Burgasbus: 5 Million Leva Loan for Electric Buses

Burgasbus, the municipal enterprise, plans to take advantage of long-term credit options to modernize public transport in Burgas.

According to a report submitted for discussion to the Municipal Council by the manager, Eng. Petko Dragnev, the company will seek a bank loan of up to 5 million leva.

The document, published on the Municipal Council"s website, details Burgasbus"s intentions for a significant investment in electric buses.

Loan for electric buses

The loan is intended to co-finance a project under the "Regional Development" Programme 2021-2027, implemented in partnership with the Burgas Municipality.

A key element of the project is the delivery and commissioning of two new 18-meter electric buses, which will be integrated into the existing electronic public transport management system.

The total value of this part of the project is 3,723,600 leva including VAT, with Burgasbus having committed to own financing of almost 2.2 million leva.

Expanding the electric fleet

But Burgasbus"s ambitions are not limited to this.

Part of the funds from the planned loan will be used to purchase an additional five 9-meter electric buses.

This will allow the replacement of outdated diesel buses, leading to the complete electrification of the fast bus line B1 – one of the busiest in the city.

The implementation of electric buses on line B1 will significantly reduce harmful emissions, as they will be charged from the company"s existing photovoltaic power plant.

Expectations are that this will have a positive impact on the environment and air quality in the city.

The financial stability of Burgasbus

The report highlights the stable financial condition of Burgasbus, which will allow servicing the debt with its own funds.

The company"s financial indicators are within the reference ranges, with a current ratio of 2.02 and a financial autonomy ratio of 2.16.

Annual loan repayment costs are expected not to exceed 2 percent of the company"s total revenue, ensuring the financial sustainability of the project.

Loan details

The proposed loan has a seven-year term, with the possibility of drawing down funds in tranches within 24 months.

The expected interest rate is up to 3.5%, without additional fees for early repayment.

The decision to approve the loan will be made at an upcoming meeting of the Burgas Municipal Council.

If approved, this will lead to a significant renewal of public transport and will be a step towards a more environmentally friendly and modern Burgas.