STANDARD PROJECT FICHE

1.Basic Information
1.1. Desiree Number BG 0202.02
Twinning code: BG02/IB-EN-01
1.2. Title: Development of Bulgarian Eco-tourism
1.3. Sector Economic & Social Cohesion
1.4. Location Across all regions in Bulgaria

2. Objectives

2.1. Overall objective:

Wider objective
• Sustainable growth of the sector through improvement of the international market positions
of the Bulgarian tourist industry
Closer objective
• Diversification of the tourist products;
• To expand the geographic spread of tourism and its seasonal distribution;
• Raise awareness on nature protection

2.2. Project purpose:

To improve the quality and variety of services in the eco-tourism for the purpose of prolonging the
tourist season, entering new market segments and introduction of sustainable nature-oriented
economic activities within the protected areas in Bulgaria.

2.3. Accession Partnership and NPAA priority

The project addresses the following priorities in the Accession Partnership and the National
Programme for the Adoption of the Acquis:
Accession Partnership
• Maintain macro-economic stability and continue to promote economic growth and
competitiveness through further market-based enterprise restructuring and promotion of
private sector development.
• Develop and implement a market-oriented competitiveness strategy including sectoral
strategies as appropriate.
NPAA
• Creation of suitable business conditions and improvement of infrastructure. (Chapter 21)
• Development of sustainable tourism by development of tourist infrastructure (Chapter 16)
• Development of sustainable tourism by upgrading the tourism product (Chapter 16)

2.4. Contribution to National Development Plan

The project directly contributes to the attainment of the tourism action plan contained in the Second
Development Axis – Boosting Bulgarian Business Competitiveness, 2nd Programme Tourism. The
priority sector strategy “Tourism” as a part of the National Development Plan aims to substantially
improve and develop the tourist products through implementation of different types of tourism
(including eco-tourism) and an increase of the quality of the tourism infrastructure.

The NDP’s tourism action plan comprises two sub-programmes, and the project proposed reflects
some of the measures identified, namely:
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Sub-programme 1: Tourist Product Development

• Improving the existing and creating new infrastructure to allow the development of rural,
ecological, adventure, and recreational tourism;
• Introducing quality standards for the accommodation and services;
• Promoting regions with specialised tourist products;
• Building a modern tourist infrastructure in the natural assets.

Similarly, the project adds to the attainment of the tourism objectives and measure provisions
contained in the Fifth Development Axis – Attaining Balanced and Sustainable Regional
Development, as well as in the Regional Operational Programme (Sub-programme 1, Boosting the
Business Competitiveness – measure 1.2 Tourism).

The project also faces some criteria and measures within the 3rd Development Axis “Accelerating
construction and upgrading basic infrastructure and the environment”, and namely Subprogramme
8: Nature conservation (4th Programme: The Environment):
• Priorities for attaining the strategic objectives are assessed under the general and the following
criteria:
- extent of threat to species or natural features
- extent of effectiveness in safeguarding and maintaining biodiversity
• Priority measures which will be implemented to achieve this include:
- extending the nature of measures on protected areas and strengthening them
- creating a national ecological network with a view to enhancing the nature conservancy
status of Bulgarian species, places of national and international significance, ecosystems,
habitats and landscapes

3. Description

3.1. Background and justification:

Tourism is seen as priority sector in the development of the Bulgarian economy. A recent survey1 of
the economic impact of tourism on the Bulgarian economy revealed that tourism currently accounts
for some 8% of the total final production, 9,7% of the total gross output and generates some 8,8% of
total employment (circa 285,000 jobs).

Consequently tourism sector growth could have a positive influence not only on the sector itself but
also on the development of related industrial and service sectors, employment and the general
economic situation in the regions. The main objective of the Bulgarian tourism sector is to achieve a
sustainable growth of the sector through continuous improvement of the tourism ‘product’,
infrastructure and through marketing the Bulgarian tourist industry to international markets.

This growth is to be achieved by the attraction of greater numbers of tourists, extending their
average length of stay and increasing their average ‘spend per day’. This, consequently, requires
actions to be undertaken that seek to:
• Diversify the range of tourist products and improve their quality;
• Expand the geographic spread of tourism and its seasonal distribution – most notably away from
beach tourism in summer months and winter sport tourism in the winter months;
• Improve the qualifications and skills of the labour force in tourism;

1
Study on the Economic Impact of Tourism in Bulgaria – EU tourism development programme 1999
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• Improve the image and the marketing of tourism within Bulgaria and abroad.
Given the dominance of summer and winter tourism it is recognised that, in order to achieve tourism
growth, there is need to develop other sectors of the Bulgarian tourism sector, identified as a part of
this tourism ‘diversification’ strategy. The aim is to strengthen Bulgaria’s natural potential in the
opportunities provided by other forms of tourism, most notably eco-tourism.

Eco-tourism,in its philosophy, focuses on local cultures, wilderness adventures, volunteering,

personal growth and learning new ways to live. It is typically defined as travel to destinations where
the flora, fauna, and cultural heritage are the primary attractions. Responsible eco-tourism includes
programs that minimize the adverse effects of traditional tourism on the natural environment, and
enhance the cultural integrity of local people.

Eco-tourism is considered the fastest growing market in the tourist industry2 , according to the World
Tourism Organization (WTO) with an annual growth rate of 5% worldwide and representing 6% of
the world gross domestic product, 11.4% of all consumer spending. While there is no universal
definition for eco-tourism, its general characteristics can be summarized as follows:

- All nature-based forms of tourism in which the main motivation of the tourists is the
observation and appreciation of nature as well as the traditional cultures prevailing in natural
areas.
- It contains educational and interpretation features.
- It is generally, but not exclusively organized for small groups by specialized and small
locally owned businesses.
- It minimizes negative impacts upon the natural and socio-cultural environment.
- It supports the protection of natural areas by: generating economic benefits for host
communities, organizations and authorities managing natural areas with conservation
purposes; providing alternative employment and income opportunities for local
communities; increase awareness towards the conservation of natural and cultural assets,
both among locals and tourists.

