Bulgaria's regional development ministry says it has more than 1 billion euros lined up under the 2021-2027 Regions Development Programme for towns and areas hit hardest by the closure of coal-fired power plants.
This follows our earlier report on the 262.5 million euros the Fund of Funds has earmarked for urban development. Now the ministry has explained in more detail how the money will be split up and what it will pay for.
That 262.5 million euros in public money runs through the Urban Development Fund financial instrument and comes from the Regions Development Programme and the Competitiveness and Innovation in Enterprises programme 2021-2027. If the intermediaries also bring in private funding, total investment could reach as much as 400 million euros.
The scheme has three funds: two for northern Bulgaria and one for the south. The two northern funds were picked through a competitive process. Fifty municipalities can apply — 10 large towns and 40 medium-sized and smaller ones.
The loans run long-term, until the end of 2029, and go toward both municipal and private projects. One new feature is that a loan and a grant can now be combined in a single deal, so financing can be tailored to each project's needs.
Money will start flowing once Bulgaria's Fund Manager of Financial Instruments signs operating agreements with the two chosen intermediaries: DZZD Fund for Sustainable Cities and the Green and Smart Urban Development Fund Consortium.
The ministry says the money will go toward revamping urban areas, green infrastructure and energy efficiency. It will also pay for sustainable urban transport and for health, social and education facilities. Some of it will support culture, sport, tourism and local business in towns. The ministry expects the investment to pay off in the long run.
The remaining 600 million euros come under priority 4, "Just Transition," funded by the Just Transition Fund with matching money from the state budget. This money is set aside for the three coal regions: Pernik, Kyustendil and Stara Zagora.
These funds are also run by the Fund Manager of Financial Instruments. The money will reach recipients as loans and grants, channeled through intermediaries still to be chosen based on an investment strategy and business plan.
Small and medium-sized businesses in the coal regions have been allocated 110 million euros, with a deadline of 2029. Last week the programme's managing authority opened a draft methodology and selection criteria for public comment, under a scheme called "Diversification and Adaptation of Small and Medium Enterprises to the Economic Transition – NOVA."