The government is allocating an additional €110 million to businesses in regions in transition

A new €110 million call for proposals will support small and medium-sized businesses in Bulgaria’s coal-mining regions, as well as in other municipalities affected by the green transition. The measure is included in the updated draft of the Indicative Annual Work Program for 2026 of the “Regional Development” Program (RDP) 2021 – 2027 and is scheduled for the fourth quarter of the year.

Eligible applicants will be businesses in the districts of Stara Zagora, Pernik and Kyustendil, as well as in the municipalities of Nova Zagora, Yambol, Simeonovgrad, Harmanli, Topolovgrad, Dimitrovgrad, Haskovo, Elhovo, Sliven and Tundzha. Unlike some of the other measures in the program funding here will be provided through a selection process for project proposals. The specific eligible activities are still being finalized and the procedure is currently under discussion with stakeholders and the European Commission.

A total of eight procedures with a budget exceeding €1 billion are included in the updated annual program, according to the Regional Information Center in Ruse. Some of them have already been announced, and for others the deadlines for submitting project proposals have passed. Others are set to launch in the coming months. For several of the measures the grant funding is earmarked directly for pre-selected municipalities or public institutions.

The draft of the updated 2026 program has been published for public consultation and comments and opinions may be submitted until September 17, 2026.

Which procedures have already been announced?

The procedure with the largest budget is the one for integrated urban development in 40 municipalities — just over €502.7 million have been allocated for it. Eligible municipalities include Pernik and Kyustendil, and projects may include energy efficiency improvements in residential buildings, educational, health and social infrastructure and other investments. The call was announced on April 7, 2024, and the deadline for submitting project proposals expired on July 31, 2024.

The deadline has also passed for the procedure concerning research and development activities for defense technologies and dual-use solutions. Its budget is nearly €43.5 million and the eligible recipient is a subsidiary of “Sofia Tech Park,” which must implement the project in the Stara Zagora region. The procedure was announced on February 13, and the deadline was May 18.

The procedure for the construction of a Regional Center for Sustainable Production and Logistics Integration in Kyustendil is currently underway. Nearly €13.8 million have been allocated for this project, and the Municipality of Kyustendil is an eligible applicant. The project includes a multifunctional logistics zone, an energy-efficient cold storage facility, a laboratory hub and a digital platform to connect producers, retailers and distributors. The call for proposals was announced on August 10, 2026, and the deadline for submitting the project proposal is November 10, 2026.

What’s coming up by the end of the year?

Among the largest upcoming initiatives is €265 million for integrated urban transport and sustainable mobility in Sofia. The call for proposals is scheduled for September; the Sofia Municipality is the sole eligible applicant, and the funds will be awarded directly.

The funding can be used to replace the vehicle fleet with environmentally friendly vehicles, implement smart transportation systems, develop charging infrastructure, upgrade streets and facilities and take measures to improve transportation safety and accessibility.

Another €30 million has been earmarked for a field center for defense technologies and dual-use solutions in the Stara Zagora region. The eligible recipient is the Institute of Defense/Central Artillery Technical Test Range, and the procedure is scheduled for the third or fourth quarter. The center is intended to facilitate testing of unmanned aerial vehicles, drone countermeasures and other dual-use technologies.

Planners also intend to allocate €60 million for training and retraining programs targeting individuals and businesses in the sectors most affected by the transition to climate neutrality in the fourth quarter.

The measure will be divided into two components. Under the first the Employment Agency will provide support through a voucher system. Under the second project proposals will be selected from micro, small and medium-sized enterprises in Stara Zagora, Pernik, Kyustendil and other designated affected municipalities.

The updated program also includes a new procedure to support energy sector reform in the Stara Zagora region. However no budget or final terms have yet been established for this procedure. The Ministry of Energy and the European Commission are discussing the parameters, after which the management team plans a further amendment to the annual program.

At the same time the updated draft omits two procedures included in the previous version – one for a hydrogen value-added chain and one for the socioeconomic transformation of mining sites in the Stara Zagora region, according to the Regional Information Center in Ruse.

Translated with DeepL.

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