C a s e S t u d y
Corporate office center - industrial park project
I. Summary
In 2000, the twinned communities of Abington and Haskovo directed their efforts towards improving the Haskovo's local business climate and attracting foreign investment into the region. The end results of these combined efforts include: establishment of a corporate office center, a written development strategy for the industrial park, and an orientation program for attracting outside investment.
II. Problem Statement
Due to the difficult economic situation throughout the entire country, there is a clear need for such economic development work and strategic planning in municipalities. In order for them to accomplish this economic revival on a regional scale, municipalities need a multi-component plan of action to attract investment locally and from abroad. With this fact in mind, the Municipality of Haskovo and the City of Abington, Pennsylvania, developed their partnership and joint work around the economic development sphere. In this third phase of the Technical Twinning Program, these two communities continued in this direction by implementing our " Corporate Office Center -Industrial Park" Project- whose goal is to aid in the economic development of the Haskovo Region.
III. Project Description
The project included the following steps: forming a project team, developing a market profile of the Municipality of Haskovo (including a market brochure and tourist presentation), designing and printing a regional business catalog, creating an investor orientation program, and establishing a corporate office center and development strategy for Haskovo's industrial zone.
The major participants in the project were: a team of municipal employees from Haskovo's municipal administration, local and foreign business representatives from the region, and non-governmental organizations (Haskovo's Chamber of Commerce and Industry and the Association of Private Manufacturers and Entrepreneurs).
Marketing Profile
In developing the market profile, the goal was to attract the interest of investors toward the Haskovo municipality. The profile was targeted specifically for businessmen, but at the same time can be used to provide simple information about the potential business opportunities that the region holds. The marketing of Haskovo for tourist reasons is another important part of this profile. It was done through the commissioning of an artist map and a designed presentation. The completed and framed map now stands in a visible location in the Municipal Administration building. This piece of work attracts all visitor's interest due to its both artist and informational value. Actually, the Haskovo Municipality had smaller format copies printed that will be used to supplement the municipal profile.
Orientation Program
An orientation program for attracting potential investors has been designed and is the form of an informational packet. This packet provides a complete and accurate description of just about every aspect of local life, a necessity for investors to understand before starting any business endeavor.
The potential components of the orientation program have been categorized into 12 points: Introduction and Orientation, Culture and History, Government Structure, Business Environment, Foreign Investment, Legislature, Banking System, Accounting System, Taxation Structure, Labor Force, Future Development and Prospects, End Results and Open Choice. Of these, the most important aspect of the orientation program is flexibility- in regards to time, meetings, and information. The program needs to be tailored to all the special demands and needs of each potential investor. A specially selected team from the municipal staff will provide the orientation program, due to their ability to provide precise and competent answers to any investor question. This orientation program happens to be a fruit from a larger social partnership. Its contents and direction were set from the joint meetings/dialog between the municipality's project team and regional business representatives. In general, the orientation program's end goal is to attract long-term investment in the municipality and to improve the local business environment.
Corporate Office Center and Strategy for Developing the Industrial Center
The other major feature of the project is the planned corporate office center that will provide free office space in the municipality's Business Center. The center will provide the environment where investors experience the orientation program and learn about the regional business climate. This aspect is an innovative practice in the work of Bulgarian municipalities because it physically displays the openness and readiness for partnership and assistance by the local government.
The project covered the creation of a development strategy for the Industrial Center-Haskovo. It lays out the municipality's plans to attract new businesses into Haskovo's northern industrial zone. In this written strategy, the industrial zone is marketed as an attractive and exceptional great place for business operations. It has numerous advantages- convenient, accessible, and numerous possibilities for business tax incentives. The strategy was developed with the help of Mr. Carmen Italia, President of the Montgomery County Industrial Development Corporation- USA, with whom the Haskovo Municipality has had long term ties. During the technical visit to Abington, the Haskovo delegation visited firms that were interested in starting business activities in Bulgaria and were seeking foreign business partners. The Montgomery County Corporation is now in the process of organizing a business discovery trip to Haskovo, which is expected to take place during the upcoming year.
Besides the already described activities for marketing the Haskovo region as an attractive and strategic investment location, a DVD presentation has been developed. It includes all of the already described project elements in a visual form. The idea is for the DVD presentation to be disseminated by the municipality in Bulgaria and abroad. The goal of this DVD presentation is to attract interest to the Haskovo region.
