The Urban Development Fund (UDF) is an instrument funded through Operational Programme Regions in Growth 2014 – 2020, co-financed by the European Structural and Investment Funds, and is a follow-up to the JESSICA initiative from the previous programming period.
What is new in the current programming period is that financing will now be available to 39 municipalities, versus 7 in the previous one, and the amount of funds available is 5 times higher, i.e. BGN 353.3 million. Also, a part of the investments is earmarked for supporting cultural heritage and tourism across the country.
Intermediaries undertake to secure additional private resources in excess of 40 % of the financing. Thus the amount to be made available to the final recipients for the UDF is expected to be BGN 600 million.
UDF financing will be offered as loans with embedded guarantees.
Loans will be targeted at a wide range of potential final recipients, municipalities and municipal enterprises, private companies, public/private partnerships, individuals and others. The financial resources awarded will provide support for projects that improve the urban environment, promote economic growth in the regions and contribute to increasing energy efficiency.
Similar projects from the previous programming period include the renovation of the Vazrazhdane Park (Sofia), the rehabilitation of the Central Town Market (Stara Zagora), the reconstruction of the Yunashki Salon (Varna), etc.
The urban development funds are open to project ideas involving investments in the area of development of tourism that are linked with immoveable cultural property/-ies that are classified as heritage of ‘national or world significance’.
The intermediaries that will manage the UDF resources are:
- For the regions of Southern Bulgaria and the City of Sofia, the Fund for Sustainable Cities (FSC) Consortium, which includes the UBB, the FLAG Fund, the Sustainable Urban Development Fund and the Bulgarian Consultancy Organization.
- For the region of Northern Bulgaria, the Regional Urban Development Fund (RUDF), which is a company owned by Société Générale (majority stockholder), Elana Investment, Elana Holding and Balkan Advisors.
Current stage of the instrument: The funds are available to the final recipients.
Interested parties can refer their queries concerning loan terms and conditions to the experts of the two intermediaries, as well as to the Fund of Funds’ Coordination Unit, as follows:
For the regions of Southern Bulgaria and the City of Sofia, the Fund for Sustainable Cities (FSC) Consortium:
Address: 1, 6-ti Septemvri Str., 3rd floor, Sofia 1000, Bulgaria
+359 (0) 2 988 23 10
For the region of Northern Bulgaria, the Regional Urban Development Fund (RUDF):
Address: 73, Alexander Stamboliyski Boulevard, Sofia 1303, Bulgaria
tel. +359 (0) 2 937 06 00; +359 (0) 2 937 06 46
To contact the Coordination Unit, please use:
+359 (0) 2 905 52 39