Projects in Bulgaria

Project Summary Documents

Project Summary Documents (PSDs) are disclosed for each project prior to Board consideration. They contain project descriptions, financial details, client information, environmental issues, tender guidelines, and contact details. PSDs for private sector projects are disclosed at least 30 days prior to Board consideration and for state sector projects, at least 60 days.

Project Summary Documents 

Signed projects

Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.

Signed projects  (0.1Mb) 

Case studies

A five-star loan for Bulgarian tourism

Tourism along Bulgaria’s Black Sea coast is booming, with the number of foreign visitors increasing all the time. British Airways, for example, has just started twice-weekly flights to the coastal city of Varna, and UK tourist numbers to Bulgaria have increased five-fold since 2001.

Until recently, accommodation in the new resort areas was limited to three-star hotels suitable for budget tour groups. Little was available to attract better-heeled clientele with greater disposable income whose spending power could further develop the sector and create more jobs. To fill this gap in the market, the EBRD provided a €23 million loan in 2005 to help finance construction of the coast’s first five-star hotel, part of the elite Kempinski chain. Some €10 million of the loan has been syndicated to commercial banks.

The 733-room hotel is owned by Sigma Group, one of the leading investors in Bulgaria’s Black Sea coast. The new hotel will primarily attract German and UK tourists and is managed by Kempinski, considered the oldest luxury hotel chain in the world.

With Kempinski now in Bulgaria’s top three travel destinations (the Black Sea, Sofia and the winter resort of Bansko), there are increased opportunities to cross-sell the brand nationally and internationally. By bringing experienced staff to train local people in providing service to top-end clients, the hotel is raising standards through example and competition.

A new transport system for Sofia

As many as 40 per cent of Sofia’s 1,000 buses are off the road for maintenance at any one time. This means long waiting times, an unreliable service and high fares to cover maintenance costs. With the EBRD’s help, a modern transport system is on its way. The ageing network of trams, buses and trolley buses is being upgraded in a four-year renewal programme, which is the most significant investment in public transport since the 1980s.

Our loan, provided in 2002, will allow operating companies to refurbish part of the tram fleet and buy 100 new buses and trolley buses. A grant from the Dutch government is funding a new and efficient passenger ticket system, which will reduce fare evasion and increase revenues.

The city recognises the importance of involving the private sector in the upgrade programme, particularly in the running of the buses and bus workshops. Its first experience of this will be an open international tender for a contract to operate the bus services. Technical cooperation funds will be used to hire consultants who will help the city with the tender process. Privatised city-run workshops will compete for contracts, which will reduce maintenance and service costs. Vassil Naydenov, Executive Director of Sofia Transport Holding, commented: “The EBRD loan will form the basis of our ambitious long-term improvement programme for Sofia’s transport system.”

The introduction of the new fleet will also reduce pollution. Noise and vibration from tram tracks will be reduced and air quality will improve. New buses will have improved fuel efficiency and performance and lower emission levels that comply with EU standards. And better public transport will reduce traffic congestion in the city centre, especially during the morning and evening rush hours.

The financing is the first EBRD loan to be provided to the Bulgarian transport sector with no sovereign guarantee. This project reflects growing collaboration between the EBRD and the city of Sofia following the implementation of road improvement and water utility privatisation programmes.

Solvay Sodi

The EBRD gave Bulgaria's investment climate a boost when it provided US$ 40 million towards the privatisation of Bulgarian soda ash company, Solvay Sodi, in 1997. The investment was made alongside Solvay, a Brussels-based international chemical and pharmaceutical group, and Sisecam, a Turkish glass and chemicals manufacturer.

The funding, which supported the company's privatisation, has allowed Solvay Sodi to implement a US$ 65 million five-year investment programme. The first step of this programme was to construct a new production facility, thereby enabling the company to double its dense soda ash production capacity, improve its product quality and worker safety, and reduce energy consumption. Environmental improvements in the plant's operations are also under way bringing it in line with international practice.

The Solvay Sodi project has also had a significant spill-over effect on the overall economy in the Devnya region, with the company subsequently privatising and successfully integrating its three major suppliers - a power plant, a limestone quarry and a salt mine. The term of the Bank's investment was extended in 2002 for an additional five years until 2007.