The Fund of Funds of Bulgaria presented new financing opportunities for sustainable urban development projects at the national forum “Next-Generation Municipal Strategies: Participation, Financing and Continuity”, held on 1–2 July 2026 in Sofia.
As a financial institution managing public resources through financial instruments, the Fund of Funds supports implementation of strategic investments with a great public significance by providing access to long-term, sustainable financing for both, public and private sectors.
The forum was organised by the National Association of Municipalities in the Republic of Bulgaria (NAMRB) in partnership with the European Urban Initiative (EUI) Secretariat and the Ministry of Regional Development and Public Works and brought together representatives of nearly 100 urban municipalities from across the country. Event’s agenda was focused on financing opportunities for integrated urban strategies and on preparing municipal teams to implement investment projects.
On the specialised "Financing the Future" session, Teodora Ivanova, Senior Expert for Regional Development Programmes, presented details and financing terms of the Urban Development Fund (UDF) in the 2021–2027 programming period. UDF is being funded under the Development of Regions Programme 2021–2027 and the Competitiveness and Innovation in Enterprises Programme 2021–2027, co-financed by the European Union.
Local authorities were introduced to financing opportunities available under the first two priorities of Development of the Regions Programme 2021–2027, which combine financial instruments with complementary grants within a single operation.
Under Priority 1: Integrated Urban Development targets ten major urban municipalities with a total budget of EUR 69.7 million, out of which EUR 41.8 million is to be provided through a financial instrument and EUR 27.9 million – as a grant.
Under Priority 2: Integrated Territorial Development covers forty urban municipalities with a total allocated budget of EUR 166.6 million, including EUR 100 million to be provided through a financial instrument and EUR 66.6 million – as a grant.
Under Competitiveness and Innovation in Enterprises Programme 2021–2027, additional EUR 36.2 million are provided for investments in enterprises, industrial parks and industrial sites.
The presentation highlighted advantages of financial instruments as a sustainable mechanism to support public investment. Key innovations of the current programming period were pointed out, among which: it is possible to combine low-interest loans with grants within a single operation; the territorial coverage of the instrument has been expanded to 50 urban municipalities. In addition to investments in urban infrastructure, transport, energy efficiency, culture infrastructure and sports infrastructure, new eligible sectors were presented, such as healthcare, social infrastructure and educational infrastructure.
Fund of Funds also presented achievements of financial instruments support in 2014–2020 programming period, which have clearly demonstrated long-term impact of that financing model. Urban Development Funds have supported 125 projects by a total committed resource of EUR 275 million, comprising public funding and additional private capital attracted. Among the supported projects pointed out, were such as the project for regenerating central urban area and bus station in the city of Pleven, for modernising Varna Zoo, for constructing a new swimming complex in the city of Plovdiv, as well as numerous other projects for renovating cultural, sports and public facilities across the country.
The forum brought together representatives of European, national and local institutions, including Ministry of Regional Development and Public Works, European Commission, World Bank, European Investment Bank, as well as municipal representatives and international experts.
Through an active dialogue with local authorities, Fund of Funds continues to play a significant role as an institution structuring and managing financial instruments for public investments. By providing long-term financing and while attracting additional private capital for the same purposes, the Fund of funds contributes to implementing sustainable projects which generate lasting economic and social benefits for Bulgaria.
