Regional Cooperation, Coordination of National Policies and Alignment with the EU: Case of Infrastru

1
Regional Cooperation, Coordination of National
Policies and Alignment with the EU Case of
Infrastructure

• Ana-Maria Boromisa
• Contribution to the International Conference
• Completing Eastern Enlargement (including
  Bulgaria and Romania) and
• its Effects on the Accession of Croatia
• Friday, 13 October 2006
• Zagreb

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Regional cooperation integration and policy EU
perspective

• Deeper cooperation with neighbouring countries
  key to national and regional stability and
  growth
• Cooperation serves the mutual interests of all
  countries concerned
• Aim of EU regional policy improving the economic
  well being of certain regions in the EU.
• Regional policy instruments the Structural
  Funds, the Regional Fund, ISPA, PHARE and
  SAPARD, the European Union Solidarity Fund
• External action enlargement, European
  neighbourhood policy (ring of friends, wider
  Europe, Mediteranean)

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Regional co-operation in SEE

• SAP promotes regional co-operation between
  the Western Balkan countries, between the region
  and EU member states and candidate countries
• Zagreb summit 2000 Rapprochement with the EU
  will go hand in hand with the process of
  developing regional cooperation
• CARDS regional co-operation is a major
  objective

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SEE regional challenges

• Manage international borders effecively-
  reducing cross-border crime- increasing regional
  and international trade- stabilising border
  regime
• Protect minority rights, boost civil society
• Build the capacites and cooperation between state
  institutions
• Develop regional solutions to transport, energy
  and environment problems

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The EUs policy objectives

• to encourage the countries of the region to
  behave towards each other and work with each
  other in a manner comparable to the relationships
  that now exist between EU Member States.
• the gradual re-integration of the Western Balkans
  region into the infrastructure networks (TENS) of
  wider Europe (transport, energy, border
  management)
• Regional co-operation in the Western Balkans is
  an essential factor for political stability and
  economic prosperity and the only way for the
  counties of the region to successfully address
  key common challenges (such as energy shortages,
  pollution, transport infrastructure, cross-border
  criminal activities etc.)

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The goals of SEE

• Integration into the EU
• Institutional issues
• Alignment with the acquis (legal harmonisation)
• Market integration issuestechnical reasons
  (availabilty of interconnection capacity)market
  reasons (market structure/credit risk/information
  on opportunities to trade) andpolicy
  considerations (e.g. energy policy energy self
  sufficency)
• Attracting investments

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Co-ordination of national policies

• Help solving regional cross-border transport and
  energy problems in coherent and cost effective
  manner
• Expected results
• Ideas on extension of Pan European Networks
  system
• Energy infrastructure, development of regional
  internas electricity market and its integration
  with the EU
• Extension of initial Regional Priority
  Environmental Reconstruction programme

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Role of the EU

• Political anchorage
• Integration into the EU - support for the reform,
  goal
• Financial support/investment
• Institutional framework (Europeisation of the
  region)
• EU interest!

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Infrastructure projects in SEE

• Stability Pact Infrastructure steering group
  list on ongoing infrastructure projects 48
  projects, a total cost of 4.97 billion
• Albania 479 mn, BiH 521 mn Bulgaria
  731 mn Croatia 283 mnFYR Macedonia 95 mn
  Romania 924 mn Serbia and Montenegro 935 mn
  Moldova 8 mnTurkey 767 mn, Regional
  Projects 226 mn
• transport

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Infrastructure projects

• Transport (particularly road infrastructure)
  55.5 cost, 2.8 billion, 27 projects
• The energy sector cost of 1.8 billion (35.6),
  10 electricity projects, 1e energy efficiency
  project
• Water and environment sector a total cost of
  0.30 billion (5.9).
• Crossborder or trade facilitation projects 3
  of the projects, 0.14 billion, 6 projects
• Financing secured or under preparation with the
  involvement of bilateral donors or international
  financial institutions,
• Project selected according to the agreed criteria
  of technical, economical and environmental
  feasibility submission by two or more countries
  of the region and a marked regional character

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Needed projects REBIS

• World Bank and EC Regional Balkans Infrastructure
  Study (REBIS)
• Goal identifying an indicative list of priority
  projects for investments (energy and transport)
• Transport - The long-term (2004-2015)investments
  required to develop a regional Core Network for
  roads to acceptable standards around EUR 4
  billion
• Energy Generation Investment Study (World Bank)
  transmission lines
• GIS Estimated savings 6.7 bn euro (2015)
• Transmission lines SECI proposal was considered
• Integration into TEN
• Benefits security of supply
• Challenge credibility, compromising

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Energy Community

• Initiative launched in 2002, Athens Process
• EU interest transit need
• 1st multilateral treaty between the EU and
  SEE(Croatia, BiH, Serbia, Montenegro, Macedonia,
  Albania, Romania, Bulgaria, Kosovo)
• Goal integrated energy makret application of
  energy, competition and environmental acquis
• Requires regional cooperetaionon regulatory
  co-operation, investments, statistcs, physical
  market co-ordination

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Implementation

• Member states, donors, Stability Pact, Energy
  Community institutitons (secretariat)
• Alignment of policies with the EU
• Building institutions
• Market development
• Infrastructure development

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Challenges ahead

• Transition structural adjustment shift from
  electicity intesive activity (industry) to less
  electricitiy intensive one (services)
• Policy change creation of national (energy)
  markets and their integration into wider regional
  (south-East Europe) and EU market
• Changes of policy - changes of pricing policy -
  creation of market based prices
• National and regional planning// national and
  regional prioirities
• Integrated market harmonisation of prices
• Speed up exit strategy for industries under
  restructuring
• Industrial users first participants in the
  market

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Final remarks

• Regional co-operation need in infrasturcture
  projects
• Credibility has to be acheived
• Integration into the EU
• Concliation of different interests