Spanish companies have the financial surplus, the proficiency and the experience that could be transmitted to Bulgaria, Spanish ambassador to Bulgaria Fernando Arias told a meeting of Spanish investors, experts and mayors from the Rousse region, held in the town of Rousse last week.

Everything started when the ambassador established contact with the two big Spanish companies that are located in the city: Keros and Bogaris. On his trip to their headquarters more than a month ago, he had an interesting conversation with regional governor Maria Dimova and Rousse mayor Bozhidar Yotov.

“We came to the conclusion that it would be interesting to collaborate,” Fernando Arias told The Sofia Echo.

Spain has received more than 211 billion euro worth of European funds over the past 20 years. From being a beneficiary of the European Union funds a decade ago, the coutnry is now on the brink of becoming a contributor.

“Paradoxically, there is no lack of money in Bulgaria, because the country is already a part of the exclusive club called the European Union. It would be very sad to leave the amount of resources that Bulgaria is entitled to, in Brussels, merely because local companies and authorities do not know how to absorb it,” the Spanish ambassador said.

“The moment of collaboration with experts is over. Now is the time of the companies. Companies that have experience in the implementation of EU funds, in organising and participating in tenders and knowing how to select the projects eligible for finance by the EU. Companies that come to earn money, but also to give the possibility to local companies to make profits as well,” he said.

The meeting last week was the second visit Arias made to the city. For more than three hours the ambassador, his deputy, the economic and financial councillor of the embassy, market analysts and European funds specialists talked with the mayors of Rousse, Borovo, Byala, Vetovo, Slivo Pole, Dve Mogili, Ivanovo and Tsenovo. Representatives of Spanish companies – Bogaris, the engineering giant Spineq, water utility Aguas de Barcelona and computer-based language training developer Abacus Partners – were also present.

Three items topped the agenda, starting with the 250 million euro by-pass road south of the city, which would be part of the Bucharest-Sofia route and European transport corridor IX. It would facilitate the traffic flow, since currently the road to Bucharest goes through the city downtown. “We hope to be able to come up with a statement that the project is already underway within the next couple of months,” Arias said, smiling.

The two other projects were on the development and the widening of the riverside boulevard and the Danube river banks. Apart from modernisation of the road network, building of sewerage and water-purification plants are also among the priority infrastructure projects for the city hall, Yotov noted. The mayors of the other municipalities were also given the floor to introduce their own regional projects, which came in at a total value of more than 155 million euro. Arias pledged his country’s support for the development of the area, saying Spanish experts were well-experienced in drafting projects for EU funding and would readily assist Rousse municipality.

The summary of projects discussed at the meeting would be submitted to the embassy, where it will be presented to Spanish firms, eyeing investment in Bulgaria, with Arias saying he would help local municipalities establish contacts with potential investors from his country.

 ** Green Energy project, a joint venture between the Ferry Group and Bulgarian banker Tsvetelina Borislavova, will grow trees that would then be used to produce biofuels. The initial investment is estimated at 50 million euro and, after a power plant is built, could reach as much as 500 million euro. The company has already planted an experimental batch of 30 000 paulownia trees in two experimental fields in Vidin’s village of Dimovo and near Varna. Spain’s dry climate does not favour the cultivation of biomass production plants. The crops require watering, which practically renders the investment inexpedient. Bulgaria’s Danube region was a better fit and had lower land prices, particularly in some desolate depopulated areas, company executives said. The project will provide 270 jobs and attract a number of large and small farmers, who will be welcome to join the project either through tilling the land or through buying trees, with Ferry Group buying back the generated biomass. The company would initially sell 80 per cent of the output abroad, but hoped that Bulgaria would start consuming more of this type of energy in the future.

** Spanish GreenFuel Corporation is considering plans to build a bio-fuel plant in the region of Pleven, with a decision expected in May, Greenfuel’s technical director Antonio Jose Huertas Moreno said on March 12 after meeting with Pleven regional governor Tsvetko Tsvetkov. The Spanish company might apply for first class investment certificate, which means that it will invest at least 70 million leva and would be allowed it to acquire plots for the plant’s construction without going through a tender procedure. GreenFuel Corporation has been negotiating for the construction of a bio-diesel and bio-ethanol plant, as well as a new refinery, for more than a year now. The plant will be located in the region of Pleven, Gulyantsi, Knezha or Dolna Mitropolia. It could use the Danube River port of Somovit to deliver raw materials and ship end products. The plant would have an annual capacity of 110 000 tons of bio-diesel and 60 million tons of bio-ethanol. The raw material needed for production on such a scale is at least 250 000 tons of oil-rich vegetable crops and 100 000 tons of grain, respectively.

 ** Fomento de Construcciones and Contratas (FCC) has won the tender to build the bridge between Vidin in Bulgaria and Calafat in Romania, as well as the road and rail infrastructure on the Bulgarian side. The firm would be paid 162 million euro for the works, while the total costs of the project, including construction on the Romanian side, was estimated at 236 million euro. When completed, the 1971m long Danube Bridge 2 would become a part of European Transport Corridor IV between Dresden in Germany and Istanbul in Turkey. Its Austrian subsidiary Alpine was also awarded the project to develop two purification plants in the town of Sevlievo and Bourgas’ Meden Rudnik district. Work will include design, construction, providing the necessary equipment, launching the installations and staff training. Investment will exceed 15 million euro. The Sevlievo facility will serve 53 300 people residing in the town and nearby municipalities. The one in Bourgas, situated on the coastline, will purify the residual water of 56 800 residents.

 ** Keros Ceramica, specialised in manufacturing high-quality tiles and floors, is already building a ceramics factory in Rousse’s Slatina industrial park, earmarking 23 million euro for investment. A total of 150 new jobs will be created at the new plant, expected to double in the future. Keros Bulgaria is the second largest investor certified by InvestBulgaria Agency, which will operate in the Rousse Industrial Park. “The factory will produce its first tile next October,” Arias told The Sofia Echo.

 ** Spanish construction company Bogaris, formerly known as Grupo Detea, has recently declared its intention to invest 15 million euro in the industrial park in Slatina area of Rousse. The company would design and build manufacturing, storage and office premises. Commercia Bulgaria, a unit of Bogaris, will construct a building hypermarket on a 6000 sq m plot in the centre of Montana, company officials said on March 17, estimating the size of the investment at more than one million leva.

 ** Atusa, which owns the cast iron fittings and castings production plant in Montana through its Bulgarian subsidiary Berg Montana Fittings Ltd, will develop a second factory in the town for the manufacture of pneumatic details, primarily pistons, creating 150 new jobs. Construction is expected to start soon.