BGN 66 million in the form of low-interest crediting is being provided for implementation of investments into improvements of urban environment and neglected industrial territories
BGN 66 million in the form of low-interest crediting is being provided for implementation of investments into
By Ministry of Regional Development and Public Works
A financial agreement has been signed for a Holding fund for the instruments for financial engineering within OPRD 2007-2013
A financial agreement for taking over of rights and obligations of Holding fund for the instruments for financial engineering under Operational programme “Regional development" 2007-2013, co-financed by the European fund for regional development, was signed today between the Ministry of regional development and public works and “Fund manager of financial instruments in Bulgaria” EAD.
BGN 66 million has been provided within the initiative for the implementation of investments in markets, healthcare, sports, and business infrastructure, including for the renewal of neglected industrial territories within zones with a potential for economic development, educational infrastructure, parking lots, cultural, and entertainment sites. The funds are comprised of reimbursable sums provided under financial instruments within projects implemented under the operational programme.
The first cycle of investment of the resource under the JESSICA initiative within the OP "Regional development” 2007-2013 into eligible projects for urban development on the territory of Bulgaria's 7 large cities was completed on 31.10.2016. The funds were invested in the implementation of projects in the form of low-interest loans through two funds for urban development – Fund for sustainable urban development of Sofia, and Regional urban development fund for the cities of Plovdiv, Varna, Burgas, Ruse, Stara Zagora, and Pleven. Singing of the agreement with "Fund manager of financial instruments in Bulgaria” EAD will allow reinvesting the resource under the JESSICA initiative in new revenue-bearing projects on the principle of public-private partnership.
Financial instruments like JESSICA stimulate both this type of investments and credit institutions to participate in public policies for regional and urban development. They encourage the entrepreneurial spirit and allow all economic subjects to participate in the development of cities and gain support with funds from the European union, contributing for the achieving of sustainable growth of the economy by implementing financially sustainable and purpose-bound projects and investments.
This is a continuation of the policy by the Ministry of regional development and public works to support and stimulate public-private partnership for improved quality of life and development of Bulgaria's regions.
According to the Law on management of European structural and investment funds, the person managing the Fund of funds also implements the functions of a holding fund for the instruments for financial engineering under the operational programme after the expiration of the effective period of the financial agreement concluded between the Republic of Bulgaria and the European investment bank under JESSICA.
