The report summarizes the findings ofdiagnostic studies of public investment management (PIM)processes in six Western Balkan countries. The key findingis that, except for externally financed investments,preliminary screening and rigorous project appraisaltechniques are rarely used, even in those cases where theseare prescribed. Ex post evaluation of public investment isalso largely undeveloped. Across the region systems aregradually being put in place to improve PIM, butimplementation is handicapped by a shortage of skilledpractitioners. The report identifies a European Union (EU)effect but finds its impact rather limited. Harmonizationwith EU practices in public financial management focuses onpublic internal financial control and public procurementbecause these are the important areas for safeguarding EUfunds. Therefore these are also the areas of PIM where apositive integration effect can be identified.