Sofia approves 367 million euro debt for transport and infrastructure

The Sofia Municipal Council has approved a major long-term debt limit of up to 367 million euros to fund large-scale urban infrastructure and public transport projects. The decision was passed with 45 votes in favor, 6 against, and 5 abstentions.

The financing will be structured as two separate loans of up to 183.5 million euros each. One portion is expected to be sourced from the European Investment Bank, while the other will be secured through a financial institution or a syndicate of banks. The loans are planned for a term of at least 15 years, including a minimum three-year grace period and a repayment period of no less than 12 years. Interest rates are capped at the six-month Euribor plus 110 basis points.

A significant portion of the investment, approximately 177 million euros, is dedicated to renewing the city's public transport fleet. This includes the acquisition of 345 new vehicles: 200 buses, 50 electric buses, 75 trolleybuses, and 20 trams.

Additional funds will support the construction, reconstruction, and major repair of key boulevards and streets, including Pencho Slaveykov, Istochna Tangenta, and St. Kliment Ohridski, among others. The program also allocates 40 million euros for sidewalk repairs and the creation of accessible environments.