Ministry of Economy, Energy and Tourism 1 OP Competitiveness Progress of Implementation 2010

Ministry of Economy, Energy and Tourism 2 PRIORITIES Main objective - investment in long-term growth, sustainable development and competitiveness at European level Specific objectives: Promoting innovation and increasing the efficiency of enterprises Improvement of the business environment

Priority axes Priority axis 1: Development of knowledge-based economy and innovation activities (EUR 246 million, 21%) Priority axis 2: Increasing efficiency of enterprises and promoting supportive business environment (EUR 593 million, 51%) Priority axis 3: Financial resources for developing enterprises (EUR 200 million, 17%) Priority axis 4: Strengthening the international market positions of the Bulgarian economy (EUR 87 million, 7.5%) Priority axis 5: Technical assistance (EUR 34 million, 3%)

Investment support for businesses Priority axis 1: Development of innovative products, technologies, processes, services, implementing them in productions and commercialization; Joint projects of your enterprise with scientific organizations for research activities for the manufacturing process; Priority axis 2: Modernization of technological equipment and creation and implementation of new products; Achieving compliance with internationally recognized standards Reduction in energy intensity for manufacturing and introduction of energy saving technologies and renewable energy sources;

Improvement of the business environment (1) Under Priority axis 1 Improvement of the pro-innovative infrastructure Scientific capacity development of Bulgarian research institutions for applied purposes; Support for modernization of applied research equipment Creation of new and strengthening existing technology centers; Creation of new and strengthening existing technology transfer centres; Under Priority axis 2 for Creation of business support infrastructure Creation of a network of Business Support Organizations for information and consultancy services Creation of regional business incubators Promotion of business networking and clustering

Improvement of the business environment (2) Under Priority axis 3 for Improving access to financial resources for business start-ups and development - by providing equity of special funds, guarantees and loans; Under Priority axis 4 for Expanding access to external markets by providing modern and up- to-date information, contacts with potential foreign partners and subsidies for participation in international fairs and exhibitions;

Ministry of Economy, Energy and Tourism 7 JEREMIE The revised Framework and Financial Agreement with the European Investment Fund have been ratified by a law adopted by the Bulgarian Parliament Formation of a holding fund with capital EUR 199 million Procedure for establishing a venture capital fund - until the end of July

Ministry of Economy, Energy and Tourism 8 OPEN PROCEDURES Improving the efficiency of enterprises Upgrade of technologies in large enterprises – EUR 30 million Upgrade of technologies in small and medium-sized enterprises – EUR 50 million Support for innovation activities in enterprises Development of innovative start-up enterprises through support for the introduction of innovative products, processes and services - EUR 10 million

Ministry of Economy, Energy and Tourism 9 PENDING PROCEDURES Achieving compliance with internationally recognized standards- EUR 10 million Support for the development of clustering in Bulgaria - EUR 15 million Creation of regional business incubators – EUR 18 million Providing consulting services to firms in difficulty - EUR 1 million

Ministry of Economy, Energy and Tourism 10 PROGRAMME STATUS Contracts being implemented 601 contracts grants - BGN Received payment claims: 328 contracts grants – BGN Payments done: 101 contracts grants - BGN

Ministry of Economy, Energy and Tourism 11 FUNDS PAID (BGN)

Ministry of Economy, Energy and Tourism 12 PAYMENT DYNAMICS Qtr Qtr Qtr Qtr Qtr Qtr Qtr2 2010

Ministry of Economy, Energy and Tourism 13 REDUCING BARRIERS Guidelines for applicants and guidelines for implementation of contracts are published simultaneously Publishing of detailed criteria for project evaluation The costs of consultancy services for preparation of project proposals are eligible costs Preliminary examination of the availability of required documents and allowing a 7-day period to supplement them The deadlines for review and ruling by the Contracting Authority are reduced on all reports and documents The deadline for checking the received reports for payment has been reduced from 60 to 45 working days. Training of beneficiaries after signing of contracts

Ministry of Economy, Energy and Tourism 14 ADDITIONAL STEPS Better focus on programme interventions Improving the capacity and optimizing the organization of work Simplifying the procedures Regulatory and horizontal changes: Decree № 55 of the Council of Ministers Decree № 121 of the Council of Ministers MIS

Ministry of Economy, Energy and Tourism 15 Thank you for your attention! 8 June 2010, Sofia