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 BGN 462 055 403 of which BGN 381 076 655 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:

• BGN 207.5 million for loans;
• BGN 41.5 million for guarantees;
• BGN 166 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:

RDP 2021-2027 Indicators	Unit	FI Contribution
Green infrastructure supported for purposes other than climate adaptation	hectares	5.6
Capacity of environmentally friendly rolling stock for collective public transport	passengers	1 592
Specialized cycling infrastructure receiving support	km	28
Infrastructure for alternative fuels (charging stations)	fuel/charging stations	56
Capacity of new or modernized classrooms in kindergartens	persons	2 383
Capacity of new or modernized classrooms in educational institutions	persons	7 688
Capacity of new or modernized health institutions	persons/year	57 200
Capacity of new or modernized social care structures (other than housing)	persons/year	317
Residents covered by projects within integrated territorial development strategies	persons	642 304
Number of cultural and tourist sites receiving support	cultural and tourist sites	12
Unbuilt areas created or rehabilitated in urban areas	square meters	237 416
Public buildings with improved energy characteristics	square meters	25 549