European
Investment Bank (EIB)
Policy approach in Bosnia and Herzegovina
After
the initial focus in the late 1990s on the urgent reconstruction and
rehabilitation of basic infrastructure, EIB activity in BiH has been centred on
upgrading the infrastructure networks, with an emphasis on fostering regional
integration and removing bottlenecks in the road, rail, and energy systems. EIB
is progressively increasing its long-term lending in the Western Balkan region.
EIB financing in BiH helps the country to meet EU accession criteria and to
participate in the EU's economic development
Projects
in the Transport sector – mainly in roads, but also railways, aviation, and air
traffic control facilities – account for more than 60 percent of total loans,
while projects in the energy sector represent some 13 percent of total lending
over the past few years, underlining the strong need for modernizing the
infrastructure networks in the countries of the region.
In
recent years, the EIB has diversified into relatively new sectors, namely
Health and Education. Moreover, the Bank has expanded its activity in favour of
projects aimed at improving the environment and quality of life of the local
population (water and sanitation, urban renewal). Support to Small and
Medium-sized Enterprises (SMEs) and small infrastructure projects has also
developed significantly through indirect financing provided by the EIB to local
partner banks that on-lend funds to SMEs and municipalities. These activities
represent a key sector for EIB operations in the region, and have garnered
positive results in terms of job creation and economic benefits.
Allocation and activities in 2007
EIB’s
total investment for BiH equaled approximately € 135 million in 2007, all in
the form of soft loans. This is a significant rise compared to 2006, when total
allocation was about € 52 million. This sharp increase is not surprising given
that EIB provided a € 50 million loan for the rehabilitation of roads in BiH
and has signed an over € 100 million loan for the reconstruction of electric
power. All of EIB’s loans in BiH are targeted either at the improvement of
Infrastructure (including the Roads and Transport or Energy Generation and
Supply sub-sectors) or at Economic Development and Social Protection
(particularly in the Support to SMEs and the Improvement of the Business
Climate sub-sectors).
Contact information
European Investment Bank
Address: 100, bld.
Konrad Adenauer, 100, bld. Konrad Adenauer L - 2950 Luxembourg
Phone: +352 43.79.22.000
Fax: +352 43.79.62.000
Email: info@eib.org
Web address: www.eib.org