Summarizing the above given definition formulated by the WTO, it could be defined that a
successful eco-tourism projects must:

- effectively promote the preservation of entire local ecosystems, not just individual species,
vistas or sites;
- be economically viable in order to attract financing and be sustainable;
- be well planned, financed, managed and marketed in order to meet the stringent
environmental and recreational demands of a true eco-tourism development.

Bulgaria’s nature avails exceptional capacities to diversification of the Bulgarian tourist product and
new types of tourism. The network set up of 3 national and 9 natural parklands, 89 reserves and
2,243 natural landmarks preconditions various types of specialised tourism: cognitive and nature-
science tourism, photo-safari, observing birds and plants, rock climbing, alpinism, spelaeology
tourism, etc. The Pirin National Park and Sreburna Biosphere Reserve (lake) are included in the
UNESCO list. Bulgaria has enormous natural and biological diversity, concentrated on small area
within short travelling distances. All this is giving the chance for active and sustainable development
of the eco-tourism, which activities have been expanding rapidly over the past decades worldwide
and further growth is expected in the future. However, there are, as with Bulgarian tourism in
2
World Tourism Organisation, International Year of Eco-tourism 2002, Concept Paper
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general, a number of deficiencies of those sector that need to be addressed. These weaknesses
related mainly to the low quality level of local support infrastructure, i.e. the difficulty of access to
those areas where ecological sites are found and the low quality of their environment infrastructure
are of concern.

It is these deficiencies in the eco-tourism infrastructure that this project seeks to address so as to
simultaneously:
• increase the Bulgaria's tourism-related revenues through eco-tourism;
• develop permanent and seasonally, direct and indirect employment opportunities;
• attract new target groups- especially from outside Bulgaria;
• develop products that will be permanently competitive internationally;
• develop complex service packages in eco-tourism;
• encourage investments in quality and select products and the provision of competitive
investment opportunities in eco-tourism;
• extend the tourist season.

National partners consulted during the projects preparation were the Bulgarian Association of Travel
Agencies (BATA), the Bulgarian Hotel and Restaurant Association (BHRA), Bulgarian Association
for Alternative Tourism (BAAT), Bulgarian Association for Rural and Ecological Tourism
(BARET) and the National Association of Municipalities. Partners consulted at the regional and the
municipal level were the administration of the communities with a known interest in eco-tourism
together with various regional and local tourism organisations.

These consultations resulted in the identification of a number of potential projects; these are
included as an indicative listing at Annex 4.

3.2. Linked activities

There have been a significant number of projects and initiatives seeking to develop the Bulgarian
tourism sector, examples of these include:
• GTZ has funded a tourism project in framework of its project “Programme for promotion of
economy and employment”. Which included consulting assistance to SMEs, marketing and
tourism policy activities in Koprivshtiza, Kazanlak, Smolyan regions during 1999-2000 and in
Veliko Turnovo region in 2001.
• Under Phare ESC 2001, there is provision for a project for the development of the Bulgarian
Cultural Tourism;
• Under Phare ESC 2001, there is provision for a project for municipal roads scheme for improved
access to sites of tourist interest in the NE and SC Planning Regions

The UNDP and USAID have also introduced and implemented a number of tourism projects across
Bulgaria, including those of an environmental and ecological nature – especially in the development
of bio-diversity.
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3.3. Results
Grants will be provided to public and non-profit organisations for the development of eco-tourism
sites and linked services. The following project results are to be achieved:
• Improvement of the tourist potential of Bulgaria - natural objects are adopted for tourism
(incl. better conditions for sustainable use of the natural heritage), some 15 projects of
average Euro 250,000 funded – a number of small projects of a like nature or within the
same region could be combined to meet this amount;
• Quality improvement of tourist services in the ecological sector;
• An increase in rural and semi-urban area employment (permanent and seasonally, direct and
indirect);
• Strengthening the capacity of the Ministry of Economy in implementing grant schemes in the
field of tourism development.

Part of the project or the entire project will be implemented within the borders of a protected area –
in or adjacent to Bulgaria’s National Parks, see Annex 4. Therefore, the activities foreseen must be
permissible for the type of protected area as per the Law for protected areas and the Law for
protection of biological variety. The individual projects financed under the grant scheme should
contribute to the achievement of objectives, listed in the development plans (NUTS II and the
national plans), and demonstrates partnership between the public and the private sector. As
applicants will be considered local municipalities, NGOs, and specialized public administrations at
the park territories and protected areas. The ownership of the developed infrastructure is
predominantly state and municipality owned (public ownership).

3.4. Activities
The activities within this project will be delivered through a grant component aiming to rehabilitate
the specialised eco-tourism infrastructure, so as to improve the tourism and business attractiveness
of these areas. It is envisaged that this grant infrastructure scheme will support projects concerning
the rehabilitation and improvement of the local environmental tourism infrastructure
(modernization, rehabilitation, consolidation works, etc.).

These investment projects are intended to improve the quality of environmental tourism
infrastructure and to increase the potential of such tourist facilities through the construction,
rehabilitation and preservation of associated buildings and/or infrastructure, national parks, public
spaces and buildings, and any other complementary tourism sights. For example:
- Better infrastructure for tourist visits – lighting, stairs and other equipment,
zones for information and business, sign posting, etc.;
- Implementation of systems for monitoring and security;
- Buildings, technical equipment, information systems in Tourism information
centres;
- Building a modern tourism infrastructure - systems of walks and treks, zones
for sport activities, etc within national and natural parks;
- ‘Green’ and ‘theme’ eco-paths;
- Implementation of new tourism products – mountain bike, photo safaris, bird
watching, rock climbing and caving;

The direct beneficiaries of the scheme will be public authorities, public institutions and non-profit
organisations (NGOs). Direct support to individual commercial enterprises, groups of commercial
enterprises and state-owned enterprises are not envisaged.
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Projects for support will be selected according to the following criteria:
- Ecological: observation and appreciation of nature; the project must have an informational,
interpretational, training and educational element; the project must present the biological
variety; the project must ensure a minimal negative influence on nature and social and
cultural environment;
- Tourist: to ensure an intensive interaction of tourists with nature; to involve small tourist
groups (5-10 people); small tourist companies must be available on the territory; projects in
areas having other significant tourist attractions; the existence of sufficient accommodation
facilities in the proposed area.
- Economic: the existence of a recent business plan/strategic plan and a marketing plan, which
provides a justification for the proposed activity and shows the sustainability of the project;
the impact on employment opportunities; generation of supplementary income sources for
the local society; the level of local partnership, sustainability and local commitment to the
preservation of public assets and infrastructures; the management / implementation
capacities of the applicant.

