Besides 70 km of new motorways and 613 km of rehabilitated railway lines, in the next 5 years Serbia will receive enhanced urban mobility for 1.3 million people in Belgrade, 567 km of upgraded electricity transmission lines for 2 million people from Obrenovac to Bajina Bašta, energy efficiency renovation of 28 public buildings and 30 schools for more than 30,000 students; improved water and wastewater systems for more than 2.6 million people, reconstructed healthcare facilities for 1.3 million people, and broadband high-speed internet for 1,500 schools and 225,000 households (650,000 people) in rural areas. Many of these projects are under way or about to start and the aim is to bring concrete benefits to people already in the short term.
It is announced in the latest Annual Report by the Western Balkans Investment Framework (WBIF), an EU-funded initiative that has supported 39 projects in Serbia with an estimated value of EUR 5.4 billion from 2009, when it was established.
Serbia – the largest recipient of the financial assistance in the region
Serbia has also received EUR 2.4 billion in signed loans for a total of 21 projects, from the WBIF in the last 11 years, making it the largest recipient of the financial assistance in the region from this investment platform. Concretely, in so far 90 km of new motorways have been constructed connecting Serbia with the EU and neighbouring countries, district heating systems upgraded in 21 cities and towns, water and wastewater systems improved for more than 400,000 people, flood forecasting and warning system established for 1.8 million people living in the Sava River Basin, 5 new higher education and research facilities built, two judiciary facilities and new prison for 500 detainees constructed.
Serbia has also received technical – expertise assistance, primary for infrastructure projects. In 2019 additional seven grants were approved with a total value of EUR 18.7 million.
WBIF as unique investment platform that pools together funds of the European Commission, European Investment Bank, European Bank for Reconstruction and Development, Council of Europe Development Bank and KfW – German Development Bank in Serbia has become the major source of investment in the region.
It has allocated EUR 1.3 billion in grants for EUR 20.8 billion estimated investments in well connected transport, electricity and digital networks, renewable energy and energy efficiency water supply and wastewater systems, flood protection, education, research and cultural institutions, healthcare and judicial facilities in the region. The key investments are transport and energy infrasctructure, as the plan is to connect the region with Europe by extending the core energy and transport Trans-European Networks to the region.
Key investments - energy and transport
Financing infrastructure investment in key road and rail routes, inland waterways, main ports, electricity and gas transmission, as well as renewable energy is a key factor for growth and jobs and brings clear benefits for the region’s economies and citizens.
As the leaders of the Western Balkans agreed in 2015 that transport network by its connectivity to the EU Core Network and Corridors should be the most important investment in the region, transport became WBIF’s most active sector, accounting for 45% of the portfolio, and roads and railways are the main beneficiaries of funds.
Such is the case with Serbia. The largest part, i.e 73%, is invested in the transport sector, while 13% are loans intended for energy transmission. Environment protection was supported with 8% of the total amount, while 5% was invested in health and education, and 1% on broadband internet.
Learn more about the Western Balkans Investment Framework and see an exhaustive list of projects funded in Serbia and the region from 2009 until 2019 here.