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Add to Preferred SourcesHundreds of thousands of Bulgarians will benefit from better access to water supply and wastewater services thanks to closer cooperation between the Fund Manager of Financial Instruments in Bulgaria (FMFIB) and the EBRD.
FMFIB or Fund of Funds has been set up by the Bulgarian state to structure and manage financial instruments co-financed by the European Structural and Investment Funds and the national budget. It currently manages over €600 million under four operational programmes.
Under a new agreement, the EBRD is awarded by the Fund of Funds to manage up to €115 million provided for Bulgaria’s water sector development. In addition the EBRD will contribute up to another €115 million of its own funds, unlocking a total of €230 million financing for regional water operators.
The cooperation was signed on Octeber 4th by Svetoslava Georgieva, FMFIB Executive Director and Member of the Management Board, and Susan Goeransson, EBRD Director for Municipal and Environmental Infrastructure.
The funds will be extended in the form of long-term loans to water and sewerage operators and guarantees to commercial banks providing loans to these companies. The maximum loan term is 15 years, with up to three years grace period.
Investments will support consolidated regional water operators to increase their efficiency and financial sustainability, rehabilitate obsolete infrastructure and reduce water losses. They will also help bring the Bulgarian water sector in line with EU environmental legislation.
Original source: EBRD
Published on 4 October 2018