Selection of the proposals will be made based on the following documents to be submitted in each
case:
- The business and marketing plan of the applying organisation (Not older than 2 years).
- The planned budget of the activity proposed to be implemented.
- Evaluation of the effects of the development on eco-tourism both on the sub-regional and the
regional level.
- Technical specification for infrastructure works and/or equipment to be purchased.
- Technical drawings for construction.
- Environmental Impact Assessment.
- Evidence provided on the availability of co-finance by the beneficiary

Draft project selection criteria and implementation scheme is given within Annex 5 to this project
fiche.

The small-scale nature of the projects to be implemented will ensure that there is no potential of
overlap with areas of tourism or environmental investment that may be eligible under SAPARD.

Priority will be given to projects, which demonstrate training opportunities for young and
unemployed people from the area with a view to promoting the trainees’ (re) insertion into the
labour market.

The project foresees also an institutional component (TA contract) aiming at the strengthening the
capacity of the Ministry of Economy (MoE) in implementing grant schemes in the field of tourism
by providing assistance in the practical implementation of the current scheme. Specific objectives
of this component are to:
• Advise and work closely with the PIU to implement internal administration systems consistent
with EU Phare procedures (Practical Guide to Phare).
• Provide training, facilitation and advice, to MoE personnel within the PIU, to develop a
comprehensive understanding of the Practical Guide to Phare procedures (as applicable to grant
funded projects). Review and make recommendations for the PIU administration procedures and
grant scheme documentation.
• Provide technical advisory inputs to the Programme Steering Committee relating to monitoring,
control and selection processes.
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To ensure that the projects selected are run in accordance with Phare rules and they meet the
appropriate specifications for materials, construction and functionality, as well as the environmental
regulations, the Ministry of Economy will organise a tender to ‘recruit’ an appropriate organisation
to supervise the projects implementation.

3.5. Lessons learned assessment and results multiplication

Given the number of tourism related projects developed and implemented in Bulgaria – despite these
being of a non-investment nature, considerable lessons have been learnt in the design and
implementation of tourism development initiatives. This project builds on these. It also builds on the
work undertaken to develop the ‘cultural / heritage tourism’ under Phare 2001.

4. Institutional Framework
Tendering, contracting and payments will be managed by the Central Finance and Contracting Unit
(Ministry of Finance) for the IB component.

The Ministry of the Economy’s responsibilities cover the conclusion of contracts under individual
grants; payment authorisation and disbursement of grant aid, as well as formulation of guidelines,
application forms and selection procedures, monitoring and evaluation of the scheme. These duties
are to be carried out by the Project Implementation Directorate (PID) at the Ministry of Economy.
Total number of staff at the PID is 20 people.

A Programme Steering Committee will be established, comprised of representatives of the

Ministry of Economy (chair), Ministry of Environment and Water, Ministry of Agriculture and
Forestry, Ministry of Regional Development and Public Works, the EC Delegation in Sofia. The
Committee will advise the PID on important implementation issues such as: the adoption of the
selection criteria ; the continued relevance of the selection criteria for project applications ;
monitoring the progress of the implementation of the programme; commissioning external
evaluations to check if the programme is achieving its objectives in an effective and efficient
manner.

Project Evaluation Committee, the exact composition of which will be determined by the Steering
Committee, assesses the projects. Nevertheless, it is envisaged that members include representatives
from:
- Ministry of Economy - 3 representatives (incl. The Chairman)
- Ministry of Regional Development and Public Works - 1representative
- Ministry of Environment and Waters– 1 representatives
- Ministry of Agriculture and Forestry – 1 representatives
- Tourism and/or Ecological related organizations – 2 representatives
- EC Delegation – 1 representative
The role of this committee will be to:
• Identify the most qualified projects to be funded;
• Define specific conditions that may be attached to the award of funding in respect
of individual applications;
• In the event of rejecting a proposal, provide clear and concise reasons for
rejection to the applicant (this can help applicants to revise their proposal or to
submit better proposals in the future).

Key national partners amongst the Bulgarian government are the Ministry of Environment and
Waters, Ministry of Agriculture and Forestry and the Ministry of Regional Development and Public
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Works, as well as the other public institutions such as the Bulgarian Association of Travel Agencies
(BATA), Bulgarian Association for Alternative Tourism (BAAT), Bulgarian Association for Rural
and Ecological Tourism (BARET) and the National Association of Municipalities.

All activities will be carried out in accordance with the Municipality Ownership Act – Issue 44
gazetted 1996 and amended 34/06.04.2001 and / or The Act for State Ownership - State Gazette 92
0f 16th November 1951. Also, the carried on construction activities should be in compliance with
the Law for protected areas, as well as the Council Directive 97/11/EC of 3 March 1997 on the
assessment of the effects of certain public and private projects on the environment.

5. Detailed Budget

Phare Support
Investment Institution Total National Co- IFI TOTAL
Support Building Phare financing*
(=I+IB)

Contract 1 3,80 0,20 4,00 1.10 5.10

Grant Scheme MEUR MEUR MEUR MEUR MEUR
Contract 2 0.20 0.20
Supervision of MEUR MEUR
works
Total 3,80 0,20 4.00 1,30 5,30
MEUR MEUR MEUR MEUR MEUR
* Should the total cost of works proposed under the grant scheme exceed the estimate shown in the table
above, the beneficiary institution will provide the necessary additional co-financing needed.

