Special Coordinator
of the Stability Pact for
South Eastern Europe
Rue Wiertz, 50
B-1050 Brussels
Belgium
Phone: +32 (2) 401 87 00
Fax: +32 (2) 401 87 12
Email: scsp@stabilitypact.org
Press Handout: The Stability Pact and Bulgaria (3rd edition)
Brussels, 9 September 2002 3rd edition
PRESS HANDOUT
The Stability Pact and Bulgaria
1.Stability Pact activities in Bulgaria
Stability Pact Projects in Bulgaria, including regional projects with Bulgarian participation (see Annexes for details)
Working Table I (Human Rights and Democratisation) 50 projects approx. € 25 mn
Working Table II (Economic Reconstruction, Development and Co-operation) 5 infrastructure projects approx. € 690 mn
Working Table III (Security Issues) 7 project categories, some of them regional see annexes
2.Stability Pact Highlights in Bulgaria
Within the Stability Pact framework, the following projects have a flagship character:
The Vidin-Calafat bridge ranks among these, where through the active intervention and mediation by the Special Coordinator, eventually a decade-old deadlock could be overcome. Additionally, the Stability Pact managed to secure the financing for the construction of the bridge through the European Investment Bank.
Another important Stability Pact project is the “Retraining of Military Personnel”, made redundant as a consequence of the restructuring of the military sector. So far, about 1000 military officers have been re-trained in Bulgaria with the objective of being reintegrated into the civilian labour market. The success of this project has prompted Croatia and Albania to evaluate the implementation of similar projects. Romania and Bosnia-Herzegovina have similar Stability Pact projects underway.
The modernisation of the Sofia airport, notably the construction of a new passenger terminal building will make a valuable contribution to effectively link Sofia closer to the regional and wider European air traffic.
The Sofia-Nis highway is a priority for the Bulgarian Government. After the completion of the remaining preparatory work with Bulgaria's partners within the Yugoslav administration, the project can be submitted to the Infrastructure Steering Committee for consideration.
3.Projects in Bulgaria listed by Working Table (1 to 3)
3. 1. WORKING TABLE I Democratisation and Human Rights
Media
There are 8 regional projects of which Bulgaria is one of the recipient countries. These projects total close to€ 5.8 million and include:
Bridges for the New Balkans
Media projects of the Council of Europe
Regional Media Assistance
Deutsche Welle media projects for SEE
Media and intercultural communications
Media strategies for peace and stability
Practical access to democracy
A Media Working Group is established and operational. It has prepared a National Action Plan for media reform. Priorities include media law, professionalism, media structure, and journalism education. The National Working Group of Bulgaria currently endorses a media project “Fostering the Development of Independent Broadcasters in SEE” submitted by the Association of Bulgarian Broadcasters (ABBRO). The project aims to build institutional capacity on a local level and create an enabling environment for the functioning of strong, independent, influential and sustainable associations of broadcasters in the region, to promote effective co-operation and exchange of expertise among the associations and their members at regional and international levels.
Education and Youth
There are 14 regional projects under implementation in Bulgaria in the field of Education and Youth, totalling approximately€ 6.2 million.
Bulgaria actively participates in regional networks and projects, especially in the fields of “History Teaching”, “Literature Teaching” and “Vocational Educational Training”.
In this context, the project "Strengthening Local and Regional Structures of Adult Learning", implemented by the German Institute for “Internationale Zusammenarbeit des deutsches Volkshochschulverbandes”, is aiming to create and strengthen adequate structures in the field of adult education in SEE. Bulgaria is very involved in the field of vocational education and trainingestablishments (the project “Establishment of a regional network of education on economics on policy and school level” intends to create a close partnership between already existing training firms in SEE in order to promote regional co-operation in the field of Secondary Schools for Economics).
Human Rights
There are 4 regional projects where Bulgaria is among the recipient countries for about€ 2 million.
Bulgaria participates in the campaign “Link Diversity” which aims at raising awareness of the values and principles of multi-ethnic and multi-cultural societies and a democratic citizenship. Bulgaria is also involved in 3 legal and policy measures projects, which intend to strengthen the country's commitment to existing international standards of minority rights. These involve advancement of bilateral co-operation agreements on the protection of national minorities as an important tool for promoting good ethnic relations, acceptance and implementation of the relevant legal instruments and co-operation with their supervisory systems as well as the Non-Discrimination Review, where Bulgaria was invited to undertake a comprehensive review of legislation and practices in order to identify and remove discriminatory aspects.
Bulgaria is part in the co-operation program with human rights NGOs under the leadership of the International Helsinki Federation for Human Rights. The program pursues to enhance the performance of human rights organisations and to improve regional and local monitoring and exchange of analytical information at local and regional level.
Parliamentary Co-operation
There are 4 regional projects which include Bulgaria as a recipient country. These projects total close to€ 3.7 million as follows:
Programme on Democratic Control
Legislatures and Citizens
Training and Exchange Programme
MP Network
The four donors in this sector are the EC, Netherlands, Greece and the UK.
Bulgarian parliamentarians attend workshops organised in the framework of these projects. Some events, which have taken place, include:
Conference on Parliamentary Co-operation between the EU and Stability Pact partner countries jointly organised by the European Parliament and the Stability Pact in Brussels on 17-18 September 2001. The PresidencyConclusions recommended the creation of ad hoc parliamentary working groups to debate specific Stability Pact-related issues.
Conferences organised within the framework of the MP Network, which debates issues such as Education, Refugees, Human Rights, Trafficking or Environment.
Workshops on “Democratic Control” dealing with issues such as legislation on stability and security in the SEE region. Representatives of the Bulgarian Parliament attended a workshop in Croatia in October 2001 and indicated interest in more active participation in future workshops.
Gender
Bulgaria is involved in 4 Gender Task Force projects totalling about€ 2.5 million.
With the support of the GTF and in co-operation with the Council of Europe, the former Bulgarian Government has prepared the Equal Opportunity Act, which provides the basis for the first governmental gender equality mechanism in the country. This Act has the full support of Bulgaria’s major political parties and NGOs, as well as the Council of Europe and EU.
Currently, women account for 26.6% of deputies in the Bulgarian Parliament, which is the second highest percentage in the SEE region.
Good Governance
In Public Administration, there are 6 regional projects currently under implementation in Bulgaria for approximately€ 1.9 million.
Bulgaria has initiated the project“The Balkan School for Political Studies”, implemented by “The Free and Democratic Bulgaria Foundation” in Sofia. The project’s aim is to assist young political and civic leaders in developing a better practice of democracy and the building of a civil society and the promotion of a climate of understanding and co-operation within SEE.
Within the Ombudsman and the Local Government clusters, there are 7 regional projects for approximately€ 1.8 million, which include Bulgaria as a recipient country. All projects have started and are well underway.
3. 2. WORKING TABLE II
Economic Reconstruction, Development and Co-operation
Bulgaria is participating in all major initiatives of the Pact regarding economic activities. The free trade agreement signed between Bulgaria and Croatia on 4 December 2001 forms part of the process initiated by the Memorandum of Understanding on Trade Liberalisation and Facilitation adopted by seven countries of the region on 27 June 2001. Bulgaria has already concluded Free Trade Agreements with Romania and FYR Macedonia and it has started negotiations with FR Yugoslavia. The aim is to create a network of free trade agreements in the region by the end of 2002, leading to an open SEE market of 55 mn consumers. Bulgaria also participates in the Investment Compact, an initiative to improve the investment climate in the countries of SEE.
Project Objective
The project objective is to provide a second fixed Danube crossing between Bulgaria and Romania, which are at present connected by a single road/rail bridge at Ruse-Giurgiu, some 300 km downstream. The proposed new transport link would serve local, regional and long-distance traffic between Western Europe and South-Eastern Europe along the route of Pan-European corridor IV.
