EU signs €70 million Financing Agreement for Energy Support Package for BiH

NEWS 07.02.2023 12:45

The European Commission has signed and sent the Financing Agreement for the Energy Support Package worth EUR 70 million to Bosnia and Herzegovina that aims to provide assistance to the country's most vulnerable households in coping with rising prices and support energy transition.

“Russia’s war of aggression in Ukraine has led to significant increases in prices for households, including energy bills. The European Union is a loyal friend and partner of Bosnia and Herzegovina, and the Energy Support Package has been designed to assist this country meet the current challenges. The most vulnerable families will receive more than two-thirds of all the funds allocated to BiH. The rest will go to improving energy efficiency in households and businesses, which comes as an investment into the future and will bring further savings,” said the Head of the EU Delegation/EU Special Representative in Bosnia and Herzegovina, Ambassador Johann Sattler.

The package was announced by European Commission President Ursula von der Leyen during her visit to the region in October 2022. It includes a total of EUR 1 billion for the region – EUR 500 million in immediate assistance, and EUR 500 million in medium to long-term support.

Of the EUR 70 million in immediate assistance allocated to Bosnia and Herzegovina, EUR 50 million has been earmarked to mitigate the impact of high prices. The most vulnerable families should receive a cash payment through the FBiH, RS and Brcko District institutions that are responsible for social welfare, the EU Delegation in BiH said. It noted that a further 10 million euros will be disbursed to improve the energy efficiency of 4000 residential buildings, while another 10 million euros has been allocated for around 400 Micro, Small and Medium Enterprises that are facing challenges as a result of the energy crisis.

Medium to long-term support will be available in grants through the EU’s Economic and Investment Plan (EIP) for the Western Balkans.

“These grants will support energy transition through support for the construction of renewable energy projects and the upgrading of energy transmission systems, district heating and schemes for energy efficiency for old apartment buildings. It will also support energy security, through improving gas and electricity infrastructure, including interconnectors. The Energy Support Package can be a starting point for BiH’s energy transition and BiH authorities should use the coming period to design projects to fully benefit from the available funds,” the EU Delegation said.


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