Kosovo*: EIB provides a €1.5 million technical assistance grant for decarbonising and increasing energy efficiency of the heating system in Pristina

Technical assistance grant supporting a decarbonisation plan for the heating system in Pristina and the preparation of the district heating expansion project Under the Economic Resilience Initiative (ERI), EIB Global will help deliver a more energy-efficient heating system, supporting the local economy and better living conditions for 210 000 people

The European Investment Bank (EIB), through its new EIB Global branch, provides a €1.5 million technical assistance grant to finance the project preparation for the expansion of the district heating system in Pristina. The project will lead to a more energy efficient heating system for Pristina, helping to reduce air pollution and improved living conditions for some 210 000 people.

The EIB technical assistance will support the development of a decarbonisation plan for the heating system in Pristina, the preparation of necessary environmental and social impact assessments and the project implementation. The funds are being provided under the ERI envelope of EIB Global, as part of the Bank’s and the European Union’s response to strengthen key infrastructure that improves people’s lives. With the aim of supporting resilient and inclusive growth in the Western Balkans, the EU bank provides financial support for infrastructure and private sector development.

EIB Vice-President Lilyana Pavlova, responsible for the Bank’s activities in the Western Balkans, said: “As the EU bank, we intend to help the Western Balkans increase the energy security and support decarbonisation of local economies which is crucial for resource-efficient growth and for meeting EU standards. This technical assistance will deliver a blueprint for Pristina’s sustainable energy sector, helping the city to address challenges resulting from the growth in population. It will create new jobs and business opportunities for companies, while improving living conditions for people in Kosovo* thanks to more environmentally-friendly heating services available at affordable prices.”

Hekuran Murati, Minister of Finance, Labour and Transfers praised the good cooperation that Kosovo* has with the EIB, as one of the key partners of Kosovo* in its green agenda, and stated that: “This agreement is of particular importance for us. Increasing the efficiency and capacity of the heating system will have a direct impact in the quality of life of our citizens by reducing air pollution that comes from heating and making it more affordable, especially during the winter.”

Arsim Fetahu, CEO of Termokos JSC stated: “The signing of this agreement is very important as the need for heating in the city of Prishtina is known to be high. This agreement paves the way that in the future many buildings that were built several decades ago and have not yet been connected to the heating network and new buildings in new neighbourhoods will have the opportunity to be connected to the heating network and this would enable quality heating at a reasonable price and without environmental pollution.”

Since the start of the pandemic, the EIB has provided €70 million for Kosovo* to support the faster recovery of small businesses and the construction of wastewater treatment plans in Gjilan and Mitrovica.