Joint European Support for Sustainable Investment in City Areas Initiative (JESSICA)

Financial resources

  • public resources in the amount of BGN 61.5 million;
  • BGN 98.4 million in additional private co-financing from the financial intermediaries.

Goals of the instrument

Finance sustainable urban development projects, including projects related to:

  • development of modern educational, cultural, health and sport facilities, including energy efficiency measures and measures ensuring accessibility for people with disabilities;
  • rehabilitation and revival of deteriorated urban areas;
  • improvements to physical urban environment, including parks;
  • investment in industrial zones, business and commercial centres and entertainment sites;
  • buildings, installations and equipment for manufacturing operations;
  • investments in sustainable public transport.

Final recipients

  • municipalities and municipal companies;
  • private companies with urban development projects;
  • public/private partnerships;
  • other, including: hospitals and out-patient healthcare establishments, irrespective of ownership, educational institutions, cultural institutions, etc.

Type of financing

  • low-interest investment loans;
  • up to BGN 18 million (RUDF) and BGN 12.3 million (FSUD) for urban development projects;
  • an extended repayment term;
  • a grace period;
  • no management fee chargeable on the public resources;
  • relaxed collateral requirements.

Source of the public resources

Operational Programme Regional Development 2007 — 2013 co-financed from the European Regional Development Fund

Current stage of the instrument 

First cycle successfully completed, with the resources from OPRD 2007 — 2013 fully invested as at the end of 2016; resource recycling launched within a second investment cycle, to continue till 2025.

By 31 October 2020, in the framework of the second investment cycle, 14 urban development projects have been financed with loans of a total of BGN 41.7 million, including BGN 16.4 million of public funding refunded from loans from the first investment cycle repaid.

Financial intermediaries

For Sofia, the Fund for Sustainable Urban Development (FSUD)

For Plovdiv, Varna, Burgas, Stara Zagora, Ruse and Pleven, the Regional Urban Development Fund (RUDF)

Further information on the JESSICA initiative is available here.