Western Balkans Municipal Infrastructure Development Fund.

Project completed

In cooperation with the EBRD and the KfW, the Western Balkans Municipal Infrastructure Development Fund (MIDF) has been established, to provide medium to long term loan financing to creditworthy small and medium sized municipalities for infrastructure projects in the Western Balkans financed through local commercial banks.

Country/region Period Budget
Albania
Bosnia and Herzegovina
Macedonia
Serbia
Kosovo
01.01.2013 - 31.12.2016
CHF 2'959'999
Background The MIDF is a structured investment fund that provides financing for municipal infrastructure investments in the Western Balkans through local commercial banks (i.e. participating banks- PB). Financial support will be combined with technical assistance (TA) for PB and municipalities (i.e. ultimate borrowers, UB). The Technical assistance component aims at improving cost recovery by municipalities, enhancing their creditworthiness, and equipping local banks with the necessary skills to lend to municipalities. It is expected that such skill development will create a commercial banking market for municipal financing in the long-run.
Objectives The overall objective of the Fund is to provide medium to long-term financing to Ultimate Borrowers for the development of new municipal infrastructures and rehabilitation as well as modernization of existing municipal infrastructures. The Fund's mission is to deepen and broaden the local financial systems and to enhance local self-government in the Western Balkans, by enhancing the capacity of local banks for municipal lending and by improving the efficiency and sustainability of municipal infrastructure
Medium-term outcomes The project will improve financial services for municipalities in the Western Balkans, realized through local commercial banks offering municipal infrastructure financing on a permanent basis. In parallel, municipalities will develop and strengthen their institutional capabilities of project preparation, implementation and monitoring, and thus improve their creditworthiness while boosting access to financing without external support.
Results

Expected results:   Municipalities (i.e. Ultimate Borrowers- UB) in the 6 Western Balkan countries will have increased access to municipal infrastructure financing, channeled through local banks (i.e. participating banks- PB). Additionally, both the UB’s and the PB’s will receive TA in the development, financing and management of infrastructure projects.MIDF investments will be directed to the following infrastructure sectors: water and wastewater, district heating, waste management, public transport and road infrastructure and energy efficiency. The utilization of loan financing through the MIDF, combined with tailored technical assistance for project preparation and implementation, will help to ensure that projects are designed efficiently, financed on a sustainable basis and result in more immediate delivery of improved infrastructure services.


Directorate/federal office responsible SECO
Credit area Swiss cooperation with Eastern Europe
Project partners Contract partner
  • KfW banking group


Budget Current phase Swiss budget CHF   2'959'999 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   2'959'999
Project phases Phase 20 01.01.2013 - 31.10.2016   (Completed)

Phase 10 01.01.2013 - 31.12.2016   (Completed)