Bulgaria Selects 94 Defense Industry Projects for €61.5M

Bulgaria has selected 94 projects for €61.5 million in European Union-backed grants to modernize defense manufacturing and dual-use production. The results, published on October 8, include several established Bulgarian arms manufacturers, electronics producers and shipbuilders.

The funding is available through Bulgaria's Competitiveness and Innovation in Enterprises Program 2021–2027, administered by the Executive Agency for European Funds for Competitiveness under the Ministry of Innovation and Digital Transformation.

According to the official evaluation results, the selected projects will receive a combined €61.48 million, subject to final eligibility checks and grant agreements.

VMZ, Dunarit and MTG Dolphin Among Selected Companies

The published selection lists identify several major Bulgarian defense manufacturers.

Vazovski Mashinostroitelni Zavodi (VMZ Sopot), one of Bulgaria's principal ammunition manufacturers, has been selected for approximately €3.58 million in grant funding. The company produces artillery and mortar ammunition, rockets and other military products.

Dunarit, another established ammunition producer, is listed for approximately €3.22 million, while MTG Dolphin, the Varna-based shipbuilder involved in constructing patrol vessels for the Bulgarian Navy, has been selected for approximately €2.82 million.

Other selected companies include Mars Armor, with approximately €1.53 million, Opticoelectron Group, also with approximately €1.53 million, and Samel-90, with approximately €1.35 million.

Milara International, a Bulgarian industrial technology company, is among the largest proposed recipients, with approximately €3.56 million.

The published rankings specify grant amounts for individual applicants but do not provide a detailed breakdown of the equipment or production lines each company intends to finance.

Funding Covers Machinery, Software and Production Facilities

The program supports investments in machinery, manufacturing equipment, specialized software, patents, licenses and technical know-how. Construction and installation work can also qualify, provided it does not exceed 50% of a project's total eligible costs.

Eligible activities extend beyond conventional weapons manufacturing to dual-use technologies, including radar equipment, microprocessors, cryptographic software and unmanned systems.

Individual grants range from €51,129 to approximately €3.6 million. Depending on the applicant's size, location and applicable state-aid rules, the program can cover up to 70% of eligible project costs.

The selection process attracted strong demand. A total of 184 applications were submitted, seeking more than twice the program's original €70.6 million budget.

Of the 94 projects proposed for funding, 75 are located in Bulgaria's less-developed regions, accounting for approximately €53.08 million. The remaining 19 projects are in the Southwestern region, with approximately €8.40 million allocated.

Another 63 Projects Await Additional Funding

An additional 63 projects passed the technical and financial assessment but were placed on reserve lists because insufficient funding was available under the applicable allocations.

Bulgarian authorities said they would examine options for increasing the program's budget to support additional applicants.

The selected companies must still complete administrative verification before signing their grant agreements. The announcement therefore represents the selection of projects for funding rather than confirmation that payments have already been made.

The grants come as Bulgaria pursues several other defense-industrial investments. Earlier this week, AdriaDefense reported on Sofia's revised timetable for a planned Rheinmetall-linked ammunition facility, with construction targeted within 30 months.

The newly announced grants represent a separate investment program covering a broader group of domestic manufacturers.

The full selection and reserve lists are available through Bulgaria's official program portal.