EU and the international financial institutions – the new hope for the infrastructure in the Western Balkans 13Jun

Published by Tsvetan Ivanov in Blog | Tagged , , , ,

seeto

Source: SEETO

The SEETO (South East Europe Transport Observatory) Comprehensive Network is a transport network that integrates the main road, railway, water and air transport axes in seven countries in the Western Balkans – Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia and Kosovo. The planned unification of the SEETO Comprehensive Network with the transportation systems of the EU member states will play an important role in overcoming the isolation of the regional participants in the Western Balkans from the rest of Europe and accelerating their economic development.

The SEETO investment projects are funded through the national budgets of the regional participants, concessions, EU funds and loans from international financial institutions. In the 2007-2011 period the total investments in the SEETO Comprehensive Network amounted to 10.8 billion euro. This sum includes 6.7 billion euro investments in implemented, and 3.9 billion euro in ongoing projects. The planned investments in the 2012-2015 period amount to 8.6 billion euro.

Most of the completed projects were launched before the beginning of the global downturn in 2009 and received 43% of their financing from the countries’ national budgets. On the other hand, most ongoing projects have had their financing secured in the last two years, when countries reduced their investment budgets. As a result the share of state funds in the SEETO financing more than halved to 19%. Loans from international financial institutions became the major source of financing for ongoing projects in the 2007 – 2011 period with a share of 48% – two times higher than in completed projects. A positive trend regarding the financing by the EU can be observed. The share of EU funds in the total SEETO ongoing projects financing grew to 7.0% from 2.0% for projects completed before 2011.

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