As Serbia accelerates its journey towards a more sustainable and competitive economy, the European Bank for Reconstruction and Development (EBRD) remains one of its key investors and partners. With annual investments exceeding 800 million euros, the EBRD actively supports projects that contribute to the energy transition, infrastructure modernization, and strengthening the private sector.
We spoke with Jelena Čeperković, Deputy Head of the EBRD for Serbia, about how the EBRD’s strategy is reflected in concrete projects across the country – from the rehabilitation of hydropower plants and wind farms, to modernizing rail and air transport, as well as investments in environmental infrastructure and energy efficiency.
Q: How much did the EBRD invest in Serbia in 2024, and how much additional funding was mobilized from other sources?
A: The EBRD is the leading institutional investor in Serbia, with an active portfolio currently exceeding three billion euros. In 2024, for the second year in a row, we invested more than 800 million euros and mobilized an additional 395 million euros from other investors. We work closely with the European Union and other donors, and we also mobilize our own resources to complement the projects we finance with grants where most appropriate.
Q: How many projects did the EBRD support in Serbia last year, and which sector received the highest investment?
A: Last year, we supported a record 37 projects in Serbia, with total investments amounting to 807 million euros. These investments spanned various economic sectors, with a strategic focus on the transition to a green economy, strengthening the capacity of the private sector, and financing sustainable infrastructure.
Most of last year’s investments – nearly 500 million euros – were directed towards the green transition, primarily through renewable energy projects, decarbonizing district heating systems, and improvements to environmental infrastructure. We also supported several key infrastructure projects in the railway and aviation sectors and the rollout of high-speed broadband internet in rural areas.
Additionally, we continued efforts to boost the competitiveness of the private sector through both direct investments and advisory support aimed at improving access to finance and business practices for SMEs. Most of the real economy financing was achieved in collaboration with local banks, through which we provide targeted credit lines for SMEs.
IN FOCUS:
- Meet Cork – The Material of the 21st Century
- Art Blooms – The Most Beautiful Front of the Environmental Fight
- A Programme That Changes Lives
Q: What are the key projects funded in the area of green transition and renewable energy?
A: Since 2020, the EBRD has invested nearly one billion euros in 23 energy sector projects across the Western Balkans. Although a significant part of this investment includes liquidity credit lines granted during the 2023 energy crisis, our primary priority remains expanding the capacity of renewable energy sources.
In Serbia, we are currently financing projects in both the public sector, through EPS and EDS, and with private investors. We recently secured a 67-million-euro loan and an investment grant of over 15 million euros from the Western Balkans Investment Framework (WBIF) to fund the rehabilitation of the Vlasina hydropower plants, among the oldest in the EPS system, which will result in modernization and increased capacity. In addition, we are financing the Pupin wind farm, the first project built under the initial round of auctions for solar and wind power held in 2023.
Alongside direct financing, we place great emphasis on maintaining ongoing dialogue with the government on energy sector reform, further decarbonization, and greater sustainability. One example is the technical assistance provided to the relevant ministry in designing and implementing a three-year plan for auctioning 1,300 MW of wind and solar capacity, realized in partnership with the Swiss government, and delivering excellent results. We also offer EPS a comprehensive advisory support package in key areas such as decarbonization, corporate governance, and human capital development.
Q: How has the EBRD supported modernizing Serbia’s railway and air transport systems?
A: Railway sector modernization is one of the EBRD’s priorities in Serbia, as evidenced by over one billion euros in investment to date. The most significant project in this area is the reconstruction of the high-speed railway from Belgrade to Niš, financed jointly with our partners from the EIB and the EU. This project aims to ensure fast, reliable, and safe transport of passengers and goods along this corridor while also supporting the country’s overall economic development and local and regional conne ctivity. In recent years, we have also financed the procurement of new rolling stock for Srbija Voz and Srbija Kargo, which, along with infrastructure improvements, should enhance the competitiveness of rail as one of the greenest modes of transport. Additionally, through advisory support linked to these projects, we are working to improve corporate governance and commercialization and to modernize curricula in secondary and higher railway schools, including the implementation of dual education to attract suitable future talent for the railway sector.
As for air transport, last year we continued our successful cooperation and provided new funding to the Serbia and Montenegro Air Traffic Services Agency (SMATSA) to facilitate the transition to the latest version of the air traffic management system, thereby improving safety, efficiency, and service quality.
Interview by Katarina Vuinac
The inteview was published in the Energy portal Magazine SUSTAINABLE MOBILITY
