. The district of Plovdiv has been ranked first in approved non-residential construction since 2012, well ahead of all other areas in Bulgaria, including the capital city Sofia. During 2012-2016 construction permits for business properties in Plovdiv were 18% of all permits issued in Bulgaria.

Available land for business

There are over 3300 hectares of land for business development in the region of Plovdiv. The current city master plans of 745 HECTARES Plovdiv and the adjacent municipalities IN ORGANIZED INDUSTRIAL ZONES increased substantially the availability of industrial land which will stimulate the business activity in the region. About 745 hectares (or 22% of the land for industrial development) are located in organized industrial zones, close to 1400 hectares in 1400 HECTARES the city of Plovdiv and 1200 hectares in IN THE CITY OF PLOVDIV neighboring municipalities. The city master plans of the municipalities of both Plovdiv and Maritza envisage the development of mixed multifunctional industrial areas and modern industrial 1200 space which achieve the right balance HECTARES IN NEIGHBORING between industrial growth and sustainable MUNICIPALITIES development.

1518 ACCESS TO UTILITIES Electricity The entire Plovdiv region has a modern power distribution infrastructure. All towns EXCELLENT ACCESS TO and villages in the region have access to electricity. Since 2005, power supply and ELECTRICITY IN ALL LOCATIONS distribution in the South-East Bulgaria has been privatized to EVN Bulgaria (part of HEAT SUPPLY AND COOLING EVN AG – Austria). The company has SERVICE FOR BUSINESS USERS invested over BGN 1.5 billion (appr. EUR 770 million) during the last 12 years to improve the electricity grid as major MAJOR GAS TRANSIT PIPELINES customer services. The investment THROUGH THE REGION WHICH activities in the distribution grid in Plovdiv region alone has come to BGN 341 million PROVIDES EASY ACCESS FOR LARGE (EUR 174 million) since 2005. In 2011, the INDUSTRIAL CONSUMERS company launched a brand new 110/20 kV electrical substation in Tsaratsovo (worth ATER SUPPLY AVAILABLE IN ALL EUR 2.8 million) with a capacity of 32.5 W MVA with plans running for two additional URBANIZED TERRITORIES substations in Plovdiv industrial zones. EVN also operates the Plovdiv district heating company providing secure heat All these steps take up to 30 days after supply to both private and industrial users. application. New users pay fees for the In 2011 the company built a brand new connection services according to a fixed high-efficient cogeneration plant which two and government regulated tariff rate. years later helped it launch a cooling service for business users during the ANNUAL FINAL PRICE incl summer months. CONSUMPTION IN VAT, EUR/kWh mWh, UP TO: Industrial users can benefit from the fast expanding liberalized market of electricity, 20 0.131 purchasing from registered power traders or even directly from the generation plants 500 0.114 in some cases. In case of a greenfield 2 000 0.095 investment (i.e. new facility construction) there is a streamlined process of several 20 000 0.084 quick steps to get connected to the power grid. These include in particular a 70 000 0.075 verification of available capacity, a study of 150 000 0.069 the specific terms and conditions for connection to the distribution grid or an over 150 000 0.069 offer with preliminary connection contract. Source: NSI

1619 Natural gas

The region of Plovdiv benefits from the fact Asenovgrad. Consumers which are that it is on the route of both an connected to the distribution network have international transit (Russia-Greece- to pay according to regulated prices, Macedonia) and a national transit gas updated quarterly. pipeline. Several of the municipalities have Getting connected to the transit grid (for access to the pipeline which constitutes large consumers) starts with an application the Southern Transit Half-Ring. There are 8 which is reviewed in up to 30 days. automatic gas-regulating stations (i.e. exit Following this the consumer receives the points of the transit network) in the Plovdiv proposed terms and conditions of access, region, which make the connection of large including the available capacity and industrial gas consumers to the transit grid recommended point of access to the grid. possible. Companies can benefit from the Similar process is used for getting emerging liberalized gas market and connected to the gas distribution network. wholesale prices. The available capacity is sufficient for a considerable increase in gas ANNUAL FINAL PRICE incl consumption. CONSUMPTION IN GJ VAT, EUR/GJ

