Today, the European Commission presented the sixth investment package under the EU Economic Investment Plan for the Western Balkans, which is expected to mobilize €1.2 billion in investments. The package will support eight new flagship investments in water supply and sanitation, wastewater treatment, rail transport, innovation and green transformation of small and medium-sized enterprises. The investments will be developed in close cooperation with partners in the Western Balkans and international financial institutions.
European Commission President Ursula von der LeyenSaid: “Our €30 billion investment plan for the Western Balkans is coming to fruition with this new €1.2 billion package, which will strengthen regional ties with quality infrastructure and strengthen our ultimate goal of connecting us to each other. Our Western Balkan partners are building Europe’s future. These investments, together with the necessary reforms and access to the single market, will prepare their economies to join our Union..”
The €1.2 billion investment package includes €300 million in EU grants from the Pre-Accession Assistance Mechanism (IPA III), additional bilateral contributions from EU member states and Norway, loans from international financial institutions, and contributions from the Western Balkans countries. The package was approved by the Western Balkans Investment Framework (WBIF) Steering Committee at its meeting on 1-2 July. The new flagship investments fall into three priorities of the Economic Investment Plan:
- Environment and Climate: Reconstruction and rehabilitation of water supply and sanitation infrastructure in Montenegro and Bosnia and Herzegovina.
- Sustainable Transportation: The development of rail infrastructure on Corridor X will see the high-speed rail linking Belgrade and Velika Plana speeding up the flow of passengers and freight in the region.
- Support for the business sector: Launch of a new facility for innovation and green transformation for local businesses.
background
As part of the Global Gateway, the EU’s Economic Investment Plan for the Western Balkans (2021-27) aims to foster long-term recovery, accelerate the green and digital transition, and promote regional cooperation and integration with the EU. Adopted by the European Commission in October 2020, the plan mobilizes investments of up to €30 billion over seven years, including €9 billion in EU subsidies through IPA III. Of this amount, €5 billion has been committed through the WBIF.
So far, the EU has approved a programme under the Economic Investment Plan to mobilise investments of up to 17.5 billion euros, including 5.4 billion euros in EU subsidies.
The WBIF is a joint financing platform launched 15 years ago, bringing together the European Commission, financial institutions, EU Member States and Norway to strengthen cooperation in public and private sector investments, supporting the socio-economic development of the region and contributing to the European integration of the Western Balkans. As the main financing instrument for implementing the EU’s economic and investment plan, the WBIF will also play a key role in the implementation of the new €6 billion Reform and Growth Facility for the Western Balkans, which has the dual objective of promoting socio-economic integration with the EU and accelerating the accession process. The WBIF will channel €3 billion in grants and loans under the facility to support priority investments in the areas of transport, energy, digital and human capital.
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Our €30 billion investment plan for the Western Balkans is coming to fruition with this new €1.2 billion package, which will strengthen regional ties through quality infrastructure and strengthen our ultimate goal of connecting us with each other. Our Western Balkan partners are building the future of Europe. These investments, together with the necessary reforms and access to the single market, will prepare their economies to join our Union.
European Commission President Ursula von der Leyen
“As the new investment package adopted today shows, the EU’s economic investment plan for the Western Balkans is being rapidly deployed with the shared goal of bringing the region closer to the EU. The Western Balkans Investment Framework has brought about significant change over the past 15 years, including helping the region connect road, rail, energy and digital infrastructure and weathering the energy crisis and the COVID-19 pandemic. We look forward to continuing our collaboration with WBIF as part of our new €6 billion Reform and Growth Facility, as we aim to accelerate socio-economic integration between the region and the EU and deliver change on the ground to benefit citizens and businesses alike.”
Oliver Varley, Commissioner for Neighbourhoods and Extension
