Deputy Minister Yura Vitanova: Big business in Stara Zagora and the region has access to BGN 463 million for modernization and investments in workforce and technologies

Deputy Minister Yura Vitanova: Big business in Stara Zagora and the region has access to BGN 463 million for modernization and investments in workforce and technologies Deputy Minister Yura Vitanova: Big business in Stara Zagora and the region has access to BGN 463 million for modernization and investments in workforce and technologies Deputy Minister Yura Vitanova: Big business in Stara Zagora and the region has access to BGN 463 million for modernization and investments in workforce and technologies

Nearly BGN 463 million was provided to large businesses in the Stara Zagora region by the Ministry of Regional Development and Public Works (MRDPW) under the procedure ‘Support for productive investments in large enterprises in the Stara Zagora region’ under Priority 4 ‘Just Transition’ of the Regional Development Programme 2021-2027. The funds can be used for a large number of activities, from the purchase of land to the construction of new buildings and new modern equipment with machines and software, and the aim is to give the region an economic boost for the development and improvement of demographic indicators. This was announced by the Deputy Minister of Regional Development and Public Works and Head of the Managing Authority of the Programme Jura Vitanova in Stara Zagora. In the city, she participates in a special information day for business representatives. In the event, together with experts from the MRDPW, presented the opportunities of the program and answered specific questions. The Deputy District Governor of Stara Zagora Levent Palov also took part in it.

Large enterprises from the municipalities of Stara Zagora, Nova Zagora, Sliven, Yambol, Elhovo, Tundzha, Simeonovgrad, Harmanli, Topolovgrad, Dimitrovgrad and Haskovo can also benefit from the measure. Deputy Minister Vitanova reminded that within the approved territorial just transition plans of the districts of Pernik, Kyustendil and Stara Zagora, which are affected by the gradual reduction of the production of energy from fossil fuels, nearly BGN 3 billion will be invested to ensure a smooth transition of the local economies to climate neutrality and overcome the negative social and economic consequences. "Our main objective is to create vibrant, strong and resilient regions and to address possible adverse demographic trends and regional disparities. This is a key financial instrument for targeted support of the territories", commented the Deputy Regional Minister. Vitanova pointed out that the program gives a chance for the realization of projects with high added value and economic benefits. She added that she expected a lot of interest again and reminded that under the procedure ‘Diversification and adaptation of small and medium-sized enterprises to the economic transition’ of the programme, which supports micro, small and medium-sized enterprises, including start-ups, 2100 projects had been submitted, 1300 of which were from the region of Stara Zagora.

According to the rules of the program, each large enterprise meeting the criteria can apply with one project, with a minimum value of BGN 1 million and a maximum amount of BGN 20 million, and the maximum amount should not exceed 20% of the organization's average annual net sales revenue for the three-year period 2021, 2022 and 2023.

Businesses can use the funds to acquire new machines, facilities and equipment, as well as specialized software for the production process. Funds will also be allocated for construction and installation works, and up to 10% of the project value may be for the purchase of land. Investments shall be eligible in tangible and intangible assets relating to the creation of a new establishment, the increase of the capacity of an existing establishment, the diversification of production into products or services not previously produced or offered, or a fundamental change in the entire production process. It will also cover the costs of developing a business plan and preparing the investment project, etc. European grants can also be used to compensate for job losses, productive investments, the deployment of energy production capacities, including from hydrogen, high-efficiency production, etc. Each project must lead to the creation of new jobs and increased profitability, and additional points will be allocated to the production of energy from renewable energy sources, the recruitment of workers from the coal and energy production sectors, the possession of machinery, facilities, equipment with which it operates on the territory of the Stara Zagora region.

Companies from the transport business, tobacco companies, military industry, etc. are not eligible under EU regulations.

The projects shall be submitted by 17.00 on 28 November this year and the deadline for their implementation shall be 30 months, but not later than 31.12.2029.