The European Commission has announced €171 million in support to boost infrastructure development and private sector growth in the Western Balkans. However, Kosovo will not benefit from these funds, nor will its northern neighbor, Serbia.
“As for Kosovo, it has not yet fulfilled the legal conditions to receive payments, as it has not yet ratified the Loan and Funding Agreement under the Reform and Growth Instrument for the Western Balkans. Therefore, Kosovo cannot benefit from the funds of this instrument. We hope that this issue will be resolved soon,” EC spokesman Guillaume Mercier told Radio Free Europe.
Kosovo must ratify the loan and funding agreements under the Growth Plan after the formation of new institutions resulting from the December 28 elections. This could not happen in 2025 due to the political deadlock, which resulted in two rounds of parliamentary elections last year.
Apart from Kosovo, Serbia is not a beneficiary of these funds either. However, the reasons for Serbia are different.
As an EC spokesperson explained to Radio Free Europe/Radio Liberty, no projects were approved for Serbia from the Reform and Growth Fund because at the time of the approval process, funds from the Growth Plan were not yet available. However, the country is expected to receive approval for the projects soon.
“Now that Serbia has received additional funds from the Growth Plan through the payment of the first tranche, the projects that Serbia has submitted and that the Commission has positively assessed can be sent for approval to the Steering Board of the Western Balkans Investment Framework,” said EC spokesperson Guillaume Mercier.
Of the €171 million allocated to boost development in the Western Balkans, €94.7 million is dedicated to infrastructure investments, €76.3 million to support the private sector, while €2.9 million has been allocated to four technical assistance projects in Albania and Bosnia and Herzegovina.
These projects are geared towards preparing future investments in the energy, water supply, innovation and research sectors.
According to the EC announcement, the funds allocated for infrastructure projects are expected to mobilise a total of €263 million in investments through seven projects in priority sectors, including digitalisation, clean energy, human capital, transport and environmental protection.
The projects include the deployment of broadband internet infrastructure in Albania, the improvement of the electricity transmission system in North Macedonia, as well as the construction and energy-efficient renovation of educational facilities in North Macedonia and Montenegro.
According to the EC, the projects will be implemented by the Western Balkans partners in cooperation with international financial institutions.
“Investing in our Western Balkans partners is essential for their rapprochement with the European Union. More than two years after the adoption of the Western Balkans Growth Plan, we have worked – including through the Western Balkans Investment Framework – to turn commitments into concrete actions. From improving infrastructure to strengthening business development, these investments create real opportunities for citizens and make the EU a tangible reality across the region,” said European Commissioner for Enlargement, Marta Kos, in a statement.
The new support package includes investment contributions from several EU funding sources, including the Instrument for Pre-Accession Assistance (IPA), bilateral donors through the Western Balkans Investment Framework, as well as the Reform and Growth Instrument.
“Today’s financing package includes investment projects and technical assistance projects that were approved today, further strengthening the EU’s commitment to sustainable growth and regional connectivity in the Western Balkans,” the EC said.
Following approval by the Operational Board of the Western Balkans Investment Framework, the projects can move to the implementation phase. This means finalising the necessary agreements with partner institutions and beneficiaries, launching preparatory studies for technical assistance activities and completing the necessary procedures for the implementation of private sector projects. Once these processes are concluded, the implementation of investments supported by the bloc can begin.
