The Fund of Funds will send invitations for the submission of initial proposals in the tender for the selection of fund managers of BGN 353.3 mln. in urban development financing


The Urban Development Fund is the largest financial instrument currently managed by the Fund of Funds (FoF) with a total budget of BGN 353.3 mln. under which financing is available for projects aiming to improve the urban environment and energy efficiency and develop tourism and cultural heritage.

The tender launched for the selection of financial intermediaries for the financial instrument Urban Development Fund (UDF) will disburse the funds available under Operational Programme Regions in Growth 2014—2020 under three lots:

Lot I: Urban Development of Sofia Fund with a budget of BGN 87.4 mln.

Lot II: Urban Development of Northern Bulgaria Fund with a budget of BGN 130.4 mln.

Lot III: Urban Development of Southern Bulgaria Fund with a budget of BGN 135.5 mln.

Six proposals were received from applicants under the above lots from the following representatives of both the banking and non-banking sectors: Consortium Sustainable Cities Fund of the partners CiBank EAD, UBB AD, the Fund for Local Authorities and Governments — FLAG EAD, the Bulgarian Consultancy Organisation EOOD, the Fund for Sustainable Urban Development (FSUD) and the Consortium Regional Urban Development Fund AD — a partnership between Société Générale Expressbank AD, Sogelease Bulgaria EOOD, Elana Holding AD and third parties and subcontractors.

During the first phase of the call, the FMFIB conducted a preliminary selection of the applicants to verify their compliance with the stated eligibility criteria for participation.

The abovementioned applicants were allowed to proceed to the second stage of the tender in which their compliance with the criteria for contract award will be evaluated. For this purpose, they will be invited to submit initial tenders, which will be subsequently assessed and following negotiations with the participants invitations for the submission of final proposals will be sent.

The financial intermediaries selected should participate in the financing of each eligible project under the programme by covering at least 30 % of total financing under the UDF from its own funds. The funds will be disbursed to eligible final beneficiaries in the form of loans or financial leases with a grace period of up to 36 months and a maximum loan repayment period of 320 years. The maximum investment is in the amount of BGN 20 mln. depending on the sector. There is a requirement for 15 % co-financing to be covered by the final beneficiary with the possibility for the contribution to be reduced to 5 % for projects with a major contribution to the achievement of the targets of the OPRG and 0 % for municipalities and other public sector organisations.

Under thematic areas Cultural Infrastructure, Energy Efficiency and Tourism and Cultural Heritage mixed project financing with UDF funds and grant assistance under the relevant thematic areas is possible.

For further information and enquiries, please call (+359 2) 801 4050 or send an e-mail to