Topical Information

A meeting of the Standing Committee of the National Association of Municipalities in the Republic of Bulgaria (NAMRB) on European and National Funds, Mechanisms and Instruments was held in Blagoevgrad

On 28–29 April 2026, hosted by the Municipality of Blagoevgrad, a meeting of NAMRB’s Standing Committee on European and National Funds, Mechanisms and Instruments took place. Nearly 50 representatives from over 20 municipalities participated, including mayors and deputy mayors of municipalities and districts of Sofia Municipality, directors of departments and municipal experts, as well as the team of the Blagoevgrad Regional Information Center.

The meeting was opened by the Mayor of Blagoevgrad, Metodi Baykoushev, who welcomed participants and emphasized the importance of active partnership between local authorities, NAMRB, and state institutions for the successful implementation of municipal investments. The session was chaired by the Deputy Chair of the Committee and Director at Sofia Municipality, Maria Goncheva.

“In light of the new political environment, we need to set a new tone of cooperation and be more demanding. I hope that together we will lay a solid foundation for cooperation with central government in the context of European and national funds, mechanisms, and instruments. It is extremely important to maintain a good dialogue with managing authorities and monitoring and reporting structures—both regarding the immediate tasks under the Recovery and Resilience Plan and other instruments, which have also become urgent due to accumulated delays,” said host mayor Metodi Baykoushev.

During the two-day meeting, representatives of municipalities, NAMRB, and the Ministry of Regional Development and Public Works discussed key issues related to the implementation of municipal projects under the National Recovery and Resilience Plan (NRRP) and the progress of EU-funded programmes for the 2021–2027 period.

On the first day, the focus was on NAMRB’s analysis of municipal project implementation under the NRRP, outlining both the high level of municipal engagement and the main challenges in investment implementation. The analysis was presented by Veselka Ivanova, Head of the “Municipal Programmes and Projects” Department at NAMRB, based on publicly available data in the ISUN information system as of 20 April 2026.

The data show significant interest in NRRP funding opportunities. Under 19 procedures announced for municipalities, totaling €1.85 billion, local authorities submitted 4,740 project proposals worth €3.3 billion, with requested grants exceeding available resources by nearly 1.8 times. This demonstrates municipalities’ strong readiness to invest in modernizing public infrastructure, developing transport, social and cultural services, and improving energy efficiency in buildings.

The largest share of submitted projects—76%—targets energy efficiency in the building stock. Particularly strong interest was observed in the programme for sustainable renovation of residential buildings (Phase I), where submitted proposals exceeded the budget more than 3.5 times. Meanwhile, lower interest was noted in measures such as energy-efficient street lighting, mainly due to co-financing requirements and alternative funding opportunities under more favorable conditions.

Municipal preparedness is further confirmed by project evaluation results: 4,485 projects worth €3.14 billion have been approved for funding, representing a success rate of about 95%. Over 72% of approved projects are concentrated in energy efficiency.

As of 20 April 2026, municipalities have signed 2,213 contracts worth €1.67 billion. The largest share—over 54%—is allocated to energy efficiency and street lighting modernization, followed by investments in social and healthcare infrastructure (24%) and education infrastructure (15%).

Project implementation is progressing, with payments totaling €633.29 million, or about 40% of contracted grants. The pace of payments is expected to accelerate soon. The most advanced projects are in street lighting, green mobility, and educational infrastructure, while some newer investments—such as electric vehicles for social services and outpatient care—are still in early stages.

The NRRP’s territorial impact is broad: 249 municipalities (94% of all in Bulgaria) have signed contracts. All municipalities in 20 out of 28 regions are actively involved, with project numbers ranging from single initiatives to over 150 in some municipalities. Both large and small municipalities are beneficiaries, highlighting the plan’s wide territorial reach.

The analysis and discussion emphasized the need to accelerate implementation and maintain active dialogue between municipalities and national institutions to ensure successful project completion.

Committee members noted that the NRRP implementation mechanism may be more suitable for the next programming period (2028–2034) compared to shared management EU funds, due to its speed and lower administrative burden. However, challenges include the need for substantial working capital and administrative capacity for managing multiple investments simultaneously.

Critical issues were also raised regarding the capacity of certain administrative structures, with the view that implementation challenges stem more from national-level difficulties than from municipal readiness. Practical obstacles such as procedural delays, infrastructure connection issues, and administrative barriers were also discussed.

Representatives of the Ministry of Regional Development and Public Works emphasized the need for maximum mobilization to complete NRRP investments on time. The deadline for around 250 municipal projects in energy efficiency and e-mobility is 30 June 2026. Projects must be completed, commissioned, and reported by then, with verification and payments continuing until mid-August, and final reporting due by 31 August 2026. Unfinished projects will result in ineligible expenditures borne by beneficiaries.

Inspections are already underway during implementation to identify risks early. Municipalities were urged to submit payment requests and final reports on time and comply strictly with reporting and publicity requirements, including independent energy savings assessments.

Municipal representatives noted that physical implementation often outpaces payments, forcing local authorities to pre-finance projects. Payment delays have slowed execution, including contractor performance.

The meeting also reviewed progress under EU shared management programmes (2021–2027). Municipalities have signed 1,689 contracts worth €2.01 billion, including €1.86 billion in grants. While activity is high, disparities exist between programmes.

The largest number of contracts is under the Human Resources Development Programme, while the largest funding share is under the Regional Development Programme. Environmental and food programmes also play significant roles, especially in providing social services such as hot meals.

Urban development and just transition projects account for over half of the funding. Despite progress in contracting, implementation is still at an early stage, with payments at around 32% and completed projects representing less than 10% of total funding.

Financial corrections are mainly concentrated in the Environment Programme, often due to public procurement violations, highlighting the need for stronger control.

The discussion outlined priorities: accelerating implementation, improving payment efficiency, reducing financial correction risks, and maintaining active dialogue between municipalities, NAMRB, and managing authorities. Continued support for hot meal programmes beyond September was also emphasized.

The Managing Authority of the Regional Development Programme also presented updates, noting that while contracting is advanced, implementation is still lagging. Municipalities were urged to speed up work and submit payment requests, including advance payments, to avoid losing funds under the N+3 rule.

On the second day, discussions focused on Bulgaria’s new NUTS 2 regional division and preparation for the 2028–2034 Multiannual Financial Framework.

Representatives from the Ministry of Regional Development explained that the reform addresses demographic decline and non-compliance with EU population thresholds. A new model with four regions—Northern, Eastern, Southern, and Capital—has been approved and will enter into force on 1 January 2027.

This change requires legislative updates and a new National Concept for Regional and Spatial Development (2026–2040), aimed at reducing regional disparities and improving planning efficiency.

A survey among 153 municipalities showed no clear majority support for any proposed regional model. While five-region options were preferred overall, the four-region model has already been adopted.

The meeting concluded that despite differing views, municipalities must prepare for the new structure while continuing discussions on long-term regional policy.

The final panel addressed preparation of Interreg cross-border programmes for 2028–2034. A shift toward results-based funding and a more consolidated EU budget framework was highlighted, along with key priorities such as environment, innovation, SMEs, tourism, and risk management.

Challenges include administrative complexity, partner matching, and limited awareness of cross-border impact. Border regions face demographic decline, economic stagnation, and limited access to services, requiring targeted interventions.

Proposals include expanding programme coverage—for example, adding Pazardzhik and Plovdiv to the Greece programme, and Varna and Razgrad to the Romania programme.

In conclusion, participants agreed that the upcoming period will be highly intensive, requiring strong coordination between national and local authorities in planning and implementing the next generation of regional development policies and programmes.