In view of the continued need for investments through financial instruments, the resources repaid to the financial instruments (the so-called recycled resources) attributable to the support from the European Funds under shared management, generated over a period of at least eight years after the end of the eligibility period, must be used in line with the objectives of the respective operational programme.

As of the end of 2024, the Reinvestment Period of the Urban Development Funds 2014–2020 has officially started. The recycled resource has the status of a national resource and must be reinvested by 31 December 2031 in accordance with the objectives of the Operational Programme "Regions in Growth" 2014-2020 and in compliance with the applicable State aid regimes.

The existing structure of the Urban Development Fund financial instrument — with risk-sharing financing and embedded portfolio guarantees — is maintained. However, during the Reinvestment Period, the territorial scope and eligible sectors of financing have been significantly expanded, as follows:

1) Expanded Territorial Scope

Reinvestment resources under OPRG 2014–2020 may be invested in a larger number of municipalities compared to the first cycle:

• The 10 largest urban municipalities in Bulgaria:

  • Northern Bulgaria: Vidin, Pleven, Ruse, Veliko Tarnovo, Varna

  • Southern Bulgaria (through the Sustainable Cities Fund): Burgas, Stara Zagora, Plovdiv, Sofia Municipality, Blagoevgrad

• 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 (through the Sustainable Cities Fund): 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, including territories within the scope of Integrated Territorial Investments (ITI).

For projects related to health infrastructure, energy efficiency of residential buildings, tourism, economic zones, and sustainable mobility (measures in sectors outside the scope of the Strategic Plan for the Development of Agriculture and Rural Areas 2023–2027), municipalities bordering or not bordering an urban municipality are also eligible for financing.

2) New Eligible Sectors

New sectors included within the scope of the programme during the Reinvestment Period are:

• Educational infrastructure;

• Health infrastructure;

• Social infrastructure;

• Energy efficiency measures in public buildings;

• Small-scale tourism infrastructure, in addition to cultural heritage sites.

During the Reinvestment Period (2024–2031), the possibility of combining financial instruments with grant financing in two separate operations is not envisaged.