Small quantity users and households can 1 000 7.828 be connected to the gas distribution grid of City Gas (part of the Italian Gruppo 10 000 7.199 Societa’ Gas Rimini s.p.a) which was 100 000 6.401 granted a license to provide gas in 12 of the municipalities in the region (including 1 000 000 5.000 the city of Plovdiv), or Overgas – for the municipalities of Parvomay and 4 000 000 4.550

Source: NSI Water and sewage

A state-owned utility company – Water & necessary conditions for connection to the Sewage SJSCo, Plovdiv - is in charge of supply and sewage infrastructure are met. water supply, sewage and waste water The process is part of the overall treatment in most of the municipalities in procedure for new construction the region of Plovdiv. The network services development. The investor pays for any 14 towns and 201 villages, or a total of additional costs for new construction and about 700 thousand customers. The fresh expansion of the water supply and sewage water supply covers 100% of the network, including new pipes, etc. populated areas, while sewage is available Combined price of water and sewage for to about 75% of the customers. The utility industrial users starts from EUR 0.93 per company runs 3 waste water treatment m3 and can go up to EUR 1.38 per m3 plants in the region. depending on the degree of contamination. New users have to apply to the utility company which in turn ensures that all

1720 CONSTRUCTION PERMIT

Although it is one of the most burdensome and costly administrative procedure in Bulgaria and throughout Europe, the municipality of Plovdiv is providing a clear A CLEAR WORKFLOW THAT TAKES and relatively short workflow in terms of both number of procedures and timeframe UP TO 105 DAYS of execution. The municipality is steadily improving the SHORTER TIMELINE THAT OECD regimes and providing investors with AVERAGE assistance and guidance in dealing with other authorities involved in the process. Beside the municipality administration, the MUNICIPALITY ASSISTS INVESTORS following institutions are involved in the IN DEALING WITH OTHER process of getting construction permit and INSTITUTIONS thereafter: Power company, Water company, Cadastre Agency, Environmental Agency.

In certain special cases and bigger It would take 105 days from the moment of projects there would be other institutions applying for certificate for project planning involved as well such as: National (step 1 in the workflow) to the moment of Construction Control Agency, Fire getting a certificate of operational building Department, Road Agency. (final step). The total administratively imposed cost would be EUR 35,846. The biggest part (78%) of this being THE FOLLOWING TYPICAL CASE remuneration for construction supervision company. That cost does not include cost illustrates the process: of connection to the power and water grids. • a construction of a warehouse or There would be 16 steps in dealing with assembly production building the whole process, which includes also the process of dealing with the Power with a total floorage of 4000 sq. Company. A comparison of the World Bank meters (approximately 43,000 has shown that the average number of sq. feet). steps in OECD is 12, and in Eastern Europe and Central Asia is 15. • a total cost of construction EUR The process takes substantially less time in 1.2 mln excluding VAT. Plovdiv than in the average destination from Eastern Europe and Central Asia, and even less than the developed economies of OECD.

1821 EASTERN EUROPE PLOVDIV OECD & CENTRAL ASIA number of procedures 16 15.1 12.1 time (days) 105 160.7 152.1

Source: The World Bank, Industry Watch

WORKFLOW OF DEALING WITH CONSTRUCTION PERMIT

Certificate for project planning 14 days

DRAFT INVESTMENT PROJECT

Preliminary contract with Power company Assessment by Water company 30 days Assessment by Environmental Agency

COMPLETE INVESTMENT PROJECT

Approval of investment project by municipality 7 days

Issue of construction permit 14 days

INVESTOR APPROVES COMPLETION OF STAGE 1

Contract with Power company Contract with Water company 30 days Building mapped on Cadastre