Project Description
The proposed bridge would be a road/rail bridge with possibly a dual 2-lane carriageway standard and a single electrified railway line (technical parameters still to be determined).Links to the existing road and railway infrastructure are also included.
Cost
Quick-Start: € 5-8 mn for pre-investment studies and technical assistance; Estimated total project cost for bridge construction: € 180 mn (provisional)
Financing Plan
EIB loan € 70 mn
Finance signed on 08.12.2000 for the first trance of € 50 mn out of 70; The German Kreditanstalt für Wiederaufbau (KfW) has extended a grant of € 400.000 for pre-investment and preliminary studies
The French Agence de Dèveloppement (ADF) has extended a grant of € 500.000 for pre-investment and preliminary studies
PHARE programme has made a grant of € 200.000 towards the cost of Intl. Consultants
The Bulgarian government has made an application of € 15 mn soft loan to KfW
The Bulgarian Government has made an application of € 7 mn soft loan to ADF
The EC ISPA Application Form of € 5.88 mn grant requested for the Technical Assistance was submitted on 15 March 2001 Preparation of an application to ISPA for a grant towards the construction of the Adjoining Infrastructure on Bulgarian Territory: under way.
Local funds (for works): € 25 mn.
Project Status/Timing Joint Declaration signed on 07.02.2000
Joint Prime-Ministerial Declaration signed on 27.03.2000
Technical Agreement signed on 05.06.2000
Project Implementation Unit/ Steering Committee set up on 13 June 2001 Agreement on the border crossing procedures and authorities responsibilities to be set up between the two neighbouring countries: expected by end 2001 / early 2002.
Preparation of the Terms of reference for Design: completed April 2001
Preliminary studies:
— geological, hydro-technical and cadastral matter financed by Kreditanstalt für Wiederaufbau (KfW): contract signed on 16 January 2001, completed, awaiting the approval. Final Term of Reference for Tendering and Awarding of the contract for International Engineering and Management Consultant submitted to all parties. It is currently awaiting the “no objection” reply from Romania. Agreement on the terms and conditions for the financing of the project: under way . — preliminary Environmental Impact Assessment (EIA) financed by KfW: contract signed on 10 January 2001 : completed, awaiting the approval.
— study for Re-assessment of the Indicative Price financed by Agence de Dèveloppement Française (ADF); contract awarded on March 15 2001, completed, awaiting the approval . — economic, financial and social analyses financed by ADF : contract awarded on March 15 2001: completed, awaiting the approval
— extension to Territorial Planning Study for Vidim Municipality partly financed by an ADF grant; will be carried out by a local consultant who is already selected.
Preparation and Approval of Environmental Impact Assessment (EIA): Completed.
Preparations of the documentation necessary to achieve the Development Consent (construction permits) in Bulgaria and Rumania: expected by early 2002
Approval of Preliminary Design-revised: expected by February 2002
Approval of the Tender Document for the Design-Build contract -revised: expected June 2002 Approval of the design and tender document for the Adjoining Infrastructures: expected July /Aug. 2002
Construction start: 2003 - projected
Economic/Financial Justification
The construction of a second Danube crossing clearly has a strategic importance and could generate benefits not captured by traditional projection methods. The location at Vidin-Calafat also brings benefits to the local population totalling some 120 000.
Project Objective
Formerly very active traffic on the river Danube (Corridor VII) has suffered extensively from the blockades and conflicts in the region. Port installations on the Danube river in Bulgaria are in need of rehabilitation.
Project Description
Rehabilitation of the Port of Lom on the Danube river in Bulgaria
Project Status/Schedule
Feasibility study financed by EC PHARE available.
