EBRD Supports Strategic Corridors To Connect Western Balkans And EU - Matteo Colangeli (Exclusive Interview)

(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 10. The European Bank for Reconstruction and Development (EBRD) is firmly committed to balancing economic growth with environmental sustainability in the Western Balkans, said Matteo Colangeli, the EBRD's Regional Director for the region, in an exclusive interview with Trend .

"Balancing economic development with environmental sustainability is at the core of our work," Colangeli noted. "We are committed to supporting the transition to low-carbon, resilient economies, ensuring that our projects contribute to long-term sustainability".

The EBRD has focused on embedding sustainable practices across key sectors, particularly transportation and waste management. "We support our clients in designing projects that strengthen infrastructure resilience to climate change, improve environmental standards, and minimize emissions through the adoption of energy-efficient systems," the regional director explained.

One of the bank's priorities is shifting regional connectivity from road to rail - "one of the most environmentally friendly modes of land-based transportation". In Serbia alone, the EBRD has invested over one billion euros in the rail sector. "Our flagship project is the Belgrade–Niš high-speed rail link, where we plan to invest 550 million euros over the coming years," he added. The project is expected to significantly enhance connectivity and reduce carbon emissions.

In the waste management sector, the EBRD is supporting modernization efforts aimed at improving efficiency and sustainability. "A prime example is our financing of the Vinča waste-to-energy public-private partnership, which will supply 10% of Belgrade's heating needs and 5% of its electricity demand," Colangeli said. The bank is also involved in developing waste management centres across 47 municipalities in Serbia to boost recycling, eliminate illegal dumpsites, and align practices with EU environmental standards.

Beyond financing, the EBRD provides technical assistance to public authorities and utilities, supporting project preparation, promoting sustainable practices, and enhancing implementation capacity. "These combined efforts ensure that our projects contribute to economic growth while fully considering environmental and social impacts in line with best international practice," he said.

Boosting renewable energy capacity

To date, the EBRD has committed over 1.35 billion euros in support of more than 1 GW of renewable energy generation across the region. Alongside this, the bank is working with governments to create a favorable policy environment that can attract further private investment.

"In Serbia and Albania, we are providing policy support through competitive and transparent renewable energy auctions," Colangeli explained. "These auctions are aimed at mobilizing private sector investments for decarbonization, allocating support to nearly 1.6 GW of solar and wind capacities, driving major private sector investment, and accelerating the deployment of renewables".

Beyond electricity, the EBRD is targeting the decarbonization of district heating systems - an area Colangeli described as "an important priority that we are pursuing across the region". One flagship project is in Novi Sad, Serbia, where a 105 million euro investment is funding an innovative solar-thermal project.

"This project will deploy large-scale seasonal storage, heat pumps, and power-to-heat technology, cutting fossil fuel use and improving air quality," he said, noting the project's dual focus on innovation and environmental impact.

Energy efficiency is another pillar of the EBRD's approach, particularly in buildings. The bank is investing in both public and residential building upgrades to reduce demand and enhance energy performance.

"We are also preparing a project that targets multi-apartment buildings, maximizing impact and supporting the shift to consumption-based billing," Colangeli added.

Connecting the region and the EU

Furthermore, Colangeli emphasized the bank's commitment to transport infrastructure development. "The EBRD is committed to promoting connectivity within the Western Balkans as well as between the Western Balkans and the European Union as a key factor for economic growth and improvement of citizens' lives in the region," he said.

The bank, in close collaboration with the EU and the European Investment Bank (EIB), is financing a wide range of transport infrastructure projects, particularly those aligned with the EU's Trans-European Transport Network (TEN-T) corridors. "The Bank, in cooperation with its partner institutions such as the EU and the EIB, has been supporting the Western Balkans countries to develop their transport infrastructure with focus on the core corridors which are extensions of TEN-T networks in the Western Balkans," Colangeli explained.

Among the major ongoing and planned projects are:

• The Nis-Merdare highway in Serbia, part of Route 7;

• Multiple sections of the Corridor Vc Highway in Bosnia and Herzegovina, linking the Adriatic Port of Ploče with Central Europe via Sarajevo;

• Rehabilitation of rail and road segments on Corridor VIII in North Macedonia, improving access to the Bulgarian border;

• Upgrades to Route 10 rail in Kosovo, enhancing links with both North Macedonia and Serbia;

• In Albania, the rehabilitation of rail links between Tirana, Durres, and Tirana International Airport, as well as between Vore and the Montenegrin border;

• Preparations for the Durres–Rrogozhine rail section on Corridor VIII in Albania;

• In Montenegro, the construction of the Matesevo–Andrijevica section of the Bar-Boljare Highway and the rehabilitation of the Golubovci–Bar rail line, connecting the Port of Bar with the Serbian border.

