1. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria SEPA Areas in North East Planning Region (NUTS II) with the centre- the city of Varna, Bulgaria Responsible Partner Varna Economic Development Agency VEDA – www.veda-bg.eu 113/06/2016

2. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria Pre-selection Methods used: National and local policies’ review Master plans and regional development programs’ review Local stakeholders groups and individual meetings Internet research Involved stakeholders: RDA, LDA, Trade Chamber, Union of Architectures, business oriented & ecological NGOs, civil initiatives groups, municipal officials, business representatives, media, and other interested groups of property owners. Selection criteria: location near to Varna potential for development of eco-industrial zone Preliminary researched areas: Green field : Varna West Industry Zone (VW_IZ) with three sub-areas: Vetrino Industry Zone, Suvorovo Industry Zone, and Avren Industry Zone, all maintained by the National Company Industry Zones Brown field : Western Industry Zone in Varna, Devnya Industry zone, etc. Two of the above areas have been selected for the purposes of the pre-feasibility studies 13/06/2016VEDA – www.ved-bg.euwww.ved-bg.eu

3. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Varna West Industry Zone (Green field) VEDA – www.veda-bg.eu 3

4. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Varna West Industry Zone Part of the territory of Varna District, NEPR (NUTs II) District Overview : Situated in Northeast Bulgaria with an area of 3,820 sq km. Comprises 12 municipalities and 158 settlements. The geographic situation, developed infrastructure, bio-climate potential, the seaside tourist industry, as well as the economic and human resources, are all preconditions for development of this region. Three Pan-European transport corridors pass through the territory of the Northeast Region: No 7 (Danube River), No 8 (Duras – Skopie – Sofia – Burgas - Varna), No 9 (Helsinki – Kiev – Rousse – Alexandroupolis). VEDA – www.veda-bg.eu 4

5. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Varna West Industry Zone Part of the territory of Varna District, NEPR (NUTs II) District Overview (2): Population ( 31.12.2006) – 456 915 Work force ( 30.04.2010) – 218 272 Unemployment ( 30.04.2010) – 7.66% Average gross salary per month – 312 euro VEDA – www.veda-bg.eu 5

6. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Varna West Industry Zone Location of Varna District VEDA – www.veda-bg.eu 6

7. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Varna West Industry Zone VEDA – www.veda-bg.eu 7

8. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Varna West Industry Zone History /background information/ Occupies the territory of 3 municipalities – Suvorovo, Vetrino, and Avren Planned for building on the plots investments totaling 1,045,000 sq m Approximate investment amount around 60 million euros At present the Master plan of Suvorovo plot is only elaborated The land of the Zone is municipal- and state-owned Divided into three sections  Section 1 of Varna-West Industrial Zone occupies an area of 535,000 sq m in the territory of Suvorovo Municipality – plot for industrial development  Section 2 of Varna-West Industrial Zone occupies an area of 370,000 sq m in the territory of Vetrino Municipality – plot for development  Section 3 of Varna-West Industrial Zone occupies area of 140 000 sq m in the territory of Avren Municipality – agricultural plot for development VEDA – www.veda-bg.eu 8

9. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Varna West Industry Zone – main characteristics Location Near the city of Varna - 35 km to the city center 28 km to Varna Airport 18 km to Varna-West Port 11 km to highway bound to Black Sea Property It is part and under the management of the "NATIONAL COMPANY INDUSTRIAL ZONES“, a 100% state-owned holding specialized in industrial park development, marketing, and management. Company’s significant financial resources allow large-scale investments, advantageous rental terms for unbuilt plots, open-air and covered warehouse, industrial and office space, the granting of construction rights, and sale of individual plots. VEDA – www.veda-bg.eu 9

10. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Varna West Industry Zone – main characteristics Planned Facilities for Building and Usage 1520 sq.m administrative building Section for technical maintenance of the zone 8.1 km roads, 4.3 km water and sewage network, Waste water recycling plant with a capacity 5000 people, Pump station for fresh water, Gas central and two electricity power sub-stations Around 40% of the zone territory is for productive companies with priorities towards high added value productions. About 40% of the premises will be rented, the rest will be offered for sale VEDA – www.veda-bg.eu 10

11. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 PLOT FOR INDUSTRIAL DEVELOPMENT - SUVOROVO  Location: Suvorovo Municipality  Area: 240,627 sq.m - Potential for expansion: additional 300,000 sq.m.  Land status: agricultural land  Ownership: Municipal  Water: Drinking water (2 km away), water for industrial needs (on site)  Electricity: Available in the area  Gas: The main pipeline passes within 3 km from the site  Sewage: No  Telecommunications: No  Closest city ( >20,000): Varna - 35 km  Closest highway: The Hemus highway’s forecasted route (2 km)  Closest railway: 1 km.  Distance to Airports: Varna – 26,3 km, Bourgas – 100km, Sofia – 400km.  Distance to Sea Ports: Varna – 21,5 km, Bourgas -90 km. Varna West Industry Zone – Section 1 Suvorovo VEDA – www.veda-bg.eu 11

12. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 PLOT FOR DEVELOPMENT - VETRINO  Location: Vetrino Municipality  Area: total of 349,979 sq.m, divided in 7 plots in four villages  Land status: agricultural land  Ownership: Municipal  Water: Available in the area)  Electricity: Available in the area  Gas: Yes (12 km away)  Sewage: No  Telecommunications: 1 km away  Closest city ( >20,000): Varna - 46 km  Closest highway: Hemus motorway  Closest railway: 4 km.  Distance to Airports: Varna – 30 km, Bourgas – 100km, Sofia – 400km.  Distance to Sea Ports: Varna –40 km, Bourgas -90 km. Varna West Industry Zone – Section 2 Vetrino VEDA – www.veda-bg.eu 12

13. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 AGRICULTURAL PLOT FOR DEVELOPMENT - AVREN  Location: Avren Municipality  Area: 139 538 sq.m  Land status: agricultural land  Ownership: Municipal  Water: Drinking water (0,5 km away), no water for industrial needs  Electricity: Available in the area  Gas: The main pipeline passes within 1,5 km from the site  Sewage: Available in the area  Telecommunications: Available in the area  Closest city ( >20,000): Varna - 45 km  Closest highway: The Hemus highway (25 km)  Closest railway: 0,5 km.  Distance to Airports: Varna – 55 km, Bourgas – 110km., Sofia – 420km.  Distance to Sea Ports: Varna – 30 km., Bourgas -90 km. Varna West Industry Zone – Section 3 Avren VEDA – www.veda-bg.eu 13

14. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Western Industrial Zone of Varna – Brown field VEDA – www.veda-bg.eu 14

15. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Western Industrial Zone of Varna Overview The total manufacturing infrastructure, buildings and equipment in the area are characterized by a significant proportion of worn equipment. Over 90% of ownership in the production area is private, which determines its restructuring to become on a market basis. In the zone there are located mainly enterprises from industrial production The engineering and technical infrastructure is outdated and the buildings are not effective. VEDA – www.veda-bg.eu 15 The environmental situation in the area is characterized by surface water, construction and industrial waste, etc

16. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Western Industrial Zone of Varna – Brown field VEDA – www.veda-bg.eu 16

17. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016VEDA – www.veda-bg.eu 17 Western Industrial Zone of Varna Location The Zone is located in the North-Western part of the city of Varna between the main bulevard “Vladislav Varnenchik” and the channel that connects the Black Sea with the Ferry boat new the city of Beloslav History Former industry area for state owned companies that were privatized nowadays. Main characteristics Three ports and a ferry boat Varna international Air port Railway station Telecommunications Water, sewage, gas, electricity, etc.

18. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Western Industrial Zone of Varna – main characteristics VEDA – www.veda-bg.eu 18 Types of companies Companies located in the zone work in a variety of branches (available database of about 300 companies): Packing, Treatment facilities, Chemicals, Construction materials, Grocery, Car services, Car dealers, Gas station, Energy, Eco- tourism, Foreign trade, Planting, etc. There are about 30 companies in the zone with a potential to benefit from the CIP-ECO-innovation EU program as far as they operate in the area of recycling, packing, food & drink, construction and water.

19. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Western Industrial Zone of Varna Tendencies for development The production zone extends westward along to the northern shore of Varna lake and the village of Topola in very good relations with future railway station, a new container port, airport and highway Hemus and Cherno More. In this expansion comes new intermodal transport terminal in Varna, significant new production capacity, high-tech industries (business parks and business centers) There are ongoing processes of restructuring of the land of the zone from production into commercial, storage and others ( business centers, malls). VEDA – www.veda-bg.eu 19

20. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Western Industrial Zone of Varna Tendencies for development (2) In the northern parts of the area there are envisaged land for development of transport infrastructure, zones for production in small and medium enterprises, land for nursery-gardens, and development zone for high-tech industries. In the central areas is the village of Topoli, whose plot is a residential development zone with construction of 2-3 storey buildings, area for city parks and gardens, and land for landscaping of streets. The western parts of the area are mixed production and development areas The southern parts are transport and logistics zones, areas for development of industrial production zones, and urban parks and gardens. The southwest area is a mixed multi-functional zone. VEDA – www.veda-bg.eu 20

21. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Western Industrial Zone of Varna Tendencies for development (2) VEDA – www.veda-bg.eu 21

22. Pre-feasibility result of SEPA areas in NEPR with center in Varna, Bulgaria 13/06/2016 Summary – proposal for FS Pre feasibility studies are under finalization (needed some editing and translation work) Both zones give valuable inputs for planning The Greenfield zone seems to be suitable for FS and additional activities VEDA – www.veda-bg.eu 22