The European Commission has announced on January 27 a €171mn support package aimed at strengthening infrastructure development and private sector growth across the Western Balkans.

The funding combines resources from several EU instruments, including the Instrument for Pre-accession Assistance (IPA III), the Western Balkans Investment Framework (WBIF) and the Reform and Growth Facility (RGF).

It will support projects in Albania, Bosnia & Herzegovina, Montenegro and North Macedonia, reinforcing the EU’s commitment to sustainable growth and regional connectivity.

Of the total amount, €91.8mn is allocated to infrastructure investments, expected to mobilise around €263mn in overall funding for seven projects in priority sectors such as digitalisation, clean energy, transport, environment and human capital.

Key initiatives include the rollout of broadband infrastructure in Albania, improvements to the electricity transmission system in North Macedonia, the construction and energy-efficient renovation of education facilities in North Macedonia and Montenegro, the electrification of the Durrës–Tirana railway line in Albania, and drinking water and wastewater treatment projects in Bosnia and Herzegovina.

An additional €2.9mn will support technical assistance projects in Albania and Bosnia, preparing future investments in energy, water, innovation and research.

The package also dedicates €76.3mn to boosting the private sector through programmes that support small and medium-sized enterprises, promote green and circular economy investments, expand access to alternative financing through the W-BOND pilot programme, and strengthen public-private partnership capacities in Bosnia.

Following approval by the WBIF Operational Board, projects will move towards implementation.