The Fund Manager of Financial Instruments in Bulgaria EAD (FMFIB) is launching a market test on the Urban Development Fund (UDF), a financing instrument co-financed under Operational Programme Regions in Growth 2014-2020 (OPRG) from the European Regional Development Fund (ERDF). The purpose of the market test consultations is to get market feedback and factor it into the preparations for a call for the selection of financial intermediaries.
The OPRG support by means of financing instruments will be made available via three regional Urban Development Funds. The OPRG has allocated support to be provided by means of financing instruments of BGN 370 million in total, which includes both the EU and the national financing. By signing a Financing Agreement between the FMFIB and the Managing Authority of the OPRG 2014-2020, the management of the resources available for those financing instruments was awarded to the FMFIB. The three regional Urban Development Funds will set up on the basis of the following territorial scope: approximately BGN 142 million for Southern Bulgaria, approximately BGN 136 million for Northern Bulgaria, and approximately BGN 92 million for Sofia. In addition, the selected financial intermediaries should mobilise additional private resources, thus bringing the resources available for investing to approximately BGN 520 million. That will stimulate public/private partnerships and encourage the adoption of an entrepreneurial approach in designing and implementing investments that contribute to sustainable economic and social development and reducing regional discrepancies in Bulgaria.
Resources from the Urban Development Funds will be made available to final recipients through the selected financial intermediaries as investment and working capital loans to finance eligible projects that meet the requirements of the OPRG 2014-2020. The financing instruments will be compatible with grant support, specifically for projects in the area of tourism relating to cultural heritage sites of national and world significance, energy efficiency in student dormitories and cultural infrastructure.
UDFs will make their investments in several key areas, more specifically, urban development, including urban environment, zones with an economic development potential, sport and cultural infrastructure, integrated urban transport and energy efficiency in single-household residential buildings and student dormitories. Eligible investments include also tourism development in cultural heritage sites of national and world significance. Eligible final recipients include legal entities and individuals, municipalities and municipal companies, other public authorities, and public/private partnerships.
The market test consultations are targeted at a wide range of stakeholders such as commercial banks, investment and managing companies, financial institutions, leasing companies, etc.
Suggestions and comments on the indicative technical specifications can be made by 31 March 2017 at the following e-mail address: UDF_OPRG@fmfib.bg. For more information and FAQs on the market test consultations, the FMFIB team can be reached by phone at +359 2 801 40 50.
Detailed terms and conditions for the implementation of the Urban Development Fund financing instrument can be found under the Financing Instruments section of the FMFIB’s website.
