Review of sector transport, infrastructure and communications in bulgaria



Download 337.09 Kb.
Page5/12
Date03.03.2018
Size337.09 Kb.
#42630
TypeReview
1   2   3   4   5   6   7   8   9   ...   12

Methodology and Approach

  1. Desk research


The project team has identified and listed Dutch companies active in the transport sectors per Country (Bulgaria, Romania and Ukraine). This information has been obtained from, among others:

  • The Associations for transport (in the Netherlands and the three countries) and their publications.

  • The Chambers of Commerce in the Netherlands and the three countries.

  • The Departments of International Co-operation in the three countries, responsible for the co-ordination of bilateral or multilateral co-operation or investment programmes.

  • Ministry of Transport, Public Works and Water Management and Ministry of Economic Affairs.

  • Senter.

  • The Dutch Embassies in the three countries.

  • The Embassies of Bulgaria, Romania and Ukraine in the Netherlands.

  • Individual companies, active in the transport sector.

  • The NCH (Nederlands Centrum voor Handelsbevordering).

  • The EVD.

  • The Association of Dutch Exporters: Fenedex.

Also, an inventory and analysis on the transport sector data available for the 3 countries have been carried out. Information has been drawn from studies performed by NEA as well as from reports produced and published by the Ministries and International Finance Institutions.


Local experts have assisted in obtaining the relevant market data and making it accessible.

      1. Field research


In each country a field research programme has been carried out, assisted by local experts.


  • Interviews and discussions with key persons and staff of the Ministry of Transport, identifying relevant transport policy lines and measures per sector, priorities, constraints and opportunities have been carried out. In this context the presence and effectiveness of the institutional framework relevant to the sub sectors has been assessed.




  • The Dutch Embassy has been an important source of information for identification of possible general opportunities in the transport market, for the assessment of the local transport policies in relation to Dutch interests and the identification/contacting of key persons in the different sub sectors.




  • Many private and publicly owned enterprises have been interviewed, which are leading in or representative for the sub sector. Foreign owned or subsidiary companies have deliberately been included. The output from these interviews has been used to draw conclusions on segment attractiveness for investments. Opportunities, spin-off and synergies have thus become visible.

    1. Organisation of a seminar


A seminar has been organised in the Netherlands to present the results of the study to a wider audience of interested Dutch companies active in the studied sub sectors.

    1. Project Team


The project did consist of four experts:
René Meeuws - Team Leader

Hans Houtsma

Arthur Gleijm

Jan-Coen van Elburg


Extensive use has been made of local experts, facilitators and interpreters in Ukraine, Romania and Bulgaria.

  1. General dAta on bulgaria

    1. General socio-economic situation1


Bulgaria is situated in the heart of the Balkan Peninsula with a population of 8.2 million people and a 1999 GNP per capita of US$1,380.
Its most recent history is characterised by the remarkable turnaround that occurred after the change in leadership in 1997, following a decade-long delay in the transition to a market economy.

Market reforms in the country began in 1991 in the face of difficult initial conditions, including massive price distortions and almost complete state control over productive resources.


Externally, heavy reliance on trade within the disintegrating former Soviet Union caused a dramatic fall in trade flows and severe shortages of foreign exchange.
From 1991 to 1996 progress was slow and erratic, with periods of tight macroeconomic policies followed by a loosening of those same policies. High inflation and large exchange rate fluctuations undermined credibility of the country's economic management. This, together with the effects of delayed reforms, led to a severe banking and foreign exchange crisis that culminated in hyperinflation in January and February 1997. The depth of this crisis was reflected in the economic outcome: GDP fell by about 10 percent in 1996, and currency reserves shrank to US$446 million (one month of imports). In February 1997, inflation reached a high of 243 percent per month. The devastating effects of the economic crisis on the social conditions of the country placed considerable strain on many vulnerable groups, and poverty became a serious and widespread problem.
Since the 1996 crisis, Bulgaria has re-energised long-pending structural reforms. In July 1997, a currency board supported by the International Monetary Fund (IMF) was introduced and this, in turn, had a positive impact on the country's financial discipline. Central Bank financing of the budget (except against purchases of special drawing rights from the IMF) has been eliminated, the privatisation process has accelerated, and many previously controlled prices have been liberalised.
Real GDP grew by 2.4 percent, and inflation reached 6.2 percent at end-1999. Bulgaria's economy showed its increasing resilience to the adverse external environment-the Kosovo conflict, continuing negative effects from the Russian crisis, and shrinking demand in the Euro area--especially in the first half of 1999.
The stabilisation effects of the currency board and prudent fiscal policies cushioned the negative external influence. In response to the growing current account balance, which in 1999 reached 5.4 percent of GDP, fiscal policy was tightened and the consolidated budget deficit came in at only 1.0 percent. Similarly, whilst the delay in completing some policy commitments, important steps were taken in the areas of privatisation, banking sector reforms, agricultural liberalisation, energy pricing, and legal reforms required to improve the prospects for sustainable economic growth and pave the way for European Union (EU) accession. On December 10, 1999, during the European Council's Helsinki meetings, Bulgaria, together with Latvia, Lithuania, Romania, the Slovak Republic and Malta, was invited to begin accession negotiations on EU membership.
The most important and visible component of the structural reform program, the privatisation of state-owned enterprises (SOEs), has accelerated significantly over the last two-to-three years. Progress in the privatisation of SOEs can be inferred from the share of state-owned long-term assets privatised, which reached about 80 percent of enterprises in the competitive sector by end-1999 (compared to 42 percent at the end of the previous year).
Effective restructuring of utilities started in 2000. The government also instituted a program of isolation and liquidation of those SOEs that are not candidates for privatisation because they are not viable. By mid-1999, the isolation program was completed, which was largely successful in privatising or liquidating some 48 large loss-makers.
Efforts to liberalise the agricultural sector have been consistent with the government's program for structural reform. By end-1999 some 97 percent of agricultural land was restituted to former owners, and the process is practically completed. Consolidation of land is encouraged by the new Land Lease Act, removing all previously existing restrictions, and facilitating the development of an active land market with an increase of the profitability in the sector.
Privatisation in the sector is almost completed with 72 percent of state assets in agriculture and 90 percent of the assets in the food industry in private hands. The trade and pricing policies are fully liberalised, and all government control on prices of agricultural and food-products has been eliminated.

A system of licensed warehouse receipts has been introduced to provide options for further development of the grain market.


The introduction of the currency board brought stability that strongly contributed to the return of confidence in the financial sector. The banking sector is highly capitalised and relatively sound as a result of the strengthening of regulations and improved enforcement. By mid-2000, five of the eight public sector banks have been sold to private strategic investors, and negotiations for the sale of two more are at an advanced stage.
Separately, conforming to the requirements for EU accession, the government's strategy in the energy sector has the dual objective of developing its market-competitiveness, while improving financial discipline. A comprehensive restructuring program, under which the government intends to conduct the privatisation of most of the generation and distribution assets of the National Electric Company, has been developed and is under implementation. The broad framework for restructuring is provided by the new Energy Efficiency Act, which was adopted by parliament in July 1999.


    1. Download 337.09 Kb.

      Share with your friends:
1   2   3   4   5   6   7   8   9   ...   12



The database is protected by copyright ©ininet.org 2024
send message
    Main page
Guide
Instructions
Report
Request
Review