EU Approves 303 Million Euros for Four New Infrastructure Projects in BiH

(Patria) - The European Commission on 30 June announced a new financial package to support the financing of 14 leading investment projects in the areas of transport, energy, environment, human capital and private sector support in the Western Balkans. Among them are four infrastructure projects being implemented in Bosnia and Herzegovina, and the country will additionally benefit from four regional projects.

The total value of the 14 new leading investment projects in the Western Balkans is 2.1 billion euros. This amount includes EU grants worth 528 million euros from the Instrument for Pre-Accession Assistance (IPA III), additional bilateral contributions from EU member states and Norway, loans from international financial institutions, and contributions from the Western Balkan countries themselves.

The investments are being implemented through the Western Balkans Investment Framework (WBIF), which is a joint financial platform of the European Commission, financial organisations, EU member states and Norway aimed at enhancing cooperation in public and private sector investments for the socio-economic development of the region and contributing to the European integration of the Western Balkans. The Investment Framework is the main financial instrument for implementing the ambitious EU Economic and Investment Plan for the Western Balkans.

This is the fifth investment package under the EU Economic and Investment Plan for the Western Balkans. The projects were prepared in close cooperation with partners in the Western Balkans and international financial institutions with the aim of accelerating the European perspective of the region.

EU Commissioner for Neighbourhood and Enlargement, Olivér Várhelyi, stated on that occasion:

“With this new investment package, we are sending a loud and clear message to our partners in the Western Balkans that their future is within the EU and that we are making steady progress in bridging the existing gap in economic development. These projects will contribute to better connectivity within the region as well as with the EU, decarbonisation and the competitiveness of the private sector in the region. I take this opportunity to call on our partners in the Western Balkans and international financial institutions to launch these projects as soon as possible so that citizens and businesses in the region can enjoy the benefits of these investments.”

More than half of EU grant aid allocated to BiH

Of the total 528 million euros in grants allocated by the EU to the region, 303 million euros are intended for Bosnia and Herzegovina for four significant projects that will provide concrete benefits to citizens in terms of improved transport, clean energy and the environment. The total investment enabled by these grants, together with loans from international financial institutions, amounts to 788 million euros. These are the following four approved projects:

Road Corridor Vc: Motorway subsection Ozimice – Poprikuše

This investment project will construct 11.9 km of motorway on Corridor Vc, from Ozimice to Poprikuše, including 5 tunnels and 9 bridges.

Road Corridor Vc: Motorway section Mostar North – Mostar South

This investment project will construct 14.2 km of motorway on Corridor Vc, starting before the Mostar North interchange and ending after the Mostar South interchange.

Water supply system improvement project in Sarajevo

The aim of this project is to reduce water losses by replacing or rehabilitating outdated pipelines, pumping stations and wells, thereby enabling the improvement of existing connections and the connection of around 4,000 new household connections. The project aims to improve the overall efficiency of water supply in the wider Sarajevo Canton area.

Rehabilitation of the Čapljina Pumped Storage Hydroelectric Plant

The rehabilitation of the Čapljina Pumped Storage HPP is necessary to increase the share of renewable energy sources and reduce carbon emissions. The project will rehabilitate the equipment of the Čapljina Pumped Storage HPP, thereby ensuring production and pumping capacity for another 15 years of operation.

Bosnia and Herzegovina will additionally benefit from four leading regional projects with a total value of 944 million euros, of which the EU provides 142 million euros in grants:

- Safe and Sustainable Transport Programme (SSTP)

- GGF: Promoting Green Lending in the Western Balkans (II)

- Sustainable Access to Finance for Entrepreneurship – SAFE

- Go Digital in the Western Balkans