Albania is among the 15 countries that will receive access to an additional 87 million euros for the modernization of urban infrastructure

The Green Climate Fund (GCF) has approved additional funding of 87 million euros for the European Bank for Reconstruction and Development’s (EBRD) Green Cities program. Among the countries eligible for the funds are Albania, Bosnia and Herzegovina, North Macedonia, Serbia, and Moldova. The new funding will support investments in urban transportation, energy efficiency, water supply and sewer infrastructure, waste management, and other sustainable urban development projects, BalkanEngineer.com learned from an official EBRD statement.

The approved amount represents the second tranche under the program, bringing the total amount of preferential financing from the Green Climate Fund to 174 million euros. The funds are intended for municipalities, public utilities, and private companies in a total of 15 countries. In addition to the countries of Southeast Europe, the program covers Armenia, Georgia, Jordan, Kazakhstan, Kyrgyzstan, Mongolia, Morocco, Tajikistan, Tunisia, and Uzbekistan. The financing will be combined with EBRD investment instruments and other public and private sources of capital.

The Green Cities program brings together more than 60 cities and supports the development of projects to modernize urban infrastructure. Key areas of focus include the renovation of district heating systems, the deployment of renewable energy sources, the modernization of electricity distribution networks and street lighting, and the construction of wastewater treatment facilities. Support is also provided for solutions that reduce flood risk and improve cities’ resilience to climate change.

The first tranche of 87 million euros has already supported the development of eight green city action plans and the implementation of ten investment projects. Among these are the restoration of the Bick River and the construction of flood protection measures in Chisinau, Moldova. This project marks the first time the EBRD has formally implemented an eco-friendly solution as part of its investment activities.

With the new funding, the EBRD and the Green Climate Fund will expand their support for infrastructure projects in the participating cities. The preferential terms are aimed at investments whose implementation is hampered by high upfront costs or limited access to commercial financing. At this time, no breakdown of the additional 87 million euros by country or specific project has been announced.

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