On July 2nd, the European Commission announced the sixth investment package based on the EU’s economic investment plan for the Western Balkans, announcing that it will mobilize investments of 1.2 billion euros.
“The package will support eight new flagship investments in water supply and sanitation, wastewater treatment, rail transport, innovation and the 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,” the EC said in a statement.
The €1.2 billion investment package comprises an EU grant of €300 million under the EU Pre-Accession Assistance Programme (IPA III) and bilateral contributions from EU member states and Norway.
This includes loans from international financial institutions and donations from the Western Balkan countries.
The new package includes investments in three areas: environment and climate, sustainable transport and support to the business sector.
The environment and climate sector will include the reconstruction and rehabilitation of water supply and sanitation infrastructure in Montenegro and Bosnia and Herzegovina.
Sustainable transport includes investments in rail infrastructure for the Corridor X high-speed railway linking Belgrade and Velika Plana, which will speed up the flow of passengers and freight in the region.
Support to the business sector envisages the launch of new facilities for innovation and green transformation for local companies.
“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 boost 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,” the EC noted.
So far, the EU has approved a programme under the Economic and Investment Plan to mobilise investments of up to €17.5 billion, including €5.4 billion in EU subsidies.
The WBIF is a joint financing platform launched 15 years ago, involving the EC, financial institutions, EU member states and Norway. Its aim is to promote cooperation in public and private investments. The programme supports the socio-economic development of the region and supports the EU integration of the Western Balkans countries.
The WBIF is the main financial instrument for implementing the EU’s economic investment plan, and under the Facility the WBIF will provide €3 billion in grants and loans to support priority investments in the areas of transport, energy, digital and human capital.
