Minister Karadimov to the Municipalities: We certified 18 projects for BGN 400 million and 1,600 new jobs in 7 cities

The Ministry of Innovation and Growth supports the development of municipalities by attracting investors through the Bulgarian Investment Agency (BIA), with procedures under European programs such as the one for industrial parks, as well as through the Bulgarian Development Bank and the Fund of Funds. This was stated by the Minister of Innovation and Growth, Associate Professor Rosen Karadimov, at the Annual Meeting of Local Authorities, organized by the National Association of Municipalities in Bulgaria.

Minister Karadimov pointed out that since the beginning of the year, 18 projects worth nearly BGN 400 million have been certified under the Investment Promotion Act (IPA), which provide for 1,600 new jobs. 12 of them are high-tech productions and services. The investments are in Pernik, Ruse, Sofia, Plovdiv, Shumen, Stara Zagora, Balchik.

The Minister emphasized the key role of the Municipalities in attracting investors. He also added that BIA should be developed as a powerful tool for attracting investments, but it is important to have timely information from industrial parks and municipalities for interested investors.

"The measure for financing municipal infrastructure leading to the site is also of particular importance. It formally supports the investor, but it always serves the municipality and the neighboring enterprises," explained Karadimov.

From the budget of the Ministry of Innovation and Growth under ZNI this year. BGN 6.2 million have been approved for the construction of supply infrastructure in the municipalities of Sopot, Ruse and Maritsa. The incentive measure supports 3 investment projects for BGN 53 million and over 400 new jobs. Last year, more than BGN 14 million were paid for 11 infrastructure contracts in the municipalities of Maritsa, Burgas, Asenovgrad, Silistra, Hisarya, Devnya, Blagoevgrad, Kostinbrod and Targovishte. The total amount of investments is BGN 371 million and the creation of over 450 new jobs.

During the forum, the minister announced the upcoming opportunities for support for the companies in the country under the European programs of the MIG - "Competitiveness" (PCIP) and "Science and Business" (PNIIDIT) with a total budget of BGN 5 billion until 2027. They are to be various funding procedures open for innovation, enterprise modernization, digitalization and competitiveness. Under the PCIP, the following are pending: procedure "Introduction of technologies from the field of Industry 4.0 in enterprises" - BGN 102 million for digitization and technologies; procedure "New models in production by SMEs in the Northern regions of the country" - BGN 90 million; procedure "Green technologies by SMEs on the territory of industrial parks" - BGN 162 million, etc. "Certain measures under these programs enable the joint participation of municipalities and businesses," Karadimov clarified.

Through the Fund of Funds, the financing of public, municipal and private projects for urban development and industrial parks will begin through the financial instruments of the new program period. The total budget that will be allocated under the urban development program is BGN 650 million, which will be absorbed by the end of 2029.

Regarding the Bulgarian Development Bank, Karadimov emphasized that the new strategy focuses on public policies of the state and overcoming regional imbalances. "From 2022 until now, our understanding is that the bank should consolidate its role as a true development bank that has direct relevance to municipalities, namely supporting the public policies of the state and overcoming regional imbalances, financing infrastructure, energy, health, social, educational infrastructure. And in this part, the bank is developing several key programs for the Municipalities. In this way, BBR will be a partner of the Municipalities where the state cannot allocate a resource," Karadimov said.

The Chairperson of the National Assembly of BBR, Delyana Ivanova, presented the bank's new programs for financing municipal and state hospitals, industrial parks and contractors of public contractors. Ivanova also announced the joint initiative of ESO EAD and BBR for a financial mechanism to support the accelerated implementation of RES. Users of the financial mechanism will in the short term be state bodies, municipalities, municipal and state companies, public enterprises. Among the main goals of the program is the achievement of energy independence, acceleration of the transition to clean energy, optimization of the price of electricity and the possibility of reducing the costs of electricity for end users.

The annual meeting of the Municipalities was opened yesterday by President Rumen Radev. Ministers, mayors, etc. participate in it. During the opening, Minister Karadimov emphasized the active work of MIG for the development of industrial parks in the country. "Bulgaria can be reindustrialized with a minimum of 35 industrial parks. The industrial park, in addition to attracting investors immediately, provides an opportunity for economic, social development, reflects on the educational infrastructure," he said. In his words, industrial parks are an effective mechanism for overcoming regional disparities. Under the procedure of the Recovery Plan, the Ministry has supported 11 industrial parks in 10 cities for BGN 206 million.