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

Title:

Sector:

To be implemented in:

Main Financier

Cost: M EUR

Road Maintenance Project

Transport/Roads

Albania

WB

42.4

Port of Durres rehabilitation and modernisation

Transport/Ports and Waterways

Albania

EIB/WB

45.0

Power Distribution Rehabilitation (related to Power Sector Reconstruction Project)

Energy/Electricity

Albania

EBRD (cof EIB)

217.3

Main roads and bridges rehabilitation

Transport/Roads

Bosnia and Herzegovina

EIB

120.0

Railways Recovery Project

Transport/Railways

Bosnia and Herzegovina

EIB/EBRD

80.0

3rd Electric Power (transmission)

Energy/Electricity

Bosnia and Herzegovina

WB (cof EIB)

103.0

Danube Bridge Vidin-Calafat

Transport/Roads

Bulgaria

EIB

180.0

Transit Roads Rehabilitation Project III - sections on the Pan-European Transport Corridors in Bulgaria

Transport/Roads

Bulgaria

EC

40.0

Reconstruction and Electrification of the Plovdiv-Svilengrad-Greek/Turkish border railway line for speeds 160 (200) km/h

Transport/Railways

Bulgaria

EIB

170.0

Autocesta Rijeka-Zagreb

Transport/Roads

Croatia

EBRD

100.0

Network Reconstruction Project II

Energy/Electricity

Croatia

EIB/EBRD

103.9

Zagreb Wastewater Treatment Plant

Water and Environment/Water Waste

Croatia

EBRD

104.5

Transport Rehabilitation

Transport/Roads

Federal Republic of Yugoslavia (Serbia/Montenegro)

EIB

132.0

Yugoslav Railways Reconstruction Project (Serbian/Montenegrin)

Transport/Railways

Federal Republic of Yugoslavia (Serbia/Montenegro)

EBRD (cof EIB)

160.0

Emergency Power Sector Reconstruction Project

Energy/Electricity

Federal Republic of Yugoslavia (Serbia/Montenegro)

EBRD

135.9

Skopje Bypass

Transport/Roads

Former Yugoslav Republic of Macedonia

EIB/EBRD

50.0

Finalising the upgrading of the E 75 road (Corridor X), section Negotino - Demir Kapija (Phase III)

Transport/Roads

Former Yugoslav Republic of Macedonia

EC

11.0

Drumul M3 Chisinau-Cimislia-Comrat-Vulcanesti-Giurgiulesti (Romania)

Transport/Roads

Moldova

WB

33.0

Trade and Transport Facilitation in Southeast Europe (TTFSE)

Transport/Roads

Moldova

WB

9.9

Road Sector Restructuring and Pitesti By-pass Project, Romania

Transport/Roads

Romania

EBRD

116.0

Rehabilitation of the Craiova-Drobeta Turnu Severin section of Highway 6 (Corridor IV)

Transport/Roads

Romania

EC

117.0

National Grid Reinforcement

Energy/Electricity

Romania

EBRD (cof EIB)

230.0

Municipal Environmental Loan Facility, Constanta

Water and Environment/Environment

Romania

EBRD

100.4

Border Crossings between Bulgaria and Romania

Transport/Roads

Region

EC

13.0

Border Crossings between Croatia and Slovenia, and Croatia and FR Yugoslavia

Transport/Roads

Region

EC

7.8

Border Crossings between BiH and Croatia, and BiH and FR Yugoslavia

Transport/Roads

Region

EC

7.5

Border Crossing at HORGOS on Corridor X, between Belgrade and Budapest

Transport/Roads

Region

EC (cof EIB)

5.0

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

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.