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Innovative practices in Bulgaria
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Background
Practice

Dobrich has three industrial zones located to the north, to the west and to the east from the town. They were established during the time of the planned economy and in the transition period went through significant structural changes. Once completely empty, today more than 180 micro, small and medium-size companies operate in the town’s industrial zones. They define the structure of the local economy: foodstuffs, light industry and agricultural machine-building in support of the agriculture in the rich Dobrudzha valley, “Bulgaria’s breadbasket” .

The Dobrich Region ranks 14 th in the country in terms of foreign direct investment . To improve the economic performance, active investment marketing is needed to attract investor interest to Dobrudzha’s industrial heart .

The analysis of the needs of the companies located in the industrial zones , the surveys , the dialogue at mayor ’ s field visits to local companies , as well as discussions within the Economic Development Advisory Board , defined several important priorities : improvement of the infrastructure in the existing industrial zones ; promotion of Dobrich ’ s businesses ; development of new lots to attract investors ; and improvement of the quality of administrative services .

The achievement of these priorities will be provided for from several sources :

· Budget funds;

· Bond issue;

· Additional financing from projects to donors;

· Public-private partnerships.

These priorities are incorporated in the Municipal Development Plan . Every year the municipal council reviews their implementation and adopts an action plan for their successful implementation.

Results

· The Municipality of Dobrich City was awarded “Ready for Business” status, defended with excellence before the United States Agency for International Development in 2005. This came as a result from our targeted involvement in the Economic Development and Marketing of Bulgarian Municipalities Project, administered by the Foundation for Local Government Reform ;

· The New Integrated Approach of the Municipality of Dobrich City to Local Business is a project which was implemented with financial support from EU PHARE. The project value was EUR 472,000. The project aims to support the businesses located in the North Industrial Zone by infrastructure modernization and improvement: new water supply line construction; sewer; pavement; sidewalks; street lighting. Additional funding for this purpose was also received under the EU PHARE Post Flood Reconstruction and Rehabilitation Scheme ;

· In 2006, the Municipality was selected by USAID as a pilot municipality under a project for the development and management of property transferred by the Ministry of Defense. We are getting free consulting assistance from Volunteers for Economic Growth Alliance (VEGA) on the formulation of a scheme for the attraction of investments to transform a former military facility into a modern business zone. Value is added to this project by EU PHARE financing for the development of cadastre map and detailed development plan for the future industrial zone, sprawling on 442 hectares ;

· An investment and communication strategy for investment attraction was developed, adopted by the municipal council and is being implemented regionally under the Economic Development Planning in the Municipalities of Dobrich Ciry, Dobrich Rural and Krushari Project under the Active Services on the Labor Market Program ;

· The Municipality promotes the Dobrich businesses online through the Who Is Who in the Dobrich Economy, an interactive map developed under a project financed by the Foundation for Local Government Reform. The project also helped improve the information environment in the North Industrial Zone, install bilingual signs installed and adjust the public transport routes to meet the needs of the employers and for greater convenience of the employees;

· In 2006, the total financing recruited through business climate improvement projects exceeded BGN 1,500,000;

· Dobrich has a Municipal Guarantee Fund, which provides collateral on loans drawn by small and medium-size companies. The guarantee may be up to 50% of the loam but not more than BGN 30,000. The fund has already accumulated BGN 500,000;

· A program for the implementation of small-scale public works activities on municipal property has been functioning for three years with the active involvement of the residents (sidewalk construction, green areas, open spaces, approaches, cleaning, etc.) Citizens and companies apply with projects worth up to BGN 10,000 and are required to provide 25% co-financing. 28 projects were approved in 2006, totaling BGN 118,797, with civic sector co - financing amounting to BGN 24,495 ;

· The improvement of the administrative environment in Dobrich is measured by the availability of more municipal services online , shortened document processing procedures , integrated approach and respect for the time of the clients , preventive monitoring of the observation of the regulations . The Municipality is in the process of certifying an integrated management system ISO 9001:2000 and ISO 14 000.

Contact information :

Municipality of Dobrich City

9300 Dobrich

12, Bulgaria St.

Detelina Nikolova

Mayor

Tel: 058 601 203

dobrich @ dobrich . bg

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Publication Date: 22 June 2007
Nominations: 0


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