INVESTOR APPROVES COMPLETION OF STAGE 2

Municipal stamp on technical passport of building 3 days

Certificate for operational building 7 days

ТOTAL: 105 days

1922 LOCAL TAXES & FEES General tax policy The biggest share of the tax burden in % Bulgaria is centrally imposed, i.e. the municipality has no authority in most of the STABLE AND PREDICTABLE taxes and fees. However, there is a POLICY WITH RESPECT TO TAX tendency for somewhat fiscal RATES decentralization, meaning that in the long run the municipality might gain more power with respect to the taxes and fees. A TREND TO LOWER RATES OF With respect to nationally adopted tax WASTE FEES rates, Bulgaria has one of the lowest corporate and personal income tax rates in OPTION TO PAY ACCORDING TO Europe (10%). Corporate income from production activities in high unemployment QUANTITIES OF WASTE regions is tax exempt. Costs of fixed intangible assets created through research and development are also deductible. In addition, Bulgaria applies EU customs legislation and has signed double tax With respect to local taxes, currently there treaties with 68 countries. Income tax rates are two important rates that are decided by are noticeably higher in other CEE the municipality and affect business across countries. For example, in Romania the board - one is property tax, and the personal income is taxed at 16%, while other is waste fee. A blink on those two Central European countries such as gives idea on the locally imposed tax Poland, Hungary and Czech Republic burden as well as to the municipal policy apply tax rates which vary from 15 to 18%. intentions in the long run. Property tax

The tax on property is annually 0.18% of facilities in Plovdiv may vary according to the tax valuation of the property. The rate location and type of buildings, however it has not been changed for the past eight would not exceed 193 EUR/sq. m. That years. The tax valuation of the property is means that a premises of 4500 sq. m. the other component in the estimation of would be estimated to be worth up to EUR the nominal tax. It is subject to general 868,500 for tax purposes. The annual rules that also do not tend to change property tax for such property would be frequently. The tax valuation of production approximately EUR 1563.

2023 Waste fee The other administrative burden that affect every business in the municipality is the THE CITY FOLLOWS A POLICY OF waste fee (or tax). Business pay such fee REDUCTION OF WASTE FEE RATE regardless of the fact if they are producers or service providers, as long as they have a IN THE PAST 10 YEARS. physical presence (office, warehouse, etc.) in the city. So the waste fee is entirely different from the industrial waste WASTE FEE YEAR management costs, and applies to every (% of tax valuation) building and property of households and businesses. 2005 2.00 Businesses have two options to deal with 2006 0.90 the municipal waste fee. The first option is to pay according to quantities of waste by 2007 0.70 contracting one of the waste-container 2008 0.60 options with the municipality. A bigger container would imply a fee of 2009 0.60 EUR 1366 per year, and the smaller 2010 0.55 container would cost EUR 425 per year. The number of containers depends on the 2011 0.55 quantity of waste. In addition, the company 2012 0.55 pays a fee of 0.3% of the tax valuation of the property. 2013 0.53

2014 0.53 THE WASTE FEE IS CURRENTLY 2015 0.53 0.53% OF THE TAX VALUATION 2016 0.53 OF THE PROPERTY. 2017 0.53

The second option is to pay according to the tax valuation of the property (which is the default regime, i.e. that one applies in the company has not applied to a number and type of containers). The tax valuation of the property is here applied as well. The waste fee is currently 0.53% of the tax valuation of the property. Thus for a property of 4500 sq. m. for which the tax valuation is up to EUR 868,500 the waste fee would be up to some EUR 4600.

2124 LOCAL ECONOMY

The Plovdiv region is one Bulgaria’s most vibrant and competitive, as local economic growth reached two-digit figures in some of the recent years. The local non-financial DIVERSIFIED AND VIBRANT sector produced output for €7.3 billion in LOCAL ECONOMY WITH AN 2015 and contributed value added equivalent to €2.2 billion. The rise of ANNUAL OUTPUT OF €7.3 productivity is ensured by abundant capital BILLION investment. Expenditures on acquisition of land, machinery and equipment exceeded FDI IN THE REGION HAVE €900 million in 2015. GROWN AT 11.7% ANNUALLY The region of Plovdiv is a preferred investment destination by renowned global FOR MORE THAN A DECADE companies, seeking to profitably expand their operations and increase their LEADING REGION IN NON- presence in the global marketplace. HOUSING CONSTRUCTION WITH Cumulative foreign direct investment in the real sector in the area reached €1.6 billion 2.2 MILLION SQ. M. PERMITTED as of end-2015. Total foreign capital SINCE 2012 deployed in the Plovdiv region almost doubled between 2007 and 2011 and additional €330 million were invested in the local economy between 2012 and 2015. FDI in the region has grown at 11.7% annually for more than a decade.

