Brussels, 22/10/2009 (Agence Europe) - On Wednesday 21 October, the European Commission, the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the Council of Europe Development Bank (CEB), with the backing of EU member states, agreed on the Western Balkans Investment Framework (WBIF), providing a joint grant facility and a joint lending facility to finance priority projects in the region. The WBIF agreement will be signed in the coming weeks.
The objective of the Framework is to pool and coordinate different sources of finance and leverage loans with grants for projects representing a priority for 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 sector.
The European Commission has so far allocated some €110 million to support the funding of local infrastructure projects and technical assistance projects. This funding is now part of the Joint Grant Facility. The EIB, EBRD and CEB have each pledged €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 joint grant facility will contribute to financing the preparation and implementation of priority projects in the Western Balkans: Albania, Bosnia Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia, Kosovo (under UN Security Council Resolution 1244), Montenegro and Serbia. “Good preparation and a strong implementation framework are essential for projects to receive loan financing and to successfully contribute to economic growth in the Western Balkans in the framework of the accession process,” the EIB says.
The 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 EIB and EBRD have committed themselves to making available €1 billion in loans. Likewise, the CEB is set to enhance its lending to the region for social projects. (O.L./transl.rt)