The Netherlands - BulgariaEconomic Relations and Co-operation

The Netherlands - Overview in figuresWorld economic position 14th

Total exports in 2002233 billion Goods9thServices8thForeign Direct Investments5th

The Netherlands - Overview in figuresGDP The Netherlands EUR 368 blnState Budget the NetherlandsEUR 134.4 billionEducation Culture and Science EUR 25.7 blnGDP BulgariaEUR 16 billionState Budget BulgariaEUR 5.6 billion

Economic Relations and Co-operationGrowth ratesEconomic Performance GDP in NL2000 3.5 %2001 1.2 %2002 0.2 %2003 (1 - 9)- 0.8 %Economic Performance GDP in BG2000 5.4 %2001 4.1 %2002 4.8 %2003 4.3 %

Economic Relations and Co-operationUnemployment NL (x 1.000)20002693.7 %20012513.4 %20023024.1 %20034075.4 %Unemployment BG (x 1.000)200018.1 %200117.9 %200216.3 %200313.5 %

Economic Relations and Co-operationForeign Trade NL ImportsExportsin EUR billion 200021623220012182412002205233Foreign Trade BG ImportsExportsin USD billion20006.04.820016,75.120027.35,7

Economic Relations and Co-operationMajor Trading Partners NL - Turnover in mln. EUR (2001)Germany102,250Belgium 48,679UK 46,342France 37,561USA 32,084Italy 21,249Spain 13,216Japan 11,218Bulgaria 329

Economic Relations and Co-operationBulgarian - Netherlands Trade 2002Export BG to NL124,2 mln. Agriculture17,6 mln industry106,7 mln

Import BG from NL205,1 mln. Agriculture27,8 mln. Industry177,3 mln.

Netherlands - Bulgaria economic co-operationPESP - Programme to promote commercial economic co-operationPSO - Programme Co-operation with Central and Eastern EuropeIFOM - Investment facility for developing marketsERUPT - CO2 reductionplan - CarboncreditsNetherlands Carbon Fund at the EBRD

P E S PPESP is a programme aimed at strengthening the bilateral economic co-operation with a view to create opportunities for the Dutch Business community. Dutch companies can make proposals to the Ministry of Economic Affairs in the Netherlands in the pre-phase of real export transactions.

P E S PPESP activities are:feasibility studiesproject identification activitiesinvestment preparation PESP activities have to result in knowledge of the Bulgarian counterpart as well as identification of Dutch provision of goods and services in this field.

I F O M

The Investment Facility for Developing Markets makes participations of Dutch small and medium sized enterprises possible in several developing markets by providing subordinated risk bearing loans.

I F O M Important pre-conditions are:the equity of the company should be minimum 15% of the total capital (including the IFOM loan)minimal 40% of the risk bearing equity (excluding the IFOM loan) must be invested by Dutch companies;The participating Dutch company must have invested at its own risk minimum 50% of the amount of the loan requested within a period of maximum 1 year before the application is made.

I F O M The loan will be granted in EUROMinimum loan is 45.000 EUROMaximum loan is 2.300.000 EUROGrace period is maximum 3 yearsThe loan application has to be made by the venture in Bulgaria or by the Dutch participant on its behalf

E R U P TInvestment in Central and Eastern Europe in sustainable energy, energy saving and disposal of waste (both domestic and industrial) will have a higher yield by selling the CO2 emission reductions. With the Carboncredits programme the Netherlands buys reduction of greenhouse gas emissions in order to fulfil the Kyoto requirements.

E R U P TAny investor in Bulgaria can sell its emission reductions to the Netherlands. This will give him the opportunity to cover part of his investment financing.Projects should have emission reduction effect up to the year 2012

E R U P TCarboncredits are a possible investment opportunity in the field of:production of sustainable energy (wind, biomass, solar and water power);Combined Heat and Power generation;change of fuel source (from hard coal or oil to gas);Disposal of waste (extraction of biogas at waste dumps, anaerobic water purification and fermentation).

E R U P TThe first private contract in Bulgaria is going to be signed on April 26th 2004 during the visit of a trade mission of Dutch Companies to Bulgaria headed by the State Secretary of the ministry of Finance Mr. Joop Wijn on behalf of the Minister for Foreign Trade Mrs. Karien van GennipValue of the contract EUR 1.400.000

Netherlands EBRD Carbon FundCarbon Credits are created when a project reduces or avoids the emission of greenhouse gasses.By selling carbon credits a company can attract additional revenue to the investment project.The EBRD may consider these additional cash flows when evaluating a companys capacity to repay debt and/or provide a return on equity.

Netherlands EBRD Carbon FundEligible types of projects:renewable energy projects (solar, biomass, wind and geothermal activities)Energy Efficiency projects that reduce consumption of fossil fuels,Recovery and use of methane from waste landfills and waste water treatment,Switching from fuels with lesser greenhouse intensity (coals ==> natural gas)

Netherlands EBRD Carbon FundEBRD financingthe EBRD must have financial participation in the projects for at least 10% as a lender or an equity investorContract volume The contracted volume must be between 500.000 and 1.500.000 tonnes of CO2 equivalent

P S O B2BProgramme for Economic Co-operation with Central and Eastern EuropeThe programme stimulates economic co-operation and knowledge transfer from the Dutch business community to companies in 11 Central and Eastern European countries, among which also Bulgaria.

P S O B2BTwice a year a tender is announced (closing dates 8-3-2004 and 16-8-2004;The tenders are open for all countries and all economic sectors;The applicant must be a Dutch company;The proposals are evaluated on the basis of an elaborated business plan;Payments are made on the basis of deliverables and achieved spin off.

P S O B2BIn 2004, EURO 43,5 mln is available;During week 17 the first round of applicants will be visited by Project Officers;tenders are announced on the websites of the Netherlands Foreign Trade Agency and of the Agency Senterwww.evd.nlwww.senter.nl/pso