The Fund of Funds has selected the Fund for Sustainable Cities as the financial intermediary to manage BGN 374 million in public resources under two Urban Development Funds (UDFs) for Northern and Southern Bulgaria. The resources are provided under the “Regional Development” Programme (RDP) 2021–2027 and the “Competitiveness and Innovations in Enterprises” Programme (CIEP) 2021–2027, co-financed by the European Union through the European Regional Development Fund (ERDF).
The financial instrument – the Urban Development Fund – will provide support until the end of 2029 in the form of loans for eligible projects across the country.
In line with recent regulatory changes which aim to facilitate access to finance for final recipients, the eligible projects under the RDP will receive funding through a combination of loans and grants, both provided by the financial intermediary.
The Fund of Funds will make public resources available in the form of loans and portfolio guarantees, enabling the financial intermediary to attract additional private capital. As a result, the total funding which will reach the final recipients through the two UDFs will amount to nearly half a billion BGN.
Under the RDP, support is available for public and private projects that promote economic activity, sustainable urban mobility, the improvement and development of health and social services, education, culture, sports and tourism, energy efficiency in buildings, green urban environment and other measures..
The resources under the CIEP are aimed at investments by SMEs and mid-cap companies located in new or existing industrial parks and in other locations in functional proximity to them.
The Fund for Sustainable Cities is a partnership which brings together the expertise of the Fund FLAG EAD, the Fund for Sustainable Urban Development EAD, the United Bulgarian Bank AD, and the Bulgarian Consulting Organisation EOOD. The partners have a proven track record in implementing urban development financial instruments in the previous programming periods – under the JESSICA Initiative 2007–2013 and the Regions in Growth Operational Programme 2014–2020.
Projects financed under these two programmes include Vuzrazhdane Park in Sofia, the ancient city of Heraclea Sintica in Petrich, Yambol Retail Park, the World of the Thracians in Kazanlak, the Centre for Contemporary Art and Library in Burgas, the Balkan Sports Complex and Training Centre in Sofia, and many others.
