BAKU, Azerbaijan, January 9. The European Investment Bank (EIB) is actively aligning its projects in the Western Balkans with EU policies, aiming to deliver smarter transportation, a cleaner environment, and modern education while fostering job creation, said Damien Sorrell, Head of the Regional Hub for the Western Balkans at EIB Global, in an exclusive interview with TurkicWorld.
"With over 11 billion euros invested since 2010, we have translated EU values and standards into our projects, ensuring long-term, tangible benefits for the people," Sorrell stated. "These efforts also help countries adopt and align with EU standards even before accession, as well as improve governance".
He highlighted the role of the EU’s Growth Plan in accelerating these efforts. "The rollout of the Growth Plan will enhance our work, primarily through reform agendas that countries need to implement as a precondition for accessing the envisaged 6 billion euro financial package," the bank's representative noted. EIB Global is prepared to support projects in key sectors, including transport, energy, digitalisation, and human capital development.
Digital transformation remains central to the region's economic growth. Since 2020, EIB Global has invested 200 million euros in enhancing digital infrastructure and skills, supporting projects such as the introduction of the 5G network in Serbia and providing broadband internet to schools. "These investments drive productivity and competitiveness, with the potential to attract new, tech-focused foreign direct investments," Sorrell explained.
Innovation ecosystems are also a priority. "Developing innovation ecosystems is essential for spurring high-tech growth," Sorrell remarked. He pointed to Serbia’s science and technology parks in Niš, Belgrade, and Novi Sad—projects supported by EIB Global - as examples of successful collaboration between universities, businesses, and governments.
"Our initiatives aim to create a thriving innovation environment while building bridges between education, business, and policy," Sorrell added.
He further noted that, in close cooperation with the European Commission, the EIB has signed financing packages worth over 1.5 billion euros to modernize railway sections in Serbia, North Macedonia, Montenegro, and Albania. "We are also financing the rehabilitation of road infrastructure in Serbia and the improvement of inland waterway navigation along the Rivers Sava and Danube," Sorrell explained. He added that these projects are part of the EU’s broader strategy to enhance connectivity across the Western Balkans.
The EIB’s largest transportation project in the region, however, is the construction of the motorway along Corridor Vc in Bosnia and Herzegovina. "So far, we have committed over 1 billion euros into new sections, complemented by EBRD loans and over 800 million euros in EU grants," said Sorrell. "This project will significantly improve regional connectivity while enhancing road safety and economic growth".
In the energy sector, the EIB is focusing on both new and existing projects to boost renewable energy production and modernize infrastructure. "Alongside financing new renewable energy projects, we are supporting the modernization of existing facilities to enhance their efficiency, reliability, and capacity," Sorrell stated. He also emphasized the bank’s commitment to a just transition away from coal, particularly in regions heavily reliant on the industry. "We aim to ensure positive socio-economic outcomes for the workforce, economy, and environment," he added.
The EIB’s priorities in the Western Balkans are in full alignment with the EU’s goals, the bank's representative noted. "In the Western Balkans, the bank’s focus is on supporting connectivity, renewable energy capacities, climate resilience, private sector, and human capital development," he explained. These initiatives are in line with the EU Growth Plan, which seeks to strengthen regional market integration as a key condition for joining the EU single market.
As an EU institution, the EIB is guided by EU policies and strategies in all its activities. "Through the projects we finance, we help the region align with EU standards, demonstrating our unwavering support for past enlargement waves and the current momentum towards accession," said Sorrell. He added that the bank’s regional hub in Belgrade, along with local offices in Sarajevo, Tirana, and Skopje, provides crucial support to partners on the ground. "I am delighted to see the region's progress under the Team Europe approach and in fruitful collaboration with all our international and local partners".
Strategic investments are key to the energy transition in the Western Balkans, Damien Sorrell pointed out. "Given the current geopolitical turmoil and uncertainties, it is crucial to focus on strategic investments. Among these, energy transition is a top priority for the Western Balkans, which remains heavily dependent on fossil fuels".
He emphasized the need for a comprehensive approach to achieve a low-carbon economy. "Transitioning to a low-carbon economy will require expanding and modernizing the energy transmission and distribution network to accommodate a larger intake of renewables, as well as a robust legal framework, energy efficiency measures, and greater regional energy market integration," he explained.
As the EU's climate bank, EIB Global plays a pivotal role in supporting sustainable energy investments through financial and technical assistance. "EIB Global promotes sustainable investments in the energy sector through financial and technical support, including EU grants channelled through the WBIF," Sorrell highlighted.
He cited the Vlašić wind farm in Bosnia and Herzegovina as a prime example of the EIB’s efforts in the region. "The EU provided a financial package comprising a 36 million euro loan from the EIB, complemented by a 21 million euro grant. This wind farm is expected to produce 115 GWh/year of electricity, equivalent to the energy demand of 20,000 households, while displacing 140,000 tons of CO2 annually".
Another significant project is a solar facility in Pristina, which will have a capacity of up to 100 MWac. "The construction of this solar project will benefit from a 33 million euro EIB loan and a 32 million euro grant. These blended financial arrangements can help regional economies advance their energy transition ambitions, despite economic constraints and limited fiscal space".
Sorrell also stressed the importance of private sector involvement in clean energy production. "The private sector should be encouraged to invest in clean energy production, which EIB Global and other international financing institutions can support".
He noted that small and medium-sized enterprises (SMEs) are already benefitting from dedicated EIB loans in the region. "SMEs can decarbonize their production lines by installing solar panels, for example, thereby also fostering their competitiveness on the global market".
Further speaking, Damien Sorrell emphasized the importance of well-prepared projects and strategies for accessing EU funding. He highlighted the role of JASPERS, an advisory program established by the European Commission and the EIB in 2005, which has been active in the Western Balkans since 2011.
"JASPERS experts have worked on over 100 advisory assignments in the region, resulting in improved roads and railways, better access to drinking water, clean energy, and enhanced digital infrastructure," Sorrell explained. He noted that a recent capacity-building plan for Albanian railways and the rehabilitation of Serbia’s Iron Gate I navigational lock on the Danube River exemplify the program's impact.
The EIB’s commitment to fostering regional growth also includes promoting productive investments. "To achieve this, we need further integration of both the EU and regional markets, with clear incentives that foster growth and innovation. The creation of the Common Regional Market, underpinned by the latest Growth Plan, is certainly the way forward," Sorrell stated.
Innovation remains a key priority for the EIB, which has a strong track record of supporting groundbreaking projects. "For example, we supported the first offshore wind farms when the sector was considered too risky for commercial banks," Sorrell shared. He added that the European Investment Fund (EIF), an EIB subsidiary, has backed nearly half of Europe’s unicorns, including companies like Skype and WeTransfer.
In the Western Balkans, the EIB, in collaboration with the European Commission, has implemented financial instruments to create a more favorable environment for small and medium-sized enterprises (SMEs) and to build a sustainable equity market. "Through the EIF, we are also investing in equity funds active in the region," the bank's representative noted.
Technical assistance is another pillar of the EIB’s support. Sorrell highlighted the EU for Green Agenda initiative in Serbia, which helps municipalities and companies launch innovative green projects. "This program is implemented in partnership with the European Union, the Government of Serbia, the Embassy of Sweden, and the EIB," he said.
The EIB also provides expertise through its European PPP Expertise Centre (EPEC), supporting the development of effective public-private partnerships. "We aim to help deliver better PPPs that can drive sustainable growth and development," Damien Sorrell concluded.
