Urban Development Funds 2021-2027

TERRITORIAL ELIGIBILITY

Under Priority 1 – Integrated Urban Development of the Regions in Development Programme (RDP), investments are eligible in 10 urban municipalities in Bulgaria:

Northern Bulgaria: Vidin, Pleven, Ruse, Veliko Tarnovo and Varna;
Southern Bulgaria: Burgas, Stara Zagora, Plovdiv, Sofia Municipality and Blagoevgrad.

To support the development of functional areas and strengthen functional linkages between the major urban municipalities and their neighbouring rural municipalities, investments in industrial zones/parks and sustainable urban mobility are also eligible in adjacent rural municipalities, provided they form part of integrated projects implemented by the respective urban municipalities.

Under Priority 2 – Integrated Territorial Development of the Regions of the RDP, investments are eligible in 40 medium-sized and smaller urban municipalities:

Northern Bulgaria: Vratsa, Lovech, Lom, Montana, Troyan, Gabrovo, Gorna Oryahovitsa, Sevlievo, Razgrad, Svishtov, Silistra, Dobrich, Targovishte and 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 and Sandanski.

To further strengthen urban-rural linkages and functional areas, the RDP supports interventions across the entire territory of Bulgaria for measures falling outside the scope of the Strategic Plan for Agriculture and Rural Development. These include investments in health infrastructure, energy efficiency of residential buildings, tourism, industrial zones/parks, and sustainable mobility.

Under Priority 1 – Innovation and Growth of the Competitiveness and Innovation in Enterprises Programme (CIEP), investments are eligible in all NUTS 2 regions of Bulgaria.

ELIGIBLE FINAL RECIPIENTS UNDER THE REGIONS IN DEVELOPMENT PROGRAMME (RDP) AND THE COMPETITIVENESS AND INNOVATION IN ENTERPRISES PROGRAMME (CIEP)

The Sustainable Cities Fund provides financing to eligible public and private legal entities that meet the following eligibility criteria:

have a legal status that entitles them to receive financing and implement eligible activities;
hold an appropriate legal interest in the assets subject to the investment, such as ownership rights, leasehold rights or other legally recognised rights, as applicable under the relevant State aid regime;
implement the proposed project in accordance with the territorial eligibility requirements of the Regions in Development Programme (RDP) - when applicable; and
comply with the Sustainable Cities Fund creditworthiness assessment requirements.

TARGET FINAL RECIPIENTS UNDER THE RDP

Infrastructure Measures to Promote Economic Activity

Municipalities;
Public and private companies;
Public-private partnerships (PPPs).

Energy Efficiency and Sustainable Renovation of Residential and Public Buildings

Municipalities;
Higher education institutions and organisations managing student accommodation;
Public, private and PPP-based energy service providers, including ESCO companies implementing energy performance contracts with guaranteed savings;
Entities managing healthcare and social infrastructure;
Educational institutions and organisations;
Cultural institutions and organisations;
Other entities managing buildings with public functions.

Sustainable Mobility

Municipal authorities;
Companies (private, state-owned or municipally owned);
Public-private partnerships (PPPs).

Green Urban Infrastructure and Safety in Public Spaces

Municipal authorities;
Companies (private, state-owned or municipally owned);
Public-private partnerships (PPPs).

Educational Infrastructure and Equipment

Private companies operating private schools, nurseries and kindergartens;
Municipalities;
Colleges;
Higher education institutions;
Public organisations responsible for state secondary schools.

Healthcare and Social Infrastructure

Healthcare providers;
Municipalities;
Companies (private, state-owned or municipally owned);
Public-private partnerships (PPPs).

Tourism, Culture and Sports

Municipalities;
Companies (private, state-owned or municipally owned);
Associations of central and local government bodies;
Non-governmental organisations (NGOs);
Cultural organisations;
Religious institutions;
Public-private partnerships (PPPs).

TARGET FINAL RECIPIENTS UNDER THE COMPETITIVENESS AND INNOVATION IN ENTERPRISES PROGRAMME (CIEP)

Small and medium-sized enterprises (SMEs);
Small mid-cap companies;
Mid-cap companies.

ELIGIBLE SECTORS AND ACTIVITIES

Regions in Development Programme (RDP)

Sector “Infrastructure measures to promote economic activity”
Sector “Energy efficiency and sustainable renovation of residential and public buildings”
Sector “Sustainable mobility”
Sector “Green urban infrastructure and safety in public spaces”
Sector “Educational infrastructure and equipment”
Sector “Healthcare and social infrastructure”
Sector “Tourism, culture and sports”

Competitiveness and Innovation in Enterprises Programme (CIEP)

Financing of projects related to the development of viable investments in enterprises, in industrial parks and in their functional proximity areas, in line with the Integrated Territorial Strategies for Regional Development (ITSR) of the respective region, through debt investments, including directly or through participation in tranche, syndicated, club and unitranche financing arrangements, together with commercial banks.

COMBINATION WITH GRANTS UNDER Regions in Development Programme (RDP)

The grant funding under the UDF 2021–2027 is provided exclusively for eligible projects under the Regions in Development Programme (RDP) 2021–2027. The grant support must be directly linked to and necessary for the investment financed through the financial instrument.

The grant support is provided to the Final Recipient or for the benefit of the Final Recipient in the form of:

Technical support: payment of grant funding to the Final Recipient and/or for the benefit of the Final Recipient for project preparation and/or verification of project implementation results (where applicable); and/or
Investment grant: payment of grant funding to the Final Recipient in addition to the loan financing for the implementation of investments that do not generate sufficient returns or cost savings to ensure the viability of the activity; or
Capital rebate: payment of grant funding for the benefit of the Final Recipient following the successful completion of activities supported through loan financing provided by the UDF and achievement of a pre-defined result.

The Sustainable Cities Fund provides grant support to Final Recipients until the available resource under the financial instrument is exhausted, based on the lower of:

the limits applicable under the selected State aid regime (respectively, the maximum aid intensity or maximum aid amount and the applicable aid cumulation rules for the respective sector); and
the percentage of grant funding by sector, as defined in the Technical Specification of the Fund Manager of Financial Instruments in Bulgaria (FMFIB).