Sofia Municipality Approves a Record Borrowing of 367 Million Euros

The Sofia City Council approved a loan of up to 367 million euros. The funds will be used to purchase 200 new buses, 75 trolleybuses, 20 trams, and 50 electric buses, as well as for the construction, reconstruction, and major repairs of key boulevards and streets in Sofia’s primary road network. Have the city council members already made a decision?

With 45 votes in favour, the Sofia City Council approved a record loan of up to €367 million, which will be used to implement key infrastructure projects and modernise public transport in Sofia. Before the start of the meeting, and in connection with the new political season, Sofia City Council chairman Svetomir Petrov called on councillors not to turn the chamber into a political stage. He said Sofia did not belong to one party, but to its residents.

The loan will be provided through two financial institutions. Up to €183 million is expected to come from the European Investment Bank, while the remainder will be provided by another financial or credit institution. A procedure will be launched to select the institution that will finance the second tranche. A substantial part of the funds will be directed towards modernising public transport. The plans include the purchase of 200 buses, 50 electric buses, 75 trolleybuses and 20 trams. The funds will also be used for infrastructure projects, including the renovation of pavements and boulevards.

Photo: BTA

Vasil Terziev, Mayor of Sofia: “The aim of this loan, together with everything we are doing to attract grant funding, is precisely to have modern public transport. This is the foundation of many of our policies – clean air, reducing congestion and parking. So I hope you will all support this, because it is not something that will happen under this administration or during this term.”