On 16 June 2008, the European Commission approved, in association with the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and Council of Europe Development Bank (CEB), over €10 million technical assistance support for 18 infrastructure projects leading to more than €800 million of investment to be co-financed by the three banks in Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Kosovo (under UNSCR 1244), Montenegro and Serbia. More projects will be approved before the end of 2008.
Beneficiaries of this technical assistance will be typically public utility companies, municipalities and other public service providers. In most cases, they lack capacities and resources to build feasible project proposals that can get a chance to be financed by banks. The Commission will provide technical expertise, feasibility studies and training for the preparation and implementation of the investments. The investments will then be co-financed through loans by the EIB, the EBRD and the CEB, as well as national resources and other donors. Projects will be supported in the transport, energy, environment and social sectors. They will involve the improvement of railways, construction of waste water treatment plants and water supply systems, energy transmission lines, building of schools and hospitals.
For the Commission this is an important step in supporting beneficiaries in the Western Balkans to obtain loans and other financing for their investments. These projects will have a direct impact on the quality of life of ordinary people in the region. This will be possible thanks to the excellent cooperation between the Commission, the EIB, the EBRD, the CEB and the beneficiary countries in the region.
Speaking on behalf of one of the beneficiary countries, Mr. Albert Gajo, Deputy Minister, Ministry of Integration, Albania, responsible for IPA and donor coordination said: “We need support to prepare concrete projects, because we want to guarantee to every citizen access to water, sanitation and electricity. We need more and better schools and more efficient hospitals and clinics. Railways and roads are necessary for private citizens and enterprises. For this, investment needs in the region are enormous. The main challenge for us is to prepare good quality investment proposals that can attract investors offering competitive financial solutions. And the Infrastructure Projects Facility will help us facing this challenge”
The Infrastructure Projects Facility is a long-term initiative of the European Commission in partnership with the EIB, EBRD and the CEB to support preparation of projects that may be financed by grants and loans provided by the beneficiary countries, the three banks and other donors. The Commission has already allocated € 16 million to this Facility. Another €36 million will be added from the Commission 2008 financial assistance, including also for municipal investments, bringing the total amount to € 56 million. This Facility implies a long‑lasting commitment by the Commission, the EIB, the EBRD and the CEB, and other interested donors and International Financial Institutions, to mobilise grants and loans to finance the required investments in the region. It will have a crucial catalytic role in attracting loan and grant co-financing for the necessary infrastructure investments in the region.
Conctact: Mr. Yngve Engström, Head of Unit, Regional Programmes, Directorate-General for Enlargement, European Commission. (email: yngve.engstroem@ec.europa.eu )
