In November 2007, the European Commission, the EIB, the EBRD and the Council of Europe Development Bank (CEB) agreed to develop an Infrastructure Projects Facility (IPF) for the Western Balkans. The IPF is an integral part of the Western Balkans Investment Framework (WBIF). The Western Balkans Investment Framework aims to streamline cooperation and increase financing capacity for investments that contribute to socio-economic development and the accession process in the Western Balkans. The WBIF focuses on key sectors of the Western Balkan economies including energy, environment, transport, social infrastructure and private sector development.

The aim of the IPF, in return, is to provide Technical Assistance, mainly to support project development but also implementation. It is designed to support technical cooperation and finance investment needs in close cooperation with its partner IFIs in the region.
 

DESCRIPTION
PROCEDURE
TECHNICAL ASSISTANCE ENERGY

Description of the Infrastructure Projects Facility

Overall objective
The mission of the IPF is to connect infrastructure projects with investment funding. IPF contributes to the socio-economic development of the Western Balkans through improved infrastructures in transport, environment, energy and in the social field.

Project purpose
IPF supports preparation and implementation of investment projects financed by grants and/or loans by the beneficiaries, IFIs, IPA and/or other sponsors/donors.

Eligibility Criteria
The IPF beneficiaries are:

• Albania,

• Bosnia and Herzegovina,

• Croatia,

• the former Yugoslav Republic of Macedonia,

• Montenegro,

• Serbia, and,

• Kosovo under UNSCR 1244/99.

National, regional and local entities, including municipalities will be eligible for assistance from the IPF. 
 
Prioritisation Criteria  

• The Financing perspective (loans, grants)
• Beneficiary country (focus on potential candidate countries)
• Social impact, Environmental impact, Regional / cross border impact
• Economic and financial assessment
• A balanced use of resources among the four sectors (10% to 40%)
• Geographical spread of resources (focus on potential candidates)
• Regional networks (SEETO, ECS, ReREP)

Procedure

The implementation of IPF is supported by a Steering Committee and a technical Secretariat, both chaired by the European Commission. The Steering Committee meets at least every six months and advices on the priority and reserve list of projects to be supported and on the type of services to be provided by the contractor for each project through the IPF. It also ensures that the proposed pipeline of projects is consistent with the IPA annual national programmes. As a rule, the project proposals are submitted to the Steering Committee by the National IPA Coordinators.

A contractor, selected through tender and contracted by the Commission, provides the technical assistance services for the priority investment projects endorsed by the Steering Committee. To enable an adequate supply of experts that can deliver the defined project scope of support, the European Commission has awarded two contracts to consulting consortia; IPF1 is TA provided by the WYG International Consortium and IPF2 is TA provided by the Cowi-IPF Consortium.

Technical Assistance (TA) Strategic Criteria: Energy

The IPF follows sector strategies, which guide the prioritisation of technical assistance projects. To this end, the development of energy infrastructure is vital to the process of consolidation of the regional energy market led by the Energy Community. More advanced infrastructure implies increased competition, greater efficiency and higher level of security of supplies at lower consumer prices.
As for the IPF’s Steering Committee, that decides on the projects selection, the projects must be

 1. in line with the Decision No.1364/2006/EC of the European Parliament and the Council (6 September 2006), which laid down guidelines for trans-European networks. 

2. included in the list of priority projects of the Energy Community.

As regards the type of investment, preference is given to electricity interconnection; electricity generation with regional significance; gas transmission networks and LNG terminals.

Technical Assistance (TA): Services
Technical Assistance services may include support to beneficiaries for carrying out:

• identification,

• pre-feasibility and feasibility studies,

• environmental and social impact assessment, 

• financial affordability analysis

• budgetary planning,

• complete design,

• assistance to tendering process, and,

• supervision of implementation works.

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