LOCAL ECONOMY STRUCTURE (by employment)

Manufacturing 33.6%

Business Services 21.6%

Public Services & Regulated Markets 20.1%

Consumer Services 16.9%

Construction 5.0%

Farming 2.5%

Mining 0.4%

Source: Industry Watch based on data from NSI, data on district level for 2015

25 Manufacturing

Plovdiv is the national champion with markets around the world. The region of regard to industrial production and Plovdiv has undergone noticeable manufacturing in particular. Manufacturing industrial development over the last few companies generated revenues exceeding years, resulting in more productive labor €4 billion in 2015, adding value equivalent force and improved business profitability. to €863 million and providing jobs to more Productivity gains are guaranteed by than 70 000 employees. Manufacturing capital investments and process constitutes one third of the revenues of the optimization. In addition to the food and non-financial economy in the Plovdiv metal manufacturing, other sectors that region. What is more, manufacturing enjoy high investment activity are the contributes almost 40% of the value added production of machinery and equipment, by the real economy by employing one paper, beverages, rubber, plastics and third of all employees and making 30% of chemicals. These capital investments are all capital spending in the region. mostly used to finance the purchase of state-of-the-art machinery and equipment, The industry in the region of Plovdiv is well which improve the enterprises’ competitive diversified. The local companies are fully position. integrated in the global supply chain, serving both industrial and consumer users not only in Europe but also in emerging

10 BIGGEST INDUSTRIAL SECTORS (% of value added in manufacturing)

Metal products 14% Food 13.4% Machinery and equipment 9.5% Rubber and plastic 7.7% Electrical equipment 7%

Apparel 6.4%

Paper 6.3%

Chemicals 5%

Beverages 4.7%

Basic metals 4.1% 0% 5% 10% 15%

Source: Industry Watch based on data from NSI, data on district level for 2015

26 Business services

Business services in Plovdiv are rapidly service sector with 23.7% of jobs and 29% evolving, taking advantage of the region’s of value added. The region of Plovdiv has strategic geographic location, excellent competitive companies providing transportation links and advanced professional and administrative services, industrial development. Business-to- which together employ 20% of all people business (B2B) services generated €5.3 working in B2B services. Modern business billion in revenues in 2015, of which 14% is services have been enjoying rapid value added, while employing 55.6 expansion over the last few years, as thousand people and making investments Plovdiv has become IT & BPO center worth €360 million. preferred by domestic and foreign investors alike. IT and telecom companies Plovdiv is a transportation and logistics employed 6% of people working in hub. This is why transportation and storage business services in 2015 and generated are the biggest business services in the 9% of the value added in B2B services. region, providing 1/5 of the value added and 24.1% of the jobs in business services. Due to its central location and excellent transport connections, Plovdiv has burgeoning wholesale trade which is the second most important business

STRUCTURE OF BUSINESS SERVICES (% of employment)

