1. 1 B U L G A R I A Official title Republic of Bulgaria Official title Republic of Bulgaria LocationSoutheast Europe, bordering the Black Sea, Romania, Serbia,Macedonia, Greece and Turkey LocationSoutheast Europe, bordering the Black Sea, Romania, Serbia,Macedonia, Greece and Turkey Form of the GovernmentParliamentary Republic, one chamber – 240 seats, elections every four years Form of the GovernmentParliamentary Republic, one chamber – 240 seats, elections every four years PresidentGeorgi Parvanov PresidentGeorgi Parvanov Rprime-ministerSimeon Saxe- Coburg Gotha Rprime-ministerSimeon Saxe- Coburg Gotha Official LanguageBulgarian, alphabet – cyrilic Official LanguageBulgarian, alphabet – cyrilic Capital Sofia (1.2 million inhabitants) Capital Sofia (1.2 million inhabitants) Area (Thousands of km 2 ):111 Area (Thousands of km 2 ):111 Population(millions): 7.9 (2001) Population(millions): 7.9 (2001)

2. 2 Credit Rating of Bulgaria Bulgaria has proven higher investment credibility June 2004 Standard&Poor’s gave an investment- grade foreign-currency rating BBВ- BBВ- (stable outlook) by Standard&Poor’s; BBВ- BBВ- (stable outlook) by Fitch IBCA; Bа1 Bа1 (stable outlook) by Moody’s; BBВ- BBВ- (positive outlook) by the Japan Credit Rating Agency

3. 3 Trade between Bulgaria and Japan (1995- September 2004, USD mln.)

4. 4 Japanese Investments Japanese company Bulgarian company Activity Share % International Hospital Services Co. Tokuda Credit Express BankFinance53.34 Koshin Bussan K&B Int. LtdRetail trade in medical and orthopedic products 100 Novak Corporation Ltd Svoboda JSCProcessing of leather and production of leather products 80 Padeco Co. Ltd Consultancy on the Sofia Subway Expansion project Consultancy50 Pasific Consultants Internation Co. Ltd Consultancy on the Sofia Subway Expansion project and Port Bourgas expansion project Consultancy50 Penta Ocean Construction Co. Ltd Penta Ocean Consortium (Mitsubishi) Construction (contractors in the Port Bourgas Expansion Project) 90 Tomen Corporation TM Auto LtdTrade in automobiles (importers and dealers of Toyota) 60 Fanuk Ltd Fanuk Bulgaria Corporation LtdMaintenance and repair of office, accounting and computing machines 100 Mitsui Mitsui & Co Ltd (Representative office) Consultancy100

5. 5 Project: Rehabilitation of U 1-4 & construction of FGDs at units 5 and 6 of Maritsa East 2 TPP Investments in the Energy Sector  Rehabilitation of 4x150 MW units + installation of FGDs & Construction of FGDs at units 5 and 6  EPC Contractor U1-4: Mitsui Co Ltd, Japan EPC Contractor FGDs 5&6 : tender May 2004  Total investment EUR 226 M financed by JBIC – 85% of the project's cost 75 million euro, co-financed by ISPA (grant), EBRD (credit) and Maritsa East  Status: financial arrangements in process, S&P assigned 'BB' long-term corporate credit rating to Maritsa East II TPP

6. 6 Investments in the Energy Sector Project: Construction of replacing capacity on the site of Maritsa East 1 New capacity 2x335 MW + installation of FGD`s Total expected investment: EUR 900 M Status: financial arrangements in process, expected financial closure end 2004 Project financed: BOO Expression of interest:  AES;  Mitsui + ENEL

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12. 12 Bulgarian Economy, presented on the Internet Ministry of Economy:www.mi.government.bg www.mi.government.bg Privatization Agency:www.priv.government.bg Privatization Agency :www.priv.government.bgwww.priv.government.bg Invest Bulgaria Agency: investbg.government.bg Bulgarian Export Insurance Agency:www.baez-bg.com www.baez-bg.com