(MENAFN- Trend News Agency)
BAKU, Azerbaijan, January 9. The European
Investment bank (EIB) is actively aligning its projects in the
Western Balkans with EU policies, aiming to deliver smarter
transportation, a cleaner environment, and modern education while
fostering job creation, said Damien Sorrell, Head of the Regional
Hub for the Western Balkans at EIB Global, in an exclusive
interview with Trend .
"With over 11 billion euros invested since 2010, we have
translated EU values and standards into our projects, ensuring
long-term, tangible benefits for the people," Sorrell stated.
"These efforts also help countries adopt and align with EU
standards even before accession, as well as improve
governance".
He highlighted the role of the EU's Growth Plan in accelerating
these efforts. "The rollout of the Growth Plan will enhance our
work, primarily through reform agendas that countries need to
implement as a precondition for accessing the envisaged 6 billion
euro financial package," the bank's representative noted. EIB
Global is prepared to support projects in key sectors, including
transport, energy, digitalisation, and human capital
development.
Digital transformation remains central to the region's economic
growth. Since 2020, EIB Global has invested 200 million euros in
enhancing digital infrastructure and skills, supporting projects
such as the introduction of the 5G network in Serbia and providing
broadband internet to schools. "These investments drive
productivity and competitiveness, with the potential to attract
new, tech-focused foreign direct investments," Sorrell
explained.
Innovation ecosystems are also a priority. "Developing
innovation ecosystems is essential for spurring high-tech growth,"
Sorrell remarked. He pointed to Serbia's science and technology
parks in Niš, Belgrade, and Novi Sad-projects supported by EIB
Global - as examples of successful collaboration between
universities, businesses, and governments.
"Our initiatives aim to create a thriving innovation environment
while building bridges between education, business, and policy,"
Sorrell added.
He further noted that, in close cooperation with the European
Commission, the EIB has signed financing packages worth over 1.5
billion euros to modernize railway sections in Serbia, North
Macedonia, Montenegro, and Albania. "We are also financing the
rehabilitation of road infrastructure in Serbia and the improvement
of inland waterway navigation along the Rivers Sava and Danube,"
Sorrell explained. He added that these projects are part of the
EU's broader strategy to enhance connectivity across the Western
Balkans.
The EIB's largest transportation project in the region, however,
is the construction of the motorway along Corridor Vc in Bosnia and
Herzegovina. "So far, we have committed over 1 billion euros into
new sections, complemented by EBRD loans and over 800 million euros
in EU grants," said Sorrell. "This project will significantly
improve regional connectivity while enhancing road safety and
economic growth".
In the energy sector, the EIB is focusing on both new and
existing projects to boost renewable energy production and
modernize infrastructure. "Alongside financing new renewable energy
projects, we are supporting the modernization of existing
facilities to enhance their efficiency, reliability, and capacity,"
Sorrell stated. He also emphasized the bank's commitment to a just
transition away from coal, particularly in regions heavily reliant
on the industry. "We aim to ensure positive socio-economic outcomes
for the workforce, economy, and environment," he added.
The EIB's priorities in the Western Balkans are in full
alignment with the EU's goals, the bank's representative noted. "In
the Western Balkans, the bank's focus is on supporting
connectivity, renewable energy capacities, climate resilience,
private sector, and human capital development," he explained. These
initiatives are in line with the EU Growth Plan, which seeks to
strengthen regional market integration as a key condition for
joining the EU single market.
As an EU institution, the EIB is guided by EU policies and
strategies in all its activities. "Through the projects we finance,
we help the region align with EU standards, demonstrating our
unwavering support for past enlargement waves and the current
momentum towards accession," said Sorrell. He added that the bank's
regional hub in Belgrade, along with local offices in Sarajevo,
Tirana, and Skopje, provides crucial support to partners on the
ground. "I am delighted to see the region's progress under the Team
Europe approach and in fruitful collaboration with all our
international and local partners".
