Development of Regions Programme

FMFIB JSC is implementing an operation for financial instruments through a holding fund under the „Development of Regions" Programme (DRP) 2021-2027, co-financed by the EU.

The total amount of support under DRP 2021-2027 for financial instruments and grants in one single operation amounts to EUR 236 245 176,47 of which EUR 194 841 340 is provided by the European Union through the European Regional Development Fund.

The financial resources will be used to structure financial instruments—urban development funds, through which financial products for loans (either stand-alone or combined with grants in one single operation) and capped loss portfolio guarantees, will be provided to support final recipients. The funding aims to promote economic activity, sustainable urban mobility, improve and develop health and social services, education, culture, sports, and tourism, energy efficiency, improve the quality of urban environment, and more. Support through urban development funds is aimed at improving the access to finance of final recipients and attracting additional private capital to the public resources.

The target final recipients are public and private legal entities from all urban municipalities in Bulgaria, operating in the sectors where the use of financial instruments under RDP 2021-2027 is foreseen: „Infrastructure measures to promote economic activity”, „Energy efficiency and sustainable renovation of public buildings”, „Sustainable urban mobility”, „Green urban infrastructure and safety in public spaces”, „Educational infrastructure and equipment”, „Healthcare and social infrastructure”, „Tourism, culture, and sports”.

The planned financial distribution between financial products is as follows:

• EUR 113,17 million for loans;

• EUR 22,6 million for guarantees;

• EUR 90,5 million for grants in combination with financial instruments in one single operation.

The financial instruments will be implemented under:

Priority 1 „Integrated Urban Development” in 10 urban municipalities in Bulgaria:

• Northern Bulgaria – Vidin, Pleven, Ruse, Veliko Tarnovo, Varna;

• Southern Bulgaria – Burgas, Stara Zagora, Plovdiv, Sofia Municipality, and Blagoevgrad;

The aim is to develop functional zones and strengthen functional links between large urban municipalities and neighbouring rural municipalities, investments focusing on industrial zones/parks and sustainable mobility in adjacent rural municipalities will also be financed if they are included in integrated urban projects.

The supported measures must be included in the municipalities’ integrated development plans (IDPs), developed by the local municipal authorities, and therefore the final recipient should provide a compliance statement issued from the respective municipality.

Under Priority 2 „Integrated Territorial Development of the Regions”, financial instruments will be implemented through the Integrated Territorial Investments (ITI) approach in 40 medium-sized and smaller urban municipalities:

• Northern Bulgaria – Vratsa, Lovech, Lom, Montana, Troyan, Gabrovo, Gorna Oryahovitsa, Sevlievo, Razgrad, Svishtov, Silistra, Dobrich, Targovishte, Shumen;

• Southern Bulgaria – Sliven, Yambol, Nova Zagora, Aytos, Karnobat, Kazanlak, Svilengrad, Harmanli, Dimitrovgrad, Kardzhali, Haskovo, Asenovgrad, Velingrad, Smolyan, Pazardzhik, Peshtera, Panagyurishte, Karlovo, Botevgrad, Gotse Delchev, Dupnitsa, Kyustendil, Pernik, Petrich, Samokov, Sandanski;

In order to strengthen urban-rural links and functional zones, interventions across the entire country will be supported for measures that fall outside the scope of the „Strategic plan for agricultural and rural development“ (SPARD), such as health infrastructure, energy efficiency of residential buildings, tourism, industrial zones/parks and sustainable mobility. Sustainable urban mobility measures are also eligible in rural municipalities that do not border urban ones, with a clearly justified need and integrated nature of the investment.

Supported measures under Priority 2 must be included in the Integrated Territorial Development Strategy (ITDS) of the respective regions at NUTS2 level, as evidenced by a compliance statement issued from the regional development councils and provided to the final recipient.

The planned resources for FIs are expected to support the implementation of projects and investments contributing to the achievement of DRP 2021-2027 goals, including contributions to the program’s indicators, as follows: