The European Commission said on July 2 it is releasing its sixth investment package under the EU's Economic and Investment Plan for Western Balkans that should mobilise investments of €1.2bn.

“This package will support eight new flagship investments in water supply and sanitation, wastewater treatment and rail transport, as well as innovation and green transformation in small and medium enterprises. The investments will be rolled out in close cooperation with the Western Balkan partners and international financial institutions,” the EC said in a statement.

The €1.2bn in investment package consists of €300mn in EU grants from the Instrument for Pre-accession Assistance (IPA III), as well as bilateral contributions from EU Member States and Norway.

It also includes loans from international financing institutions and contributions from the economies of the Western Balkans.

The new package includes investments in three categories, including environment and climate, sustainable transport and support to the business sector.

The environment and climate sector includes reconstruction and rehabilitation of water supply and sanitation infrastructure in Montenegro and Bosnia & Herzegovina.

Sustainable transport includes investment in Corridor X rail infrastructure, with the high-speed Belgrade – Velika Plana connection that will enable a faster flow of passengers and freight in the region.

The support to the business sector envisages the launch of a new facility for innovation and green transformation of companies in the region.

“As part of the Global Gateway, the EU's Economic and Investment Plan for the Western Balkans (2021-27) aims to spur long-term recovery, accelerate a green and digital transition, and foster regional cooperation and convergence with the EU. Adopted by the European Commission in October 2020, the Plan mobilises up to €30 billion in investments, including €9 billion in EU grants through IPA III, over the seven-year period. Of this amount, €5 billion has been committed through the WBIF,” the EC noted.

So far, the EU has approved programmes that would mobilise up to €17.5bn in investments under the Economic and Investment Plan, including €5.4bn in EU grants.

The WBIF is a joint financial platform launched 15 years ago, which brings together the EC, financial organisations, EU member states and Norway. It aims to boost cooperation in public and private sector investments. The programme supports the region's socio-economic development and helps Western Balkan states’ EU integration.

The WBIF is the main financial vehicle for implementing the EU's Economic and Investment Plan and WBIF will channel €3bn of grants and loans under the Facility to support priority investments in transport, energy, digital and human capital areas.