EIB Group invested €822 million in the Western Balkan countries in 2025

This article is published in association with European Investment Bank.

• The EIB Group invested €822 million in loans, guarantees and grants for new projects, mobilising €1.5 billion of new investments.
•  Financing will support projects in transport, healthcare, education and energy, as well as small and medium-sized enterprises (SMEs), contributing to safer roads and railways, higher energy security, improved medical services, and more climate-resilient businesses and infrastructure.

The European Investment Bank Group continued to play a key role in advancing the Western Balkans’ market integration, connectivity and green transition. In 2025, the EIB Group committed €822 million to support sustainable connectivity and climate action, in line with the region’s EU accession efforts. Of this amount, €664 million was provided in loans and guarantees, alongside €6.5 million in investment grants under the EIB’s Economic Resilience Initiative. In addition, €151.1 million in EU grants was signed through the Western Balkans Investment Framework (WBIF), reaffirming Team Europe’s central role in mobilising substantial resources to support economic growth and convergence in the region.

Sustainable transport accounted for 58% of total investment, followed by healthcare (20%), renewable energy (13%) and support to the education sector (4%). Overall, the financing is expected to mobilise nearly €1.5 billion of new investments. 58% of the EIB Group’s support will directly contribute to climate action and environmental sustainability, in line with the Bank’s ambition to support at least €1 trillion in green investments by 2030 across the world. Last year, €1.4 billion was approved for new projects across the region, while €610 million was disbursed.

“In 2025, we saw notable progress on EU accession and market integration under the European Union’s Growth Plan. Our investments go hand in hand with these efforts by enhancing transport connectivity, strengthening energy security through decarbonisation and diversification, developing skills, and supporting climate resilience. We have also opened a new representative office in Montenegro, reinforcing our close support for the country’s accession path. Also, in the coming year, we stand ready to intensify our support, including for cross-border projects,” said EIB Vice-President Robert de Groot.

The EIB reinforced its role as one of the leading financiers of sustainable transport infrastructure in the Western Balkans. Under the Team Europe approach, the Bank secured major financing packages for strategic rail upgrades, including €90.5 million for Albania’s Durrës–Rrogozhina line, €134 million for Serbia’s Niš–Dimitrovgrad route and €175 million for Montenegro’s Bar–Golubovci section. As part of the extended TEN‑T Core Network, these projects will benefit from €207 million in EU grants through the WBIF. In addition, a €150 million EIB loan will support the modernisation of 540 km of regional roads in Serbia, improving safety and enhancing the climate resilience of transport infrastructure. Support for Corridor Vc in Bosnia and Herzegovina continued, while EIB-backed upgrades of inland waterways in Serbia are improving Danube navigability, facilitating trade flows and strengthening regional integration.

 Energy security and diversification as a priority

Strengthening energy security and diversification remained a priority in 2025. The EIB signed a €103 million loan for the 132 MW Poklečani wind farm in Bosnia and Herzegovina. Once operational, the project will generate 437 GWh of electricity annually, enough to supply around 72 700 households and reduce CO₂ emissions by 446 900 tonnes per year. Supported by EU grants and technical assistance, this Poklečani wind farm complements other EIB-financed projects in the region, including the Vlašić wind farm, a solar power plant near Priština, and hydropower rehabilitation projects in Serbia, as well as upcoming investments in electricity grid extensions in Serbia and Bosnia and Herzegovina. Together, these initiatives will strengthen the region’s energy capacity, enhance system efficiency and improve long-term energy security.

“We welcome the strong momentum in energy sector decarbonisation and infrastructure upgrades across the region, which are strengthening energy security, diversifying supply and deepening market integration. To accelerate the green transition, we have also launched several climate-related initiatives to help regional economies and companies in particular to decarbonise, adapt to climate change and remain competitive,” said Vice-President De Groot.

Driving green innovation among regional SMEs

Companies across the region are stepping up efforts to reduce emissions, supported by EIB green credit lines. In North Macedonia alone, more than 50 companies have added 105 MW of renewable energy capacity. In Serbia, the EU for Green Agenda initiative has introduced an innovative financing model combining donor grants with low‑interest loans. Implemented by the United Nations Development Programme (UNDP) in cooperation with the EIB, the initiative has supported 94 green innovations worth €52 million since 2022. In 2025, the EIB also launched the Innovation and Green Transformation Facility, to provide €187 million in loans and EU grants to support SME investments in digitalisation, sustainable agriculture and climate‑resilient technologies.

To promote inclusive employment, the Bank expanded its award‑winning impact incentive credit line with partners in Serbia and Bosnia and Herzegovina, targeting companies that employ women, young people, and people with disabilities. Under the EU’s Guarantee for SME Resilience initiative, the European Investment Fund (EIF) signed €7.9 million in guarantees in 2025, expected to mobilise €105 million in SME financing, support around 375 projects and sustain 5 750 jobs.

Advancing skills, healthcare and sanitation

As the Western Balkans progress on their EU path, modernising social infrastructure remains central to improving living standards. In 2025, the EIB invested €20 million to advance the digital transformation of Montenegro’s education system and launched a mapping exercise with UNOPS (United Nations Office for Project Services) to assess the safety, accessibility and energy performance of more than 800 schools. Supported by EU funds, the new Vladimir Nazor school of Podgorica opened last year now offers state-of-the-art facilities for 1 200 pupils.

In Serbia, the EIB committed €157 million to upgrade major clinical centres in Belgrade, Kragujevac, Niš and Novi Sad, improving healthcare capacity and access to advanced medical services. A further €35.5 million EU grant will finance a new sewerage network in Belgrade’s Palilula municipality, improving sanitation for 86 000 residents and enhancing environmental protection. In Bosnia and Herzegovina, the EIB continued to support the expansion of the Banja Luka Clinical Centre.

Advisory as key to unlocking funds and speeding up implementation

In 2025 EIB Advisory, notably JASPERS, continued to support digital transformation and sustainable connectivity across the region. Experts provided technical assistance for 48 active projects and launched 20 new assignments. Under the Greening Financial Systems programme, advisory support is helping central banks in North Macedonia, Albania and Bosnia and Herzegovina to develop climate risk assessment frameworks and green taxonomies, enabling local banks to better guide SMEs on green investments.

In partnership with the EU Delegation and the Economic Chamber of North Macedonia, the Bank launched the country’s first Decarbonisation Guide, a free online tool that helps companies measure emissions and plan decarbonisation pathways. In addition, the Green Eligibility Checker is now available to companies and commercial banks across the Western Balkans, simplifying the process of assessing whether investments meet EIB financing criteria.

 Background information

About the EIB and EIB Global

The European Investment Bank is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. 

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. We aim to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.

The EIB is one of the leading international financiers in the Western Balkans. For detailed information on the EIB’s activities in this region, visit www.eib.org/en/publications/the-eib-in-the-western-balkans.

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment. For more information, see https://www.eif.org.

For detailed information on the EIB’s activities in the Western Balkans region, visit www.eib.org/publications/the-eib-in-the-western-balkans.