1. Basic Information
1.1 Desiree Number:
1.2 Title: Building of Industrial Park for Small and Medium sized Enterprises.
1.3 Sector: PR- Private sector; SME - SO- Social development.

1.4 Location: Bulgaria, North western region, Vidin district, Vidin Municipality, North Industrial zone in the region of Denube Bridge.

2. Objectives

2.1.Overall Objective(s): Stimulating of business and self- hiring through developing an Industrial Park for small and medium sized enterprises.

2.2. Project purpose:
Achieving of stable and balanced development of small and medium sized enterprises from the region
Encouraging business for enlarging of production of goods and services.
Supporting of economic activity of the population in creating conditions for production and commerce.
Development of the small and medium sized businesses and their transforming into a spine of local economy.
Decreasing the rate of unemployment.

2.3.Priorities in Partnership.
Decreasing of unemployment rate through developing of small and medium sized enterprises. Until October 2001 the level of unemployment in the Municipality which is an Industrial decline zone is about 25%.
Enlarging of the base and European standards for small and medium sized enterprises and making purposeful activity about developing of self- hiring.
Access for the Small and Medium sized enterprises to services including information, infrastructure, know-how
Developing of business infrastructure.

2.4. Contribution to National Development Plan.
Second Program of the National Development Regional Plan - reducing of regional differences in employment rates, incomes and possibilities for development.
Second Program, 2.2.2 of the National Plan for Regional Development - supporting of developing and functioning of small and medium sized enterprises
2.5. Transborder impact
Developing of the Industrial Park will enable small and medium sized enterprises from Republic of Romania and Republic of Yugoslavia to export part of their production capacity.
Raising of life standard of the population from the three countries on the base of self- hiring and small business.
Later impact of the project can ground the necessity of multiplying the project to the local authorities of Zaichar / Yugoslavia/ and Calafat / Romania / because of the close characteristics of social and economic development of these three countries / high rate of unemployment, low life standard, financial difficulties, not well developed infrastructure.

3.Description

3.1. Background and justification
The idea came appeared in searching of decisions for economic revival of the region based on the activity of small and medium sized enterprises.After economic restructuring of government sector were closed opportunities for employment of large groups of people in the region. The stable employment created by Small and Medium sized enterprises is the main factor for the intention of the Public sector to support their enlarging.
The idea originated in May 2000 after developing of a Municipal SWAT analysis and identifying potential of small and medium sized enterprises which in October 2001 are 8450.
3.2. Linked activities
The activities suggested for economic revival of the region are related to the results from the Municipal SWAT analysis as well as to the social - economic research of the French Agency for development and UN's Program for Bulgaria. The first report is available in the Municipality of Vidin, the second one - at the Delegation of European Commission and the third one - at the Office of UN's Program in Sofia. Linked activities are also the excellent relations with local governments in the border regions in The Republic of Yugoslavia and Republic of Romania. Another supporting activity is the well developed commercial chambers, NGOs and departments for economic development in the three countries.

3.3. Results

Increasing the number of small and medium sized enterprises and net proceeds of their sales.
Creating of permanent and temporary employment.
Providing access to information for Bulgarian and foreign partners
Attracting of investments
Transfer of Know- how and new Bulgarian and foreign technologies
Raising of the quality of industrial production
Raising of the output
Raising of export

3.4. Activities
- Projecting
- Construction
buildings , including administrative - information center and production areas.
pedestrian areas and green zones.
infrastructure and parking places
Identifying the small and medium sized enterprises' sector
Identifying the requirements of small and medium sized enterprises and separating of production zones
- Monitoring and training.

3.5. Learnt lessons
1st level - public opinion including this of businesses, public sector, agencies for economic development / partners of Vidin Municipality in implementing this project/ is taken into consideration
2nd level - Possibilities for co- funding from public sector are provided
3rd level - A system for managing and monitoring has been developed
4 th level - Stages of this project are in accordance with the competition requirements in recruiting the contractor ; in case Bulgarian legislation does not require a competition procedure, offers will be handed over.

4. Institutional framework
This project is under the Law for regulation of territory and other regulations
Other partners under this project - Ministry of Regional development and Public Works, Agency for Small and Medium Sized Enterprises, Agency for Regional Development and Business Center- Vidin, Industrial Association, Vidin Commerce Chamber, District Administration, Municipality of Calafat - Republic of Romania, Municipality of Zaichar- Republic of Yugoslavia, representatives of business from these three countries.
In accordance with Bulgarian legislation the contractor is recruited in a competition procedure, after nomination of a company- contractor in an open international auction, and the Contracting Agency is Funding Agency, co-ordinated with the managing team.The privacy is municipal, ordered by Vidin Municipal Council and managed by local authorities, represented by the Mayor of Vidin Municipality.

5.Detailed Budget

	Phare	Support	In milion	Euro
	Investment Support	Institution Building	Total Phare (=I+IB)	National Cofinancing*	IFI*	TOTAL
Contracts	2,4	0,1	2,5	0,4	0,23	3,13
Total	2,4	0,1	2,5	0,4	0,23	3,13

* In cases of co-financing only
Note: expenditure for equipment should be put under Investment

6. Implementation Arrangements

6.1. Implementing Agency

Ministry of Regional Development and Public Works
Address: 1202 Sofia 17-19 St.St. Kiril and Metodii str.
6.2. Non- standard aspects
N. A

6.3. Contracts
For construction works, monitoring etc

7. Implementation Schedule

7.1. Start - October 2003

7.2. Start of project activity
Start of construction works - March 2004

7.3. Project completion - December 2005

8. Equal Opportunities.

9. Environment
Regulated by Bulgarian legislation

10. Rates of return

Financial independence and self-support /from different activities, tickets, rents, consulting services/ is expected

11. Investment criteria

11.1. Catalytic effect
The project will catalyze the potential of small and medium sized enterprises and will create opportunities for employment as well as will influence favorably life standard of the population from the border regions of Bulgaria, Romania and Yugoslavia.

11.2. Co- financing
Other Funds will be provided by the National, Municipality and Private businesses' resources.

11.3. Additionality

There is certain interest to developing of an Industrial park from businesses in the district and economic NGOs in the Municipality.

11.4. Project Readiness and Size

The project will be ready for financing by PHARE in October 2003 when the competitions for projecting and contractor will be completed

11.5. Sustainability:
-Economy and social development of region.
-Employment.
-Stability.
-SME.
-Export from the district and the Municipality.

11.6. Compliance with state aids provisions.

Contract for collaboration between Bulgaria, Rumania and Serbia has been established.

11.7.Contribution to National Development Plan
The project has direct contribution for the social bringing together of the countries on the cost of Danube River. It is the part of the whole strategy for the regional development, which can be fulfilled. It is defined in program 3 of the National plan for regional development.

12. Conditionality and sequencing
-There is no conditionality in completion of the stages of the project, the activities are fully possible to be completed.
-It is expected that the tourism increase, will reflect the quantities of solid living wastes. This effect was reported in the biggest infrastructure project for the Bridge over the Danube river between Vidin and Kalafat in the Report of the French Agency for development. The Report is available in the Office of the Delegation of the EU in Bulgaria.