1. The Infrastructure Projects credit line
- potential applicants: municipalities, municipal companies and public private partnerships;
- loan amount: the amount of the loan is not less than EUR 20,000 and not more than EUR 5,000,000;
- subsidy element – the borrower receives as a subsidy up to 2.5% of the investment project as the sum shall be received in parts;
- term – from 4 to 12 years;
- interest rate – under negotiation;
- Currency – EUR and BGN.
Advantages
- The financing from the EUROPEAN INVESTMENT BANK (EIB) may be combined with the Guarantee agreement of the US AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID);
- Specialized credit line for meeting the investment needs in the Public Sector;
- Long term of repayment;
- Reduction of the investment price with over 2.5%, considering the grant assistance, which is used for early repayment of the financing and entails savings from interest rates.
Best practices
- Municipalities Sofia, Tervel, Varna, Gorna Oryahovitsa, Berkovitsa, Chepelare, Polski Trambesh, Montana, etc.
2. Credit line from the European Investment Bank for financing of municipalities under energy efficiency projects
Target: Energy saving projects, renewable energy sources as small co-generators, wind generators, heat transfer network, gasification, geothermal and water electrical plants, etc.
- potential applicants: municipalities, municipal companies;
- amount of the loan: the amount of the loan is not less than EUR 20,000 and not more than EUR 5,000,000;
- Subsidy element - the Borrower receives as a subsidy up to 10% of the loan amount as the sum is received after the project fulfillment and its acceptance by an independent auditor;
- TERM – from 4 to 12 years;
- Interest rate – under negotiation;
- Currency – EUR and BGN.
Advantages
- The financing from the European Investment Bank (EIB) may be combined with the Guarantee agreement of the US Agency For International Development (USAID);
- Specialized credit line for meeting the investment needs in the Public Sector;
- Long term of repayment;
- Reduction of the investment price with over 10%, considering the grant assistance, which is used for early repayment of the financing and entails savings from interest rates.
Best practices:
- Multi-profile Hospital for Active Treatment Burgas; Interdistrict Dispensary for Oncological Diseases, Varna town.
3. Guarantee agreement of the USA AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) for municipalities
- guarantee agreement: guaranteeing of loans in connection with municipal infrastructure projects;
- potential applicants: municipalities
amount
а) of the loan
Maximum amount of the loan, which correspond to the conditions USD 1 million.
b) Amount of the guaranteed sum
Up to 50% of the loan. - Currency of the loan – BGN or EUR;
- TERM: Maximum term of the loan – from 3 to 7.5 years, but not later than September 2013;
- Deadline for applying according to the agreement - January 2009.
Advantages
- The guarantee agreement ensures high liquid collateral, which influences the price of the loan.
4. Direct financing with participation in procedure under the Public Procurement Act fоr choice of financing institution:
- A credit is granted directly to the public entity with the purpose of financing of a specific project;
- Usually the term of the financing is up to 10 years, however depending on the nature of the financed project, loans with term up to 15-20 years may be approved, as well;
- Pursuant to the credit policy of UniCredit Group, all kinds of projects are financed, with the ex-ception of projects related to delivery of weapons, nuclear energy, gambling and drugs;
- As collateral for these loans may be future receivables or other kind of collateral, proposed by the public entity. In case of financing of a Ministry/ first level spending unit and depending on the project, the collateral may not be necessary.
