EU financial institutions agree on Western Balkans Investment Framework
22.10.2009
The European Commission, international financial institutions and EU member states have agreed on an investment framework for the Western Balkan countries with an emphasis on the financing of projects in the field of infrastructure, small and medium business, and energy efficiency, the European Bank for Reconstruction and Development (EBRD) said in a statement on Wednesday.
The joint grant facility, an agreement on which will be signed in the next few weeks, will contribute to financing the preparation and implementation of priority projects in Albania, Bosnia-Herzegovina, Croatia, Macedonia, Kosovo, Montenegro and Serbia.
The agreement on the investment framework for the Western Balkan countries was reached by the European Commission, the EBRD, the European Investment Bank (EIB), and the Council of Europe Development Bank (CEB), with the support of the EU.
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 initial focus on infrastructure sectors, including social infrastructure, will be expanded to include support to SMEs, energy efficiency and other investment sectors.
The European Commission has so far allocated some EUR 110 million to support the financing of municipal infrastructure projects and technical assistance projects. This funding is now part of the Joint Grant Facility, the EBRD said in the statement.
The EIB, EBRD and CEB have each pledged EUR 10 million 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.
The Western Balkans Investment Framework (WBIF) creates a single entry point for project submission by beneficiary countries and screening by contributors and financiers. The project selection will ensure consistency with the countries' needs and will support EU accession priorities.
A joint lending facility will work in conjunction with the grant facility, the EBRD says in the statement.
The EIB, the bank of the European Union, and the EBRD have committed themselves to making available 1 billion euro in loans. Likewise, the CEB is set to enhance its lending to the region for social projects, reads the statement.
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