Nearly 100 Bulgarian municipalities explored new opportunities for financing sustainable urban development projects during the forum "Next-Generation Municipal Strategies: Participation, Financing, Continuity," held in Sofia on July 1 and 2, the Fund of Funds announced.
Through the "Urban Development Fund" financial instrument, 262.5 million euros in public resources will be distributed in accordance with the operational agreements signed by the Fund of Funds. The funds will be implemented during the 2021-2027 programming period through two selected financial intermediaries: the "Sustainable Cities Fund" LLC and the "Green and Smart Urban Development Fund" Consortium.
"Today, we are mobilizing over 260 million euros in public resources which, combined with attracted private capital, will lead to investments exceeding 400 million euros. Investments in more sustainable mobility; investments in education, healthcare, tourism, sports, culture, and social services; and investments in industrial zones—investments that have the potential to qualitatively transform our surrounding environment," emphasized Deputy Minister of Economy, Investment, and Industry Krasimir Yakimov. In his greeting, he added that European funds must reach businesses and people to support the creation of more modern infrastructure, a more competitive local economy, and a better urban environment.
The total support is expected to reach 400 million euros when the 262.5 million euros in public resources are augmented by the private financing attracted by the intermediaries. These funds are provided by the EU-co-financed "Regional Development" Program 2021-2027 and the "Competitiveness and Innovation in Enterprises" Program 2021-2027.
By the end of 2029, the financial instrument will provide long-term loan financing for private and public sector projects supporting regional and sustainable urban development. A significant new development is that, under the "Regional Development" Program 2021-2027, for the first time, there is an option to combine loan funds into a single operation with a non-repayable financial grant provided by the financial intermediaries.
The implementation structure of the instrument includes three funds with different territorial scopes, operating on a competitive basis: one for Northern Bulgaria and two for Southern Bulgaria. The distribution is as follows:
- The "Sustainable Cities Fund" LLC will manage the fund for Southern Bulgaria, as well as one of the funds for Northern Bulgaria. The members of this LLC include "Bulgarian Consulting Organization" EOOD, "Sustainable Urban Development Fund" EAD, "FLAG Fund" EAD, and UNICredit Bulbank AD.
- The "Green and Smart Urban Development Fund" Consortium, which includes "North West Development" EOOD and "UniCredit Bulbank" AD, will manage the second fund for Northern Bulgaria.
These European urban development funds provide new opportunities for modernizing infrastructure and services in the municipalities of the Burgas region.
Support under the "Regional Development" Program is aimed at 40 medium and small municipalities, as well as 10 large urban municipalities. The focus is on investments in energy efficiency, green urban environments, sustainable mobility, and economic activity, as well as infrastructure for healthcare, education, social services, culture, sports, and tourism. On the other hand, resources under the "Competitiveness and Innovation in Enterprises" Program 2021-2027 are directed toward mid-cap companies and small and medium-sized enterprises operating in functional proximity to industrial parks or within them (whether new or existing).