The Fund of Funds has launched market consultations regarding the structuring of three financial instruments. The total public resource allocated for these instruments exceeds BGN 155 million, co-financed by the European Union. Of this, BGN 90 million BGN is designated for the Digitalization instrument, supported by the "Competitiveness and Innovation in Enterprises" program for 2021-2027 (CIE). The other two instruments are funded under the "Environment" program for 2021-2027 (EP), with BGN 37.3 million allocated for the "Water" priority and BGN 28 million for "Waste."
The Digitalization instrument is expected to be implemented as a first loss portfolio guarantee, which partially covers the credit risk for financial intermediaries on the financing provided to the target final beneficiaries.
The aim of the instrument is to provide investment and working capital financing, as well as financial leasing for micro-enterprises, SMEs, and mid-cap enterprises under favorable conditions to stimulate investments for the implementation or creation and development of projects in digital technologies and Industry 4.0 solutions. The investments should focus on the optimization and automation of existing processes to improve efficiency, productivity, and competitiveness of the enterprises.
The structure of the financial instrument under the "Water" priority provides for risk-sharing financing and/or individual guarantees to partially cover the credit risk for financial intermediaries. The instrument aims to provide investment and working capital loans, and financial leasing under favorable conditions for eligible investments in the water and wastewater sector. Priority will be given to six newly consolidated water operators: Veliko Tarnovo, Gabrovo, Pleven, Sofia Region, Targovishte, Haskovo, and the water operator in Dobrich. Projects of consolidated water operators that are divided into phases between the 2014-2020 and 2021-2027 programming periods may also be financed, as well as eligible investments of other consolidated water operators that do not have secured grants.
The financial instrument under the "Waste" priority is expected to be structured as risk-sharing financing, which will be provided to financial intermediaries. The goal of the instrument is to ensure investment and working capital loans, and financial leasing under favorable conditions for target final beneficiaries and investments aimed at recycling measures for household, industrial, and construction waste carried out by recycling companies, as well as measures related to municipal solid waste management under the Waste Management Act.
Meetings for each of the three instruments will be held with stakeholders between January 22 and February 5, 2025, after pre-registering through the following link - HERE. It will be possible to have consultations on more than one instrument in a single meeting.
More detailed information about each of the three financial instruments and Indicative Technical Specifications can be found at the following links:
Digitalization: HERE
Waste: HERE
Water: HERE
For any questions or inquiries, or in case of technical difficulties, please contact us at: office@fmfib.bg
