10 projects have been approved by the Urban Development Funds

The Urban Development Funds approved 10 projects worth a total of BGN 33.4 million, of which BGN 17.3 million are under the Operational Programme “Regions in growth”. Among them are the project for the restoration of the synagogue in Vidin and its transformation into a tourist site, an urban area in ​​Pleven and others.

This was announced today by the Minister of Regional Development and Public Works Petya Avramova at the opening of the conference “Business and Regions”, organised by the Bulgarian Chamber of Commerce and the “Economist” magazine.

With BGN 369.7 million to the Fund of Funds, three Urban Development Funds were established, which together with the attracted funds manage about BGN 585 million. They can be used in the form of low-interest loans and bank guarantees in projects to improve the urban environment in 39 cities, in the field of tourism and cultural heritage, the minister reminded.

Representatives of the Bulgarian business can participate as final recipients of credit financing for projects in the field of sports infrastructure, areas with potential for economic development, urban electric mobility and improvement of the urban environment, and as partners of municipalities in implementing measures to support cultural heritage sites.

Avramova drew attention to the favourable conditions of this type of financing – average interest rates on loans below the market interest, up to 20 years for repayment for urban development projects and in the field of tourism, and 15 years for energy efficiency projects. There is also a grace period for the principal of the financing, which is up to 3 years for urban development and in the field of tourism and cultural heritage and up to a year and a half for energy efficiency projects.

The Regional Minister reminded that the JESSICA initiative, BGN 66 million of which were under the Operational Programme “Regional Development” 2007-2013, attracted four times more private funding. The financial instrument has implemented 40 projects and created over 600 new jobs in Sofia, Plovdiv, Varna, Burgas, Ruse, Stara Zagora and Pleven. Among the most significant investments with the participation of the Bulgarian business are the construction of a factory for frozen dough food in Plovdiv, for spare parts in an area with potential for economic development in Ruse, reconstruction and purchase of new equipment for hospitals in Sofia, construction of sports complexes Arena Burgas and “Zone B-5-4” in the Sofia  and many others. The initiative is open for applications for Bulgarian business and local authorities and currently has a horizon of 2025.

Our expectations are that the planned implementation of the financial instruments will encourage public-private partnerships in order to improve people’s quality of life and stimulate economic activity. Only with joint efforts can we achieve good results and contribute to a better future of the Bulgarian cities and regions by reducing disparities and stopping depopulation, Petya Avramova said in conclusion.

Speaking to the media, the Regional Minister commented that business creates jobs, and the state must ensure economic stability and conditions for its development. Business is looking for good infrastructure, so our main efforts are focused on providing Northern Bulgaria with a highway and ensuring good connectivity from Vidin to Botevgrad, she added.

Through public-private partnership, projects that will lead to economic growth can be implemented. The government is working to create economic zones in the country’s major cities to develop both them and the settlements in the region, the minister added.