Over 262.5 million euros of public funds will be allocated to urban, infrastructure and industrial projects in Bulgaria in the form of loans and grants, with the private funding attracted expected to reach 400 million euros. Potential recipients include municipalities, public organizations, enterprises, educational and healthcare institutions, and non-profit organizations.
On September 17, 2026. The Fund of Funds signed the operational agreements with the selected ones Financial intermediaries according to the new Urban Development Fund 2021–2027 (FGR) – financial instrument, which will be implemented through three regional funds – FGR North 1, FGR North 2 and FGR South.
FGRE North 1 и FGRI South They will be managed by the private limited company „Fund for Sustainable Cities“ with the participation of UBB and the FLAG Fund, and FGRE North 2 – by the Consortium „Fund for Green and Smart Urban Development“ with the participation of UniCredit Bulbank and Nord West Development.
The resource is provided through the „Development of Regions“ Program 2021-2027 and the „Competitiveness and Innovation in Enterprises“ Program 2021-2027. After the signing of the operational agreements, the instrument enters the implementation phase, and the next step is the publication of invitations and application documents to the final recipients.
For whom is the funding intended?
The new opportunity is interesting for a wide range of organizations and enterprises. Depending on the specific sector and the funding program, the eligible candidates may include:
- municipalities and other public organizations;
- micro-, small and medium-sized enterprises, as well larger companies;
- public-private partnerships;
- universities, colleges and organizations managing student dormitories;
- schools, kindergartens and nurseries;
- health care institutions and providers of social services;
- non-profit associations, cultural organizations and institutions of the religious denominations – for projects in tourism, culture and sports.
What can be financed
Investments in various types of urban, public and business infrastructure will be supported, for example:
- construction and renovation of business buildings, industrial zones and parks;
- energy renovation of residential and public buildings, including heating, air conditioning, renewable energy sources and charging stations;
- public transport, clean vehicles, cycling and pedestrian infrastructure, and intelligent transport solutions;
- parks, green areas, public spaces and road safety measures;
- kindergartens, schools, universities and other educational equipment;
- hospitals, medical equipment, mobile clinics and social services;
- cultural, tourist and sports facilities;
- investments by enterprises in new and existing industrial parks and in their vicinity.
Credit plus grant – when is it possible
The support will be provided mainly in the form of long-term investment loans.
For some projects, the loan can also be combined with grant assistance. For FGR Sever 1 and FGR South, it can reach up to 40% for certain investments, with the specific amount depending on the type of project and the applicable rules.
When the funds start
As of September 2026, applications with project proposals are not yet open. The main funding terms have already been published for FGR North 1 and FGR South, but the specific invitations and documents for submitting projects are yet to be announced.
After the launch, projects will be accepted and reviewed until the resource is exhausted.
If this option interests you, keep an eye on Fininfo.bg to receive information in time when the specific terms and application documents are published.
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