The Supreme Administrative Court has issued a final ruling confirming the lawfulness of the decision adopted by the Fund Manager of Financial Instruments in Bulgaria EAD (Fund of Funds) in the procedure for the selection of financial intermediaries to manage the Urban Development Fund (UDF) financial instrument. The ruling also confirms the evaluation of the applicants and the reasoning underpinning the selection decision.
The Urban Development Fund financial instrument will be implemented through three funds – two covering Northern Bulgaria (Urban Development Fund North 1 and Urban Development Fund North 2) and one covering Southern Bulgaria (Urban Development Fund South). The total public resource allocated to the instrument exceeds EUR 262.5 million and is provided under the Regions Development Programme 2021–2027 and the Competitiveness and Innovation in Enterprises Programme 2021–2027, co-financed by the European Union. Together with the additional private financing to be mobilised by the selected financial intermediaries, the total investment is expected to reach EUR 400 million.
The Court's ruling confirms the selection of the consortium Sustainable CitiesFund (comprising United Bulgarian Bank AD, FLAG Fund EAD, Fund for Sustainable Urban Development EAD, and Bulgarian Consulting Organisation EOOD) to manage the Urban Development Fund North 1 and Urban Development Fund South, as well as the consortium Green and Smart Urban Development Fund (comprising UniCredit Bulbank AD and Nord West Development EOOD) to manage Urban Development Fund North 2.
The financial instrument will provide long-term debt financing until the end of 2029 for public and private projects, primarily supporting sustainable urban development. For the first time, grants financed under the Regions Development Programme 2021–2027 will also be made available by the financial intermediaries in combination with debt financing provided under the instrument.
The support will promote investments aimed at improving the urban environment and infrastructure, sustainable urban mobility, energy efficiency, educational, healthcare and social infrastructure, as well as the development of industrial parks and enterprises.
Operational agreements with the selected financial intermediaries are expected to be signed shortly, after which the Urban Development Funds will enter their investment period.
