ELIGIBLE PROJECT

In order to be eligible for financing by the Fund for Sustainable Cities during the first investment cycle (2018–2023), a project must meet the following requirements:

• The planned project activities must correspond to the eligible activities under Priority Axis 1 “Sustainable and Integrated Urban Development” or Priority Axis 6 “Regional Tourism” of OPRG 2014–2020 – as assessed by the Fund for Sustainable Cities (FSC) based on the submitted project concept;

• The territorial scope of the project must fall within an intervention zone defined in the Integrated Urban Regeneration and Development Plan (IURDP) (with the exception of urban transport, energy efficiency of single-family residential buildings and student dormitories, and tourism projects). Projects outside intervention zones are eligible provided they are included in the IURDP within 20% of the total resource and contribute to improving functional linkages;

• The project must generate revenues sufficient to repay the Fund’s investment, but not enough to be financed entirely on a purely market basis – as assessed by FSC on the basis of a submitted Business Plan.

ELIGIBLE SECTORS AND TERRITORIAL SCOPE

Priority Axis 1 “Sustainable and Integrated Urban Development”

Financing is provided for projects related to energy efficiency, sustainable urban transport, improvement of the urban environment, development of sports and cultural infrastructure, and investments in areas with economic development potential.

The eligible territorial scope includes the territory of the Sofia Municipality and the following cities in South Bulgaria: Blagoevgrad, Burgas, Haskovo, Yambol, Kardzhali, Kyustendil, Pazardzhik, Pernik, Plovdiv, Sliven, Smolyan, Stara Zagora, Dimitrovgrad, Asenovgrad, Karlovo, Dupnitsa, Petrich, Gotse Delchev, Kazanlak, Panagyurishte, and Velingrad.

A new element in the 2014–2020 programming period is the inclusion of measures to improve energy efficiency in single-family residential buildings and student dormitories, subject to a minimum energy class “C” and more than 60% reduction in energy consumption.

Projects related to health and educational infrastructure are not financed during this period.

Priority Axis 6 “Regional Tourism”

Investments are supported in immovable cultural heritage sites of national or world significance, including the development of tourism products and related infrastructure such as alleys, pathways, visitor centres, and adjacent technical infrastructure.

The eligible territorial scope includes the districts of Sofia-City, Blagoevgrad, Burgas, Haskovo, Yambol, Kardzhali, Kyustendil, Pazardzhik, Pernik, Plovdiv, Sliven, Smolyan, Sofia District, and Stara Zagora. Projects must be related to an immovable cultural heritage site classified as “national or world significance” within the meaning of the Cultural Heritage Act.

COMBINED FINANCING WITH GRANT SUPPORT IN TWO OPERATIONS (2018–2023)

For the first time during the first investment cycle (2018–2023) of the Urban Development Funds, it became possible to combine support from a financial instrument with non-repayable grant  for certain projects. Combined financing is intended for projects that do not have the capacity to generate sufficient revenues to be financed entirely through financial instruments and require grant funding in order to become financially viable.

During the 2014–2020 programming period, combined support is structured in two operations:

• a loan provided by the Sustainable Cities Fund 

• a grant provided under an Administrative Contract with the Managing Authority of OPRG 2014–2020.

Combined support in two operations is intended for investments in cultural infrastructure under Priority Axis 1 “Sustainable and Integrated Urban Development” and for the development of cultural heritage concerning immovable cultural heritage sites classified as “national or world significance” across the entire country under Priority Axis 6 of OPRG 2014–2020, where the project promoter is eligible for grant financing under the respective OPRG scheme.