Government to provide Plovdiv fair co with 8.5 ha site near Sofia airport

Dnevnik a.m.

A state-owned 8.5 ha land plot in the area of the Sofia International Airport may be contributed to the assets of the Plovdiv international fair, said sources from the economy ministry.

The information was confirmed by the economy ministry.

The state owns 51% in the Plovdiv fair with the remainder held by a joint venture between Georgi Gergov and the Plovdiv municipality in which the local businessman has the majority stake.

Last wee, economy minister Petar Dimitrov said the capital of the fair will be raised with the addition to its balance sheet of sites in Varna and Sofia. At the time the official said there was still no conceptual design for the development of the sites.

On Monday, Dimitrov said he had asked the transport ministry to transfer the title for the plot near the airport to the economy ministry but added that did not necessarily mean it will be listed among the assets of the fair immediately.

The location of the site in question is suited not only for congressional tourism but also for logistics, office pace and lodging.

Land prices in the vicinity have reached 300-350 euro/sq m, valuing the land plot at at least 60 mln levs.

Gergov told Dnevnik he had requested sites with strategic location: in proximity to the Sofia and Varna airports and at roads linking Sofia and Plovdiv.

He said the sites should be built up over the next five years.

At last week's opening of the Plovdiv fair, he said that at least 50 mln euro will be invested in the Sofia branch of the company.

Transport minister Petar Mutafchiev confirmed that his ministry has indeed received the request of the economy ministry. He said he had inquired about the position of the airport and has been told that it has no plans for the development of the site.

The plot will be transferred to the economy ministry and reclassified as private state property only after the consent of the EIB which is funding the construction of the new airport terminal.

The intention of the government to bulk up the assets of the Plovdiv fair comes in the absence of any existing investment plant for the sites or guarantees for the future private investment.