Safe and Sustainable Transport Programme in the Western Balkans

Following the adoption of the European Green Deal and thus the need to invest more targeted into the Green Agenda in the Western Balkans, the European Commission (EC) decided in 2021 to step up its engagement and allocate €80 million to a ‘Safe and Sustainable Transport Programme’ (SSTP). It was agreed that the World Bank would house the SSTP and the program would be managed by the the Europe and Central Asia Transport Global Practice. Under this program, funds are operationalized as grants which are blended with World Bank financing based on the fair share principle across all six of the Western Balkans countries. Through this grant blending mechanism, the SSTP supports the implementation of the sustainable transport component of the Economic and Investment Plan (EIP) and the Green Agenda for the Western Balkans, which aim to spur long-term growth in the region, and promote a greener, safer, and more resilient transport network.  

Stakeholders

The World Bank, Ministries of Finance (MoF), line ministries/governmental authorities of the Western Balkans, the European Commission, the Transport Community, and European Union Delegations will primarily be involved in implementing the SSTP. At the national level, the MoF and line ministries in charge of transport will be the key entities involved, tailored to the specific subprojects financed. The direct beneficiaries of the SSTP will include railway infrastructure companies, road agencies, customs and revenue agencies, border police, and other customs and border management entities, depending on the priority areas of the program. At the regional level, the SSTP will coordinate closely with the Transport Community to avoid duplication of work and ensure alignment with the European Commission's priorities and strategies.

The SSTP Steering Group

The World Bank, the European Commission (DG NEAR) and the Transport Community comprise the Steering Group of the SSTP. European Union Delegations may be invited as observers. The main role of the Steering Group is to give strategic direction to the World Bank for overseeing the SSTP. The group meets annually to review the SSTP Annual Report, track progress, discuss potential projects, and advise the World Bank on the SSTP.

The SSTP Technical Group

The meetings of the SSTP Technical Group ensure that proposals align with SSTP scope, national and European Union priorities, and avoid duplication of support efforts. They analyze SSTP progress and future pipeline and discuss issues requiring technical follow up. Representatives of eligible project beneficiaries may also participate. The Technical Group includes members of the World Bank SSTP team, European Commission (DG NEAR) and Transport Community’s technical staff and is chaired by the World Bank SSTP team Program Manager.

The World Bank SSTP Team

The overall implementation of the SSTP project will be supervised by the designated SSTP team at the World Bank, including the following:

• SSTP Program Manager
• SSTP Coordinator
• Task Team Leaders
• World Bank’s Western Balkans Country Management Unit 
   

SSTP provides grants from the Western Balkans Investment Fund (WBIF) matching World Bank lending to promote safer and more sustainable transport systems. Among the main outcomes of the planned investments are reduced travel times, increased transport safety, reduced air and noise pollution, and job creation. The projects under the SSTP would spur socio-economic convergence with the European Union and underpin further advances of the common regional market.

All six countries from the Western Balkans: Albania, Bosnia and Herzegovina, North Macedonia, Kosovo, Montenegro, and Serbia can benefit from accessing financing and technical assistance to enhance safety and transport sustainability in these four categories:

• Railway safety: Improvements in the rail network should focus on the improvement of safety at priority rail crossings;
• Road safety: Improvement of high-risk road sections;
• Border Crossing Points: Modernization and infrastructure capacity improvements at selected border crossing points
• Deployment of sustainable and smart mobility solutions.

A new SSTP 2024 call for proposals is open until June 30, 2024 and will provide grants to the Western Balkan economies for projects on railway safety, road safety, border crossing points and deployment of sustainable and smart mobility solutions. The call aims to extend the reach and impact of World Bank projects to promote small investments which can make transport systems safer, greener, and more reliable.

The SSTP Grant Application Form is the sole document that the Beneficiary submits to the SSTP team to request financial assistance. The form contains specific fields for providing project information, including overall project context and key technical and financial architecture data.

Beneficiaries should fill out the Grant Application Form carefully and accurately because it is an important document for the World Bank's review process. Missing information could lead to rejection and project delays, so Beneficiaries should seek guidance from the SSTP team if needed.

All applications should be submitted to the World Bank SSTP team by e-mail to sstp@worldbank.org.

Implementation of SSTP Grants

After the World Bank approves the investment and technical assistance grants, the Grant Application Form are finalized with any conditions associated with the approval. The project/activity approved becomes part of the ongoing World Bank lending project as an additional component. This means procurement, financial management, environmental and social risk management aspects will follow the Bank's operational procedures and policies, and monitoring and evaluation will be conducted within the ongoing Bank project's operational requirements. SSTP projects will not require separate processes for these as they will be integrated into the existing Bank lending project.

When Bank executed technical assistance is implemented, the SSTP team, along with the Project Implementation Unit (PIU) of the World Bank project, drafts the terms of reference, procures and contracts, and implements the works or services under its own procedures. Investment grants are always implemented by the Beneficiary under the supervision of the Bank, which co-finances the project with a loan. The Bank signs a Loan Agreement and a grant/financing agreement for the SSTP grant with the Beneficiary.

If the project is already under implementation, the Bank may do an additional financing restructuring. If the project is still under preparation, the SSTP activity may be included in the original project design. The implementing entity for the project/activity will be the same as the ongoing World Bank project to which the SSTP project is attached (e.g., the PIU within a Line Ministry or a public entity). The implementing entity (PIU) acts as the contracting authority for the project.