sign in sign up
<<
Home , Comrat, Yugoslav Railways

ANNUAL PRESS CONFERENCE 2002

Background Note N°8

Luxembourg, February 2002

EIB Steps Up and Diversifies its Financing in the Western Balkans: EUR 320 million in 2001

Lending a total of EUR 320 million in the Western Balkans in 2001, the European Investment Bank, the European Union’s long-term financing institution, stepped up and diversified its financing in the region.

Having mainly supported the transportation sector since starting operations in the Western Balkans in 1999 within the framework of the Stability Pact, the EIB diversified its lending in the region in 2001 to provide increased support for the private sector. This reflects the successful completion of the urgent reconstruction efforts, and the beginning of the stabilisation and economic development of the region.

2001: REGIONAL AND SECTORAL DIVERSIFICATION

In 2001, the EIB signed its first loan to the Federal Republic of . 70% of EIB’s total lending in the Western Balkans went to basic infrastructure, which is a key component for the development of the region. 21% went to the private sector with four new global loan operations in the FYR of Macedonia and Croatia for small and medium-sized investments by private sector companies (SMEs) and . Global loans aim at serving existing private sector and small public infrastructure financing needs, and being managed by well-known partner banks of the region, they contribute to the domestic availability of long-term lending facilities. They enrich the local banking systems by building up their technical and financial capacities, and thereby assist the long-term development of the country. The remaining 9 % went to the energy sector.

Projects signed in 2001 Financing in the Balkans in 2002: by sector The following lending operations have been signed in 2001 : 21 % Albania: A total of 47 million for modernising the Communications transport and distribution of electricity (30 million) Energy and the rehabilitation of the port of Durrës Global loans (17 million). 9 % 70 % : 40 million for the modernisation of parts of the country’s PanEuropean rail network.

Croatia: A total of 146 million for the modernisation of the Vc PanEuropean rail corridor (40 million), rehabilitation of priority roads (60 million), and global loans to Hypovereinsbank Croatia, HBOR and Privredna Bank (46 million).

FYROM: 20 million global loan to the Government for channelling the funds through Stopanska Banka a.d. and Komercijalna Banca a.d. Skopje, to SMEs (more banks may be added in due course).

Federal Republic of Yugoslavia: A total of 66 million, of which 50 million to the Republic of Serbia and 16 million to the Republic of Montenegro for works in their territory, including rehabilitation of airport, the Port of Bar, as well as urgent road works.

1/3

FUTURE PROSPECTS

As indicated at the second regional conference of the Stability Pact for South Eastern Europe, held in on 25-26 October 2001, the EIB will in the coming years be the main source of finance for new investment in infrastructure in South Eastern Europe. The Bank will provide loans for additional projects to upgrade and extend infrastructure in transport, energy and environment. The provisional list of some 30 projects was agreed by the infrastructure steering group (European Commission, EIB, World bank, European Bank for Reconstruction and Development, Council of Europe). The estimated total cost will be of EUR 2.4 billion, one third of which will be financed by the EIB. The Bank will be the lead financier in some eight projects and will co-finance additional five projects.

The EIB will build on the successful completion of the Quick-Start Package of Infrastructure Projects and Studies decided at the First Regional Conference in March 2000. In this context the Bank was given leadership over 11 projects and three studies. The Bank has so far provided EUR 494 million for nine projects and expects to close negotiations soon for the two remaining. In close coordination with the European Commission it has supported two studies on regional transport infrastructure and on regional air traffic infrastructure. A third study on environmental management will be launched shortly.

REGIONAL PROJECTS WITH FINANCING PLAN SECURED OR UNDER FINALISATION (by sector)

Title: Sector: To be imple- Main Cost: mented in: Financier M EUR Road Maintenance Project Transport/Roads Albania WB 42.4 Port of Durres rehabilitation Transport/Ports and Albania EIB/WB 45.0 and modernisation Waterways Power Distribution Energy/Electricity Albania EBRD 217.3 Rehabilitation (related to (cof EIB) Power Sector Reconstruction Project) Main roads and bridges Transport/Roads Bosnia and EIB 120.0 rehabilitation Herzegovina Railways Recovery Project Transport/Railways Bosnia and EIB/EBRD 80.0 Herzegovina 3rd Electric Power Energy/Electricity Bosnia and WB 103.0 (transmission) Herzegovina (cof EIB) Danube Bridge Vidin- Transport/Roads Bulgaria EIB 180.0 Calafat Transit Roads Rehabilitation Transport/Roads Bulgaria EC 40.0 Project III - sections on the Pan-European Transport Corridors in Bulgaria Reconstruction and Transport/Railways Bulgaria EIB 170.0 Electrification of the Plovdiv- Svilengrad-Greek/Turkish border railway line for speeds 160 (200) km/h Autocesta Rijeka- Transport/Roads Croatia EBRD 100.0 Network Reconstruction Energy/Electricity Croatia EIB/EBRD 103.9 Project II Zagreb Wastewater Water and Croatia EBRD 104.5 Treatment Plant Environment/Water Waste Transport Rehabilitation Transport/Roads Federal Republic of EIB 132.0 Yugoslavia (Serbia/Montenegro) Transport/Railways Federal Republic of EBRD 160.0 Reconstruction Project Yugoslavia (cof EIB) (Serbian/Montenegrin) (Serbia/Montenegro)

2/3

Emergency Power Sector Energy/Electricity Federal Republic of EBRD 135.9 Reconstruction Project Yugoslavia (Serbia/Montenegro) Skopje Bypass Transport/Roads Former Yugoslav EIB/EBRD 50.0 Republic of Macedonia Finalising the upgrading of Transport/Roads Former Yugoslav EC 11.0 the E75 road (Corridor X), Republic of Macedonia section Negotino - Demir Kapija (Phase III) Drumul M3 Chisinau- Transport/Roads WB 33.0 Cimislia-Comrat-Vulcanesti- Giurgiulesti (Romania) Trade and Transport Transport/Roads Moldova WB 9.9 Facilitation in Southeast Europe (TTFSE) Road Sector Restructuring Transport/Roads Romania EBRD 116.0 and Pitesti By-pass Project, Romania Rehabilitation of the Transport/Roads Romania EC 117.0 Craiova-Drobeta Turnu Severin section of Highway 6 (Corridor IV) National Grid Reinforcement Energy/Electricity Romania EBRD 230.0 (cof EIB) Municipal Environmental Water and Romania EBRD 100.4 Loan Facility, Constanta Environment/Environment Border Crossings between Transport/Roads Region EC 13.0 Bulgaria and Romania Border Crossings between Transport/Roads Region EC 7.8 Croatia and Slovenia, and Croatia and FR Yugoslavia Border Crossings between Transport/Roads Region EC 7.5 BiH and Croatia, and BiH and FR Yugoslavia Border Crossing at Horgos Transport/Roads Region EC (cof 5.0 on Corridor X, between EIB) Belgrade and

Number of projects selected / Cost in M EUR 27 2434.6 Number and total cost of projects selected with EIB financing in M EUR 13 1531.0 Total EIB financing toward indicated projects in M EUR 705.0

3/3