The Netherlands - Bulgaria

Economic Relations and

Co-operation

The Netherlands - Overview in figures

• World economic position 14th

• Total exports in 2002 233 billion €

• Goods 9th

• Services 8th

• Foreign Direct Investments 5th

The Netherlands - Overview in figures

• GDP The Netherlands EUR 368 bln

• State Budget the Netherlands– EUR 134.4 billion– Education Culture and Science EUR 25.7 bln

• GDP Bulgaria EUR 16 billion

• State Budget Bulgaria– EUR 5.6 billion

Economic Relations and Co-operation

Growth rates• Economic Performance GDP in NL

2000 3.5 %

2001 1.2 %

2002 0.2 %

2003 (1 - 9) - 0.8 %

• Economic Performance GDP in BG2000 5.4 %

2001 4.1 %

2002 4.8 %

2003 4.3 %

Economic Relations and Co-operation

• Unemployment NL (x 1.000)» 2000 269 3.7 %

» 2001 251 3.4 %

» 2002 302 4.1 %

» 2003 407 5.4 %

• Unemployment BG (x 1.000)» 2000 18.1 %

» 2001 17.9 %

» 2002 16.3 %

» 2003 13.5 %

Economic Relations and Co-operation

• Foreign Trade NL Imports Exports in EUR billion

» 2000 216 232

» 2001 218 241

» 2002 205 233

• Foreign Trade BG Imports Exports in USD billion

» 2000 6.0 4.8

» 2001 6,7 5.1

» 2002 7.3 5,7

Economic Relations and Co-operation

• Major Trading Partners NL - Turnover

in mln. EUR (2001)

• Germany 102,250• Belgium 48,679• UK 46,342• France 37,561• USA 32,084• Italy 21,249• Spain 13,216• Japan 11,218• Bulgaria 329

Economic Relations and Co-operation

Bulgarian - Netherlands Trade 2002

• Export BG to NL 124,2 mln. €– Agriculture 17,6 mln €– industry 106,7 mln €

• Import BG from NL 205,1 mln. €– Agriculture 27,8 mln. €– Industry 177,3 mln. €

Netherlands - Bulgaria economic co-operation

• PESP - Programme to promote commercial economic co-operation

• PSO - Programme Co-operation with Central and Eastern Europe

• IFOM - Investment facility for developing markets

• ERUPT - CO2 reductionplan - Carboncredits

• Netherlands Carbon Fund at the EBRD

P E S P

• PESP is a programme aimed at strengthening the bilateral economic co-operation with a view to create opportunities for the Dutch Business community.

• Dutch companies can make proposals to the Ministry of Economic Affairs in the Netherlands in the pre-phase of real export transactions.

P E S P

• PESP activities are:– feasibility studies– project identification activities– investment preparation

• PESP activities have to result in knowledge of the Bulgarian counterpart as well as identification of Dutch provision of goods and services in this field.

I F O M

• The Investment Facility for Developing Markets makes participations of Dutch small and medium sized enterprises possible in several developing markets by providing subordinated risk bearing loans.

I F O M

• Important pre-conditions are:– the equity of the company should be minimum 15%

of the total capital (including the IFOM loan)– minimal 40% of the risk bearing equity (excluding

the IFOM loan) must be invested by Dutch companies;

– The participating Dutch company must have invested at its own risk minimum 50% of the amount of the loan requested within a period of maximum 1 year before the application is made.

I F O M

• The loan will be granted in EURO

• Minimum loan is 45.000 EURO

• Maximum loan is 2.300.000 EURO

• Grace period is maximum 3 years

• The loan application has to be made by the venture in Bulgaria or by the Dutch participant on its behalf

E R U P T

• Investment in Central and Eastern Europe in sustainable energy, energy saving and disposal of waste (both domestic and industrial) will have a higher yield by selling the CO2 emission reductions.

• With the Carboncredits programme the Netherlands buys reduction of greenhouse gas emissions in order to fulfil the Kyoto requirements.

E R U P T

• Any investor in Bulgaria can sell its emission reductions to the Netherlands. This will give him the opportunity to cover part of his investment financing.

• Projects should have emission reduction effect up to the year 2012

E R U P T

• Carboncredits are a possible investment opportunity in the field of:– production of sustainable energy (wind, biomass,

solar and water power);– Combined Heat and Power generation;– change of fuel source (from hard coal or oil to gas);– Disposal of waste (extraction of biogas at waste

dumps, anaerobic water purification and fermentation).

E R U P T

• The first private contract in Bulgaria is going to be signed on April 26th 2004 during the visit of a trade mission of Dutch Companies to Bulgaria headed by the State Secretary of the ministry of Finance Mr. Joop Wijn on behalf of the Minister for Foreign Trade Mrs. Karien van Gennip

• Value of the contract EUR 1.400.000

Netherlands EBRD Carbon Fund

• Carbon Credits are created when a project reduces or avoids the emission of greenhouse gasses.

• By selling carbon credits a company can attract additional revenue to the investment project.

• The EBRD may consider these additional cash flows when evaluating a company’s capacity to repay debt and/or provide a return on equity.

Netherlands EBRD Carbon Fund

• Eligible types of projects:– renewable energy projects (solar, biomass, wind

and geothermal activities)– Energy Efficiency projects that reduce

consumption of fossil fuels,– Recovery and use of methane from waste

landfills and waste water treatment,– Switching from fuels with lesser greenhouse

intensity (coals ==> natural gas)

Netherlands EBRD Carbon Fund

• EBRD financing– the EBRD must have financial participation in

the projects for at least 10% as a lender or an equity investor

• Contract volume – The contracted volume must be between

500.000 and 1.500.000 tonnes of CO2

equivalent

P S O B2B

• Programme for Economic Co-operation with Central and Eastern Europe

• The programme stimulates economic co-operation and knowledge transfer from the Dutch business community to companies in 11 Central and Eastern European countries, among which also Bulgaria.

P S O B2B

• Twice a year a tender is announced (closing dates 8-3-2004 and 16-8-2004;

• The tenders are open for all countries and all economic sectors;

• The applicant must be a Dutch company;

• The proposals are evaluated on the basis of an elaborated business plan;

• Payments are made on the basis of deliverables and achieved spin off.

P S O B2B

• In 2004, EURO 43,5 mln is available;

• During week 17 the first round of applicants will be visited by Project Officers;

• tenders are announced on the websites of the Netherlands Foreign Trade Agency and of the Agency Senter– www.evd.nl– www.senter.nl/pso