IV. Implementation Timeline
The implementation of the project was done in the following steps:
Step 1 December 2000 - January 2001. - Forming of project team from municipal employees and councilmen.
Together with Abington and their valuable experience, the Haskovo team completed the project. In the beginning, the team collected the necessary information for the profile and analyzed it. This information covered all aspects of life in the municipality, such as: culture, education, population, age structure, unemployment, etc.
Step 2 - January 2001 - February 2001. Gaining support for the project among its target group- regional businesses. Collecting information from them and their experiences in starting business in the region. A joint meeting was held with the municipality's team, local businesses representatives, and foreign business representatives.
Step 3- February 2001 - May 2001. Development of the Haskovo market profile.
In identifying the needs for developing the market profile, the Haskovo team and their Abington partners worked with the regional statistical bureau, RIOS, and the local labor bureau. Local businesses were brought into the mix as well. They financially supported the printing of the market brochure in exchange for advertising space within the brochure.
Step 4 - September 2001 - March 2002. Corporate Office Center and the Orientation Program for attracting investment.
The Haskovo team designed the idea of the Corporate Office Center to be a municipally controlled structure. Municipal employees that will be on hand at times for any investor question will run the center.
The creation of the orientation program for attracting investment includes 12 major points.
Step 5- January 2002 - April 2002. Business Catalog
The printed catalog contains information about the larger firms in the region. It is being used to stimulate local-foreign business partnerships in the region. Within the profile, there is information about each firms operations, products and services, and plans and priorities.
Step 6 - October 2001 - May 2002. Development Strategy for the Industrial Park.
Together with the president of the Montgomery County Industrial Development Corporation, Mr. Carmen Italia, the Haskovo team developed the concept of the Industrial Center - Northern Industrial zone - Haskovo.
Step 7- June 2001 - April 2002. Project multiplication and completion of a market profile and brochure for the Harmanli Municipality.
Project multiplication started spontaneously in a meeting with the American Delegation during a trip to Haskovo. Together, the Haskovo and Harmanli Municipalities formed a team of municipal employees to collect the needed profile information and complete a brochure. During the process of this profile work, the Haskovo team members worked hand in hand with the Harmanli personnel and their project leader- the secretary of the municipality. The Harmanli Municipality is now successfully using the completed brochure in their economic development efforts.
Step 8 - April 2002 - May 2002. DVD Presentation.
This activity is part of the orientation services offered by the municipality. As the host of a potential investor, the municipality wants to to use its technical and human resources to present the investment potential of the local market.
V. Solutions overview
Short-term results:
1. Readiness for potential investor visits with the Corporate Office Center and Orientation Program.
2. Prepared development plans for the Industrial Zone.
3. Completed Marketing Materials.
4. Shared experience with municipal employees in international marketing, human resources, management, and industrial park development.
5. The municipal administraiton has an improved knowledge on how to attract investors.
6. Creation of a successful private-public partnership (municipality - businesses)
7. Successful project multiplicaiton with the neighboring Harmanli Municipality.
8. An improved image of the Haskovo Municipality locally and abroad.
Long-term results:
1. Planning the future economic development of the Haskovo region.
2. Attracting Investment into the region.
3. Improving the economic situation in the region by improving the local business climate and stimulating the creation of new jobs.
VI. Benefits
Qualitative Contribution:
1. Improvement of Municipal staffs' teams working skills - regardless of future activities.
2. Expanding the role of the municipality into realms like economic regional development.
3. Successful presentatoin of the municipality in front of potential investors.
4. Use of a public-private partnership.
5. Attracting the interest of businesses from Montgomery County- USA and other foreign partners- only in 1 year's worth of work. It is expected to continue in the future.
6. Consulting other municipalities that are member of RSO "Maritza" in preparing a market profile.
VII. Conclusion
The project goals are to prepare the municipality for future economic growth through: attracting investment into the region, creating jobs, starting long-term investors into the local business environment, ensuring the municipality's support (corporate office center, orientation program, development strategy for the Industrial-Center Haskovo).
As the next phases of the project develop, the following are expected: improving and strengthening the role of the local government to bring economic prosperity to the region, multiplying the most successful innovative practices with neighboring municipalities, sharing knowledge of project results, entering into new spheres of partnership (besides the economic sphere)- healthcare, education, medical personnel exchanges, etc.