6. Implementation Arrangements

6.1 Implementing Agency

The Implementing Agency of the Project is the Ministry of Regional Development and Public
Works and in that capacity will issue and evaluate tenders, conclude contracts and authorize the
disbursement of contractually related payments. The PIU at the Ministry of Economy will otherwise
be responsible for the day-to-day co-ordination and implementation of the project activities. In this
respect, the MoE will ensure that all activities to be provided will be undertaken in strict accordance
with the agreed work plan and Practical Guide procedures.

Ministry of Economy
Mrs. S. Kassidova, Deputy Minister
Slavianska 8
1000 Sofia
Tel. 00359 2 9842 7550
Fax: 00359 2 980 59 14

6.2 Implementing Structure

It is planned to operate the project through a PIU at the Ministry of Economy, in close consultation
with the Ministry of Environment and Waters and Ministry of Agriculture and Forestry. The PIU
will be assisted in its actions and activities through technical assistance provided under the
Institutional Building component.
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Ministry of Economy
Deputy Minister Mrs. S. Kassidova
Slavianska 8
1000 Sofia
Tel. 00359 2 9842 7550 Fax: 00359 2 980 59 14

Ministry of Economy
Deputy Minister Mr. D. Hadjinikolov
Lege 4
1000 Sofia
Tel. 359 2 980 74 83 32 65 and Fax 359 2 981 25 15

The Ministry of Environment and Waters

Deputy Minister Mrs. Fatme Iliaz
Gladston 67
1000 Sofia
Tel. 00359 2 940 63 20 Fax: 00359 2 986 25 33

Ministry of Agriculture and Forestry

Deputy Minister Mrs. Andriana Sukova - Tosheva
Hristo Botev 55
1040 Sofia

The proposed project selection criteria and implementation scheme is attached at Annex 5.

6.3.Non-standard Aspects
That a number of small projects – with a similar theme or location, maybe combined to ensure that
the Phare minimum of Euro 50,000 and maximum Euro 300,000 is attained, for example the
envisaged development of eco-paths.

6.4.Contracts
The technical assistance aspects associated with institution building and management of the scheme
are estimated at Euro 200,000 – a framework contract will be issued for this aspect.
The envisaged average grant size of projects is Euro 250,000; implying a total of some 15 contracts.

The project envisages also a separate works supervision contract for the whole grant scheme at Euro
200,000.

7. Implementation Schedule

7.1.Start of tendering/call for proposals

Start Project Selection on the Grant Scheme: January 2003
Start Tender Procedure for “Supervisor”: March 2003
Start IB/TA for PIU Tender Procedure: January-February 2003

7.2.Start of project activity

Grant Scheme Projects construction start-up: June 2003
Supervision Contract commencement: June 2003
IB/TA Project commencement: March 2003
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7.3. Project Completion
Expected date of last payment under last contract will be 30 November 2006. Allowing one
extra year for disbursements is justified by the complex nature of the project, involving a grant
scheme and works and in view of the time taken to implement other similar schemes in Bulgaria.
Grant schemes are still fairly new to Bulgaria.

8. Equal Opportunity
The project implementation procedures will ensure that the project brings benefits to men and
women, and to ethnic groups in equal measure. Special attention will be paid to ensure that women
and members of ethnic groups are included in the projects activities.

9. Environment
The project will not be harmful to the environment. Given the focus of this project all grant schemes
envisaged will require that a feasibility study and an environmental impact assessment (EIA) report
to be successfully completed as part of the project selection procedure, showing that the proposed
project activities will be in compliance with the respective Bulgarian Legislation as well as Council
Directive 97/11/EC of 3 March 1997 on the assessment of the effects of certain public and private
projects on the environment, i.e. the Bulgarian Authorities shall adopt all measures necessary to
ensure that, before consent is given, projects likely to have significant effects on the environment by
virtue, inter alia, of their nature, size or location are made subject to a requirement for development
consent and an assessment with regard to their effects. Therefore a positive impact – ecological
improvement, is expected.

The environmental impact assessment shall identify, describe and assess in an appropriate manner,
in the light of each individual case the direct and indirect effects of a project on the following
factors:
• human beings, fauna and flora;
• soil, water, air, climate and the landscape;
• material assets and the cultural heritage;
• the interaction between the factors mentioned in the first, second and third indents.`;

Further details on environmental protection and compliance with the respective Bulgarian and EU
legislation will be provided with the special guidelines and application forms prior the start up of the
grant scheme, as well as the detailed selection and evaluation criteria for individual grants.

10. Rates of return

Rates of return can only be calculated for those individual projects approved under this project. The
selection criteria will seek to select projects that provide significant rates of return based on
economic benefits such as increased employment and income from tourism.

Individual grant projects will create considerable economic and social benefits – determinates in the
project selection criteria. Therefore they will contribute to creation of a sound entrepreneurial
environment and initiate economic growth across Bulgaria.

Public financed projects in principle will not bring profits to the investor. They are supported in
order to be economically viable because they create benefits to the specific location, especially they
will contribute to the safeguarding and to the creation of employment.
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11. Investment criteria
11.1. Economic Development and Catalytic effect:
The expected economic development and catalytic effects of this project will include:
• A minimum of 10% increase in eco-tourism -related revenues;
• The development of permanent and seasonally, direct and indirect employment opportunities- an
estimated 150 jobs created and/or safeguarded;
• The attraction of new tourism target groups - especially from outside Bulgaria;
• The development of products that will be permanently competitive internationally;
• The development of complex service packages in eco-tourism;
• The encouragement of investments in quality and select products and the provision of
competitive investment opportunities in eco-tourism;
• An extension of the Bulgarian tourist season – outside of the coast summer and winter mountain
tourism seasons.

