The EU's invaluable role in the Western Balkans: millions of euros for the development of North Macedonia and Albania

The examples of projects in the region built with EU funds are countless.

The European Union (EU) has invested hundreds of millions of euros in the Western Balkan countries even before their full membership in the bloc, a BGNES reporter reports.

Examples of projects built with EU funds are countless. Brussels and European banks are providing funding as a priority in the areas of road infrastructure, energy, agriculture, etc.

The role of the Western Balkans Investment Framework (WBIF) is indispensable. The instrument is a joint initiative of the EU, financial institutions, bilateral donors and beneficiaries aimed at strengthening harmonization and cooperation in the field of investment for the socio-economic development of the region, contributing to the European perspective of the Western Balkans.

Since its inception in 2009, the IBRD has disbursed grants amounting to more than EUR 1.4 billion for strategic infrastructure projects with a total estimated value of more than EUR 22 billion.

The successful implementation of the investments has shown many tangible benefits, such as significantly reduced travel times and increased transport safety, much more renewable energy, better quality education, and increased competitiveness among the local population.

Some of the projects include:

North Macedonia - Corridor 8: Stabilization of the A2 expressway slopes, section Kriva Palanka - Stracic in North Macedonia

The strategic corridor connects the Adriatic port of Durres in Albania with the Black Sea port of Varna in Bulgaria via North Macedonia. It is a key element of the country's connectivity and trade within the region and with the EU. Under this particular project, a 23-kilometre expressway from Kriva Palanka to Stracic, the last remaining section to the border with Bulgaria, is currently being completed. The new expressway significantly reduces travel time between Skopje and Sofia, boosts mobility and trade, and creates previously unavailable opportunities for socio-economic development in the country and the region. Funding was secured through a grant of almost €14 million from the IDB, a loan of over €20 million from the World Bank and €2.5 million from the state budget.

A photovoltaic park in the Macedonian village of Oslomei

North Macedonia's energy sector relies mainly on fossil fuels and hydropower and is dependent on imported electricity.

In the framework of this investment project (2022-2024), a large 10 MW photovoltaic park has been installed in Oslomei, completed in the middle of this year. Funding was provided by a grant from the IRWB of over EUR 1.5 million.

The location of the park was not chosen by chance. It is built on a huge but depleted coal mine. The park produces nearly 15 GWh of electricity, even exceeding the forecast targets. This is equivalent to the energy needs of 2,800 households, helping to remove 12,177 tons of CO2 per year.

The Oslomei 1 photovoltaic plant is part of the European Union and North Macedonia's efforts to diversify energy sources in the region and support decarbonization.

The second part of the plan, Oslomei 2, is also to be built. This will bring the entire complex to a total capacity of 30 MW next to the coal-fired thermal power plant in Bitola.

The plants are expected to produce 50 GWh of electricity, equivalent to the energy needs of 8 500 households. The project provides opportunities for increased employment through retraining of the local workforce.

Albania - Wastewater treatment and rainwater harvesting systems

Albania's wastewater treatment infrastructure is in poor condition - either non-existent or very limited and in need of repairs. The result - danger and harm to human health and the environment. To tackle the pressing problem, the country has embarked on a number of projects in recent years, with EU assistance.

In Pogradec, the IRHD is helping with a €3.5 million capital investment grant.

This project was built on efforts to protect the environment of Lake Ohrid and the coastal towns. Human and industrial waste and wastewater are generally not adequately treated in Albania. In Pogradec, wastewater generated by the town has been discharged untreated into Lake Ohrid over the past century. Wastewater in the town area has been the biggest challenge to the water quality of the lake, disrupting its ecosystem and endangering the local population through contamination with harmful bacteria and viruses.

In 2001, the German government, through the Kreditanstalt für Wiederaufba /KfW/, and the Swiss government, through the Staatssekretariat fur Wirtschaft (SECO), launched the first phase of investment, providing funding for the design and construction of sewerage collectors and a wastewater treatment plant for Pogradec and the surrounding villages. The wastewater treatment plant (WWTP) was completed under the first phase, which included adding more connectors in the southeast and east of Pogradec and phosphorus removal. The network is being further extended in the municipality of Buchimas, and the water supply is being repeatedly improved in the villages of Guras, Remen and Verdove. After the completion of Phase III, all villages in the water supply area of Pogradec benefit from drinking water.

The IRWB is also supporting the expansion of the sewerage system in Pogradets to enable the treatment of all wastewaters in the area. Construction of the entire system was completed in 2016, and the problem has since been resolved.

Energy efficient dormitories at the Student City campus in Tirana

The renovation of the student campuses in the Albanian capital was supported by a €4.78 million grant from the EU through the Western Balkans Investment Framework and a €30 million loan and grant package from the German Federal Government through the KfW Development Bank.

The project consists of the rehabilitation of 19 dormitories to the EU standard for nearly zero energy buildings and the construction of at least 3 new energy efficient buildings. The project in its complete form reduces energy consumption by an average of 20%. 4700 students will benefit from the improved living conditions and some of them are already accommodated. Special buildings and facilities for students with special needs are also being built. At least 70% of the dormitory capacity will be occupied by low-income students. | BGNES