BGK: EUR 600 billion needed for infrastructure in the Three Seas Initiative (3SI) region
EUR 600 billion is the amount that needs to be invested in the 3SI infrastructure by 2030 in order to close the gap between Central and Eastern Europe and Western Europe, as was stressed by Beata Daszyńska-Muzyczka, President of BGK and Chairperson of the Supervisory Board of the Three Seas Initiative Investment Fund during the “Equity for Infrastructure” conference held by the Bulgarian Development Bank in Sofia.
Bulgarian President Rumen Radev, who opened the meeting, said that infrastructure investments are a great opportunity for socio-economic development and for improving connections between the countries of the 3SI region.
“The 3SI region displays a huge economic potential. The total value of trade of all countries in the region exceeds EUR 225 billion. The 3SI region generates about 20 percent of the GDP of the entire EU community. The 3SI area of 1.2 million km2 is inhabited by 111 million people, i.e. about one-fourth of the entire EU population” – indicated Beata Daszyńska-Muzyczka, President of Bank Gospodarstwa Krajowego (BGK). “Not only must we catch up with the Western European countries but also keep up with their pace and constantly remind investors from all over the world of how attractive, and at the same time unique, the 3SI region is with its high economic growth and great resilience to crises” – she added.
In addition to strengthening cooperation and enhancing infrastructure in the region, the purpose of the Fund is to secure profits for the investors, which is why countries from outside the region and Europe, including Japan, South Korea and Qatar, are also interested in grasping this investment opportunity.
Investments in transport and logistics (the construction of roads, rail routes, maritime transport and airports) in the 3SI region will have reached EUR 290 billion by 2030. Energy expenditures (transmission, distribution and infrastructure) are expected to amount to EUR 88 billion while digital infrastructure costs will consume EUR 160 billion.
“We need public funds, EU funds and funds from private investors to finance these projects. Through the Three Seas Initiative Investment Fund, we are combining public and private funds, investing them in commercial projects. While there are now plenty of projects in which the Fund could become involved, the sums raised are still not sufficient to invest in all valuable projects” – remarked the President of BGK.