The European Investment Bank (EIB) – the EU’s lending arm – will finance the construction of the Serbian section of a 171 km natural gas interconnector between Serbia and Bulgaria. The €25 million loan from the EIB will enable the diversification of Serbia’s energy supply and strengthen energy networks in South East Europe. It will also support faster integration of the region into the EU energy market, improve competition and ultimately attract more investment. The EIB loan complements a €49.5 million EU grant (from the Instrument for Pre-accession Assistance – IPA II) for this project, which is on the fourth list of Projects of Common Interest.

To date, the EIB has invested over €672 million in the energy sector in the Western Balkans. In combination with EU funds, the EU bank provides strong and long-term financial support to the countries in the region and facilitates a shift to more energy efficient and diverse resources. This project helps decrease dependence on one supplier and creates a more competitive energy market.