EIB agrees €25 million loan for cities across Bulgaria

The European Investment Bank (EIB) and Fund FLAG have signed a €25 million loan to promote urban regeneration and rehabilitation in cities across Bulgaria. Fund FLAG will match the loan amount with €25 million of its own resources and channel the total €50 million to municipalities, municipal enterprises, and other institutions responsible for providing public services.

Fund FLAG will support investments for upgrading urban green areas and open public spaces, improving sustainable urban transport, and renovating and reconstructing public buildings (schools, health centers, and administrative buildings). In addition, it will focus on upgrading small-scale basic municipal infrastructure (road network, drinking water, and sewers) and climate change adaptation measures.

“As we rebuild our economies following the COVID-19 crisis, we must pay special attention to urban development and make sure we build cities that will prosper today and far into the future,” said EIB Vice President Lilyana Pavlova. “The loan we signed today marks an important step in the EIB’s support for Bulgarian cities. It will make a positive contribution to economic growth and job creation, reducing energy bills for consumers, and increasing the attractiveness of urban areas as business locations and tourism destinations.”

This operation forms part of a wider collaboration to increase the firepower of cohesion funding for urban development. Earlier this year, the EIB, the Fund of Funds (Fund Manager of Financial Instruments in Bulgaria), and Fund FLAG established the Bulgarian Urban Investment and Advisory Platform. Financed by the European Investment Advisory Hub, this platform aims to benefit Bulgarian municipalities by coordinating the efforts of funding and advisory partners, both at the EU and national level, and bringing together EU cohesion funding with EIB lending and advice via dedicated urban development financial instruments and intermediaries.

Original source: EIB