The Phare contribution will promote the development of tourism sector in the selected areas and
contribute to the restructuring of the tourism infrastructure, to SMEs and employment opportunities.
Without the Phare support this development would take place much later but not such a
comprehensive and complementary form as envisaged in this project.

11.2. Co-financing:
The necessary co-financing for this project will be provided from the Bulgarian national budget,
municipalities and the districts will also take part in the co-financing:

11.3. Additionality:
No other finances will be displaced by this Phare intervention.

11.4. Project readiness and Size:

Technical assistance will be provided, from PPF 2000 to prepare detailed operational guidelines and
selection criteria for the grant scheme, assist in the selection of the potential projects to be financed
under the scheme, give TA on the preparation of individual tender packages for construction works,
once selected.

11.5. Sustainability:
The Ministry of Economy, and other Ministries together with the municipalities involved assure the
sustainability – a precondition in project selection. Sustainability will depend upon the future
capacity of the Bulgarian Government to finance such schemes without external aid donor support.
It is considered unlikely that such a capacity will exist prior to 2006. The envisaged upgrading and
development of infrastructure should be operational over the long term, however contracts will
ensure that the direct beneficiaries will allocate sufficient funds to keep the infrastructure in good
condition. – a legislative requirement of the Municipality Ownership Act 1996. A sustainable and
safe operation of the eco-tourism sites and the surrounding tourism facilities will be secured through
operational guidelines developed by the Ministry of Environment and Waters, Ministry of Economy
and other appropriate organisations.

11.6. Compliance with state aids provisions:

The project is in accord with item 92(3)a of the Treaty of Rome. All actions financed by Phare will
be carried out in line with the Phare Practical Guide and comply with the state aid agreements.
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11.7. Contribution to National Development Plan
This project matches the tourism development objectives of the National Development Plan (see
Second Development Axis: Programme Two). Addressing the second tourism priority of Ecological
tourism – the first priority Cultural Tourism was addressed in Phare 2001 programme. The project
addresses the measures identified of:
- Diversification of tourist product and improvement of its quality;
- Marketing and advertising to improve the information on tourism potential and products;
- Development of skills and qualifications of staff in tourism;
- Enhancing new tourist destinations.

Similarly, the project matches the objectives and measure provisions of the Fifth Development Axis
– Attaining Balanced and Sustainable Regional Development.

12. Conditionality and sequencing

The project will start after the signing of the financial memorandum between Bulgaria and the
European Union, which is foreseen by the end of 2002. The project will be subject to an inter
ministerial Memorandum of Understanding between the Ministry of Economy and the Ministry of
Environment and Waters, and the Ministry of Agriculture and Forestry, specifying their respective
responsibilities for the project.

The completion of project selection criteria established as part of a PPF initiative prior to the
commencement of the project.

Phare assistance will be conditional on the development of effective mechanisms for inter-Ministerial
and agency co-operation.
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ANNEX 1
PHARE LOG FRAME

LOGFRAME PLANNING MATRIX FOR Programme name and number

Project
Development of Bulgarian Eco-tourism Contracting period expires Disbursement period expires
30 November 2004 30 November 2006
Total budget : Phare budget :
5.30 MEUR 4.00 MEUR

Overall objective Objectively verifiable indicators Sources of Verification

Wider objective • Increased contribution of the tourist sector • National Statistics assessed by the NSI and the
• Sustainable growth of the sector through industry to the national GDP National Bank
improvement of the international market positions of • 10% increase of incomes in the supported • IMF Statistics
the Bulgarian tourist industry regions / districts / municipalities • EUROSTAT
Closer objective
• Diversification of the tourist products;
• To expand the geographic spread of tourism and its
seasonal distribution;

Project purpose Objectively verifiable indicators Sources of Verification Assumptions

To improve the quality and variety of services in the eco- • 10 % increase number of tourists visiting the • National Statistical • Development trends in the EU
tourism and introduce sustainable nature-oriented economic respective tourist sites (Bulgarian and Institute/Regional Statistical tourist market
activities within the protected areas in Bulgaria. Foreign) Offices • Better conditions for tourist
• Increased diversity (%) of economic activity • Annual Reports and Analyses development (New Act on
in the area; provided by the various Tourism, other legislation)
• Number of commercial contacts for local institutions in the sector • Effective cooperation with the
firms increased due to the eco-tourism (partners in the present tour-operators (Bulgarian and
activities. project) foreign)
• Number and percentage of the local • Project Evaluation Reports • Partnership established between
population that uses the park/protected area • Evidence from Tour the private tourist business and
increased; Operators the public institutions
• new market segments entered
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Results Objectively verifiable indicators Sources of Verification Assumptions

• Improvement of the tourist potential of Bulgaria - natural objects are • 15 projects launched and implemented at • Information collected and • The private business is
adopted for tourism (incl. better conditions for sustainable use of the the average amount of Euro 250,000; provided regularly by the PIU in compliance with the
natural heritage), specialized infrastructure for eco-tourism is • Some 2% increase in the regional/district reports, Steering Committee general priorities in
developed, tourism season prolomged employment in the sector; and EU authorities the sector and the
• Quality improvement of tourist services in the ecological sector; • Each eco-tourism site has an • Regional and national investments made by it
• An increase in rural and semi-urban area employment (permanent and environmental management plan, which statistics are in compliance with
seasonally, direct and indirect); meets the international environmental • Additional reports on the national policy for
• Strengthening the capacity of the MoE in implementing grant standard ISO 14001 compliance with the development of the
schemes in the field of tourism development. • An audit of ecological risk, environmental requirements – tourism in Bulgaria
environmental due diligence and audit, supervision, evaluation.
environmental management has been • Annual Reports of the
undertaken by a recognized National Parks/Protected
environmental professional and the Areas Authorities
recommendations have been
implemented.
• Maintenance, Conservation and
Appropriate Enhancement of Biological
Diversity in Forest Ecosystems

