We will hear the word crisis less and less this year, said Minister of Economy and Energy Dragomir Stoynev at a press conference. According to preliminary data, in December 2013 the business had paid in the budget a record amount of VAT and taxes. With this the business had demonstrated honesty, while the government had shown a responsible attitude, said Stoynev. The VAT return in full before the deadline was unprecedented - until the end of December, companies had received BGN 541,822,839 back. According to the Minister from the end of May 2013 until December 2013 BGN 2.5 billion had been injected into Bulgarian business. The BGN 131 million as a result of the budget review was used to pay all outstanding contract obligations. For the first time in two years there was a real growth of GDP - the annual growth rate for the third quarter of 2013 was 1.5%, Stoynev said and predicted economic growth above 2%.
He pointed out that according to preliminary data of the Bulgarian National Bank (BNB) for June-October 2013 direct foreign investments in sectors such as manufacturing, transport, storage and communications, mining and quarrying, trade amounted to 496 million. For the past seven months projects worth BGN 95 million had been certified or were in process of certification under the Investment Promotion Act envisaging the creation of 510 new jobs. To achieve the objective of reindustrialization of the economy and work would begin on potential projects for investment in the automotive industry worth BGN 1.2 billion, creating over 8,500 jobs, Stoynev explained.
Minister Stoynev also said that the Ministry of Economy and Energy would focus on SMEs in 2014. The goal was to provide them with future opportunities through long term instruments of the National Investment fund and the new Innovation and Competitiveness program. The number of authorization schemes and administrative burdens for citizens and business had been reduced. The plan for the second package of measures, which targets 100 regimes, was being implemented. The Ministry was actively working on 13 of them. The amendments to the Public Procurement Act also improved the access of small business to public tenders.
Record BGN 20 million had been allocated for the National Innovation Fund (NIF) for 2014, the Minister said. For 2013 there had been no financing, Stoynev pointed out. In terms of the new Innovation and Competitiveness 2014-2020 OP consensus on balancing measures had been achieved. BGN 1,165 million or a little less than 100% of its budget, had been negotiated under the program. Over 2,000 new jobs had been created as a result of successfully completed projects.
According to Stoynev, efforts to improve the competitiveness of enterprises would have a strong effect when promoting their export potential. For June-September 2013 trade turnover increased by 4.1% compared to the same period in 2012, reaching EUR 16.6 billion.
Negative trade balance was dropping progressively - by 12.8% for June-September 2013, the Minister said. To support this trend in 2014 the Ministry of Economy and Energy began a reform in Offices for trade and economic ties. Minister Stoynev also said that there was active dialogue with business organizations, with which the government would work on opening new shared offices in the form of public-private partnerships.
The Minister highlighted the responsibilities of the state, especially in the sector of concessions. Since the beginning of the term of the current government BGN 42.1 million in unpaid concession fees had been collected and BGN 783,629 had been absorbed with VAT from bank guarantees of compliant concessionaires. 353 working project had been coordinated in the second half of 2013. Of these, 326 had been coordinated from mid-November until the end of 2013. This meant that the concessioners would follow the rules from now on, Stoynev said.
The Minister said that the government and the Ministry of Economy had demonstrated how the state could reasonably intervene in the economy in order to rehabilitate of the industrial potential of the country, preserve jobs and create new ones, and set examples with the positive prospects before military factory VMZ Sopot, Himko-Vratsa and Remotex Radnevo. "We are negotiating the acquisition of Remotex but the price demanded by the owner is unreasonably high. We should not forget that the company has a debt of over BGN 25 million. We would like to help the workers, the state wants to acquire the company, this is what the workers would like, but if next week the owner does not offer a reasonable price, we will find ourselves in a situation where the acquisition does not happen", Minister Stoynev said.
According to Dragomir Stoynev the Bulgarian tourism was already showing indicators above the average for the world and Europe. It generated 13.6% of GDP, while the global figure was 9%. Revenues from international tourism in the current account balance for January-October 2013 were EUR 2,839.5 million - 4.9% more than in 2012, according to BNB data. The expected number of foreign tourists in 2013 was over 7 million - 5.6% more than in 2012. International tourism revenue estimates for the twelve months of 2013 were EUR 3,048 million (4.5% compared to 2012).
A plan for sustainable development of tourism had been prepared with a horizon until 2030 in relation to the development of a long term strategy for the sector. Three major infrastructural projects worth BGN 650 million were currently being analyzed. By attracting more such investments, Bulgaria would become a recognizable and desirable tourist attraction with high quality product, whilst ensuring maximum employment, especially in hilly and mountain regions.
"Stabilization and diversification - this will be the key priorities in the energy sector in 2014", said Minister of Economy and Energy Dragomir Stoynev when outlining the policy the Ministry will lead with regards to the energy sector for this year. The state company Bulgarian Energy Holding would continue to play its key role in efforts to balance the system of the energy sector and would not be closed. "The periodical forecasts for bankruptcy of the National Electric Company (NEC) will not turn out to be true and NEC will continue to rhythmically pay its debts to contractors at better pace", Minister Stoynev said.
During a press conference at the Ministry of Economy and Energy, Dragomir Stoynev noted that the price of electricity for households and businesses would remain stable at levels, reached before 1 January 2013 with the last price drop. Export of electricity ran hourly at 1300 MW, which compared to May 2013 had increased several times. Minister Stoynev pledged to continue the dialogue with the miners, who, he said, were already convinced that the Ministry was fulfilling its promise and that the strategic enterprise "Mini Maritsa Iztok" EAD would work well. "333 000 tons of coal were produced there in December 2013 - the highest yield for December in the history of the company in the last 20 years", Minister Stoynev said.
According to Mr. Stoynev, the strategic projects the Ministry of Economy and Energy was working would continue to develop in 2014 since they were extremely important for the diversification of energy sources. Such projects, according to the Minister, were South Stream gas pipeline, where under Bulgaria's initiative the European Commission had taken the role of a leading side in negotiations with Russia on the pipeline's status and its building. "We are members of the EU, we follow the European rules but national interest is what matters most to us", Minister Stoynev said and added that the tender for construction contractor for the Bulgarian section of "South Stream" had been announced on 21 December 2013 and bids could be submitted until 10 January, 2014.
"The project for the construction of Bulgaria - Greece gas interconnector is at an advanced stage, a stage of agreeing the approving of route and sites in both countries and designing the gas system. The other project -the gas connection Bulgaria - Serbia is advancing in its implementation and in the end of November 2013 the Ministry of Economy and Energy announced an open tender for the design, supervision and consultancy services on the construction of the connection. The link Bulgaria - Romania is practically built, the last tests are being currently carried out and putting the pipeline into operation is due", Minister Dragomir Stoynev said.
In terms of nuclear energy, Mr. Stoynev said that EUR 239 million had been agreed to continue the decommissioning of Units 1-4 of Kozloduy NPP in the next EU financial. The initial proposals by the European Commission had been for EUR 185 million. EIA report for the construction of Unit 7 at the Kozloduy NPP was ready - another project of strategic long term importance for Bulgaria's energy and economy. The feasibility study for the construction of new nuclear unit was also completed. Work on the selection of a preferred site was in the final stages. The Minister also said that the Council of Ministers had decided to begin negotiations with Westinghouse Electric for structuring and financing of a project to build Unit 7 of Kozloduy NPP, using AP-1000 technology.
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