30%

12% Wholesale trade Land transport 24% IT, Telecom & B2B Services Others

34%

Source: Industry Watch based on data from NSI, data on district level for 2015

27 MAJOR INVESTORS

INDUSTRY SUPPLIERS MACHINE BUILDING

ABB Bulgaria Aiger Engineering Agria S.A. Apex 11 Assenova Krepost JCS Ataro Klima Bulsafil Biomashin Bulltek Ltd. BTL Industries EAD Drujba Glassworks SA Dimex Lift Dunapack Rodina Index 6 Ltd Filkab Intrama Gotmar Ltd. Liebherr Hausgeraete Marica Ltd. HMC Milara International Holcim Tomika Metal Hik 91 Hus Ltd. AUTOMOTIVE Insa Ltd. Intercomplex Ltd. Accumalux ITD Ltd Autoelectric Bulgaria Ltd KCM 2000 AD BRSP Autoelectronica Kaskada Ltd. Kemmler Electronic Kast Futura BG Ltd Liebherr Transportation Systems Linde Bulgaria Magna Powertrain Mondi Stambolijski Malmar Osram Mecalit Bulgaria Profilink Sensata Technologies Schatti SKF Bearings Schneider Electric Bulgaria SMC Shell Gas Bulgaria S.A. Techno Aktas Bulgaria Steka Elektronik Bulgaria Ltd. Willi Elbe Group TMT Elkom Ltd William Hughes Bulgaria Viking Wurth Elektronik IBE BG Watts Industries Tretek Ltd Weiss Profil Viko Ltd Yuriy Gagarin S.A. Zinc Galvanizing Plant

28 SERVICES IT & BPO

Alex Trade 2010 Ltd. 60K Astral Holidays International AD Aii Data Pro Ceramic Group ASIC Depot EVN Bulgaria EAD Bulpros Galaxy Investment Group Ltd. Enigma Software Group GBS – Plovdiv AD Fast Comet Maxlogistic Javelin Group/Part of Accenture Omnicar Auto Ltd. Kodar Primex AVG Ltd. m+w Media Networks Rozhen 1 Ltd. MentorMate Strom Ltd. Novarto Ltd. Vanichi 2008 Ltd. Opticentre Vedena Ltd. Orak Engineering Programista CONSUMER GOODS Proxiad Reward Gateway Agri Bulgaria SBTech Global Limited Agromill Bulgaria AD ScaleFocus Bella Bulgaria Seeburger Brezovo AD SelMatic Ltd. Delikates 2 Ltd. Sibiz Dimitar Madzharov 2 SiteGround Feinjersey Bulgaria Speedflow Communications Fermata TeleTech Jumbo Bulgaria Telus International Kaufland Bulgaria Viscomp Kuminiano Fruit Ltd. KT International EAD TRANSPORT & LOGISTICS Leader 96 MaxEurope Alpetrans Bulgaria Ltd. Mexon Ltd. Ani 93 – G. Petkov 06 Ltd. Nova Trade Ltd. AIT International Transport Parvomay BT AD Eurofrio Philicon-97 S.A. Fresh Logic EAD Simid Hager Transport Bulgaria Socotab Ltd. Hebar EAD Ted Bed Pimk Ltd United Milk Company Petko Angelov BG Ltd. Vinprom Peshtera SA Schenker Logistics Bulgaria VP Brands International Truck Ferry Ltd. Unibel AD Traykov Trans Ltd. Zobele Bulgaria

29 SPECIAL FOCUS IT&BPO

Plovdiv is the second most important city recent process of emerging favorable in Bulgaria, according to its demographics, ecosystem for IT&BPO has been and a second outsourcing destination after recognized by the local authorities as a Sofia with over 5000 employees in the major development path for the city. IT&BPO industries. In 2017 the city got a Compared to the capital, as in other new recognition reaching the top four in outsourcing destination countries, the the category “Emerging City of the year – second biggest city offers a number of CEE”, as part of the “CEE Shared Services advantages. Most importantly, Sofia and Outsourcing Awards”. concentrates most of the higher-end jobs A highly developed educational system of in state administration, finance, and B2B nation-wide renowned high schools and services, which is a factor for a tight universities serves as a good sourcing pool competition on the labor demand. In for the IT&BPO industry. Moreover, the contrast, Plovdiv’s labor market is not education system is getting more adaptive characterized by such a strong competition and open to cooperation with business, for talents, as well as for the middle-skillset introducing joint courses, internships and employees. industry-oriented programs. The fairly

Machine building and R&D

The machine building sector is rapidly products, equipped with SCADA control growing, attracting renowned systems. This includes producing international holdings, as well as many machines for the food & drinks, niche Bulgarian companies. Some of the pharmaceutical and tobacco industries. major machine building companies in the Many of them have integrated new region generated total revenues reaching technologies in the production process, € 350 million and provided work for over which allows them to raise their 4 000 people in 2015. The share of the productivity. In 2015 some of the biggest export-oriented production is bigger companies in the sector have an average compared to that of the “light industries”. labor productivity per person of € 89 000 per year or about 7 times higher than the Targeting niche market segments is an national average. opportunity that the Bulgarian companies seem to use more and more rationally. Some of the companies specialize in producing tailor-made, high-capacity

