Тhe Fund Manager of Financial Instruments in Bulgaria (FMFIB, also known as the Fund of Funds) has signed operational agreements with two financial intermediaries for the management of the new “Urban Development Fund” financial instrument for the 2021–2027 programming period. The agreements, worth €262.5 million, were signed with two specially formed partnerships: the “Sustainable Cities Fund” (DZZD) and the “Green and Smart Urban Development Fund” Consortium.
How the resource is allocated
The instrument will operate through three separate funds covering different territories — two for Northern Bulgaria, selected on a competitive basis, and one for Southern Bulgaria. The “Sustainable Cities Fund” will manage one of the Northern Bulgaria funds as well as the Southern Bulgaria fund, while the “Green and Smart Urban Development Fund” Consortium will manage the second Northern Bulgaria fund.
The “Sustainable Cities Fund” partnership includes United Bulgarian Bank (UBB), the FLAG Fund, the Sustainable Urban Development Fund, and the Bulgarian Consulting Organization. The “Green and Smart Urban Development Fund” Consortium includes UniCredit Bulbank and Nord West Development.
Scale of financing
The total public resource for the instrument — €262.5 million — comes from the “Regions Development” Programme 2021–2027 (RDP) and the “Competitiveness and Innovation in Enterprises” Programme 2021–2027 (CIEP), both co-financed by the European Union. With additional private financing mobilized by the intermediaries, the total resource available for support is expected to reach up to €400 million. Financing will be provided in the form of long-term loans available until the end of 2029. For the first time, projects under the Regions Development Programme will be able to combine loan financing with non-repayable financial assistance within a single operation.
Who can benefit
Support under the Regions Development Programme covers 10 large and 40 medium and smaller urban municipalities, targeting investments in economic activity, green urban environment, sustainable urban mobility, health, social and educational infrastructure, and tourism, sport and culture.
The Competitiveness and Innovation in Enterprises component is aimed specifically at businesses: it is intended for investments by small and medium-sized enterprises, as well as companies with mid-range market capitalization, in new and existing industrial parks and in their immediate functional vicinity — that is, for companies investing in production and logistics infrastructure, connecting infrastructure (roads, water supply and sewerage, energy and gas networks), as well as energy efficiency and digitalization initiatives.
Contact
Businesses and municipalities interested in applying for financing can contact the two selected financial intermediaries directly — the “Sustainable Cities Fund” partnership and the “Green and Smart Urban Development Fund” Consortium — for details on terms and the application procedure.
This news item has been created with the financial support of the Research, Innovation and Digitalization for Smart Transformation Program 2021-2027, co-financed by the European Union through the European Regional Development Fund under project BG16RFPR002-1.002-0001 -C01 “Accelerated digitalization for SMEs in the Central Region through the creation and development of EDIH.” The Regional Innovation Center “Ambitious Gabrovo” bears full responsibility for the content of the document and under no circumstances can it be assumed that this document reflects the official position of the European Union and the managing authority.
