Commission delivers €171 million support package for infrastructure and businesses in the Western Balkans

This article is brought to you in association with the European Commission.

The European Commission has announced a €171 million of support to boost infrastructure development and private sector growth across Western Balkans partners.

The new support package includes an investment contribution package from different EU funding sources: contributions from the Instrument for Pre-accession Assistance (IPA III) for a project in Bosnia and Herzegovina, contributions from WBIF bilateral donors for a project in Montenegro, and contributions from the Reform and Growth Facility (RGF) for projects in Albania, Montenegro and North Macedonia.

Today’s funding package includes investment and technical assistance projects approved today, reinforcing the EU’s commitment to sustainable growth and regional connectivity in the Western Balkans.

€94.7 million for infrastructure investments

Of the total package, €91.8 million is allocated to infrastructure projects in the four partners. This funding is expected to mobilise €263 million in total investments across seven projects in priority sectors, including digital, clean energy, human capital, transport and environment. Key projects include:

• rollout of broadband infrastructure in Albania;
• improvement of the electricity transmission system in North Macedonia;
• construction and energy-efficient renovation of education facilities in North Macedonia and Montenegro;
• electrification of the Durres-Tirana Railway line in Albania; and
• drinking water and wastewater treatment project in Bosnia and Herzegovina.

These projects will be implemented by the Western Balkan partners together with international financial institutions.

In addition, €2.9 million is allocated to four technical assistance projects in Albania and Bosnia and Herzegovina, aimed at supporting future investments in energy, water, innovation, and research sectors.

€76.3 million to support the private sector

The package also includes €76.3 million in contributions to programmes supporting the private sector, including:

• the Western Balkans Forward Programme, helping small and medium-sized companies (SMEs) export more advanced products and services to the region and the EU;
• SME Go Green Programme, promoting green, circular economy, agribusiness and investments in jobs and growth;
• the Western Balkans Opportunities by Non-traditional Debt (W-BOND) pilot programme, providing SMEs with access to finance by diversifying funding sources beyond traditional bank loans;
• strengthening public-private partnership capacities and governance in Bosnia and Herzegovina.

Following approval by the Western Balkans Investment Framework Operational Board, projects can proceed to implementation. This includes finalising the necessary agreements with partner institutions and beneficiaries, launching preparatory studies for technical assistance activities, and completing the procedures required to enable implementation of private-sector projects. Once these processes are completed, implementation of the supported investments can begin.

Background

The Growth Plan for the Western Balkans  aims to integrate the Western Balkan partners into the EU Single Market, advance regional economic cooperation, deepen EU-related reforms, and increase financial assistance to accelerate socio-economic convergence with the EU. The Reform and Growth Facility for the Western Balkans, with a total financial envelope of €6 billion for 2024-2027, is the Plan’s key financial instrument, translating reform progress by partners into tangible support. To this day, 13 investment projects totalling €156 million have been approved under the Reform and Growth Facility since its launch in May 2024. 

The Western Balkans Investment Framework (WBIF) is instrumental in implementing the Reform and Growth Facility, channelling €3 billion in grants and loans under the Facility to support priority investments in transport, energy, digital and human capital. In addition, it also supports the implementation of the Instrument for Pre-Accession (IPA), aimed at assisting enlargement partners on their way to EU membership. Established 15 years ago, the WBIF is a joint financial platform, bringing together the European Commission, financial organisations, EU Member States and Norway. It contributes directly to the EU’s Global Gateway Strategy. 

For more information

Factsheet – Summary of WBIF Investments

Growth Plan for the Western Balkans

Reform and Growth Facility for the Western Balkans