1 Ministry of Economy and Energy Offset Programs Directorate Republic of Bulgaria INTERNATIONAL...

11

Ministry of Economy and EnergyMinistry of Economy and EnergyOffset Programs DirectorateOffset Programs Directorate

Republic of BulgariaRepublic of Bulgaria

INTERNATIONAL CONFERENCE ON SECURITY INTERNATIONAL CONFERENCE ON SECURITY AND DEFENCE AND DEFENCE

R&D MANAGEMENTR&D MANAGEMENT

POLICY, CONCEPTS AND MODELSPOLICY, CONCEPTS AND MODELS

VARNAVARNA

29-31 MAY 200829-31 MAY 2008

22

THE ROLE OF THE OFFSET PROGRAMS AS A PART OF THE ROLE OF THE OFFSET PROGRAMS AS A PART OF THE STATE POLICY FOR GUARANTY THE NATIONAL THE STATE POLICY FOR GUARANTY THE NATIONAL

SECURITY AND THE ECONOMICAL INTERESTS OF THE SECURITY AND THE ECONOMICAL INTERESTS OF THE COUNTRY IN THE CONTEXT OF PUBLIC-PRIVATE COUNTRY IN THE CONTEXT OF PUBLIC-PRIVATE

PARTNERSHIPS IN DEFENCEPARTNERSHIPS IN DEFENCE

Ministry of Economy and EnergyMinistry of Economy and EnergyRepublic of BulgariaRepublic of Bulgaria

33


1.1. What are the preconditions for the offsetWhat are the preconditions for the offset2. Bulgarian’s National Offset Policy3. The basic projects for modernization of

the Bulgarian Armed Forces

44


I. The strategic aimI. The strategic aim, which the country , which the country sets with the enforce of offset is to sets with the enforce of offset is to guaranty the national security and the guaranty the national security and the economic interests of the Country through:economic interests of the Country through:

Fulfillment of modernization of the Fulfillment of modernization of the National Arm Forces (NAF);National Arm Forces (NAF);

Economic development of the Country.Economic development of the Country.

What are the preconditions for the What are the preconditions for the offset ?offset ?

55


This process requires huge public funds This process requires huge public funds that are beyond the abilities of the new that are beyond the abilities of the new member-countries.member-countries.

The participation of the National The participation of the National EconomyEconomy and its position in the globalizing and its position in the globalizing world economy determines the applying of world economy determines the applying of Offset .Offset .

All these factors enforce the public sector to All these factors enforce the public sector to turn itself to the foreign producers which are turn itself to the foreign producers which are powerful high technology Companies.powerful high technology Companies.

66

Offset toward Offset toward Bulgarian Bulgarian CompanyCompanyTransfer from the Transfer from the

Fiscal for the Fiscal for the Contracting Contracting AuthorityAuthority

Payment of Payment of Fiscal resourcesFiscal resources

Contractor of Contractor of the Special the Special

Public Public Procurement Procurement

Revenues in Revenues in the Fiscal the Fiscal

from taxes & from taxes & customscustoms dutiesduties

Public Public Private-Private-PartnershiPartnershipp

77


The fulfillment of the Offset programsThe fulfillment of the Offset programs by the Contractors of special goods and by the Contractors of special goods and systems for the national armed forces, is systems for the national armed forces, is turning to a turning to a State PolicyState Policy for: for:

- guaranty the national security;- guaranty the national security;- economic interest of the Country.- economic interest of the Country.

88


The The necessity of transformation and necessity of transformation and modernization of the Armymodernization of the Army, , impose impose mandatory applying of the Offset as a mandatory applying of the Offset as a system that could guarantee the system that could guarantee the fulfillment of the strategic goals of fulfillment of the strategic goals of the foreign policy, foreign economic the foreign policy, foreign economic relations, inner policies and the relations, inner policies and the national economy.national economy.

99


II. Bulgarian’s National Offset Policy - The Offset in the Republic of Bulgaria is regulated

under the Ordinance on the Award of Special-Purpose Public Procurements, adopted by the Council of the Ministers Decree 233/3.09.2004, amended by the Council of the Ministers Decree 1/5.01.2007, effective 23.01.2007.

