Over BGN 5.7 billion will be invested through the Ministry of Regional Development and Public Works to achieve a fair transition

Over BGN 5.7 billion will be invested through the Ministry of Regional Development and Public Works to achieve

13 May 2022 | 14:33

"Several instruments for over BGN 5.7 billion will be managed by the regional ministry by 2027 to achieve a fair transition and convergence of the regions." This was announced by Deputy Prime Minister and Minister of Regional Development and Public Works Grozdan Karadjov at the conference "After Tomorrow: Growth Policies".

The Deputy Prime Minister presented the policies for regional development, related to the reduction of the serious differences in the development of the settlements in the country, the achievement of economic growth and the creation of an attractive way of life.

Under the Regional Development Program 2021-2027, the available resource is BGN 6.6 billion, together with the national contribution. Nearly 45% of it are measures and investments that will support the decarbonisation of the Bulgarian economy in order to provide new opportunities and ensure human security. The three coal regions in our country - Stara Zagora, Pernik and Kyustendil, as the most affected areas of the transition to a low-carbon economy will be supported by the Fair Transition Fund.

The remaining part of the resource of BGN 3.6 billion is from the European Regional Development Fund and will be directed to the 50 urban municipalities in Bulgaria. Of these, over BGN 1 billion has been allocated for investments that contribute to climate change mitigation. This includes measures to increase energy efficiency in buildings, to develop sustainable urban mobility, tourism and green urban infrastructure, said the Deputy Prime Minister.

Minister Karadjov also pointed out that BGN 741 million from the National Plan for Reconstruction and Sustainability will be invested in projects for sustainable energy renovation of the non-residential building stock. BGN 100 million has been set aside for Green Mobility - the pilot scheme for supporting sustainable urban mobility through measures for the development of ecological, safe, functional and energy efficient transport systems.

Under the recovery plan, BGN 2 billion will be invested - together with the national contribution - for the renovation of residential buildings.

Of the other instruments managed by the Ministry of Regional Development and Public Works, a total of over BGN 900 million is planned in the EU's territorial cooperation programs to support and promote green policies related to climate change, biodiversity conservation and digital transformation.

"The European Commission must find a new cohesion mechanism for targeted and priority development of infrastructure by 2030 for Bulgaria and the region. "Our word must be heard in Europe," said the Deputy Prime Minister.

He called for the creation of funds to bring the region closer to the European average in terms of infrastructure, and expressed hope that the EC would address the infrastructural imbalance between the region and the EU. Investments are needed not only in road, but also in tunnel, bridge and railway infrastructure. Only then can Bulgaria become competitive in green, innovative and high technologies.

According to the Deputy Prime Minister, cohesion policy and fair transition face serious challenges. There are municipalities in Bulgaria that are permanently underfunded, as well as regions with very lagging pace of development compared to others. "This is the first challenge we have to face. That is why we are working on creating a fund for infrastructural assistance to the municipalities of competitive selection with a capital of BGN 1 billion national funding. We plan to provide half a billion levs this year," said the Deputy Prime Minister. He clarified that the criteria for cohesion are currently being worked on together with the National Association of Municipalities.