The European Investment Bank (EIB) is lending EUR 700 million to co-finance Bulgaria’s national contribution to the implementation of investment priorities and measures with EU Cohesion and Structural Funds during the period 2007-2013.
The projects eligible to be co-financed are identified by the operational programmes of the National Strategic Reference Framework and the rural development programme of the European Agricultural Fund for Rural Development for the period 2007-2013. The co-financing facility will initially be used for transport and environment sector investments but may be extended to the other EU Funds programmes for regional development, economic competitiveness, human resources development and agriculture, if requested by the Bulgarian Government. Total EU Cohesion and Structural Funds allocated to Bulgaria for this period amount to some EUR 6.8 billion and the EIB loan will provide funding to cover the Bulgarian share of the co-financing requested.
The EIB financing will be provided in the form of a Structural Programme Loan. As well as bigger projects the loan can also finance a large number of relatively small sub-projects which, due to their small size, would not qualify for direct EIB financing. In this framework the EIB can provide pre-financing when needed and offer long-term co-financing on the most attractive terms for projects under the EU programmes across Bulgaria. The project will be implemented by the respective ministries and final beneficiaries of the corresponding programmes.
EIB activities in Bulgaria are focused on the following objectives:
- Improving and upgrading the country's basic infrastructure in areas such as transport, environment and energy in combination where applicable with EU grants and other funding sources. This includes financing at national but also regional and municipal levels;
- Promoting and strengthening economic growth and development through combination with EU grants and government and private funds;
- Supporting private sector investment including long-term foreign investment activity;
- Closely cooperating in the implementation of projects financed by the Bank; providing technical support and expertise for selected EU Cohesion and Structural Fund projects defined in the JASPERS National Action Plan;
- Assisting the government in the implementation of a national PPP programme.
Background:
The task of the EIB, the European Union’s financing institution, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investment.
Since 1990 the EIB has provided loans in Bulgaria worth approximately EUR 2.3 billion, including the current loan. EIB operations now cover all of the country’s key economic sectors, ranging from basic infrastructure to manufacturing and services, including support for small and medium-sized companies as well as municipalities