Offset definition:- The Offset is a Compensatory obligationsCompensatory obligations oof f

a non -resident a non -resident CContractor of aontractor of a Special-Purpose Public Procurements which the said which the said CContractor undertakes to ontractor undertakes to perform perform the economic activities. the economic activities.

-The Offset has to bear benefits for the economical and regional development of Bulgaria in amount of 110% of the value of SPP .

1010


The Offset in Bulgaria is deviated to:The Offset in Bulgaria is deviated to:

Direct offsetDirect offset obligationsobligations related to the subject of the related to the subject of the special-purpose public procurement award contract.special-purpose public procurement award contract.

Indirect offset obligationsIndirect offset obligations shall be all types of activities, shall be all types of activities, services, acquisition of tangible and intangible assets, services, acquisition of tangible and intangible assets, technologies, know -how, industrial property rights, which technologies, know -how, industrial property rights, which create new products; create new jobs; create value added, create new products; create new jobs; create value added, enhance the competitiveness of Bulgarian goods and enhance the competitiveness of Bulgarian goods and services and increase the exportability thereofservices and increase the exportability thereof..

1111


The object of the compensatory arrangement can be the The object of the compensatory arrangement can be the followings :followings :

Investments Investments ;; Grant of licenses Grant of licenses or or transfer of intellectual property transfer of intellectual property

rights;rights; Provision of technical equipmentProvision of technical equipment and/or and/or technologies to technologies to

resident personsresident persons;; Export supportExport support or collaborative outgoing in third countries. or collaborative outgoing in third countries.

The operative objectives which the State is set through The operative objectives which the State is set through the offset are:the offset are:

- achievement of sustainable economic growth;- achievement of sustainable economic growth;- increasing competitiveness of Bulgarian goods;- increasing competitiveness of Bulgarian goods;- improve export opportunities and payment balance;- improve export opportunities and payment balance;- increasing employment.- increasing employment.

1212


PRIORITY SECTORSPRIORITY SECTORS Activities in the area of Computer Technologies;Activities in the area of Computer Technologies; Research and Development ;Research and Development ; Manufacturing (defense industry);Manufacturing (defense industry); Education;Education; Human health and social work activities;Human health and social work activities; Production and distribution of electrical and heating energy, Production and distribution of electrical and heating energy,

gaseous, fuels and water;gaseous, fuels and water; Construction (without hotels, Malls, city and business Construction (without hotels, Malls, city and business

centers and other conventional construction works)centers and other conventional construction works) Transport, storage and communications;Transport, storage and communications; Agriculture and hunting and related communications.Agriculture and hunting and related communications.

1313


The important amendments of the Ordinance, adopted 2007, are connected with :

The establishment of the new official body in the offset, Interagency Council on Special-Purpose Public Procurements under a Compensatory Arrangement (ICSPPUCA);

The mandatory stages to open a procedure for awarding SPP with an Offset Agreement;

The competence of the Minister of Economy and Energy for preparing the procedure for awarding SPP with an Offset Agreement are affected;

The offset coefficients are from 1 to 3, which role is to bind the Tender of the Offset to the priority sectors;

1414


The ratio of Direct Offset Obligation to Indirect The ratio of Direct Offset Obligation to Indirect Obligation is 30%-70% ;Obligation is 30%-70% ;

The right is given to the Minister of Economy and The right is given to the Minister of Economy and Energy to sign the Offset Agreement;Energy to sign the Offset Agreement;

The Contracting Authority shall appoint the The Contracting Authority shall appoint the Commission for selection the Contractor of a SPP Commission for selection the Contractor of a SPP and preparing the Contract for awarding of SPP & and preparing the Contract for awarding of SPP & the Offset Agreement;the Offset Agreement;

The conclusion of a Framework agreement on the The conclusion of a Framework agreement on the award of a SPP under a compensatory arrangements award of a SPP under a compensatory arrangements shall be ground of a Framework Offset agreement shall be ground of a Framework Offset agreement and for provisional performance of the Offset and for provisional performance of the Offset obligations (step for implementation of Pre-Offset)obligations (step for implementation of Pre-Offset)

