European Commission approves financial support package for Western Balkans

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.

The 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, CE Report informs via the European Commission official website.

€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.

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