"All our investments are in line with the Paris Agreement objectives and are developed following high environmental, social and procurement standards," Colangeli noted.

Beyond infrastructure development, the EBRD also offers technical assistance for project implementation, governance improvements, and inclusive practices. "It is important to mention that, in addition to supporting the development of physical infrastructure, through these projects, the Bank supports its clients with technical cooperation for project implementation and capacity building, enhancement of corporate governance, and promotion of inclusive practices," he said.

Colangeli also highlighted the bank's collaboration with regional governments to improve the efficiency of infrastructure operations and encourage private sector involvement: "We work closely with governments in the region to foster sector reforms to improve efficiency of infrastructure operations and facilitate greater private sector participation".

Startups in focus: building a regional innovation ecosystem

EBRD is also strengthening its support for early-stage businesses across the Western Balkans as part of a broader effort to foster innovation and competitiveness in the region. "Building on our strong franchise on fostering SMEs' competitiveness, the Bank has more recently extended its focus to early-stage businesses, investing in several venture capital funds and mobilising know-how to develop innovation ecosystems through the Star Venture Program," Colangeli said.

Launched in the Western Balkans in 2019, the Star Venture Program has so far selected over 60 high-potential startups from the region. These companies receive tailored support through a scaling programme that includes strategic and investment planning, fundraising assistance, market research, business development, branding, sales, and participation in international business matching events.

"These start-ups are directly supported through the scaling programme in different areas... in order to improve their business performance and investment readiness to access finance and to be present on the global markets," Colangeli explained.

Beyond direct support to startups, the EBRD is also working to strengthen the broader innovation ecosystem in the Western Balkans. The Bank has partnered with 24 accelerators, science and technology parks, financial institutions, and corporates across the region to help enhance their capacity to support early-stage companies and foster innovation.

"To strengthen the regional ecosystem, the EBRD has established cooperation with 24 accelerators, Science and Technology Parks, partner financial institutions and corporates, helping them improve their capacity to better serve start-ups and become more innovative," said Colangeli.

He expressed gratitude to the programme's donors for their backing: "We are thankful to the donors supporting this program - the EU and Luxembourg - for recognizing a growing business need in the region and providing essential support to high-potential enterprises that are at the early stage of their lifecycle".

Looking ahead, Colangeli emphasized that the Star Venture Program will continue focusing on ecosystem development, working closely with venture capital firms and corporates interested in supporting innovation. The initiative also aims to align more closely with other EBRD investment platforms and identify startups with the greatest potential.

"To date, Star Venture has directly supported over 350 early-stage companies in 26 markets, spanning the Southern and Eastern Mediterranean, the Western Balkans, Central Asia, Eastern Europe, the Caucasus, and Türkiye," Colangeli noted.

According to him, portfolio startups have already raised more than $550 million in capital and successfully expanded their presence to global markets, including the United States, the UAE, the EU, the UK, and beyond.

MSME support for broader economic integration

Further speaking, the bank's rep for the region pointed out that the EBRD is playing a pivotal role in strengthening economic governance and boosting competitiveness across the Western Balkans.

"Economic governance and competitiveness are critical areas where the EBRD leverages public sector investments to drive sector and corporate governance reforms," Colangeli said. He emphasized that the bank's efforts include regulatory reforms and direct collaboration with public sector partners across multiple countries in the region.

These initiatives are closely aligned with the European Union's Growth Plan for the Western Balkans, aiming to support the region's alignment with EU rules, standards, policies, and practices as part of the broader goal of future EU membership. "We embed policy dialogue within our investments to ensure that the impact of projects goes beyond financing and investments to also contribute to structural reforms," Colangeli explained.

A key example of this approach is the SOEs Management Assistance Reform and Transformation Programme, which integrates policy dialogue into public sector investment projects. This program advances commercialization efforts and tackles structural constraints within state-owned enterprises.

In addition to working with the public sector, the EBRD also focuses heavily on supporting micro, small, and medium-sized enterprises (MSMEs) by improving their access to finance and business advisory services. "Supporting MSMEs through access to finance and business advice is another key aspect of our work," said Colangeli. "We foster innovation and competitiveness, helping MSMEs grow and facilitating their integration into the Common Regional and EU markets".

The bank's advisory services have reached nearly 4,000 private sector representatives throughout the Western Balkans, significantly enhancing project implementation capacity across the region.

With these combined efforts, the EBRD aims to create a more competitive, well-governed economic environment that prepares Western Balkan countries for deeper integration with the European Union.

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