1515


III. The basic projects for modernization of the Bulgarian Armed Forces:

1.1. Development of the communication and information (CI) means for Development of the communication and information (CI) means for providing the necessary CI equipment, compatible to NATO providing the necessary CI equipment, compatible to NATO requirements;requirements;

2.2. Acquisition of a new Multi-role Fighter;Acquisition of a new Multi-role Fighter;3.3. Supplying the units, performing missions and tasks outside the Supplying the units, performing missions and tasks outside the

national borders, with personal equipment and camping-marching national borders, with personal equipment and camping-marching gear;gear;

4.4. Design and building of battle ships of “Multipurpose corvette” class;Design and building of battle ships of “Multipurpose corvette” class;5.5. National program on utilization and destruction of excessive National program on utilization and destruction of excessive

ammunition;ammunition;6.6. Acquisition and modernization of second hand “ battle ships”;Acquisition and modernization of second hand “ battle ships”;7.7. Coastal radio location system for navigation control and coast Coastal radio location system for navigation control and coast

guard-”Ekran”;guard-”Ekran”;8.8. Acquisition of systems for reconnaissance, early warning and Acquisition of systems for reconnaissance, early warning and

monitoring of nuclear, chemical and biological agents.monitoring of nuclear, chemical and biological agents.

1616


The following Four Projects for modernization of The following Four Projects for modernization of Bulgarian Army are in the process of fulfillmentBulgarian Army are in the process of fulfillment on on amount about 84 mln. Euroamount about 84 mln. Euro

Acquisition of new helicopters for the requirements of Air Acquisition of new helicopters for the requirements of Air and Naval Forces of the Bulgarian Army – and Naval Forces of the Bulgarian Army – EUROCOPTER-EUROCOPTER-FranceFrance;;

Acquisition of new transportation Planes - Acquisition of new transportation Planes - ALENIA ALENIA AERONAUTICA-Italy;AERONAUTICA-Italy;

Reequiping the Bulgarian Army with ground transportation Reequiping the Bulgarian Army with ground transportation vehicls - DAIMLER CHRYSLER-Germanyvehicls - DAIMLER CHRYSLER-Germany;;

Delivery of Armored Wheeled Vehicles - Delivery of Armored Wheeled Vehicles - TEXTRON-USATEXTRON-USA..

1717


The offset programs of the Contactors of the SPP The offset programs of the Contactors of the SPP prepared, accepted and executed with the assistance prepared, accepted and executed with the assistance of the Ministry of Economy and Energy are important of the Ministry of Economy and Energy are important for the Bulgarian business.for the Bulgarian business.

The State aids to the business to establish direct The State aids to the business to establish direct relations with high technology Companies from the relations with high technology Companies from the whole world, creates conditions for direct investments whole world, creates conditions for direct investments in the Country, opens new markets, enhances the in the Country, opens new markets, enhances the competitiveness of Bulgarian products and stimulates competitiveness of Bulgarian products and stimulates the Public -Private Partnership.the Public -Private Partnership.

1818


Mr. Ivan Zherkov –DirectorMr. Ivan Zherkov –Director

Offset Programs DirectorateOffset Programs Directorate

PhonePhone::+ + 359 2 940 7905359 2 940 7905

FaxFax: : + + 359 2 940 7906359 2 940 7906

12, Kniaz Alexandar I Str.,12, Kniaz Alexandar I Str.,

1000 Sofia, Bulgaria1000 Sofia, Bulgariahttp://www.mee.government.bg/offsetp/http://www.mee.government.bg/offsetp/

offsetp.htmloffsetp.html

1919

THANK YOU FOR YOUR KIND THANK YOU FOR YOUR KIND ATTENTION!ATTENTION!

QuestionsQuestions

1 Ministry of Economy and Energy Offset Programs Directorate Republic of Bulgaria INTERNATIONAL...

Documents

Transcript of 1 Ministry of Economy and Energy Offset Programs Directorate Republic of Bulgaria INTERNATIONAL...