Belarus: EIB supports transport and water services infrastructure
25 July 2019
EUR 110m to improve transport connectivity and safety in Belarus and with neighbouring countries
Over 2 million transits per year will benefit from the upgraded infrastructure
EUR 66m to improve water supply and sanitation services for 500,000 people
The European Investment Bank is extending a loan of EUR 110m to Belarus to finance the rehabilitation and upgrade of a 91 km long section of the M7 highway. This is part of the extended Trans-European Transport network. The project also includes the modernisation of the associated border-crossing infrastructure between Belarus and Lithuania at Kamienny Loh. The investment will increase road transport capacity and create safer driving conditions. The M7 is a strategic transport corridor, representing the shortest route from the Klaipeda port on the Baltic Sea in Lithuania through Kaunas and Vilnius to Minsk, Kyiv, and ultimately to the Black Sea.
The EIB is also lending EUR 66m to improve access to clean and affordable potable water and adequate sanitation services for some 500,000 households, improve the quality of natural waters by reducing pollution and untreated effluents, and improve water use efficiency. This will have positive impacts on the everyday life and health of the Belarusian population. A grant from the Eastern Partnership Technical Assistance Trust Fund (EPTATF) will facilitate the implementation of this project
EIB Vice-President Vazil Hudák commented: “These projects, backed by our EU partners and international financial institutions, follow the launch of EIB lending operations in Belarus last year. They will have a significant impact on the quality of life of Belarus’ citizens in terms of better water services and improved transport connectivity. Both investments will strengthen the country’s competitiveness and economic development.
Head of EU Delegation in Belarus Ambassador Andrea Wiktorin noted: "It seems that only a few weeks ago - in fact, it was in November last year - we witnessed the signing of the first ever loan agreements between the European Investment Bank and the Republic of Belarus. It is a great honour for me to witness the next step in the development of such cooperation. The European Investment Bank, in partnership with the Eastern Partnership Technical Assistance Trust Fund, supports sectors and projects that both the European Union and Belarus consider essential in fostering investment in social and economic infrastructure, public and private sector development and climate action."
Belarusian Prime Minister Syarhey Rumas said: "I would like to confirm our readiness to develop cooperation in a number of sectors - energy efficiency, the development of the railway potential, the utilities sector, healthcare. We have many spheres that fall within the mandate of the EIB to work in Belarus, and we could also begin work on new projects."
Both loans are covered by the European Union’s Comprehensive Guarantee and bring the EIB lending commitment in Belarus to EUR 335m. Last year the EU bank signed operations supporting the water sector and projects implemented by small and medium enterprises.
The Eastern Partnership Technical Assistance Trust Fund (EPTATF) is a multi-purpose and multi-sector funding instrument for specific technical support in the Eastern Partnership countries. It provides these countries with know-how and resources to improve capacity in project preparation and implementation, which facilitates the mobilisation of financing for EIB-supported investments. The EPTATF provides high added value because better project preparation increases the bankability of projects and improves the development impact of investments in the beneficiary countries.
The Republic of Belarus and the EIB are starting a new era of cooperation by signing the first ever loans provided by the EU bank in this country. The loans, for a total amount of nearly EUR 160m, target sectors and projects that both the European Union and the Republic of Belarus consider essential in order to foster investments in the areas of social and economic infrastructure, private sector development and climate action.
The EIB and the Republic of Belarus today endorsed the financing by EIB of key infrastructure projects in Belarus, including the upgrade of some connectivity projects between the country and its EU neighbours. The EIB activities in Belarus were discussed by the EU bank啉s Vice-President and Member of the Management Committee, Alexander Stubb, and the Belarus Prime Minister, Andrei Kobyakov, during the Belarus-EU Economic Forum in Luxembourg. The Forum was also attended by European Commissioner Johannes Hahn.