Activities Means Assumptions

The investment projects under the grant scheme are intended to improve the • Grant scheme (work contracts, supply of • Co-ordination between the
quality of environmental tourism infrastructure and to increase the potential of equipment) activities of the respective line-
such tourist facilities through the construction, rehabilitation and preservation • TA contract ministries in the
of associated buildings and/or infrastructure, national parks, public spaces and • Supervision Contract implementation of the planned
buildings, and any other complementary tourism sights. For example: activities;
- Better infrastructure for tourist visits – lighting, stairs and other • Linked activities of other
equipment, zones for information and business, sign posting, etc.; donors’ programmes in the
- Implementation of systems for monitoring and security; field
- Buildings, technical equipment, information systems in Tourism • Activities of NGO’s in the
information centres; tourist sector
- Building a modern tourism infrastructure - systems of walks and treks,
zones for sport activities, etc within national and natural parks;
- ‘Green’ and ‘theme’ eco-paths;
- Implementation of new tourism products – mountain bike, photo
safaris, bird watching, rock climbing and caving;
Implementation of comprehensive procedures for the effective management of
the Eco-tourism Grant Scheme
 15

ANNEX 2 - IMPLEMENTATION CHART

Project: Development of Bulgarian Eco-tourism
2002 2003 20 04 20 05 2006

calendar months M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

activities
PIU operational X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
PSC operational X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
Call for proposals X X X X X
Project selection X X X X X X X X X
Works tendering X X X X X X X X X X X X
Contract awards X X X X X X X X X
Construction works X X X X X X X X X X X X X X X X X X X X X X X X
Monitoring and evaluation X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X
ToRs preparation for the supervision X X X
Launching a FWC procedure X X X X
Contracting X X
Start supervision activities X X X X X X X X X X X X X X X X X X X X X X X X X X X
Launching a FWC procedure for TA for
PIU X X X
Contracting X
Start TA activities X X X X X X X X X X X X X X X X X X X X
End of project X
 16

ANNEX 3
CONTRACTING AND DISBURSEMENT SCHEDULE BY QUARTER

Project Title: Development of Bulgarian Ecotourism

Cumulative contracting schedule by quarter in Euro m (provisional)

Components Total
2003 2004 2005 2005

I II III IV I II III IV I II III IV I II III IV

4.9 4.9 4.9 4.9 4.9 4.9

Grant Scheme Contract
0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
TA to PIU
0.2 0.2 0.2 0.2 0.2
Supervision Contract
0.2 0.2 0.2 5.1 5.3 5.3 5.3 5.3 5.3
Total contracting:

Cumulative disbursement schedule by quarter in Euro m (provisional)

Components Total
2003 2004 2005 2005

I II III IV I II III IV I II III IV I II III IV

0.3 0.7 1.2 1.7 2.3 2.9 3.5 4.1 4.5 4.7 4.9 4.9
Grant Scheme Contract
0.01 0.03 0.07 0.11 0.15 0.18 0.19 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
TA to PIU
0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 0.2 0.2
Supervision Contract
0.01 0.03 0.07 0.11 0.18 0.9 1.43 1.96 2.58 3.2 3.82 4.44 4.86 5.08 5.3 5.3
Total disbursement:
 17

Annex 4
List of potential eco-tourism projects

Below is a listing of indicative projects [given by the Bulgarian Association for Alternative Tourism
(BAAT), Bulgarian Association for Rural and Ecological Tourism (BARET) and the National Association
of Municipalities] , which are currently in state of preparedness, from which applications are expected to
be received for grant funding. These projects are located within, or are adjacent to Bulgaria’s National
Parks, namely; the Pirin National Park, Rila National Park, Vitosha National Park, Vratchansky Balkan
National Park, Vratchansky Karst Nature Reserve, Central Balkan National Park, Sinite Kamani National
Park, Shoumen Plateau National Park, Roussenski Lom National Park , Strandzha National Park and the
Ropotamo Reserve.

No. Project name Municipality Ownership Total

investment
EURO
1 Sustainable development in Gorna Arda region District Smolian State 100 000
under improvement the alternative forms of
tourism
2 Tourist service and information centers District Smolian, Rodopi State 80 000
development in Banite, Rakitovo, Dospat and association of municipalities
Lacky municipalities
3 Eco paths and zones for recreation projects and District Smolian, Rodopi State 55 000
constructions association of municipalities
4 New tourism services for Rodopi Mountain region Rodopi association of State 130 000
municipalities
5 Eco-routes programme for South-West border of Pirin tourist forum State 150 000
Bulgaria for development of eco tourism in
Vlahina, Maleshevska, Ograzden, Slavianka and
Belasitza Mountains
6 Pirin Mountain National Park Pirin tourist forum State 200 000
7 Development of cognitive tourism in protection Bulgarian – Switzerland State 100 000
territories project programme
8 Development tourism in Devin region project Business center Devin, State 210 000
9 Development alternative tourism in village Trigrad Devin Municipality State 150 000
project
10 Information services project for tourism in Rodopi Rodopi association of State 320 000
Mountain municipalities
11 Public works in Devetashka Cave project Lovetch Tourism Council State 100 000
12 Rehabilitation works in tourism objects: Saeva Iablanitza State 150 000
dupka and Bezdanen Pchelin Caves
13 Route “Karvavoto pismo” Panagiuriste State 60 000
14 Creation of eco paths network in East Rodopi Kardzaly State 150 000
Mountain region
15 Sub-tropical center development in Ivailovgrad Ivailovgrad State 200 000
16 Chuprene eco path Chuprene State 65 000
17 Giurgich eco path Ruzintzi State 80 000
18 Berkovitza eco path Berkovitza State 70 000
19 Biala reka eco path Varshetz State 55 000
20 Vratza geo path Vratsa State 100 000
 18

