Twenty-five companies have been slated for sale by the Agency for Privatization and Post Privatization Control at the upcoming 27th centralized public auction in an attempt to revive the BSE, said representatives of the Financial Ministry. Once again they will be looking for someone to take care of the three of the built duty-free zones, after the country was left without ideas on how to use and develop them. Of course, the auction prices have been reduced. Free trade zones in the country are existing in Burgas, Plovdiv, Ruse, Svilengrad and Dragoman.
Again 100% of the capital of the
Free Zone – Svilengrad
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is on offer which has concentrated its activities in letting commercial space for rent, customs brokerage and cargo handling services. Currently, its shares are owned by the state Industrial Zones National Company EAD, Sofia. The company is situated in the land of Svilengrad on an area of 70,138 decares where there are: an office building, a pavilion, a kiosk, a filling station, a coffee shop, an office of the chief staff of customs control and seven warehouses. At the end of last year the company had fixed assets (buildings and land) totalling BGN725 thousand.
The company ended 2009 and 2010 respectively with a loss of BGN124 thousand and BGN123 thousand. Its net sales are going down – two years ago they were BGN133 thousand, and in the last one – only BGN86 thousand.
Of the
Free Zone – Plovdiv
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which is located in the northern industrial part of the city, the state will sell its 46.398%. The property has been entered into the capital of the company as a contribution in kind on behalf of the Plovdiv municipality. The company has a total of 9,233 square meters of covered and open storage areas, of which 8,043 square meters are covered and 1,190 square meters are open sites. The book value of its tangible assets (buildings and land), which the company operated at the end of last year amounted to BGN2.608 million.
The company’s profit for 2010 was BGN214 thousand and is by 630% higher than in 2009. For a third consecutive year the Plovdiv company has been reporting growth in its turnover.
Investors are also sought for the remaining 19.45% state in the
Free Zone – Bourgas.
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The company, which is located in the north industrial area of the city on an area of 150 decares, is specialized in loading, unloading and transport processing of duty-free goods intended for export or for further processing. It allows for handling of goods by air, land (rail and road) and water as well as for duty free VAT exempt storage of goods from third countries. The state has provided the area for use only and it is not owned by the company. It contains non-manufacturing buildings with a total area of 473.5 square meters and a total gross floor area of 727.5 square meters. There are also 14 warehouses with total area of 11,431 square meters, one of them is still incomplete. The company owns four office building with total area of 115 square meters and 435 square meters of gross floor area, which it has been in possession of since 1993.
The Free Zone – Burgas is the only free zone of the Bulgarian Black Sea coast – a natural gateway of the markets of the Balkan Peninsula to the Black Sea, Eastern and Central Europe, the Middle and Far East. From Burgas starts the international Corridor № 8 of the European transport network.
In the most recent accounting report, the fixed assets (buildings and land) of the company have been estimated at BGN2.939 million.
The Transit Trade Zone JSC, Varna
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is another of the companies that has reserved spot on the lists for different tenders for privatization. Now on offer are 46% of its capital, which amounts to BGN1.5 million, divided into 15 thousand shares with a nominal value of BGN100 each. Securities are held by the state and a group of private shareholders.
To the capital of the company a contribution in kind has been paid – a land lot with an area of 104,389 square meters in the southern industrial zone – island area of Varna. It has been estimated at BGN460 thousand and was contributed by the state at the setting up of the company.
The company is situated on a plot with an area of 93,125 square meters, which has been privately owned since 2000. There are: an office building (first floor) with an area 204 square meters, a – checkpoint with an area of 40 square meters and outdoor facilities, warehouses, ramp for unloading of cargo and containers and engineering infrastructure, all located over 12 thousand square meters of concrete area. The buildings are not certified and the closed warehouses are not owned by the company.
The Transit Trade Zone has 34 decares of open and 2.25 acres of covered storage area, meeting all EU requirements for such facilities. It is located near the highway and close to the port Varna and the city’s railway station.
In previous years there were also attempts at privatization of these free zones plus Varna Transit Trade Zone, but they all ended without result.
Among other companies in the list for the upcoming 27-the tender it is important to mention private limited company Zografski which manages the Zografski hotel in Sofia. The state share (7.58%) has been contributed to the capital of State Consolidation Company EAD. The idea was the latter company to unite and sell minority stakes in state companies while the accumulated money to be imported into the state budget.
For the transactions of 18 of the companies non-cash payment is allowed.
