site.btaSerbia Expects Advance Tranche under EU's Growth Plan for Western Balkans

In March, Serbia submitted a request to the European Commission to receive in advance part of the approved funds under the Growth Plan for the Western Balkans, worth a total of EUR 111.8 millions, but the tranche has not yet arrived, Serbian media wrote on Monday.

"In line with the four elements of our reform programme that we have fully implemented, we submitted a request for payment of the first tranche of the Growth Plan in mid-March. The 90-day deadline for the technical processing of this request will soon expire", Serbian Minister of European Integration Nemanja Starovic told RTS.

"We have two key projects that will be funded by the EUR 111.8 million. One is the introduction of renewable energy sources in the central heating system of the city of Novi Sad, and the other is the reconstruction of the Potpec hydroelectric power plant near Priboj with the construction of a new 13 MW production unit. As for the first tranche of EUR 68 million, which we expect to be implemented soon, the largest part of these funds will be used for the construction of a BIO4 campus in Belgrade," Starovic added.

European Policy Centre researcher Marko Todorovic told RTS that Serbia has received positive assessment for some of the conditions of the Growth Plan, such as the Anti-Corruption Strategy with its accompanying programme, the 5G network regulations and the preconditions for connecting to the EU electricity market. Changes to Serbia's media and electoral legislation are also underway and will be finalized soon, RTS reported.

"The main drawback of the implementation of the reform agenda so far is the fact that the process is largely closed. It is very important for citizens to understand the reform agenda as a platform through which we can more quickly achieve the EU membership criteria and for this to additionally receive the financial stimulus envisaged by the Growth Plan for the Western Balkans", Todorovic said.

In late October 2024, the European Commission approved the reform programmes of Albania, Kosovo, Montenegro, North Macedonia and Serbia. The five Western Balkan governments then committed to socio-economic and fundamental reforms they will undertake to boost growth and convergence with the EU under the Growth Plan over the 2024-2027 period.

Payments under the EU's Reform and Growth Facility for this period amount to EUR 6 billion, which will be made once the agreed reform steps have been completed.