The Fund of Funds (FoF) and DSK Bank have signed an Operational Agreement for the implementation of the financial instrument “Waste Management” under the Environment Programme 2021–2027, co-financed by the European Union. The instrument is structured as a risk-sharing financing facility and aims to facilitate access to finance for investments in the waste management and recycling sector.
The public funding of EUR 14.4 million will be complemented by at least 30% private financing provided by DSK Bank. As a result, the total resources available under the instrument are expected to exceed EUR 19 million.
Support will be provided through investment loans and complementary working capital financing related to the implementation of the investment, offered on preferential terms to final recipients.
The resources will be directed towards financially viable projects for:
· the construction, expansion and/or upgrading of municipal and regional systems for the separate collection and recycling of biodegradable waste;
· increasing waste recycling capacity, including for municipal, industrial and construction waste;
· other eligible activities in line with the objectives of the Environment Programme.
Eligible final recipients under the instrument include municipalities and their municipal enterprises, as well as private sector companies engaged in the recycling of non-hazardous waste, in accordance with the applicable regulatory framework.
The instrument is designed to help address the financing gap for investments in sustainable waste management and to support the achievement of national and European environmental objectives. At present, the “Waste Management” financial instrument is the only specialised financial product on the Bulgarian market dedicated entirely to the waste sector. It provides targeted support for projects in an area with well-established investment needs and will contribute to achieving the objectives of the National Waste Management Plan 2021–2028.
DSK Bank has extensive experience in financing public and private investment projects and possesses the necessary capacity to manage financial instruments, enabling the timely launch of the implementation of the instrument.
The investment period will run until 31 December 2029.
