Bulgarian Minister Upbeat about Economic Forecast

Bulgaria's Economy and Energy Minister, Traicho Traikov, vows the country will stand firm before Russians in energy projects negotiations. Photo by BGNES

Bulgaria's economy will register growth between 2% and 3.6% in 2011, according to Economy and Energy Minister, Traicho Traikov.

Traikov spoke Wednesday for the Bulgarian National Television, BNT, saying he further expects an increase of foreign investments from the 2010 BGN 1 B.

"The amount of the investments is less important than their destination. Before the crisis they focused on construction, but now they mostly aim at the production sector," the Minister said.

When asked about the future of the heating utilities, Traikov explained their salvage is in the establishment of co-entities (for the production of electric power and heat, which they will also sell) to attract foreign investors and to be privatized or have municipalities make their own investments.

"Municipalities wanted the heating utilities and they got them. I am watching with great interest to find out how they will deal with their management," the Minister pointed out.

Regarding Bulgaria's large-scale energy projects, Traikov stated that the cabinet has one goal – to increase the choice of potential energy sources suppliers such as diversification of natural gas suppliers to include not just Russia.

The Minister said the faith of the Russian gas pipeline "South Stream" will be finalized in April, when the entire project will be completed while the future of the second Nuclear Power Plant (NPP) in the Danube town of Belene will become clear after the market and economic parameters of the plant are updated.

Traikov stressed negotiations with Russians are always tough, but assured Bulgaria will stand up firm for its own interests regarding Belene and would not compromise at all.

"The amount of EUR 6.3 B, Russians want would not pass. We want EUR 5 B," according to the Minister.

Traikov also announced the government is slating BGN 60 M for tourism advertising by 2013 and the funds would come from the EU Regional Development program, adding this is the largest amount so far to be invested in the sector.

The Minister voiced the opinion Bulgaria must begin attracting wealthier visitors and part with its image as a cheap tourist destination, but said this cannot be done by improving hotel quality since Bulgarian hotels are already among the top in the region.

Year-round vacations, visits to historical sites, alternative, religious, culture and congress tourism are the possible solutions, according to Traikov.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!