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Investment Opportunities in Sofia

Investment Opportunities in Sofia. “G ROWS B UT N EVER A GES ”. Top x: Templates for Board Presentations. Sofia: Investment Opportunities. Speaker: Minko Gerdjikov Date: March 24 th 2009. “G ROWS B UT N EVER A GES ”. About Sofia. National Assembly Square. National Gallery of Art.

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Investment Opportunities in Sofia

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  1. Investment Opportunities in Sofia “GROWS BUT NEVER AGES”

  2. Top x: Templates for Board Presentations Sofia: Investment Opportunities Speaker: Minko Gerdjikov Date: March 24th 2009 “GROWS BUT NEVER AGES”

  3. About Sofia National Assembly Square National Gallery of Art

  4. Economic Growth The Sofia region is the country’s most dynamic cluster of economic activity, characterised by high workforce productivity and GDP per capita levels, as well as impressive GDP growth. GDP Growth 2001-2010 EUR Billions1 37.8 35.6 • Highlights • Sofia accounts for 16% of the country’s population but produces 34% of the national GDP • Sofia’s GDP growth rate has consistently exceeded the national average; even within financial crisis conditions a growth of 2.5-3% is anticipated. • Sofia’s GDP per capita is currently at 72% of EU average and expected to exceed 80% by 2015 GDP – Sofia GDP – Rest of the Country 33.8 29.0 24.9 25.3 23.5 21.9 22.4 19.9 19.3 17.8 16.6 16.9 15.2 15.1 14.1 12.6 11.8 11.0 12.9 12.2 11.4 9.7 8.4 6.8 5.8 5.1 4.8 4.2 2003 2004 2005 2008 2009 2010 2001 2002 2006 2007 Forecast 1 Subject to rounding error 2 EUR Thousands

  5. TOTAL Economic Profile Sofia’s a high-growth, services-oriented economy is driven primarily by the dynamic private sector. • Highlights • Services account for 74% of Sofia’s GDP compared to the national average of 60% • The private sector generates 94% of all services and 87% of other sales • Small & Medium Size Enterprises (SMEs) generate 71% of all sales • The construction, real estate, business services, transportation and telecoms sectors account for the largest share of growth in recent years and continue to attract investments GDP by Sector, 2008 EUR Billions € 11.5 Trade & Repair 6.2 Processing 1.5 Transportation & Communications 1.1 Property Mgt & Business Services 0.9 Secondary Construction 0.7 Tertiary 74% 25% Electricity Gas &Water 0.5 Hospitality & Catering Primary 0.1 100% = € 11.5 Bn 0.4 Other = High-Growth Sector

  6. Sofia’s Unique Investor Benefits Sofia’s strategic location and broad talent pool makes it uniquely positioned to benefit foreign investors. Tertiary Secondary Primary None 25% 43% 56% 50% 18% 5% Sofia Bulgaria Workforce Education Levels 9 4 7 10 1 8

  7. TOTAL Foreign Investment Flows In 2008, Sofia attracted 68% of all FDI in Bulgaria. The current level of FDI is expected to decline in the coming years, particularly in sectors such as financial infrastructure, real estate (industrial and commercial buildings, business parks), technology, and transportation infrastructure. FDI in Sofia by Source Country, 1996-2008 EUR Billions FDI in Sofia by Sector, 2008 EUR Billions Sofia = € 3.7 1.7 € 5.4 1.4 Financial Services 1.0 Real Estate & Business Services 0.7 Trade & Repair 0.3 Construction 0.2 Transport & Communication 0.1 Manufacturing Industry FDI – Sofia FDI – Rest of the country Other 0.05

  8. An Impressive Investor Roster In the past few years, Sofia’s favorable business climate, strategic endowments, and favorable tax code have attracted a range of international business leaders, operating in attractive sectors such as telecommunications, financial services, utilities, electronics, and IT.

  9. Municipal Governance & Policy Priorities Sofia’s predictable political environment, sound fiscal policy, and stable governance have helped it earn a credit rating of BB+/Positive (Standard & Poor’s 2007), one of the highest in the region. There has been a broad political consensus on the need to attract and support foreign investors, to which Sofia Municipality has been a reliable and efficient partner. Municipal Spending Priorities (2009) 100% = € 516 MM Municipal Budget Growth EUR Millions 516 Education 323 240 Capital Expenditures 22% 32% 16% Public Utilities 30% 2005 2007 2009 Other

  10. Municipal Economic Strategy

  11. Forecoming tenders – part of the investment programme of Sofia Municipality for 2009

  12. Privatisation Tenders & Public Commissions Due to the shrinkage of the real estate market the municipal privatisation programme is limited. However, because of the need of income, this programme shall continue its fulfillment, with projected revenue realised by privatisation transactions of BGN 10.8 million. Current & Pending Privatisation Tenders

  13. The financial role of the European Union. Projects financed by EU funds and European Investment Bank

  14. Sofia Municipality’s Action Plan Concerning Mitigating the Negative Effects From the Financial Crisis

  15. Thank you for the attention! Minko Gerdjikov Deputy Mayor of Finance Sofia Municipality Тel: +359 2 987 70 79 E-mail:mgerdjikov@sofia.bg Web site: www.sofia.bg “GROWS BUT NEVER AGES”

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