EIB invests €10.3m for safer air traffic corridors over the Western Balkans
The European Investment Bank (EIB) will lend €10.3 million to Serbia and Montenegro Air Traffic Services SMATSA Llc (SMATSA), which manages air traffic over the two countries.
The corridors controlled by SMATSA are key regional, European and global air routes used by tens of millions of passengers and cargo operators from across the globe.
The EIB funds will enable SMATSA to upgrade the reliability and interoperability of its air traffic control services and align them with the Single European Sky (SES) regulations, an EU-level policy introduced to better connect Europe by offering a single regulatory framework for air transport. The investment will improve connectivity across Europe and increase the quality of core air transport infrastructure and services, contributing to more efficient regional travel. This will support further integration of the Western Balkans with the European Union.
The EIB Vice-President responsible for lending operations in Serbia Lilyana Pavlova stated: “We are glad to be able to support the air transport sector in the Western Balkans, one of the hardest hit by the COVID-19 pandemic. These additional funds will facilitate the successful completion of SMATSA’s planned investments, which will increase safety at European and regional level as well as efficiency and convergence towards EU standards. As a priority project for the region included in the TEN-T network, it will enhance connectivity and regional integration and facilitate the economic recovery, especially in the tourism sector that has been severely affected by COVID-19.”
SMATSA CEO Predrag Jovanović stated: “The EIB funds will help SMATSA to weather the storm caused by the outbreak of the COVID-19 crisis. The EIB funds will ensure continuation of the investment programme, which aims to ensure safety of operations, air traffic efficiency, capacity and reduce environmental impact.”
The Head of the EU Delegation to Serbia Ambassador Sem Fabrizi stated: “Increased safety in air travel is a key European objective, particularly in a transport sector severely hit by the COVID-19. I am glad the EU financial resources are being used by Serbia for this integration effort of the Western Balkans.”
Continued support during the COVID-19 pandemic
This operation complements an earlier €45 million loan for modernisation of the air navigation systems operated by SMATSA, signed in 2018 to increase the efficiency and safety of air travel at regional and European level.
The additional funding agreed with SMATSA today will accelerate the development of air traffic services provided by SMATSA under the new circumstances imposed by the COVID-19 pandemic, and ensure effective implementation and management of the project signed in 2018.
The additional funding falls under the EIB’s immediate response to COVID-19 adopted by Team Europe in May 2020 to aid the socioeconomic recovery of the Western Balkans. To date, the EIB has invested over €2.3 billion in the transportation sector in Serbia, contributing to increased traffic safety and sustaining the country’s economic growth.