The Executive Director and Chairman of the Management Board of the Fund of Funds, Alexander Georgiev, held a working meeting with the Mayor of Troyan, Ms. Donka Mihaylova, to present current financial instruments available to the public sector and businesses in the municipality of Troyan.
During the meeting, the Urban Development Funds (UDF) 2021-2027 instrument was presented, with a total budget of BGN 513 million, financed under the Development of Regions Program (DRP) and the Competitiveness and Innovation in Enterprises Program (CIEP), co-financed by the EU.
Alexander Georgiev emphasized that 83% of the DRP resources are directed outside Southwestern Bulgaria, where the municipality of Troyan is located. He also explained that the CIEP resources are directed towards investments by SMEs and companies with medium market capitalisation within new/existing industrial parks and in functional proximity to them.
Particular attention was paid to opportunities for energy efficiency and renovation of residential and public buildings. The municipality of Troyan is included in the list of 40 medium-sized and smaller urban municipalities in Northern Bulgaria that are eligible to apply for funding. The target end recipients include residential buildings, municipalities, universities, student and school dormitories, as well as public buildings in the health, social, educational, and cultural infrastructure.
During the meeting, the Executive Director of FoF informed Ms. Mihaylova about the funding opportunities under the "Portfolio Guarantee with Loss Cap for Circular Economy" instrument under the "Competitiveness and Innovation in Enterprises" Program 2021-2027, co-financed by the European Union through the European Regional Development Fund.
The portfolio guarantee will be provided by FoF to intermediaries and will partially cover the risk of loss up to 80% on the loan to the final recipients until a 20% loss ceiling is reached at the portfolio level. The selected intermediaries should provide resources (form a credit portfolio) of over BGN 1 billion, which will be used to finance SMEs and large enterprises on favorable terms for investments aimed at achieving energy efficiency and introducing circular production models.
Intermediaries can provide, along with financing, non-repayable financial assistance in the form of technical support for preparing an energy audit and/or as a capital discount to repay part of the loan after the investment has been completed and the results achieved have been reported.
During the working meeting, an overview of the projects already implemented in the municipality of Troyan was also presented. Since 2020, the Fund of Funds has provided over BGN 3.4 million in public and private resources to 12 final beneficiaries from the municipality of Troyan under OPIC and OPHRD.
The supported projects cover a wide range of activities, from the production of food supplements to the trade in construction materials and petroleum products. A significant part of the funding is directed towards manufacturing companies, including furniture production, the pharmaceutical industry, and garden ceramics. Projects in the field of renewable energy sources, construction of photovoltaic installations, etc. have also been financed. This diversity demonstrates the potential of the local economy and the willingness of entrepreneurs to invest in the development of their activities.
Alexander Georgiev emphasized that actual lending under the new instruments is expected to start at the end of 2025 and the beginning of 2026.
The two sides agreed to continue their cooperation, regularly exchange information on new financing opportunities, and hold information meetings for interested end recipients in Troyan and the region.
Photo: Municipality of Troyan
