EBRD, EU and Bulgaria join forces to finance water sector development
The European Bank for Reconstruction and Development has been chosen by Bulgaria's Fund of Funds to manage up to €115 million provided for the country's water sector development. In addition, the EBRD will contribute up to another €115 million of its own funds, unlocking a total of €230 million financing for regional water operators.
Fund of Funds has been set up by the Bulgarian state to structure and manage financial instruments co-financed by the European Structural and Investment Funds and the national budget. It currently manages over €600 million under four operational programmes.
The funds will be extended in the form of long-term loans to water and sewerage operators and guarantees to commercial banks providing loans to these companies. The maximum loan term is 15 years, with up to three years grace period.