30 Automotive

A number of companies in the region € 355 million and provided work for 4 100 specialize in producing automotive parts people in 2015. As with the machine for Volkswagen Group, Volvo, General building companies, they have a high Motors, BMW, Honda, Daimler, Fiat and average labor productivity of € 86 000 per others. Most of them are part of person per year. During recent years there renowned international holdings, such as is a steady upward increase in the Magna Powertrain, Sensata Technologies, number of foreign companies establishing SKF Group and Aktas Holding. production lines in Plovdiv region. The production is entirely export oriented and The biggest automotive parts producers meets all of the high standards of the have generated total revenues of over automotive market leaders. Transport & logistics

Expansion of the industrial zones around operator. The new rail freight operator will Plovdiv, infrastructural improvement and run company trains, aiming to take part of region’s strategic geographical position its containerised cargo off the road and led to the rapid development of the shift it to rail. transport and logistics sector. The Other major companies in the sector are intermodal terminal creates conditions for Schenker Logistics Bulgaria, AIT a higher quality of freight transport International Transport, Fresh Logic, services offering combination of different Еurofrio, Hager Transport Bulgaria among transport types. others. PIMK Holding Group, the market transport leader, has entered in 2016 the rail freight business by establishing PIMK Rail, Bulgaria’s newest rail freight

31 INDUSTRIAL ZONES Trakia Economic Zone

Trakia Economic Zone (TEZ) is one of the Convenient geographic location - on biggest economic projects in Bulgaria, a • important railway routes and European public-private partnership that includes six transport corridors, connecting Europe, Asia major industrial zones in the region of and Africa Plovdiv. Together the zones in TEZ have attracted over 1.2 billion euro of fixed- • Infrastructure secured - transport, electricity, capital investments. The total area of TEZ gas, water, sewerage, telecommunications is 1070 hectares, of which 330 hectares are already occupied. • Specialized administrative unit provides additional services, accelerated procedures From the start of the 1st industrial zone Maritza in 1995 some 120 investors • Qualified work force, 9 universities with located their sites in the region, of which technical and economics disciplines, more 90 multinational, opening over 15 000 jobs. than 77 schools, language and specialized high schools Quick start of operation - thanks to the finished spatial planning of the territory. • Some 70 000 employees in the Professional support and project manufacturing sectors management contribute to the fast project 2 implementation. The Zone has ready 5 production, logistic, commercial facilities 4 to offer.

1

Industrial Park 6 Markovo 7 3 Industrial Park Markovo is located on the ring road of Plovdiv. The plot area of the zone is 158 000 sq.m. There is a possibility of separating and merging of plots in 1. MARITZA COMMERCIAL AND INDUSTRIAL ZONE relation with the potential expansion of the 2. RAKOVSKI INDUSTRIAL ZONE industrial projects. Infrastructure of the 3. KUKLEN INDUSTRIAL ZONE area – electricity and ready option for 4. ЕUROPEAN-CHINESE ECONOMIC DEVELOPMENT ZONE gasification. Sewage system and internal (ECEDZ) road network are under construction. 5. AGRO CENTRE KALOYANOVO 6. EDUCATION AND HI-TECH PARK IN THE CITY OF PLOVDIV 7. INDUSTRIAL PARK MARKOVO

32 CULTURE & TOURISM The world’s sixth oldest city The city is built upon layers of towns and cultures and is picturesquely situated in the Thracian lowlands, just 100 miles east of Sofia. Plovdiv has been recognized as THE CITY OFFERS A WORLD OF the oldest continuously inhabited city in POSSIBILITIES FOR INDOORS AND Europe and the sixth oldest in the world OUTDOORS RECREATIONAL where one can go back in time 6000 ACTIVITIES years. Originally settled by the Thracians who established their fortification Eumolpias during the Neolithic period, it IN 2019 PLOVDIV WILL BE THE was Philip II of Macedon (father of EUROPEAN CAPITAL OF CULTURE Alexander the Great) who in 343 B.C conquered Eumolpias as a result of a great military expedition north against the Scythians. He renamed it Philippopolis and made it the most important city in Thrace. as a beautiful and flourishing city Later, under Roman (72 B.C) and Ottoman influenced politically and culturally by both rule (1371), the city of Trimontium and then the East and the West, yet preserving its Filibe expanded greatly due to its strategic unique cultural identity. geographical location and was described

