Financing Mechanisms and Prioritization Methodologies in Western Balkans

With a budget of €24.05 billion up to 2020, the TEN-T is an ambitious infrastructure policy of the European Union (EU) adopted in 2014 with the goal of connecting the continent between East and West, North and South. Development of TEN-T network aims to close the gaps between Member States' transport networks, remove bottlenecks that still hamper the smooth functioning of the internal market and overcome technical barriers such as incompatible standards for railway traffic. It promotes and strengthens seamless transport chains for passenger and freight, while keeping up with the latest technological trends. In the Western Balkans (WB) the Governments of Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro and Serbia, Kosovo* and the European Commission formed the South East Europe Transport Observatory (SEETO). The aim of the SEETO is to promote cooperation, monitor development, prioritize regional projects on the multimodal Indicative Extension of TEN-T Comprehensive and Core Network to the Western Balkans. Before the accession to EU, the Western Balkans region needs to develop it`s strategic networks in order to comply to the EU standards as prescribed in the TEN-T guidelines. In order to do so, the WB region is using several different financing mechanisms as well as sources of financing from EU and IFIs to bilateral donors such as China. Since 2004 until 2018, the total amount of €13.5 billion has been invested in the Indicative Extension of the TEN-T Comprehensive and Core Network to the Western Balkans. Out of which €10.9 billion (81 %) to road network . A very high share 38% is financed through IFI loans. In second place are National Budgets with a share of 29%. For the last decade these two sources have always delivered the highest percentage. ‘Other sources’ with a share of 27% mostly consisting of China's Exim Bank, Russian Loans, Azerbaijan Fund, Abu Dhabi fund, IDB, Italian Government, Kuwait Fund, OPEC, etc. show the sharpest rise in the last couple of years. Furthermore, EU funds/grants are on the level of 3%, as well as projects financed through concessions. The paper aims to describe different financing mechanisms (such as Western Balkans Investment Framework, gathering EC and EBRD and EU bilateral donors) established in Western Balkans, their positive and negative sides; present several project prioritization methodologies on national but also on wider regional level and their impact on the concrete transport infrastructure improvement.

• Record URL:
  https://pre-proceedings-abudhabi2019.piarc.org/ressources/files/3/NB0299-Begovic-E-Full.pdf
• Supplemental Notes:
  • Abstract reprinted with permission of the World Road Association – PIARC.
• Corporate Authors:

  World Road Association (PIARC)

  La Grande Arche, Paroi Nord, Niveau 5
  F-92055 La Defense Cedex,   France 
• Authors:
  • Begovic, N
  • Hoxha, N
• Conference:
  • 26th World Road Congress
  • Location: Abu Dhabi , United Arab Emirates
  • Date: 2019-10-6 to 2019-10-10
• Publication Date: 2019

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: 16p
• Monograph Title: Proceedings of the 26th World Road Congress - Abu Dhabi - 2019: Connecting Cultures - Enabling Economies

Subject/Index Terms

• TRT Terms: Cooperation; Financing; Infrastructure; Investments; Methodology; Programming (Planning); Railroad traffic; Strategic planning; Technology
• Identifier Terms: South East Europe Transport Observatory
• Geographic Terms: Balkans
• Subject Areas: Economics; Finance; Freight Transportation; Planning and Forecasting; Railroads;

Filing Info

• Accession Number: 01753771
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 29 2020 11:19AM