21 Gabrovnitza eco path Svoge State 60 000

22 Boevska eco path Svoge State 70 000
23 Liutibrod geo path Mezdra State 50 000
24 Ribarishka eco path Teteven State 50 000
25 Karlukovo eco path Lukovit State 60 000
26 Topla eco path Troian State 80 000
27 Vidimska eco path Apritzi State 60 000
28 Devetashka eco path Lovech State 50 000
29 Troana Cave in village Vishvograd Pavlikeni State 60 000
30 Veliko Tarnovo eco path Veliko Tarnovo State 60 000
31 Stata reka eco path Antonovo State 50 000
32 Goliamata reka eco path Antonovo State 75 000
33 Preslavska eco path Preslav State 90 000
34 Bilka eco path Ruen State 55 000
35 Lopushanska eco path Dalgopol State 65 000
36 Kamchiiska eco path Dolen Chiflik State 55 000
37 Pobity kamani geo path Devnia State 90 000
38 Dobruzanska eco path Kavarna State 80 000
39 Demir baba teke – Sveshtarski mogily inherited Isperih State 60 000
path
40 Medvenska eco path Kotel State 60 000
41 Slivenska eco path Sliven State 70 000
42 Strandja eco path – Malko Tarnovo – Tzarevo Malko Tarnovo State 100 000
43 Magliz eco path Magliz State 60 000
44 Tazanska eco path Pavel bania State 50 000
45 Kaloferska eco path Karlovo State 60 000
46 Strelchanska eco path Strelcha State 70 000
47 Sredna Gora Mountain non life museum Panagiurishte State 180 000
48 Studen kladenetz eco path – Stambolovo - Stambolovo State 60 000
Krumovgrad
49 Tatulska eco path Momchilgrad State 70 000
50 Bely plast geo path Kardzaly State 55 000
51 Kardzaly geo path Kardzaly State 80 000
52 Trakiisky nishi inherted path Kardzaly State 75 000
53 Ustrenska geo path Dzebel State 80 000
54 Kushla eco path – Zlatograd - Kirkovo Zlatograd and Kirkovo State 70 000
55 Borovishka geo path – Ardino – Kardzaly Ardino – Kardzaly State 70 000
56 Balantash inherited path - Asenovgrad – Banite Asenovgrad State 55 000
57 Lackinska geo path Lacky State 50 000
58 Sushishka eco path – Lacky – Asenovgrad Lacky State 50 000
59 Zabardenska eco path Chepelare State 60 000
60 Kupenska eco path Peshtera State 55 000
61 Devinska eco path Devin State 60 000
62 Dormanova geo path Bansko State 80 000
63 Obidim – Kremen eco path Bansko State 70 000
64 Breznishka geo path Gotze Delchev State 70 000
65 Kaninska eco path Garmen State 50 000
66 Lilianovska eco path Sandansky State 70 000
67 Ilindenska goe path Strumiany State 60 000
 19

68 Shegavska eco path Kiustendil State 60 000

69 Elenishka eco path Kiustendil State 50 000
70 Gorishka eco path Sapareva bania State 80 000
71 East Rodopi Mountain geo museum Madzarovo State 180 000
72 Chiprovtzy geo museum in Stara planina Mountain Chiprovtzy State 210 000

73 Rila Mountain geo path Rila State 70 000

74 Skakavitza – Dzerman eco path Sapareva bania State 60 000
75 Davidkovska eco path Ardino State 55 000
76 Stara reka eco path Zlataritza State 60 000
77 Belgradchik geo path Belogradchik State 90 000
78 South Rodopi Mountain eco path Borino State 70 000
79 Ivanovska inherited path Ivanovo State 100 000
80 Provadia zoo attractive complex Provadia State 300 000
81 Shankaia eco path Batak State 70 000
82 Bozia most geo path in village Liliatche Vratza State 50 000
83 Diushun dere eco path Krumovgrad State 60 000

Total 7 250 000

Note:
The property is mainly “State” since the area is under the State Forestry Fund Land. At some of the places we have
also a mixed property state/municipality.
 20

Annex 5
Draft Project Selection Criteria

Whilst list of potential projects have been identified – at Annex 4, the Ministry of Economy is responsible
for the formal announcement and publication of the project. The districts and municipalities will be
informed directly, and also through the media.

Limited assistance in formulating the applications will be given to applicants through the Ministry of
Economy – PIU or Directorate “National tourism policy”, and external experts financed by the PPF
project.

The application procedure will be that districts/municipalities pass on endorsed applications to the PIU,
who will submit them to independent experts for appraisal of the ecological impact, financial, and other
qualities of projects. The experts will make recommendations as to whether or not the project should be
funded. All projects will then be passed for final evaluation.

A Programme Steering Committee will be established. The Committee will advise the PIU on important
implementation issues such as: the adoption of the selection criteria (proposal for the selection criteria see
below); the continued relevance of the selection criteria for project applications; monitoring the progress
of the implementation of the programme; commissioning external evaluations to check if the programme
is achieving its objectives in an effective and efficient manner.

Project Evaluation Committee, the exact composition of which will be determined by the Steering
Committee, assesses the projects. Nevertheless, it is envisaged that members include representatives from:
- Ministry of Economy - 3 representatives (incl. The Chairman)
- Ministry of Regional Development and Public Works - 1representative
- Ministry of Environment and Waters– 1 representatives
- Ministry of Agriculture and Forestry – 1 representatives
- Tourism and/or Ecological related organizations – 2 representatives
- EU Delegation (non-voting).

The role of this committee will be to:

• Identify the most qualified projects to be funded;
• Define specific conditions that may be attached to the award of funding in respect of
individual applications;
• In the event of rejecting a proposal, provide clear and concise reasons for rejection to
the applicant (this can help applicants to revise their proposal or to submit better
proposals in the future).

