The European Investment Bank (EIB) will finance two projects in Belarus: to upgrade Highway M7 Minsk-Vilnius and to modernize the water treatment system. The loan agreements are to be signed in a ceremony in the government on 24 July, EIB Vice President Vazil Hudak told the media.
In less than two years of work in Belarus the EIB total financing has reached €335 million. The two new projects include the modernization of Highway M7, which connects Minsk and Vilnius, to increase its throughput capacity. For this we will earmark €110 million. Another project is aimed at upgrading the water treatment system and will attract €66 million. The project is designed to improve access to better water for 500,000 people, Vazil Hudak said.
The EIB has been working in Belarus for two years. “We are glad that there is a possibility to extend the activities in your country. Belarus is an excellent opportunity for European banks to invest and to bring not only money but also modern technologies, Vazil Hudak noted. According to him, in its work with the EIB is guided by the same principles as in its work with other countries of the Eastern Partnership such as Georgia and Ukraine.
The EIB would like to continue working in Belarus and focus more on environment-oriented projects. Vazil Hudak explained that the majority of people in the EU supports the parties that promise measures to combat the climate change, which was evidenced in the latest European Parliament election. We are ready to become an environmental bank of the EU and to increase the share of environmental projects in our project portfolio from the current 25% to 50% by 2025, and to increase the average funding of such projects to €70-75 billion annually. By 2050 the total investments of the projects to combat the climate change will reach €1 trillion, he said.
He recommended that Belarus consider these trends and prepare the relevant projects. Vazil Hudak outlined the development of environmentally friendly transport (primarily rail), municipal infrastructure, the private sector among promising areas of cooperation. The EIB is already discussing new projects with the government, National Bank, local authorities.
“The EIB vice president’s visit to Minsk is a clear signal that the European Union keeps its word and promise,” Head of the EU Delegation to Belarus Andrea Wiktorin told reporters.
“Four years ago we thought about how to give Belarus access to the EIB finance and are excited that everything goes smoothly,” she added.
The EIB is one of the world’s largest multilateral investment banks. Founded in 1958, the bank is headquartered in Luxembourg. The equity capital is formed by 28 countries, the European Union members. About 90% of the EIB projects are implemented within the EU, 10% outside its borders. The European Investment Bank signed the first agreements with Belarus in November 2018. Those were the €50 million loan agreement to support small and medium enterprises with Belagroprombank and the €25 million loan agreement with Belarusbank, and the €85 million loan agreement to rehabilitate and modernize the Minsk wastewater treatment plant.
