Bulgarian Urban Investment and Advisory Platform is a continuation of the successful experience of Fund FLAG in municipal financing, as well as of its involvement with financial instruments for urban development in Bulgaria.
The Platform’s main role is to to support investments in urban regeneration and rehabilitation in cities across Bulgaria in a complementary way to the the Urban Development Funds, under the Operational program “Regions in growth 2014-2020”, as well as to finance activities in investments projects, which are ineligible for funding under the Operational programs, but are an integral part of the project.
Memorandum of Understanding (MoU) was officially signed between EIB, Fund Manager of Financial Instruments in Bulgaria (FMFIB) and Fund FLAG on 17th of January 2020. The MoU aims at creating the Bulgarian Urban Investment and Advisory Platform and establishing a mechanism for interaction between all Parties in order to enhance the opportunities for financing of infrastructure in Bulgaria.
Thе budget of the Platform is BGN 100 m. (EUR 50 m). The funding is provided through a Financial contract concluded between European financial bank (EIB) and Fund FLAG. The funds are mixed on portfolio level, which gives Fund FLAG an opportunity to provide long-term loans with preferential average price. The Loan contracts are signed with Fund FLAG. In addition, a Local Development fund has been created with the participation of the Bulgarian Consultancy Organization. Its main role is to support the assessment of project proposals and ensure clear demarcation with the available financial instruments for urban development.
The platform has the potential to become an example for local and European partnership and cooperation and to build a bridge between two programming periods ensuring sustainable local development supporting public authority and their partners to implement integrated local investments.
