European Commission launches investment package for the Western Balkans worth 3.2 billion euros

SARAJEVO, (Patria) - The European Commission today presented a significant investment package of 3.2 billion euros to support 21 connectivity projects in the transport, digital, climate and energy connectivity in the Western Balkans.

This is the first major package of projects within the EU's ambitious Economic and Investment Plan for the Western Balkans, which the Commission adopted in October 2020 and through which the EU's "Global Gateway" strategy will be implemented in the region. The projects are designed to bring concrete benefits to all six partners in the region.

EU Commissioner for Neighbourhood and Enlargement, Oliver Varhelyi, stated: "With this major investment package, we are accelerating the implementation of the Economic and Investment Plan for the Western Balkans on the ground. We have identified these priority projects in close cooperation with our partners. Better and more sustainable connections in transport, digital infrastructure and renewable energy will boost the economy, drive the green and digital transition in the region, and bring a range of new opportunities for people and businesses in the Western Balkans and across the EU. These investments will also accelerate the integration of the region, in line with its clear European perspective."

"Over the next few years, the Economic and Investment Plan will mobilize up to 30 billion euros in investments, combining grants, concessional loans, and guarantees. The plan will help close the development gap between the European Union and the region, and will also support economic recovery after the pandemic," the statement said.

Today's financial package includes 1.1 billion euros in EU grants from the Instrument for Pre-Accession Assistance 2021-2027 (IPA III), additional bilateral contributions from EU Member States and Norway, and concessional loans from international financial institutions.

The 3.2 billion euro investment package is channeled through the Western Balkans Investment Framework (WBIF) - an EU-led multi-donor investment platform that represents the primary financial instrument for the implementation of the Economic and Investment Plan in the areas of public infrastructure and private sector competitiveness.

Projects in this first package cover the Plan's priority sectors: "Sustainable Transport: Construction of major road and rail connections in the region, including the Mediterranean, East-West, and Rhine-Danube corridors, as well as the railway corridor between Skopje in North Macedonia and the Bulgarian border. These projects will facilitate regional trade, reduce travel times, and promote sustainable economic growth, bringing significant benefits to the local population and businesses in the region;

Clean Energy: Development of renewable energy sources with the construction of solar power plants and the Trans-Balkan electricity transmission corridor, which will be crucial for a successful transition to clean energy in the region and will contribute to the gradual phasing out of coal;

Environment and Climate: Construction of wastewater treatment plants, which are essential for the region's green perspective and will help preserve the health and well-being of people in the Western Balkans;

Digital Technologies: Development of broadband infrastructure in rural areas to ensure universal access across the Western Balkans;

Human Capacity Development: Construction of a new facility for a university children's hospital to increase its capacity and incorporate new diagnostic and treatment technologies."

Implementation will begin soon, after the signing of agreements with international financial institutions, and is expected during 2022 and 2023.