Strategic investments are key to the energy transition in the
Western Balkans, Damien Sorrell pointed out. "Given the current
geopolitical turmoil and uncertainties, it is crucial to focus on
strategic investments. Among these, energy transition is a top
priority for the Western Balkans, which remains heavily dependent
on fossil fuels".
He emphasized the need for a comprehensive approach to achieve a
low-carbon economy. "Transitioning to a low-carbon economy will
require expanding and modernizing the energy transmission and
distribution network to accommodate a larger intake of renewables,
as well as a robust legal framework, energy efficiency measures,
and greater regional energy market integration," he explained.
As the EU's climate bank, EIB Global plays a pivotal role in
supporting sustainable energy investments through financial and
technical assistance. "EIB Global promotes sustainable investments
in the energy sector through financial and technical support,
including EU grants channelled through the WBIF," Sorrell
highlighted.
He cited the Vlašić wind farm in Bosnia and Herzegovina as a
prime example of the EIB's efforts in the region. "The EU provided
a financial package comprising a 36 million euro loan from the EIB,
complemented by a 21 million euro grant. This wind farm is expected
to produce 115 GWh/year of electricity, equivalent to the energy
demand of 20,000 households, while displacing 140,000 tons of CO2
annually".
Another significant project is a solar facility in Pristina,
which will have a capacity of up to 100 MWac. "The construction of
this solar project will benefit from a 33 million euro EIB loan and
a 32 million euro grant. These blended financial arrangements can
help regional economies advance their energy transition ambitions,
despite economic constraints and limited fiscal space".
Sorrell also stressed the importance of private sector
involvement in clean energy production. "The private sector should
be encouraged to invest in clean energy production, which EIB
Global and other international financing institutions can
support".
He noted that small and medium-sized enterprises (SMEs) are
already benefitting from dedicated EIB loans in the region. "SMEs
can decarbonize their production lines by installing solar panels,
for example, thereby also fostering their competitiveness on the
global market".
Further speaking, Damien Sorrell emphasized the importance of
well-prepared projects and strategies for accessing EU funding. He
highlighted the role of JASPERS, an advisory program established by
the European Commission and the EIB in 2005, which has been active
in the Western Balkans since 2011.
"JASPERS experts have worked on over 100 advisory assignments in
the region, resulting in improved roads and railways, better access
to drinking water, clean energy, and enhanced digital
infrastructure," Sorrell explained. He noted that a recent
capacity-building plan for Albanian railways and the rehabilitation
of Serbia's Iron Gate I navigational lock on the Danube River
exemplify the program's impact.
The EIB's commitment to fostering regional growth also includes
promoting productive investments. "To achieve this, we need further
integration of both the EU and regional markets, with clear
incentives that foster growth and innovation. The creation of the
Common Regional Market, underpinned by the latest Growth Plan, is
certainly the way forward," Sorrell stated.
Innovation remains a key priority for the EIB, which has a
strong track record of supporting groundbreaking projects. "For
example, we supported the first offshore wind farms when the sector
was considered too risky for commercial banks," Sorrell shared. He
added that the European Investment Fund (EIF), an EIB subsidiary,
has backed nearly half of Europe's unicorns, including companies
like Skype and WeTransfer.
In the Western Balkans, the EIB, in collaboration with the
European Commission, has implemented financial instruments to
create a more favorable environment for small and medium-sized
enterprises (SMEs) and to build a sustainable equity market.
"Through the EIF, we are also investing in equity funds active in
the region," the bank's representative noted.
Technical assistance is another pillar of the EIB's support.
Sorrell highlighted the EU for Green Agenda initiative in Serbia,
which helps municipalities and companies launch innovative green
projects. "This program is implemented in partnership with the
European Union, the Government of Serbia, the Embassy of Sweden,
and the EIB," he said.
The EIB also provides expertise through its European PPP
Expertise Centre (EPEC), supporting the development of effective
public-private partnerships. "We aim to help deliver better PPPs
that can drive sustainable growth and development," Damien Sorrell
concluded.
MENAFN09012025000187011040ID1109071024