EIB Western Balkans investment increases: 1.2 billion in 2023 for sustainable transition

Brussels – A record year for investment in the Western Balkans, at least in terms of the European Investment Bank’s (EIB) contribution: In 2023, the EIB Global financial arm for activities outside the European Union allocated €1.2 billion in regional sustainable transition and energy projects to support the economic, climate, EU accession, and connectivity efforts of Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Montenegro, and Serbia.

A €365 million increase over 2022, bringing to over 10 billion the EIB’s total support to the Western Balkans since 2010 to help local economies develop sustainably. “The funds support projects under the Economic and Investment Plan and the Global Gateway initiative, which are EU’s strategic tools to fill existing infrastructure gaps and improve living standards,” explained EIB Vice-President in charge of the region, Kyriacos Kakouris, making it clear that the goal is both to “advance convergence with the European Union” and to “strengthen regional initiatives such as the Common Regional Market,” two key priorities also of the new 6 billion euro Western Balkans growth Plan presented in November 2023 by the EU Commission (albeit with financial doubts from the European Court of Auditors).

The largest share of the new funds (€693 million) was earmarked for safer and more sustainable transport, particularly for railway lines in Serbia (Belgrade-Niš) and North Macedonia (Kriva Palanka-Bulgarian border), but also for modernizing urban transport in Sarajevo and for a road safety project in Serbia. Some 61 per cent of the projects signed in 2023 “contribute directly to climate action and environmental sustainability,” in line with the EIB’s goals in renewable energy, energy efficiency, and clean energy infrastructure. An additional €275 million has been earmarked to support small and medium-sized enterprises in the form of affordable credit to help them expand and create jobs while improving their social and climate impact,” including through a “green component” in credit lines to support clean energy and climate action projects. The remaining funds will be allocated to energy, water, health, and education projects.