n 2013, the EBRD continued paying special attention to the Western Balkans BOSNIA AND Iwith the aim of promoting stability, Expanding the markets Boosting competition regional cooperation and economic HERZEGOVINA for herbal products in the retail sector development. A series of initiatives lent support to SMEs and the wider private Faveda – a company specialising in herbal teas to revamp its image and change its approach to The EBRD is boosting competition in the Montenegrin across the country. The loan to Voli Trade has sector, fostering sustainable energy projects and natural cosmetics – is one of the three largest marketing and visibility. retail sector with loans to expand the supermarket undoubtedly helped to strengthen the company’s and promoting strategic investments in companies of its kind in Bosnia and Herzegovina, network of one of the leading retailers in the country. competitiveness and efficiency. But another producing more than 2.5 tonnes of dried herbs a year. With donor funding from Luxembourg, Small notable achievement of the EBRD financing has infrastructure and other areas. The EBRD Business Support connected Faveda with a In 2009 and 2012 the EBRD provided €4.23 been an improvement in the corporate governance works closely with the European Union and Thanks to the help of the EBRD’s Small Business local consultant. After assessing the company’s million and €4.64 million loans, respectively, to of the company. other donors on these programmes. Support team, Faveda recently changed its approach the consultant helped Faveda redesign Voli Trade, one of the best recognised brands in marketing strategy, targeted younger consumers its packaging and logo, produce promotional items, Montenegro. Established in 1995, Voli has now The funding is arranged under the EBRD-Italy and increased sales. In the first year alone following improve its retail space and create a new web site grown to become the largest retail chain in the Local Enterprise Facility, an investment instrument the project, Faveda increased its turnover by 25 per enabling customers to make online purchases. country with 32 per cent of the market share. established to support economies in Albania, cent and its exports by 10 per cent. Bosnia and Herzegovina, Bulgaria, , FYR These developments have helped open up Faveda’s The EBRD financing helped Voli expand its chain Macedonia, Montenegro, Romania, , When the project began, most of Faveda’s products to a much wider range of customers: through opening two supermarkets in Bar and Turkey and the SEMED countries. It provides customers were over 60 years old. To expand into the company has now moved into new markets in Sutomore in 2009 and constructing a modern long-term financing to small and medium-sized a new segment and appeal to younger customers Turkey, expanded its exports to Kosovo and is in logistics centre in 2012. To date, the company local enterprises whose needs are not sufficiently domestically and abroad, the company needed negotiations to supply a large retailer in Denmark. has 50 stores in the capital, Podgorica, and towns addressed by existing financing facilities.

Funding a route ALBANIA Modernising transport networks FYR MACEDONIA to regional growth SERBIA Enhancing the agriculture value chain

The EBRD is one of the main investors in Albania’s considerably reduce congestion in the two cities, The EBRD has provided a €46.4 million loan to by substantial grant funding from the EU’s Western The EBRD has recently become a shareholder in and addresses key infrastructure bottlenecks in infrastructure. A recent €53 million sovereign loan help better connect the region and underpin the provide a whole new route for trade between FYR Balkans Investment Framework for project design, one of the leading agribusiness companies in the Serbia. from the Bank is facilitating a major development development of in southern Albania. Macedonia and its neighbours. tender preparation and implementation assistance, Western Balkans region. to the Albanian road network which will boost and from the Central European Initiative for the With regard to technical cooperation, MK Group economic integration in the country. The project is co-financed with a loan from the The funding will upgrade a 30 km stretch of the introduction of an energy management system. By making a €50 million equity investment in MK is engaged in policy dialogue with the EBRD, the European Investment Bank (EIB) and investment Macedonian railway which is part of Railway Group, which is part of the Agri Europe holding Serbian government and the Food and Agriculture The proceeds of the EBRD loan, structured in grants from the European Union. In addition, the Corridor VIII, linking FYR Macedonia to the ports Further development of this significant transport company, the EBRD is helping the organisation Organization of the United Nations (FAO) to two tranches, will be used by the Albanian Road project is complemented by technical assistance of the Black Sea. The project will help integrate corridor will ultimately link the Black Sea in Bulgaria expand its farming and meat processing operations establish a crop receipt law that can facilitate pre- Authority to build two bypass roads in south- grants for a total of €5.95 million from the FYR Macedonia’s infrastructure further with its with the Adriatic in Albania. in Serbia. harvest financing. western Albania. The first is a 22 km bypass in the European Union, Italian government and the neighbours, boosting regional economy and city of Fier, and the second a 29 km bypass in the Western Balkans Investment Framework for the integration. More specifically, the project will enable MK Group Moreover, Carnex – another company in the city of Vlore. preparation of detailed designs for the two bypass to finance an irrigation system, silo construction Agri Europe group – is involved in a joint roads, as well as to support project implementation. The EBRD made the senior 15-year loan to the and the acquisition of additional agricultural EBRD-FAO Geographical Indication Initiative in The two bypasses are key sections of Albania’s Public Enterprise for Railway Infrastructure. In land. By facilitating third-party access to storage Serbia, to enhance the global recognition and national road network and the project will addition to this loan, the project is also supported facilities, the project also supports small farmers competitiveness of local meat products. Making key investments KOSOVO in the private sector

Kosovo became the EBRD’s 66th member country took an equity position in the company, thus and its newest country of operations in late 2012, contributing to finance and representation at the but the EBRD has supported Kosovo’s private board level to improve operational efficiency. sector with landmark investments since 1999. Tulltorja is now one of the most profitable companies for the production of bricks and Thanks to EBRD financing of €6 million, the local specialist roofing tiles in the region. leading dairy company Devolli Group was able to expand operations by constructing a brand new The Bank has also increased capital and acquired factory for yoghurt and related products (total shares for €1.9 million in Pestova. The company project worth €12 million). Devolli today is the primarily operated in the trade of raw potatoes, but local market leader and a strong competitor to the used the EBRD funds to invest in the up-market foreign producers importing into Kosovo. production of potato-based products, such as chips and snacks. Today, Pestova is the market leader in Kosovo’s construction materials producer, Tulltorja, this product segment in Kosovo. also benefited from the Bank’s support. The EBRD

CROATIA Restoring steel production

The EBRD is strongly behind efforts to strengthen As well as helping to restore the plant’s production Croatia’s industrial base through the promotion capacity, the investment is expected to result in of competitive and efficient companies and the significant environmental, energy and resource European Bank for Reconstruction mobilisation of its strong engineering tradition. efficiencies and generate an estimated 15,000 and Development tonne reduction in greenhouse gas emissions. THE EBRD One Exchange Square In 2013 the EBRD signed investments with Italian The project will also boost local research and London EC2A 2JN company Danieli aimed at restarting production at development capacity, introduce Sisak’s employees United Kingdom IN THE WESTERN a steel factory in the Croatian city of Sisak. to innovative technology and provide them with Tel: +44 20 7338 6000 cutting-edge training. Fax: +44 20 7338 6100 BALKANS AND CROATIA Danieli owns Sisak Ironworks through its steel www.ebrd.com subsidiary ABS and has launched a restructuring Case studies and modernisation programme, which in 2013 benefited from a €20 million EBRD loan.