Tsanko Arabadzhiev: BDB Can Mobilise Private Capital for the Development of Bulgaria’s Strategic Infrastructure
изпълнителният директор на ББР по време на 3-ата Регионална икономическа конференция на американските камари (ARES)
The state budget should not be the sole source of financing for strategic infrastructure. Public capital delivers its greatest value when it acts as a catalyst for attracting private investment through institutions such as the Bulgarian Development Bank. BDB Executive Director Tsanko Arabadzhiev stated this during the 3rd AmChams Regional Economic Summit (ARES).
The discussion, dedicated to infrastructure investments, was also attended by Ivan Shishkov, Minister of Regional Development and Public Works, Antonio Nunez, Lead Transport Specialist at the World Bank, Elina Markaryan, President of AmCham Armenia, and business representatives from the region.
According to Tsanko Arabadzhiev, Bulgaria does not suffer from a shortage of capital, but from a lack of sufficiently effective mechanisms to channel available public and private resources towards key national projects.
“The real question is not how to allocate funds in the state budget, but how to turn them into investments many times larger. The role of public resources is not to replace private capital, but to mobilise it,” Arabadzhiev said.
He emphasised that public investments should not be assessed by their absolute value or size, but by the growth and economic opportunities they create.
As an example of such a model, Arabadzhiev pointed to Bulgaria’s participation in the Three Seas Fund. He recalled that a contribution of EUR 10 million had mobilised more than EUR 200 million in investments in Bulgaria. The expected effect on the economy exceeds EUR 2.6 billion in GDP contribution, supports more than 4,100 jobs, and yields a net fiscal effect for the state of more than EUR 620 million.
BDB’s Executive Director also drew attention to the lack of mechanisms connecting national savings with strategic national priorities through investment platforms, public-private partnerships, and a developed capital market.
“This is precisely where I see the role of the Bulgarian Development Bank - not merely as a lender, but as an institution that structures partnerships, reduces risk, and builds investment platforms around strategic national priorities,” BDB’s Executive Director emphasised.