Support for new investment in South Eastern Europe

The European Investment Bank will be the main source of finance to support new investment in infrastructure in South Eastern Europe, as indicated at the Second Regional Conference of the Stability Pact for South Eastern Europe, held in Bucharest on 25-26 October 2001. 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, European Investment Bank, 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 8 projects and will co-finance additional 5 projects.

Regional projects with financing plan secured or under finalisation by Sector

The EIB aims to attract private investors to the region. For this purpose it will provide global loans for the banking sector to on-lend to small and medium-sized companies and infrastructure. Two global loans have already been concluded in Macedonia and Croatia. In the future the Bank will consider providing finance for investment to strengthen human capital. The current EIB reflection on ways to accelerate investment in response to the economic slow-down will encompass the countries of South Eastern Europe, along with the EU and candidate countries.

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 3 studies. The Bank has so far provided EUR 494 million for 9 projects and expects to close soon negotiations for the 2 remaining. In close coordination with the European Commission it has supported 2 regional studies on regional transport infrastructure and on regional air traffic infrastructure. A third study on environmental management will to be launched shortly.

The European Investment Bank finances capital investment projects which further the European Union (EU) policy objectives. It also participates in the implementation of the EU's co-operation policy towards third countries. In South-East Europe, the EIB operates under the Mandate for Central and Eastern Europe agreed by the Council of Ministers. In the period 2000 to 2007the EIB will lend EUR 8.7 billion for investment in the region. The EIB plays an active role in the preparation of the reconstruction investment programme, in cooperation with the European Commission and the other multilateral financing institutions. The first group of infrastructure projects comprised 85 projects totalling EUR 4 billion. 35 projects are Quick-Start totalling EUR 1.1 billion. The EIB played a lead role in 14 projects, totalling some EUR 800 million.