The Bulgarian Position for the
Stability Pact Summit
in Sarajevo, July 29-30

July 26, 1999, Sofia

1. We fully support the Stability Pact for South Eastern Europe, as proposed by the European Union and adopted by the Cologne Ministerial Conference on June, 10, 1999.

The adoption of the Stability Pact is not the end but just the beginning of the process of integration of our region with the rest of Europe. In order to achieve this ultimate goal we will need their assistance for a long period of time. We believe that beneficiaries of the financial assistance in the framework of the Stability Pact should be all countries of South Eastern Europe and not just Kosovo.

The economic reconstruction of the region should be a common effort of the international community and not just of the European Union. This means that the international financial institutions should be actively involved in the activities of the Stability Pact. The countries of the region should be encouraged to find and use their own resources in order to reconstruct their economies and to achieve a sustainable development.

In our opinion the Stability Pact marks a new beginning in the relations between the countries of the region. Through its implementation, lasting stability can be reached on the basis of enhancement of the democratic institutions, economic development of the region as a whole and fostering of security.

2. We considers that for lasting stability in the region, democratisation and development of civil society in the countries of the region and in particular in the FRY is needed. Having in mind the achievements in building of an open democratic society with well established pluralism and freedom of the media as well as the very successful model of ethnic tolerance, we could contribute a lot for the success of the Stability Pact in this area.

In our view, the creation of an Information Office/Agency will promote democracy and civil society building. Bulgaria offers to host such an Office/Agency.

The Office/Agency will make it possible to disseminate information to different NGỎs of the best practices regarding freedom of the media, holding of free elections, promotion of multi-ethnic dialogue and cooperation.

3. We attach great importance to security matters. Peaceful development is impossible without security in the region. Bulgaria is ready to take part in KFOR, as well as to participate in the police units. We provide logistic support along the entire route of KFOR units, transiting our country.

The establishment of Multinational Peacekeeping Forces in South Eastern Europe with Headquarters in Plovdiv should be considered as a contribution to the stability in the region.

Bulgaria considers that important steps for strengthening of stability in the region could be undertaken in the framework of Working Table 3 /security issues/. We are of the opinion that NATO and the Euroatlantic Partnership Council (EAPC) should be involved very closely in its work. Bulgaria expresses its readiness to host and chair the first or one of the first meetings of Working Table 3.

4. Lasting success and stability in South Eastern Europe could be achieved through economic development of the region as a whole. The economic activity of the countries in the region should be encouraged through:

• development of trade;

• direct foreign investments;

• participation of firms from the region in the reconstruction activities; - development of infrastructure in the region - transport, energy and telecommunications - as part of the pan-European infrastructure.

5. There is a well established organisation in Bulgaria for overcoming the negative impact of the Kosovo crisis. An inter-institutional working group has been established which has elaborated a programme of measures to provide information and organisational support for participation in project implementation and tenders. A Company Catalogue has been prepared for the suppliers of goods and services.

6. We are ready to participate in tenders for supply of goods for the population in Kosovo. The purchase of goods of first necessity in a neighbouring country would increase the efficiency of the humanitarian aid provided by the international community.

7. We have already expressed our positions that companies from the countries of the region should be entitled to participate on equal basis in all project tenders. Such an approach is in line with the philosophy of the Pact and emphasises that the countries from the region should be the main beneficiaries of the process. In cases where the tender would be won by a company originating from outside the region, we would propose that the tender documents should include a sub-contracting activity clause envisaging that 30-40 % of the whole project should be implemented by a regional sub-contractor/sub- contractors.

8. In our opinion projects of regional and cross-border importance should be financed in the framework of the Stability Pact.

In our view, Stability Pact Relevant projects are the following: - Corridor No 8 - road and railway, linking Albania, Macedonia and Bulgaria; -Corridor No 4- linking Central Europe with Bulgaria and Macedonia through construction of a bridge on the Danube river in the area of Vidin-Calafat; - Construction of 400 kV power cable line connecting Bulgaria and Macedonia. The implementation of the above-mentioned projects is of importance for several countries of the region as well as for the establishment of direct links with the European infrastructure.

The railway between Bulgaria and Macedonia through Corridor No 8 together with the bridge over the Danube could also be used for the transportation and rotation of the units of KFOR. We believe that the international community should consider as a priority task the cleaning up of the river Danube which is the Pan-European Transport Corridor No 7. The restoration of the free navigation on the river is of crucial importance. Any conditions that the current current Government in Belgrade tries to impose are unacceptable.

9. Bulgaria suggests that each country of the region creates an Investment Fund for financing of infrastructure projects whereby the Fund's resources would be accumulated from the payments of the respective country's financial obligations to the Paris Club and other creditors. The Fund will be managed with the active participation of the creditors in defining the projects, in close cooperation with the respective country. In case of co- financing of a project, the Fund will have a multiple effect through mobilizing additional investments from other sources.

10. Bulgaria supports the idea of setting-up a Regional Facility /Fund/ for the Balkans supported by the international financial institutions with the objective to guarantee a continuous inflow of direct and portfolio investments and the development of investment projects financed through the Fund.

Bulgaria is ready to play an essential role in the preparation, establishment and functioning of the Fund.

11. Bulgaria considers the Economic Forum for South-Eastern Europe organized in Sofia on its initiative on 18-20 October directly related to the implementation of the objectives of the Stability Pact. It will provide an opportunity for donors and private capitals to get together and discuss cross-border projects in the region.

12. In our opinion governmental guarantees for foreign investments in the region through the existing mechanisms of export credit guarantees would contribute to the mobilizing of investments thus allowing an accelerated realization of the Stability Pact relevant Projects.