Eligibility Requirements

Eligible final recipirnts and territorial scope

The eligible final recipients are municipalities, municipal and state-owned companies and any other entities, which provide public services in Bulgaria.

Eligible sectors

Eligible sectors for investments include:

  • upgrading urban green areas and open public spaces
  • improving sustainable urban transport
  • renovation and reconstruction of public buildings (schools, health centres, administrative buildings etc.)
  • upgrading small scale basic municipal infrastructure (street network, drinking water, sewer, etc.)
  • climate change adaptation measures
  • area based integrated urban regeneration actions.

The Project Investment Cost include (nonexhaustive list):

  • land acquisition/purchase of buildings;
  • studies and engineering;
  • civil works;
  • equipment and installation;
  • non-recoverable VAT;
  • technical and price contingencies.

Ineligible costs

  • second hand assets acquisition;
  • taxes and duties;
  • maintenance, repairs and other operating costs
  • interest during construction
  • purchase of licenses for the use of non-generated public resources (e.g. telecom licenses), patents, brands and trademarks.

 

Main financial parameters for the final recipients

  • The maximum amount of an individual project is limited to EUR 25 m.
  • Maximum tenor – 20 years.
  • Disbursement term (incl. grace period)– up to 36 months.
  • Loan pricing:
    • Interest rate – 6M EURIBOR + margin;
    • Commitment fee – 0.5%;
    • Management fee – BGN 100 monthly, due from the date of first disbursement, for the entire remaining term of the loan;          
  • Reimbursable fee for loan application assessment – BGN 1800.
  • Collateral:
    • For municipalities – pledge on own revenues;
    • For other final beneficiaries - at the discretion of FLAG.
  • FLAG doesn’t require compulsory own contribution.

Demarcation with Funds for Urban Development

The Platform shall finance projects that fall outside the eligibility scope of the Urban Development Funds. According to the MoU, FMFIB will support the coordination between the Platform and the existing financial instruments.