In a significant move to bolster economic growth and sustainability in the Western Balkans, EIB Global has announced a substantial investment of €693 million. This funding aims to enhance energy security, improve transport infrastructure, and support digital transformation across the region, marking a pivotal step towards EU integration.
Key Takeaways
- EIB Global allocates €693 million for energy, transport, and economic growth in the Western Balkans.
- The funding includes €527 million in loans and €164 million in EU grants.
- Major investments focus on sustainable transport, clean energy, and private sector development.
Commitment to EU Integration
EIB Global’s Vice-President, Robert de Groot, emphasized the bank’s dedication to supporting the Western Balkans on their journey towards EU integration. He stated, "Achieving higher convergence requires significant reforms and investments, which is why combined financial and technical support under the Team Europe umbrella ensures continuous and extensive assistance."
Investment Breakdown
The €693 million financial package is structured as follows:
- Loans: €527 million
- EU Grants (WBIF): €164 million
- Grants (Economic Resilience Initiative): €2 million
The allocation of funds is primarily directed towards:
- Sustainable Transport: 43%
- Clean Energy Projects: 31% (record high)
- Private Sector Development: 20%
Energy Security Initiatives
A significant portion of the investment, totaling €213 million, is earmarked for enhancing energy security and sustainability. Key projects include:
- Rehabilitation of large hydropower plants.
- Installation of advanced electricity meters in Serbia.
- Construction of a major solar photovoltaic plant near Pristina, Kosovo, which will supply energy to over 29,000 households and reduce carbon emissions by 174,000 tonnes annually.
De Groot remarked, "As the EU Climate Bank, we have intensified efforts to drive a green transition in every country in the region."
Enhancing Transport Infrastructure
EIB Global is also focusing on sustainable transport, with €295 million allocated for railway rehabilitation projects in Albania and Montenegro. These investments aim to:
- Improve railway capacity and efficiency.
- Promote a shift from road-based transport to sustainable rail travel.
Additionally, a €79 million EU grant has been signed to support the construction of a section on Corridor Vc in Bosnia and Herzegovina, enhancing connectivity and economic integration.
Fostering Economic Growth
To stimulate economic growth and job creation, EIB Global has invested €151 million in innovation and clean energy projects among local companies. This funding is expected to:
- Create job opportunities.
- Provide training and career development, especially for vulnerable groups.
Furthermore, the European Investment Fund has facilitated approximately €750 million in loans for around 13,000 small businesses, sustaining an estimated 180,000 jobs in the region.
Conclusion
EIB Global’s investment in the Western Balkans represents a crucial step towards fostering regional development and EU integration. Through sustainable investments and economic cooperation, the bank is playing a vital role in shaping a prosperous future for the region.
