Western Balkans Investment Framework (WBIF)

The Western Balkans Investment Framework (WBIF) supports socio-economic development and EU accession in all Western Balkan countries (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia) through the provision of funds and technical assistance for strategic investments. It is a joint initiative of the EU, international financial institutions (IFIs), bilateral donors and the governments of the Western Balkans.

WBIF is a funding platform established for financing the preparation and implementation of priority infrastructure projects via grants from IPA and bilateral donors combined with loans from participating financial institutions and national financing from beneficiary countries. Through this platform, financing and technical assistance are provided for strategic investments in energy, environment, social sector, transport and digital infrastructure. Furthermore, supports initiatives of private sector development.

Applications are assessed by the WBIF Project Financiers’ Group, which recommends selected applications for approval to the Steering Committee. The approved grants are then implemented by the infrastructure project implementation teams and/or the IFIs themselves.

On 8 November 2023 the European Commission approved the 4-pillar Growth Plan:

• Integration of Western Balkan partners into the EU common market;
• Advancement of regional economic cooperation;
• Deepening of EU-related reforms; and
• Increasing pre-accession financing with the view to accelerating the socio-economic convergence of the Western Balkans with the EU.

To support this process, a new financial instrument was established, called the Reform and Growth Instrument for the Western Balkans for the period 2024-2027. The funds provided by this instrument amount to a total of EUR 6 billion, of which 2/3 are in the form of loans and 1/3 in the form of grants. These funds are conditional on the general preconditions and on the implementation of reforms agreed with the EU within the document called the Reform Agenda. Kosovo is expected to benefit from EUR 882 million, of which EUR 410 million will be provided for the country’s budget, while the remainder will be implemented within the existing WBIF instrument, where EUR 218 million will be provided in the form of loans and EUR 253 million in the form of grants. Once the agreed targets are met, beneficiary countries apply to WBIF for infrastructure projects for the portion of funds obtained from the new instrument, but without entering into competition with other countries for these funds.

With the adoption of the new instrument, WBIF will change the financing format for the countries of the region, whereby Kosovo and other countries may apply for financing to carry out infrastructure investments within these sectors:

• Transport;
• Energy;
• Human capital; and
• Digital infrastructure.

WBIF will continue to have other funds available as well, the source of which is the Instrument for Pre-accession Assistance, namely the regional component of IPA, as well as contributions from other donors, as has been the case so far, for which there will be competition among countries. These funds will be provided as follows:

∙ for carrying out infrastructure investments in the environment sector, investment grants will be provided; and

∙ for preparing infrastructure investments for all sectors (environment, transport, energy, human capital and digital infrastructure), technical assistance grants will be provided.