European Commission

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European Commission
Trans-European Energy Transport Networks
Kristina Geiger W
11 May 2004

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European Commission

• TEN-T network
• Revision of the guidelines for the TEN-T network
  and the financial regulation
• Pan-European Corridors and Areas
• Revision of the Pan-European Corridors and Areas
  concept

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TEN-T

• Legal ground for the TENs Treaty of
  Maastricht, Article 154 - The Community
  contributes to the establishment and development
  of trans-European networks in the sector of
  transport, telecommunications and energy
  infrastructure
• Decision 1692/96/EC guidelines for the TEN-T
  and Decision 2236/95/EC rules for granting aids
  to TEN

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TEN-T

• Purpose of the TEN-T network is to establish
  guidelines covering the objectives, priorities
  and broad lines of measures
• Shall be gradually established by 2010 by
  integrating land, sea and air transport
  infrastructure networks throughout the Community
• Be, as far as possible, economically viable
• Cover the whole territory of the Member States

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TEN-T

• Connecting the network to EFTA, Countries of
  Central and Eastern Europe and the Mediterranean
  countries
• In Decision 1692/96/EC there are maps for inland
  waterways, airports, ports, roads and railway
  lines. Only those lines which are indicated on
  the maps are eligible for funding by the
  Community
• There are also future TEN-T maps for the
  Candidate Countries except Turkey

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TEN-T

• Base for the future TEN-T network in the
  Candidate Countries has been the TINA exercise
• TINA process was launched by the Commission in
  1996
• Aim was to design a multimodal transport network
  for the Accession Countries
• This exercise was finalised in 1999 for all
  Candidate Countries except Malta and Turkey

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TEN-T

• A TINA study was carried out for Malta in 2001
• A TINA study will be carried out for Turkey
• The future TEN-T network was negotiated in
  2001-2002
• It was adopted by Council in spring 2003 in the
  framework of the Accession Treaties

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TEN-T

• Network has been designed and agreed also with
  Bulgaria and Romania but not yet decided by
  Council

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Pan-European Corridors and Areas

• There are 10 pan-European Transport Corridors and
  4 Areas
• These were decided along three international
  transport conferences 1991 in Prague, 1994 in
  Crete and 1997 in Helsinki
• Corridors and Areas in Member States, Accession
  Countries and further beyond
• Corridors and Areas are managed thorugh Steering
  Committees and by Memorandum of Understandings.
  Not legally binding documents as the TEN-T
  Decision is.

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Content of the proposed revision

• New priority projects
• Reinforcement of international cooperation
• New financial rules for transborder projects

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General map of projects
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Motorways of the sea
This new priority project aims to ensure that
transnational maritime links be treated with the
same importance as land links. Member States will
be encouraged to jointly establish transnational
maritime links with projects which
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Reinforcing international cooperation
Member States have their own planning systems,
provide most of the public financing, canvass
private investors, manage the complex
administrative procedures prior to construction
authorisations and supervise the awarding of
contracts and the approval of work.
Coordination is an important issue, as the
profitability of investments is closely linked to
the sequence of putting into operation the
various sections on the route in question.
Investments therefore have to be synchronised
along transnational routes.
The issue
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European coordinators
For some large projects located on major European
routes, the Commission proposes to set up a
coordination team. The Commission would
designate a personality, after consulting the
Member States concerned, to be responsible for
this coordination. This European coordinator
would encourage cooperation with users and
operators, promote the projects amongst private
investors and financial institutions, including
the EU, and keep the EU informed of progress so
that, if necessary, measures can be taken to
overcome any possible difficulties.
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New financial rules for transborder projects
The Commission proposes that cross border
sections of projects declared of European
interest can benefit from EU funds up to a 30
co-financing level. The current maximum
cofinancing level is at 10 for the overall cost.
Propositions made so far by the Commission
limited the increased cofinancing share at 20
only for cross-border sections of rail projects
on natural barriers or with candidate countries.
A compromise agreement has been reached with
ECOFIN for 20 co-financing The proposal also
introduces a pluri-annual financial planification
which will give guarantees to investors while
allowing flexibility in the financial process.
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Estimated impact of the new proposals
Estimated amount required for all priority
projects 224 billion
Expected private sector contribution 20
Total cost of the trans-European network by 2020
600 billion
Carrying out these projects in conjunction with
intermodality, interoperability and
infrastructure charging policies would - produce
time savings adding up to almost 8 billion per
year - reduce CO2 emissions by 17 millions
tonnes per year - cut external costs of air
pollution by over 700 million per year -
rebalance the modal split on the international
market segments - stimulate international trade,
in particular in acceding countries - reduce
road congestion by up to 14 - improve welfare
which may lead to a 0.23 GDP growth
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Investments in transport
infrastructure in GDP
3.00
2.50
2.00
1980-86
1.50
1987-93
1994-2001
1.00
0.50
0.00
UK
Italy
Spain
Ireland
Austria
France
Finland
Greece
Belgium
Sweden
Portugal
Denmark
Germany
Netherlands
Luxembourg
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Financial framework investment
needs 224 billion until 2020
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Three sources of financing to combine

• National tax payers
• Community budget
• Users

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National tax payers

• National budgets have a key role
• Mechanisms to reward consistent national funding
  decisions under study by the Commission
• Delays due to inadequate funding decisions can
  lead to the exclusion of the list

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Community budget

• The article 19a of the Guidelines Decision
  proposes to concentrate TEN budget, Cohesion
  fund, ISPA and Structural Funds on the projects
  declared of European Interest by asking Member
  States to give an appropriate priority in their
  application for funding.

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Community budget

• Proposal to modify Regulation 2236/95
• - allows financing rate up to 30 of the
  cost for the cross-border sections of any of the
  projects declared of European Interest (the 2001
  proposal was aiming at a rate of 20 but was
  restricted to only certain cross-border projects)
• - introduces pluriannual budget commitments,
  which will guarantee support to investors, as
  currently practised by other financial
  instruments

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Users

• Initial estimates indicate that around 20 of
  the total investments needs could be financed by
  user fees or cross-financing if the proposed
  modification to the Eurovignette Directive is
  adopted
• Private capitals could therefore be mobilised if
  adequate risk sharing instruments are set up
  (e.g. loan guarantees)

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Future of the Pan-European Corridors and Areas

• After enlargement 2/3 of the Corridors and Areas
  will be within EU territory and covered by EU
  legislation
• Debate launched by Vice President Mme de Palacio
  at the Euro-Asian International Transport
  Conference in St Petersburg in September 2003
• Discussions continued in Paris November 27-28 at
  the jointly organised seminar by EC/EIB/UN-ECE
  and ECMT Transport Infrastructure Development
  for a wider Europe