Bulgaria - Project Financing Bulgaria-Project-Financing
U.S.-Based Financing
- The U.S. Export-Import (EXIM) Bank is a source of export financing and insurance for U.S. transactions in Bulgaria. Exim Bank will guarantee a commercial bank loan up to 85 percent of the value of the contract. Exim Bank will also accept guarantees from larger municipalities.
- The Overseas Private Investment Corporation's (OPIC) key programs are its loan guarantees, direct loans, and political risk insurance. https://www.opic.gov/
- The U.S. Trade and Development Agency (TDA) promote U.S. exports by funding feasibility studies, technical assistance, training programs, and orientation visits. However, Bulgaria is not one of the priority markets for TDA. http://www.ustda.gov/
- The Small Business Administration (SBA) provides financial guarantees and business development assistance to assist SME’s in developing export markets. http://www.sba.gov/
Financing from International Institutions
- The European Bank for Reconstruction and Development (www.EBRD.com), whose largest shareholder is the U.S. Government, has a number of programs available for U.S. companies and has an office in Bulgaria (https://www.ebrd.com/bulgaria-data.html). The Bank provides loans and takes equity stakes in infrastructure and private-sector development projects and mandates open competitive tenders.
- The World Bank’s procurement procedures enable U.S. exporters to bid on public procurement contracts. To date, approved projects have been in the energy, telecommunications, residential heating, railways, environmental, health and public administration sectors. See: http://www.worldbank.org/
- The Multilateral Investment Guarantee Agency (MIGA) is part of the World Bank Group. Its purpose is to encourage foreign investment in developing countries by providing investment guarantees, including political risk insurance, against the risk of currency transfer, expropriation, war, civil disturbance and breach of contract by the host government. For more information, please see: http://www.worldbank.org/en/country/bulgaria
EU-Based Financing
As an EU member, Bulgaria has access to project financing in the form of EU structural and cohesion funds for grants, loans, loan guarantees and co-financing for feasibility studies and infrastructure projects in several key sectors (environmental, transportation, energy, telecommunications, tourism, and public health). See: https://www.export.gov/article?id=European-Union-Project-Financing
U.S. exporters (suppliers and subcontractors) are eligible to bid on EU-financed projects. The U.S. Commercial Service at the U.S. Mission to the European Union (http://export.gov/europeanunion/) offers a tool on its website to help U.S.-based companies identify European public procurement opportunities. See:http://export.gov/europeanunion/grantstendersandfinancing/cseutendersdatabase/index.asp
Loans from the European Investment Bank (www.eib.org): http://www.eib.org/projects/pipeline/index.htm
The European Investment Bank (EIB), the financing arm of the EU, is a non-profit banking institution offering cost-competitive, long-term lending in Europe for private and public EU-based borrowers in all sectors of the economy. EIB projects must contribute to the EU’s socioeconomic objective to include:
- fostering development of less favored regions
- improving European transport and telecommunication infrastructure
- protecting the environment
- supporting the activities of SMEs
- assisting urban renewal and
- generally promoting growth, competitiveness and employment in Europe
- Seven EU Operational Programs are available to Bulgaria from the European Investment Bank to include:
- Bulgarian officials are the key decision-makers for SF funds. To become familiar with the available financial support programs in Bulgaria, would-be contractors should meet with local officials to discuss local needs
- Tenders issued by Bulgaria’s public contracting authorities for projects supported by EU grants are subject to EU public procurement legislation if they meet the EU minimum contract value requirement for the eligible sector. There are no overt rules prohibiting the participation of U.S. companies as developers or concessionaires of projects partially supported by the SF, or as bidders on subsequent public tenders related to such projects, but it is advisable to team up with a local partner
- All projects supported by the SF are co-financed by national authorities and most may also qualify for a loan from the European Investment Bank. The private sector is also involved in project financing
- See approved programs at: http://ec.europa.eu/regional_policy/index_en.cfm and http://export.gov/europeanunion/marketresearch/index.asp
- Trans-European transport networks, involving EU priority infrastructure projects that support the Connecting Europe Facility.
- Projects in energy or transport that benefit the environment in terms of energy efficiency, use of renewable energy, developing rail transport, supporting intermodal ties, strengthening public transport, etc.
The EIB presents attractive opportunities to U.S. businesses with low interest rates. However, U.S. firms must be certain that projects for which they are applying for funding contribute to the European objectives cited above.
Financing Web Resources
- Export-Import Bank of the United States: http://www.exim.gov
- OPIC: http://www.opic.gov
- Trade and Development Agency: http://www.ustda.gov/
- USDA Commodity Credit Corporation: https://www.fsa.usda.gov/about-fsa/structure-and-organization/commodity-credit-corporation/index
- European Bank for Reconstruction and Development: http://www.ebrd.com
- World Bank : http://www.worldbank.org/
- The European Investment Bank: http://www.eib.org/
- EIB-financed projects: https://www.eib.org/en/projects/index.htm
- European Union Tenders Database: http://export.gov/europeanunion/grantstendersandfinancing/index.asp