EU, Intl Financial Institutions To Back Infrastructure, SMEs, Energy Efficiency in Western Balkans

The European Investment Bank (EIB), the bank of the European Union (CEB), and EBRD have committed themselves to making available 1 billion euro ($1.5 billion) in loans, EBRD said in a statement.

The two funding facilities will be provided under a Western Balkans Investment Framework (WBIF) which will be signed in the coming weeks by the European Commission, the EBRD, the EIB, and the CEB, with the endorsement of EU Member States, the statement said.

“The objective is to pool and coordinate different sources of finance and leverage loans with grants for projects representing a priority for the Western Balkan beneficiaries,” the statement said.

The joint grant facility will contribute to financing the preparation and implementation of priority projects in the Western Balkans: Albania, Bosnia Herzegovina, Croatia, Macedonia, Kosovo (under UNSCR 1244), Montenegro and Serbia. Good preparation and a strong implementation framework are essential for projects to receive loan financing and to successfully contribute to economic growth in the Western Balkans in the framework of the accession process, the statement said.

The European Commission has so far allocated some 110 million euro to support the financing of municipal infrastructure projects and technical assistance projects. This funding is now part of the joint grant Facility. The EIB, EBRD and CEB have each pledged 10 million euro for technical assistance or other grant support, in accordance with their respective internal procedures. EU Member states and other donors are invited to make grant contributions via a European Western Balkans Joint Fund co-managed by the EIB and EBRD.

Croatia is expected to be granted EU membership over the next two years. Across the rest of the Western Balkans, the accession process is at different stages. Macedonia expects to get a date to start EU accession negotiations in December, after the European Commission recommended the launch of entry talks earlier this month. Serbia and Bosnia each signed a Stabilisation and Association Agreement with the EU in 2008. Montenegro applied for EU membership last December.

($=0.6694 euro)