Release date: 15 July 2022
Promoter – Financial Intermediary
FUND FLAG EADLocation
Description
Loan to Fund FLAG to support urban renewal and rehabilitation investments in cities across Bulgaria.
Additionality and Impact
The Project is in line with the Bank's criteria on sustainable communities and urban renewal, in accordance with the provisions of the EU Urban Agenda, the EU 2020 Strategy, and the EIB Urban Lending Review. The Project is expected to contribute to sustainable urban transport, climate action and environmental sustainability. The investments will also support the strengthening of the EU's economic, social and territorial cohesion.
The Project will improve the provision of public facilities, amenities and services, which will result in positive economic and social externalities, in the form of a higher quality of services for businesses and economic activities as well as improvement of the quality of life of residents. Investments are expected to need relatively high up-front investment cost. This necessitates access to long-term funding which is not easily available in the financial market. In the absence of such long-term financing, investment decisions would be further delayed.
The EIB's contribution is very important in view of the promoter's limited access to long-term funding to support the sustainable implementation of key urban development projects. The affordable borrowing rates, longer term and customized drawdowns, longer availability and grace periods would contribute positively to the alleviation of the Bulgarian municipalities' budget constraints and ultimately improve the living conditions of citizens, benefiting from the project.
Objectives
The project is aimed at: i) upgrading urban green areas and open public spaces, ii) improving sustainable urban mobility, iii) renovation and reconstruction of public buildings, (schools, health centres, administrative buildings etc.), iv) upgrading small-scale basic municipal infrastructure (street network, drinking water, sewer, etc.) v) supporting climate change adaptation measures and vi) area-based integrated urban regeneration actions.
Sector(s)
- Urban development - Construction
Proposed EIB finance (Approximate amount)
EUR 40 million
Total cost (Approximate amount)
EUR 80 million
Environmental aspects
Compliance with the relevant EU Directives will be verified during appraisal stage: EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU, SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The status of any environmental studies and public consultations related to the investments will be reviewed during project appraisal. Energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed.
Procurement
The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation: Directive 2014/24/EU, where applicable, and/or 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.
Status
Signed - 20/12/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).