A key to the economic future of Europe’s youngest country, Kosovo*, is the ability to move goods and people around. That’s why a new 30 km motorway in the west of the country is so vital.
“The road will contribute to national cohesion and improve long-distance driving across the country,” says Piers Vickers, lead regional transport economist at the European Investment Bank, which loaned EUR 80 million to the motorway’s construction. The new road will cut travel time from Peja to Pristina in half on a route that serves 15,000 vehicles a day and carries 95% of Kosovo’s freight and passenger transport.
‘The connectivity agenda’
In 2013, the EIB signed a Framework Agreement with Kosovo, allowing it to finance priority projects in environment, transport, telecommunications and energy infrastructure—all vital for the development of the country. This year the EIB signed the motorway loan, its biggest with Kosovo.
“This loan is the biggest Kosovo ever took,” says Lum Mita, head of international financial cooperation in the Kosovar Ministry of Finance. “It represents 1.8% of the country’s GDP.”