33 Being older than Rome and Athens, the emblematic houses with their iron-studded city of the seven hills has an astonishing heavy oak gates, painted facades, oriels historic and cultural heritage to share with and jetties and grid windows. The its visitors. The Old Town, included in the charming Ethnographical and UNESCO World Heritage tentative list, was Archaeological museums, the fabulous built in the 18th and 19th centuries and amphitheatre built during the time of became an essential economic and cultural Emperor Trajan (98-117), the 2nd century centre during the Bulgarian National Roman forum and stadium, a beautifully Revival period. Along steep cobblestone painted church (1832 – 1836) and a 15th lanes and behind stone walls, one century mosque, one of the oldest in glimpses at verdure and flowers Europe, are just few of the breathtaking surrounding ancient monuments such as a places in Plovdiv. well-preserved and still functioning Roman Amphitheatre and architecturally

Sports & recreation

Plovdiv offers a world of possibilities for There are also children’s playgrounds and, both indoors and outdoors recreational happily, rollerblading and biking is allowed. activities. Among a number of sports and Plovdiv has a strategic location when it fitness facilities located in the city, Plovdiv comes to sports and recreation. The city is hosts one of the biggest sports centers in not only in a close proximity to two major Bulgaria with the largest artificial water ski resorts in Bulgaria - Borovetz and channel, indoors swimming pools, soccer Pamporovo (about an hour and a half fields and tennis courts. Multifunctional drive), but also connected by highway to sports hall Kolodruma annually hosts vast the Black Sea coast – to some of the most range of sports and cultural events. developed seaside resorts (about two and Additionally, the three highest hills in the a half hours by car). Additionally, one of the city are protected as park areas, perfectly best spa resorts Hissar is located just suitable for hikes, jogging and bike rides. about 40 minutes away from Plovdiv and The Tsar Simeon’s Garden located in the the North shore of the Greek Sea – just a very centre of the city is also a perfect few hours drive away. place for recreation with its magnificent Singing Fountains, the fountain of Goddess Demeter, the Viennese pavilion and flowers that turn the park into a paradise garden.

34 Arts & city events With its ancient, medieval and modern The largest and oldest fair in all of the images and its rich spiritual life, Plovdiv Southeastern Europe, the Plovdiv has deservedly become a world cultural International Fair, is also held in here since centre. In 2019 Plovdiv will be the 1892 and attracts visitors from around the European capital of culture – an EU world. initiative that gives the chosen city the Plovdiv is well-known for its vibrant night opportunity to boost tourism and local life. Concentration of unique pubs, economy, raise its international profile and restaurants, clubs, art and craft studios enhance its image through a year-long one may find in the central Kapana district. diverse and rich cultural program. It has emerged as a spontaneous hub for There are a lot of things to do in Plovdiv. new art endeavours and the Municipality of For art lovers, there are over 50 art Plovdiv has prioritised Kapana as a galleries, housing valuable pieces of creative-industry district. modern Bulgarian paintings and regular In 2016 Plovdiv received the prestigious international art, photography, sculpture, award "Golden Apple" of the World and graphic art exhibitions. Furthermore, Federation of Journalists and Writers in the city hosts a bundle of festivals, which tourism, as well as the Balkan Leader in attract international artists and visitors Tourism award. The city is also one of the from all over the country. Moreover, those top 10 cities to visit in 2015 according to events create additional revenues for the Lonely Planet’s “Best in Travel 2015”. local economy, as well many other indirect economic impacts. A recent study shows that the economic effect of the free-entry Night/Plovdiv festival is about €0.7 Million.

35

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