EIB board approval 22.05.2001
Economic/Financial Justification
In 1990 some 113 million tons of freight were transported along the Danube which decreased to some 50 million tons by 1996. Port investments are justified by the prospect of renewed regional and long distance traffic. Navigation on the river would obviously need to be fully restored for port investments to be justified.
Cost
€ 5 mn (Quick-Start)
€ 55 mn (Near-Term): Basic infrastructure up to € 40 mn (incl. technical assistance). Private concession up to € 20 mn.
Financing Plan
EIB loan € 20 mn - proposed
The project is on EC ISPA’s reserve list for grant financing.
Port layout finalisation and restructuring will benefit from USAID T.A. Local funds € 10 mn.
Private funds € 20 mn to be decided
Sector/Project Issues
The aim is to reopen navigation on the Danube, and to enhance the traffic perspectives for the Port of Lom. A successful restructuring of the Port is an essential condition for the proper implementation of the project. The project's assessment was slightly delayed in agreement with the Bulgarian authorities which gave first priority to the Danube Bridge Vidin – Calafat (Project 3101).
Project Objective
The development of air traffic, particularly in relations with Western Europe, has been a prominent feature of reforming economies. Sofia airport is Bulgaria’s major international airport, and the country represents also on important over flight corridors. Modernisation of the relevant facilities is therefore urgent.
Project Description
The project comprises a new passenger terminal building with a design capacity of 2.5 million passengers/year and a new 3600 m runway.
Project Status/Schedule
Design and supervision contract awarded in 1999
Tender pre-qualification Lot B1 launched 29.02.1999 and completed September 2000
Financing Agreement: signed in June 2001.
(passenger terminal) Tender Dossier for work contract prepared and submitted to donors for approval: EIB signalled “no objection”, the European Commission is finalising outstanding issues of clarification
Construction start early 2002 – projected
Economic/Financial Justification
The economic rate of return is estimated at 7% for the new passenger terminal and runway on the basis of prudent traffic forecasts. The runway extension will allow the use of larger and heavier aircraft, improve operational flexibility and allow reductions in noise impact.
Cost
€ 210 mn
Financing Plan
EIB loan € 60 mn – firm
Finance Contract signed on 09.09.1997
EC ISPA grant € 50 mn – firm - approved on 20.07.2000
Kuwait Fund KDN 12.3 M (approx. € 38 mn) – firm
Bulgarian State budget € 62 mn – firm
Sector/Project Issues
By agreement with the airport authorities, an extensive package of technical assistance for project management and airport operations was put in place before the actual start of the project, involving foreign consultants. Implementation is now moving ahead. The submission of the Environmental Impact Assessment for terminal building is still awaited.
›››››››
At the Second Regional Conference on 25 and 26 October 2001 in Bucharest, financing of 2 additional infrastructure projects with a total value of€ 10 mn has been secured for Bulgaria:
The “Transit Road Rehabilitation Project III – sections on the Pan-European Transport corridors in Bulgaria” aims to improve the infrastructure of transit roads in Bulgaria, thus creating the conditions for enhanced trade opportunities both within the country as well as between Bulgaria and its neighbouring countries. The project of a total value of € 40 mn will be under the lead of the EC.
The project “Reconstruction and Electrification of the Plovdiv-Svilengrad – Greek/Turkish border railway line for speeds 160 (200) km/h” of a total value of € 170 mn and under the lead of the EIB intends to improve the border infrastructure in the region, thereby improving opportunities for trans-border contacts and trade exchange.
3. 3. WORKING TABLE III Security and Defence Issues
Bulgaria is an active and committed member of Working Table III and has contributed to and benefited from Table III initiatives. Bulgaria served as Table co-chair from July to December 2000 and hosted the Working Table meeting held in Sofia in 4-5 October 2000.
