World Bank and Bulgaria Partner to Advance Education and Boost Business Capacity

The World Bank and the Government of Bulgaria have signed two pivotal Reimbursable Advisory Services (RAS) Agreements aimed at accelerating progress in both education and business development. These strategic partnerships were formalized during an official signing ceremony held at the Council of Ministers of Bulgaria on May 9, 2025. The event was attended by top government officials, including Deputy Prime Minister and Minister of Innovation and Growth, Tomislav Donchev, and World Bank Vice President for Europe and Central Asia, Antonella Bassani.

Two Agreements to Target Critical Development Areas

The new RAS agreements are tailored to respond to Bulgaria's national development priorities by strengthening microeconomic foundations and human capital. These agreements reinforce the government’s commitment to innovation, entrepreneurship, and evidence-based education reforms.

Supporting MSMEs in Northern Bulgaria

The first RAS agreement, titled “Sustainable Development of MSMEs in Bulgaria”, focuses on improving the productivity and competitiveness of approximately 300 micro, small, and medium-sized enterprises (MSMEs) located primarily in Northern Bulgaria. Signed by Boyko Takov, Executive Director of the Bulgarian Small and Medium Enterprises Promotion Agency (BSMEPA), this initiative targets one of the most economically lagging regions in the country.

The program aims to:

• Conduct detailed needs assessments of participating businesses.

• Evaluate managerial and operational capacities.

• Identify growth barriers and strategic development opportunities.

• Provide tailored support to enhance business planning and innovation capabilities.

With these interventions, the goal is to bridge the performance gap of MSMEs in less developed areas, ultimately contributing to more inclusive economic growth.

Elevating Education through Better Data and Governance

The second agreement, “Strengthening the Production and Use of Data for Better Learning Outcomes in Bulgaria”, was signed by Krasimir Valchev, Bulgaria’s Minister of Education and Science. This program seeks to transform the country's education system by advancing its data infrastructure and evidence-based policy mechanisms.

Key focus areas of this RAS include:

• Improving data collection and governance within the education sector.

• Enhancing the use of analytics for policymaking and classroom practices.

• Building the capacity of educators and administrative staff to interpret and apply data.

• Supporting foundational skills development, particularly reading comprehension, among primary school students.

By leveraging advanced data systems and targeted support, this initiative is expected to benefit thousands of students and teachers, promoting more effective and equitable learning outcomes nationwide.

A Shared Vision for Inclusive Development

Antonella Bassani, World Bank Vice President for Europe and Central Asia, emphasized the broader vision behind these agreements:

“These agreements reflect a shared ambition to support Bulgaria’s efforts to unlock opportunities for people and businesses across the country. In both education and businesses, the common thread is capacity — of individuals, institutions, and systems. Our shared goal is to build that capacity in ways that are inclusive, data-driven, and future-focused. We look forward to working together so that Bulgaria’s children and its businesses not only keep up with the pace of change but lead the way.”

What Are Reimbursable Advisory Services?

Reimbursable Advisory Services (RAS) are a unique tool in the World Bank’s development assistance portfolio. Unlike traditional lending, RAS programs involve the provision of high-level technical advice and support, with costs fully reimbursed by the client country. These services can include:

• Policy and regulatory advice.

• Capacity-building and training programs.

• Program implementation support.

• Monitoring and evaluation.

• Knowledge exchange and peer learning.

RAS arrangements are highly flexible, making them especially suitable for middle- and high-income countries seeking targeted assistance in complex reforms without the need for traditional loans.

Forward Momentum for Bulgaria

These new RAS agreements are expected to serve as critical levers in Bulgaria's long-term development trajectory. By combining international expertise with local commitment, the World Bank and Bulgarian government aim to foster more resilient businesses and a more capable education system—two sectors at the heart of national competitiveness and prosperity.

The partnerships not only mark an important milestone in the country’s collaboration with the World Bank but also reinforce Bulgaria’s vision to build a smarter economy and a better future for its citizens.