World Bank launches €80M safe transport initiative in Western Balkans

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Ajay Banga 14th President of the World Bank Group | Official Website

Safe and sustainable transport allows for the efficient movement of goods and people, which is crucial for economic activity. Improved transport infrastructure can lead to reduced production and distribution costs, increased trade and investment, and enhanced connectivity with other regions. As a result, businesses can access new markets, and consumers can benefit from a wider variety of products and services. This is particularly crucial for the small and open economies of the Western Balkans, where trade has played a significant role in driving growth and economic progress.

The Safe and Sustainable Transport Programme (SSTP) is managed by the World Bank through the Europe and Central Asia Transport Practice. The grant operations of the SSTP are approved and supervised by the World Bank in consultation with the Technical Group. Administrative, technical, and logistical support is ensured by the World Bank's team.

Following the adoption of the European Green Deal and thus the need to invest more targeted into the Green Agenda in the Western Balkans, the European Commission (EC) decided in 2021 to step up its engagement and allocate €80 million to a ‘Safe and Sustainable Transport Programme’ (SSTP). It was agreed that the World Bank would house the SSTP, which would be managed by Europe and Central Asia Transport Global Practice. Under this program, funds are operationalized as grants blended with World Bank financing based on a fair share principle across all six Western Balkan countries.

Through this grant blending mechanism, SSTP supports implementing sustainable transport components of both Economic Investment Plan (EIP) and Green Agenda for Western Balkans aiming to spur long-term growth in region promoting greener safer resilient transport network.

Stakeholders involved include: The World Bank; Ministries of Finance (MoF); line ministries/governmental authorities of Western Balkans; European Commission; Transport Community; European Union Delegations. At national level MoF line ministries charge transport key entities involved tailored specific subprojects financed direct beneficiaries railway infrastructure companies road agencies customs revenue agencies border police other customs border management entities depending priority areas program regional level SSTP coordinate closely Transport Community avoid duplication work ensure alignment European Commission priorities strategies.

The Steering Group comprises representatives from The World Bank; European Commission (DG NEAR); Transport Community while EU Delegations may participate as observers. Their main role involves providing strategic direction overseeing SSTP meeting annually review Annual Report track progress discuss potential projects advise on future directions.

Technical Group meetings ensure proposals align with scope national EU priorities avoiding duplication support efforts analyzing progress future pipeline discussing issues requiring technical follow-up including eligible project beneficiaries participation members include WB SSTP team EC DG NEAR TC technical staff chaired Program Manager.

Overall implementation supervised designated WB SSTP team including Program Manager Coordinator Task Team Leaders WB’s Western Balkans Country Management Unit providing grants from WBIF matching lending promote safer sustainable systems outcomes planned investments reduced travel times increased safety reduced air noise pollution job creation projects spurring socio-economic convergence EU underpinning further advances common regional market all six countries Albania Bosnia Herzegovina North Macedonia Kosovo Montenegro Serbia benefiting accessing financing technical assistance enhancing safety sustainability four categories:

- Railway safety: Improvements rail network focusing priority crossings

- Road safety: Improvement high-risk sections

- Border Crossing Points: Modernization capacity improvements selected points

- Deployment sustainable smart mobility solutions

A new call for proposals open until June 30 2024 provides grants projects mentioned above extending reach impact WB projects promoting small investments making systems safer greener reliable Grant Application Form sole document Beneficiary submits requesting financial assistance containing fields project information context key technical financial architecture data careful accurate completion essential missing information leading rejection delays guidance available needed applications submitted via email sstp@worldbank.org

Upon approval investment technical assistance grants finalized conditions associated approval project/activity becomes part ongoing lending additional component procurement financial management environmental social risk management aspects following operational procedures policies monitoring evaluation conducted within ongoing requirements no separate processes required integrated existing project when executed TA implemented along PIU drafts terms reference procures contracts implements works services under own procedures investment always implemented Beneficiary supervision co-finances loan signing Loan Agreement grant/financing agreement restructuring possible during preparation included original design implementing entity same ongoing PIU contracting authority