The European Commission said on June 30 it has launched a new financial package worth €2.1bn for the Western Balkans to support 14 flagship investments in transport, energy, environment, human capital and private sector support.

This is the fifth investment package under the EU's Economic and Investment Plan for the Western Balkans.

“With this new investment package we are sending a loud and clear message to our Western Balkans partners: their future is within the EU and we are making steady progress to close the economic development divide,”  EU Enlargement Commissioner Oliver Varhelyi said.

The €2.1bn investment package comprises €528mn in EU grants from the Instrument for Pre-accession Assistance (IPA III), as well as additional contributions from EU member states, Norway, international financing institutions and the economies of the Western Balkans. 

The approved projects cover a wide range of sectors, including sustainable transport, clean energy, environment and climate, human development, and private sector development. In the sustainable transport sector, the projects involve the construction of motorway sections and subsections in Road Corridor Vc in Bosnia and Herzegovina and Corridor VIII in North Macedonia.

In the clean energy sector, the focus is on rehabilitating hydropower plants in Serbia and Bosnia & Herzegovina to reduce greenhouse gas emissions, as well as enhancing energy efficiency in North Macedonia. Other projects include strengthening North Macedonia's transmission network and implementing green transport initiatives in Tirana.

In terms of environment and climate, one project aims to rehabilitate the Sarajevo water system, which will improve public health, boost commercial infrastructure, and enhance the overall efficiency of water supply in the Sarajevo canton.

In the area of human development, efforts will be made to improve the energy efficiency and integrated energy management of the University of Belgrade. 

The EU's Economic and Investment Plan for the Western Balkans has set aside up to €30bn in investments, including €9bn in EU grant funding. The plan's overarching goals are to stimulate long-term recovery, accelerate the green and digital transition, and foster regional cooperation and convergence with the EU.

This substantial financial support underscores the EU's commitment to the Western Balkans and its determination to help the region reach its full potential, both economically and in terms of its integration with the EU.

Projects have been prepared in close cooperation with the Western Balkans partners and the international financial institutions to accelerate the European perspective of the region.