Review of sector transport, infrastructure and communications in bulgaria
Privatisation process in Bulgaria
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Privatisation process in BulgariaIn 1992 the Privatisation Agency was established in Bulgaria as an independent state institution, responsible for the sale of large and strategic state-owned companies. The agency is subordinated to the Ministry of Economy. The Government has prepared a programme for the year 2001 in which the privatisation of the state-owned enterprises is defined as a key element of the structural reform. The programme plans to finalise in 2001 the privatisation of all state-owned enterprises (more than 600) in the sectors of industry, construction, agriculture, tourism and trade. The plan further states to initiate the preparatory stage of the privatisation of certain facilities within the sectors of infrastructure and public services - energy, railway transport, water supply and sewerage. Examples of privatisation are Balkan Airlines and the shipyards in Rousse and Bourgas. Between 1993 and 2000 stakes and shares in 4,222 enterprises were sold off. The total financial result of this massive privatisation process amounts US$ 6,820 million, including US$ 2,484 million negotiated payments, US$ 1,008 million in outstanding liabilities and US$ 3,328 million of pledged investments. A major portion of the financial result was generated from deals with foreign investors. By June 30, 2000 the Privatisation Agency has finalised a total of 85 deals with foreign participants with a total amount involved of US$ 2,712 million. Business environment in BulgariaThe information in this paragraph is from a report published by the Bulgarian International Business Association "BIBA White Paper on Foreign Investment - Issue 2001". According to the 2000 White-Paper substantial improvements to the environment within which Bulgarian industry evolves can be noticed. The full version of this document can be found on the CD-ROM, which accompanies this report. Nonetheless, substantial scope for improvement remains, which could substantially ameliorate the “business climate” and overall competitiveness of industry. Specifically, possible improvement areas are: Public-Private partnership / legislation drafting & implementation; Quality/Productivity culture in industry; Public Administration performance and education; Transport sector technology and infrastructure; Hastening privatisation/deregulation of the natural monopolies (i.e. utilities and energy sectors); Law implementation and enforcement; Promoting investment (including FDI) in SME’s, based on a “Strategic Cluster Strategy”; Border crossing initiatives; Post-privatisation control and facilitation. 1. Public-Private partnership There remains the need to improve public-private partnership. A means through which such effect could be achieved is through the promotion of government recognised “Industry Chambers – Branchovi Organizatsi”. The latter’s primary objective would be to develop, promote and communicate sector strategy and policy, to the relevant ministries and governmental structures, for approval and harmonisation to EU practice. This approach would imply participation of industry representative organisations in the drafting of legislation, in co-operation with government. Public-Private partnerships should also be extended to seek means by which to stem the “brain-drain”, whilst encouraging the education sector and industry to engage in a dialogue such as to better co-ordinate education and employment policy. 2. Fostering a “World-Class” level, Quality/Productivity culture The importance of improving quality and productivity of Bulgarian industry could be “championed” by the ministry of economy through its sponsoring of a “Baldrige -type” Industrial Quality and Productivity award, to “promote” excellence and world-class practice within different sectors of the Bulgarian Industry. 3. Public Administration performance The government could define a program allocating significant sums of foreign aid received towards improving the quality and customer-orientation culture of the civil service. Also public administration should adopt in general “business-open” instead of “administration- open” approach, i. e. not only to work on a legislative and theoretical level but to be more practical/ linked to the reality and to offer more services to the business itself. 4. Transport Sector Technology and infrastructure improvements The government could seek additional sources of external financing to improve the technological condition of rail and port infrastructure. At the same time, a dialogue should be engaged between major industrial users of BDG and BDG, to identify ways in which the current state of poor repair and performance of the Bulgarian railways could be addressed. The issue requires immediate attention in order for it to not affect adversely the performance of industry at large. Closely related to railway infrastructure, another issue requiring urgent attention is the state of affairs at Bulgarian ports and harbours. Service, productivity (i.e. Bulk-cargo discharge rates) and overall performance of ports and harbours requires urgent attention and improvement. The lack of transparency as pertains to the process and procedures for tendering/obtaining quay concessions must be addressed promptly. 5. Legislation / Regulation implementation, enforcement and EU harmonisation In addition to the public-private partnership issues, another point of focus should be the improvement of implementation/control and enforcement measures of legislation protecting consumers and industries from unfair, covert or possibly hazardous practices. Concrete examples, to be addressed on a priority basis are: EU-harmonised GM control/segregation of cereals and subsequent GM content food/feed labelling. Necessary amendments to the Law on Narcotic Substances and Precursors such as to not disturb the production operations and supply chain of large industrial consumers/exports of Hydrochloric Acid and Sulfuric acid whilst still maintaining the necessary level of control to prevent abuse. Closely monitoring the import of foreign goods and services, to ensure that they are "fairly" introduced into the Bulgarian market. Dumping and heavily subsidised imports should be restricted, but only in those in cases where they will "unfairly compete" against Bulgarian-made products. An illegal import / anti-dumping task force, in constant contact with industry - through the respective associations, should be set-up to investigate possible violations. Addressing the existing problems related to the current form of pre-market control - i.e. system of pre-market registration of goods of significance for Public health (foods, household chemicals, cosmetics, paper products etc.). The existing process constitutes a barrier to business development and competitiveness because: (i) The process is time consuming; (ii) The criteria for registration are (in some instances) different from the ones laid down in the EU regulations.
Part of the government’s future industrial/economic strategy should be to help Bulgarian industry become less vulnerable to the global cyclical trends in commodity prices whilst adding value-downstream, in Bulgaria. In line with this approach, a program encouraging FDI in SME’s which could become reliable suppliers to “strategic industry clusters” (such as metallurgy, oil/petroleum refining, starch industry, soda ash, etc…). The strategy could further be stimulated should the banking sector develop financial products designed to address the financing needs of entire “industrial clusters”, linked together through their value chains. This strategy could be an excellent tool to reduce collateral risk and avoid the “domino-effect” threatening some industry clusters. 8. Border crossing initiatives The need to facilitate physical cross-border crossings remains a priority. In this aspect mutual recognition (EU/Turkey, etc.) of certificates of quality / content remains a priority, as well as reduction in border-crossing time. Bulgarian industry needs improved “physical” access to export markets for its industrial products (food and Agro-industry in particular). 9. Post-privatisation follow-up The need remains for improving on the post-privatisation follow-up and facilitation. The privatisation agreement commitments of several key companies in the manufacturing/processing sectors are no longer “pertinent” within the current economic context, 2-3 years post-privatisation, thus requiring restructuring in some cases. In view of the expected forthcoming changes at the Privatisation Agency, it is important to not omit from the “revamped” scope of the PA, the critical activity of post-privatisation facilitation, including as a key activity within this scope, the restructuring of existing privatisation contracts. Directory: ECA -> Transport.nsf -> ExtECADocByUnid ECA -> Phonetics and phonology ECA -> Brightspace Platform Requirements 1 Document Change History 1 Brightspace Platform Requirements 2 Brightspace Apps 5 About D2L 9 ECA -> Microservices in the Brightspace Cloud ECA -> Brightspace Assignment Grader for Android 6 ECA -> - ECA -> Brightspace Platform Requirements 1 Brightspace Apps 4 About D2L 9 ECA -> My Course series objective ExtECADocByUnid -> Armenian Railways: Five Year Business Plan ExtECADocByUnid -> Review of the sectors transport, infrastructure and communications in romania Download 337.09 Kb. Share with your friends:
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