# Sofia municipal budget and infrastructure financing

> Live situation record from CLSTR: https://clstr.news/situations/sofia-municipal-budget-and-infrastructure-financing
> Updated: 2026-09-10T05:12:27.000Z. Sources: 4. Developments: 2.

The Sofia Municipality is navigating significant financial and administrative scrutiny regarding its 2026 budget and infrastructure planning.

Initial concerns were raised by Andrei Dimitrov of the RED civil association, who alleged that the 2026 budget reintroduced several infrastructure projects previously declared unlawful or “corrupt” by Mayor Vasil Terziev in 2024. Specifically, Dimitrov noted that projects such as a storm collector in Novi Iskar, which had been halted due to violations, were allocated 3.5 million euros in the new budget without amendments.

Following these budgetary discussions, the Sofia Municipal Council approved a long-term debt limit of up to 367 million euros to finance large-scale urban development. This funding, to be secured through loans from the European Investment Bank and other financial institutions, is intended to support the renewal of the public transport fleet—including buses, trolleybuses, and trams—as well as the reconstruction of major boulevards and sidewalk repairs.

## Timeline

### 2026-09-10: Sofia approves 367 million euro debt for transport and infrastructure

The Sofia Municipal Council approved up to 367 million euros in new debt to fund major transport upgrades and road infrastructure projects across the capital.

2 sources. https://clstr.news/cluster/sofia-approves-367-million-euro-debt-for-transport-and-infrastructure

### 2026-08-28: Sofia Municipality faces scrutiny over 2026 budget allocations

Andrei Dimitrov of the RED association alleges that Sofia's 2026 budget reintroduces infrastructure projects previously flagged by Mayor Vasil Terziev as unlawful or corrupt.

2 sources. https://clstr.news/cluster/sofia-municipality-faces-scrutiny-over-2026-budget-allocations

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Cite as: Sofia municipal budget and infrastructure financing. CLSTR, https://clstr.news/situations/sofia-municipal-budget-and-infrastructure-financing
