Transport Infrastructure and FDI Importance and Challenges George Tabakov Chairman, Bulgaria Economic Forum

Significance and volume of FDI in Southeast Europe

The FDI stock of the SEE States is still far behind that of CEE states in absolute terms but is starting to catch up on a per capita basis

Private sector perception of the business environment in SEE

Bottlenecks of the infrastructure in Bulgaria New Bridge across the Danube near Vidin Deadline: 2007 Budget: EUR 230 m State budget: EUR 65 m Loans: EUR 70 m (EIB) EUR 18 m (KfW – Germany) Grants: EUR 70 m (ISPA) EUR 5 m (AFD – France) EUR 2 m (KfW) Construction of Ljulin Motorway Sofia Ring Road – Daskalovo Road Junction

Average Dailey Transports From Niš to Bulgaria Border The Sofia-Niš Highway Average Dailey Transports From Niš to Bulgaria Border

Border checkpoints with Greece Kurdjali – Komotini Gotse Delchev – Drama Rudozem - Xanti Lack of railway connection between Sofia and Skopje

Projects of high priority for Bulgaria

Reconstruction, Development and Extension of Sofia Airport Deadline: 2005 Budget: EUR 202.4 m State budget: EUR 40.2 m Grants: EUR 51.8 m (ISPA and PHARE) Loans: EUR 60 m (EIB) EUR 40 m (KFAED – Kuwait) Others: EUR 10.4 m

New Breakwater and Bulk Cargo Terminal at the Port of Bourgas Deadline: 2005 Budget: EUR 142 m State budget: EUR 24 m Loans: EUR 118 m (JBIC)

Reconstruction and Electrification of Plovdiv – Svilengrad Railway Line Deadline: 2007 Budget: EUR 340 m State budget: EUR 37 m Loans: EUR 150 m (EIB) Grants: EUR 153 m (ISPA)

Challenges EU Integration Political hotbeds of tension Political risk Lack of administrative capacity and know-how to absorb funds from the EU Corruption Difficulties in meeting high European Safety, Security and Environment standards

Thank you for your attention !