The following aspects will be taken into consideration for the selection:

There should be a weighting of the different aspects to take under consideration the importance of the
aspects.
1. The following points should be fulfilled (exclusion criteria):
• The project proposal should be part of the regional development plans, district plans
and communal plans or should fit in the framework of these plans
• The project should have, by time of commencement, received a positive feasibility
report and environmental assessment report
• The project proposal fits in the National Development Plan especially in the parts
concerning tourism development
• The ecological site should be owned by state or municipalities or an NGO

Preferences would be given to the projects elaborating a plan and proposing alternatives for partial
investment of the income from tourist activities for future development and maintenance of the site or to
the improvement of associated sites.
 21
2. Preference is given to projects which best fulfil the following points - these points should be weighted
(proposal: maximum total = 100 points).

1. Ecological Impact Points = 30

- Focuses on directly and personally experiencing nature;
- Provides opportunities to experience nature in ways that lead to greater
understanding, appreciation and enjoyment;
- Represents best practice for environmentally sustainable tourism;
- Positively contributes to the conservation of natural areas;
- An informational, interpretational, training and educational element;
- Present the biological variety;
- Ensure a minimal negative influence on nature and social and cultural
environment;
2. Tourist impact Points = 30
- Ensure an intensive interaction of tourists with nature;
- Involve small tourist groups (5-10 people);
- Small tourist companies must be available on the territory;
- Projects in areas having other significant tourist attractions;
- The existence of sufficient accommodation facilities in the proposed area;
- Potential number of visitors attracted through creation of an marketable
tourism product or potential number of extra visitors attracted through
improvement of the attractiveness of an existing tourism product
- Provides constructive ongoing contribution to local communities;
- Is sensitive to and involves different cultures, especially indigenous
cultures;
- Consistently meets customer expectations;
- Is marketed accurately and leads to realistic expectations.
3. General Social & Economic Impact Points = 40
- the existence of a recent business plan/strategic plan and a marketing
plan, which provides a justification for the proposed activity and shows
the sustainability of the project;
- creation of jobs and new tourism businesses;
- generation of supplementary income sources for the local society;
- the project should demonstrate strong support through the local
administration, private organisations, private tourism sector and the local
population – local partnership principle;
- sustainability and local commitment to the preservation of public assets
and infrastructures;
- the management / implementation capacities of the applicant;
- projects complementary to other Phare ESC schemes;
- projects willing to invest their own finance

The general rules of procedure of the Evaluation Committee are to be laid out in operational guidelines (to
be drawn up under an associated PPF).
 22
Annex 6
Legislation
The ownership and sustainability of the grant-aided projects envisaged under this project are subject to:

To the Law for Protected Areas regulates the different categories of protected areas, the function of the
protected areas and the regime for their conservation, use, promulgation and administration.

Categories
The Law distinguishes the following categories of protected areas:
- Reservation
- National park
- Natural landmark
- Supported reservation
- Natural park
- Protected locality

Ownership
The national parks and the reservations are exclusive state property, whereas the other categories of
protected areas can be property of the municipality or private property.

The state’s and the municipalities’ ownership (excluding the exclusive state property) of forests, lands
and water areas which are part of the protected areas under the terms of this law, is public. The regulations
of The Law for Protected Areas are relevant to all of the protected areas regardless of the ownership of the
forests, lands and water areas in them.

The Act for Municipality Ownership – State Gazette 44 of 1996, with subsequent amendments / revisions, to
that of State Gazette 34 of 6th April 2001.

The Act for State Ownership - State Gazette 92 0f 16th November 1951, with subsequent amendments to
State Gazette 59 of 2000.

These two Acts also detail the requirements for the maintenance and ‘sustainability’ of equipment and
infrastructure.

Administration
A specific regime for conservation and use has been established for each of the categories of protected
areas. The administration of each category is organized according to an individual Administration plan.
The owners and those using the forests, lands and water areas in the protected areas are obliged to follow
the regulations of this law. The construction, maintenance and use of sites in the protected areas is taking
place in correspondence with the regime for conservation and use and according to the Administration
plan for the protected areas.

The Ministry of Environment and Water and its local authorities organizes and fulfills the administration
of the protected areas, the assignment of tasks for maintenance and rehabilitation, controls the tourist
activities and the conservancy of the protected areas, which are exclusive state property.

Specific National Park Directorates are established for the administration of the national parks. The
national parks are self-dependent legal entities, financed by the state budget and are under the direct
subjection of the Ministry of Environment and Water.

The Ministry of Agriculture and Forestry, as well as the physical persons, the legal entities or the
municipalities – owners of forests, lands and water areas in the protected areas (excluding the exclusive
state property) fulfill their managing and conservancy in conformity with the regulations of this law and
other particular laws.
 23

Annex 7
REFERENCES

Ø National survey on foreign visitors to Bulgaria (carried on twice per year, since 1999);

Ø Developing and Eco-tourism Policy, Agenda 21 Chapter 15: Conservation Of Biological

Diversity, Information Provided by the Government of Bulgaria to the
United Nations Commission on Sustainable Development, 1997

Ø "Conserving Biological Diversity in Bulgaria: The National Biological Diversity

Conservation Strategy", Biodiversity conservation & economic growth project (sponsored
by USAID);
Ø The Tourism Industry in Bulgaria, Alvin Rosenbaum (USAID);

Ø Tourism Infrastructure in Bulgaria, Emily Taneva, 1999

Ø Competitive Advantages of Regions, Sofia, IME – Open Society Publishing House, 1998

Ø Regional Information System for monitoring the tourism demand in the Pirin region
(sponsored by BKHF);

Ø Study on the Economic Impact of Tourism in Bulgaria, EU Tourism Development

Programme 1999;
Ø International Year of Eco-Tourism 2002, Concept Paper, WTO;

Ø Government Programme, Chapter 3 “Sustainable Economic Development”, Sub-chapter 3

– Tourism;

Ø Government Programme; Action Programme “Industry, Tourism and Trade”, Priority

Three: “Development of Tourism as a Leading Sector in the National Economy and
Effective Instrument for Social-Economic Growth;

Ø Tourism – the phenomena of the present time; International Tourist Conference “Bulgaria
– Country of dreams”, 2001
Ø NEDP 2000-2006

Ø Draft Regional Operational Programme