I)The following initiatives have a specific importance for Bulgaria:
i)Retraining of Military Personnelmade redundant as a result of recent military reforms has been a flagship project. Operated locally by the Resource Center Foundation (an NGO), the program has so far trained nearly 1,000 redundant military personnel at 4 regional training centres. Donor assistance from Norway, the Netherlands, the UK and others has been secured. The goal is to have the retrained military personnel employed by small and medium-size enterprises, financed through micro-credit programs of various international financial institutions.
ii)Military Base Closures and Conversionsis a project still in its pilot phase. A team of NATO experts will visit Bulgaria sometime this year to review closure plans at several specific bases and will offer suggestions to contribute to a comprehensive national strategy tied to a variety of financing opportunities from international financial institutions.
iii)Small Arms and Light Weapons destruction as part of a regional assessment program has occurred with the bilateral support of the United States. In 2001 over 70,000 weapons, which had been collected by national authorities, were destroyed.
II)Bulgaria is a leading actor in the following projects:
i)Defence Planning and Budgeting Transparency Initiative: The Bulgarian National Defence College in Sofia hosts a Centre, financed mainly by British contributions, dedicated to sharing information and procedures on defence activity planning and preparation. This confidence and security building measure is led by Bulgaria and directed and managed by a “Multinational Steering Group” reporting to Working Table III.
ii)Disaster Planning and Preparedness Initiative: Bulgaria participated in the Operational Team which visited 12 regional and neighbouring countries, and has the lead role on “standardisation and harmonisation”, one of the six key areas defined by the Geneva DPPI Workshop.
iii)Bulgaria hosted the latestpolice forum meeting(5 September 2001) to establish the regional police training plan. This plan established the priorities for short, medium and long term strategies. Training will take place on a roaming basis, involving all countries of the region.
iv)Bulgariaparticipates as partner country in theMigration and Asylum Initiative (MAI)for FYR Macedonia together with the lead-country, Sweden.
v)Bulgaria participates actively as partner country inSPOC (Stability Pact Initiative to Fighting Organised Crime). Bulgaria hosted various meetings relating to SPOC, latest being the first regional seminar of PACO Networking (project under the Program against Corruption and Organised Crime in Southeastern Europe) on 25- 27 June 2001.
The specific project discussed in the seminar has the objective to strengthen judicial networking among countries of the region through direct communications between judicial authorities and nomination of formal contact points, thereby following the experience of the European Judicial Network.
4.What is the Stability Pact?
The Pact is a political initiative to encourage and strengthen co-operation between the countries of South Eastern Europe as well as to streamline existing efforts for assisting South Eastern Europe's political, economic and security integration in Europe. The Pact does not implement the projects, which were placed under its auspices. It is an instrument to co-ordinate and possibly accelerate the projects of all its partners, such as the European Commission, NATO and OSCE, the International Financial Institutions, the member states of the European Union, other Stability Pact partners such as the United States, Russia, Hungary, the Czech Republic, Poland, Slovakia, Canada, Norway and Switzerland as well as all the countries of South Eastern Europe, including Moldova.
Under the Regional Table, its steering body, the Stability Pact has 3 Working Tables:
Working Table I is dealing with Democratisation & Human Rights;
Working Table II with Economic Reconstruction, Development and Co-operation;
Working Table III with Security (one Sub-table Security and Defence, one Sub-table Justice and Home Affairs).
So far, two Regional Conferences have taken place with the most recent one on 25 and 26 October 2001 in Bucharest: On this event, ministers and high level officials from 37 countries and 32 international organisations renewed their commitment to long term economic and social development for South Eastern Europe. A new set of 27 infrastructure projects secured donor financing of 2.4 bn, with 3 of these projects involving a total cost of 390 mn being implemented in Bulgaria.
At a first Funding Conference in Brussels on 30 March 2000, 2,4 bn were raised, which translated in the so-called Quick Start Package, with a total of 244 regional projects. By now, 97% of these projects have effectively started, making it one of the fastest assistance packages by the international community. Bulgaria's share in the Quick Start Package amounted to 223 mn.
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