Transport in the Western Balkans is benefiting from European Union funding to improve the region’s infrastructure connections, but integration into the core European transport network is progressing slowly, according to a report by the European Court of Auditors, which warns that, due to implementation delays and operational problems, the 2030 deadline for completing the core transport network in the Western Balkans is likely to be missed.
The report analyzes how the European Union's financial support is influencing the development of transport infrastructure through the Western Balkans Investment Framework (WBIF), a mechanism that combines EU grants with loans from international financial institutions for the implementation of infrastructure projects, reports the "Railway PRO" media outlet.
The European Commission is the main financier of this mechanism, contributing €899 million since 2015, or 86 percent of the pooled fund. The transport sector accounts for the largest share of investments, with a budget of €2.665 billion, of which €527 million have been disbursed between 2015 and mid-2025.
Important projects, but with delays
According to the European auditors, the funded projects are in line with the priorities of the EU and the Western Balkan countries to increase regional connectivity. However, the report highlights shortcomings in the selection of projects, particularly in terms of their readiness before funding is approved.
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Projects have started with an average delay of 17 months, as some applications were approved without completing the preparatory documentation. In some cases, cost-benefit analyses or detailed verified projects were missing.
For this reason, the Court recommends that the European Commission only finance projects that are ready for implementation, with complete and up-to-date documentation.
Six railway projects in four countries
The analyzed sample includes 12 transport projects in Bosnia and Herzegovina, Kosovo, North Macedonia and Serbia, with a total value of 341.6 million euros.
Among them are several important railway projects, such as the Line 10 railway in Kosovo, Corridor X and Corridor Xc in Serbia, as well as Corridor VIII in North Macedonia.
The report highlights that six rail grants have been approved in these four countries, but three of the lines remain unelectrified and operate with diesel trains, reducing the environmental benefits that modern rail transport would bring.
The auditors also assess that the European Commission has not given sufficient priority to sustainable transport projects, such as railways or inland waterways, which would help more in reducing greenhouse gas emissions.
Corridor without full connectivity in North Macedonia
One of the cases highlighted in the report concerns North Macedonia. The auditors find that a funded railway segment on Corridor VIII, towards the border with Bulgaria, was approved even though there was no guarantee of a full connection with the neighbouring country and no agreements that would ensure the functioning of the entire corridor.
According to the report, financing segments with insufficient connectivity could limit the impact of European investments in the regional transport network.
Problems on the Line 10 railway in Kosovo
The report focuses specifically on the Line 10 railway project in Kosovo. According to the European Court of Auditors' assessment, the condition of the line was worse at the time of the audit than before the project began.
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Rail traffic has been suspended since 2020 after the collapse of tunnels during construction, while the signaling and electrification systems were not installed until June 2025.
The auditors use this case to illustrate the risks associated with delays, limited capacities of beneficiaries, and the sustainability of project results.
Line 10 is Kosovo’s main railway corridor, connecting the country from the border with Serbia in the north to the border with North Macedonia in the south. It is part of the Trans-European Transport Network (TEN-T) and is considered Kosovo’s most important railway connection to the region and Europe. The project for its modernization was planned as early as 2014, with international funding secured in the following years. Works on the first phase, on the Fushë Kosovë–Hani i Elezit segment, began in 2019 with the aim of rehabilitating the tracks, tunnels, bridges, signalling systems and electrification. However, the project faced numerous delays, and rail traffic on this line has been suspended since 2020 following problems encountered during tunnel works.
Overall, the report finds that the sustainability of the seven projects analyzed was not fully ensured due to unfinished administrative procedures, lack of funds for continued investments, insufficient maintenance, or underutilized infrastructure.
Deficient supervision and weak monitoring
The European Court of Auditors notes that the European Commission relies mainly on international financial institutions to monitor the implementation of projects.
However, according to the report, this oversight has not always been sufficient. The Commission has not systematically sought evidence to assess implementation risks, and in some cases has failed to identify shortcomings in public procurement procedures.
The report also criticizes the monitoring of delays, emphasizing that the information received from financial institutions has not always been detailed or updated enough to identify the real causes of the problems.
In addition to launch delays, many projects have recorded additional delays of more than two years during the construction phase, mainly due to changes in technical designs and delays in obtaining permits.
Impact measurement remains limited
To assess overall progress, the European Commission has used three main indicators: growth in Gross Domestic Product (GDP), the value of trade in goods and services, and the Human Development Index.
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According to the auditors, these indicators are influenced by many external factors and do not provide a clear picture of the concrete effects of projects financed through WBIF.
They estimate that it would be more useful to measure the completion rate of funded corridors and the level of compliance of transport networks with European Union standards, to more accurately assess the impact of European funds.
