Skopje, 9 February 2024 

EIB Global, the financial arm of the European Investment Bank (EIB) for activities outside the European Union, invested a record-breaking €1.2 billion across the Western Balkans in 2023 (€365 million more than in 2022). The investments went to sustainable and energy transition projects that support the region’s EU accession, economic, climate and connectivity efforts.

“The funds support projects under the Economic and Investment Plan and the Global Gateway initiative, strategic EU instruments to bridge the existing infrastructural gaps and improve living standards. In close cooperation with the European Commission, we are pleased to provide an impressive €475 million in grants under the Western Balkans Investment Framework and the EIB’s Economic Resilience Initiative,” said Kyriacos Kakouris, EIB Vice-President responsible for the region.

The largest share of new funds (58%, €693 million) has been allocated to safer, sustainable transportation, namely railway lines in Serbia (Belgrade-Niš) and North Macedonia (Kriva Palanka-Bulgarian border). The EU bank signed additional funding for the modernisation of urban transport in Sarajevo and a road rehabilitation and safety project in Serbia. €275 million (23% of total financing in 2023) was devoted to supporting small and medium businesses (SMEs) in the Western Balkans. The remaining funds will go to energy, water, healthcare and education projects.

“Thanks to partnerships under Team Europe with our Western Balkans partners, the European Commission and international financial institutions, we could make the most of advisory and financial resources to maximise the benefits for people in the region. We look forward to the rollout of the Commission’s proposed New Growth Plan, which will expedite key reforms promoting greater economic prosperity, advancing convergence with the European Union and strengthening regional initiatives like the Common Regional Market,” Vice-President Kakouris stated.

In addition to financing, the Bank provided technical advisory support to prepare and implement a water distribution project in Tirana, as well as a climate action credit line for SMEs in North Macedonia. Under the EU-financed JASPERS programme, the available technical advisory capacity for the Western Balkans is expected to triple, with a budget of €20 million available for the next six years.

Steering the just green transition in the region

Around 61% of the projects signed in 2023 for the Western Balkans contribute directly to climate action and environmental sustainability — in line with the EIB’s climate goals. The EU bank initiated new projects in renewable energy, energy efficiency and clean energy infrastructure.

At the COP28 climate change conference, EIB Global presented its new approach designed to increase financing and advisory services globally in support of a just transition and just resilience. For its initial just transition activities, the focus will be placed on Bosnia and Herzegovina, Kosovo*, Montenegro, North Macedonia and Serbia. At the conference, the Bank also joined the signatories of a Declaration on the Just Transition Investment Platform for North Macedonia, aiming to help mobilise up to €3 billion to accelerate the country’s deployment of 1.7 GW in renewable energy capacity by 2030.

Affordable and innovative financing for small business

In cooperation with commercial banks and national development institutions like the Development Bank of North Macedonia, EIB Global provided €275 million in the form of affordable credit for SMEs to help them expand and create jobs, while improving their social and climate impact. Some lines of credit also include a “green” component, supporting clean energy and climate action projects in the private sector.

For its innovative impact finance credit line launched in 2020 in the Western Balkan countries, the EU bank received a prestigious Uxolo Award in 2023. The loan fosters youth employment, gender equality and socially inclusive practices, with financial rewards for companies that meet long-term employment targets.

Lastly, the European Investment Fund (EIF), part of the EIB Group, started implementing the WB EDIF Guarantee Facility for SME Resilience, expected to unlock some €700 million for SMEs in the region. To date, the EIB Group has invested over €6 billion in the private sector in the Western Balkans.

European Investment Bank (EIB)

______________________________________________________

MIA publishes these pieces in their original form and is not responsible for their content, wording, or spelling.

Photo: MIA archive