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EU Funding for TEN-TInfrastructure

2014 -2020

Stéphane OuakiEuropean Commission, DG Mobility and Transport Head of Unit, Connecting Europe - Infrastructure investments strategiesBucharest, 9 October 2013

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The EU TEN-T framework

Strategic framework• White Paper for Transport

Policy framework• Revised TEN-T Guidelines

Funding framework• Connecting Europe Facility• Cohesion Fund• European Regional Development Fund

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The White Paper for Transport30% of road freight over 300 km should shift to other modes, such as rail or waterborne transport by 2030,

and more than 50 % by 2050.

Complete a European high-speed rail network, by 2050. Triple the length of the existing high-speed rail network by 2030 and maintain a dense railway network in all Member States.

Majority of medium-distance passenger transport should go by rail by 2050.

A fully functional and EU-wide multimodal TEN-T ‘core network’ by 2030,

with a high-quality and capacity network and a corresponding set of information services by 2050.

Connect all core seaports to the rail freight network, by 2030, and, where possible, to the inland waterway system;

connect all core network airports to the rail (preferably high-speed) network, by 2050.

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The revised TEN-T Guidelines

•Dual layer approach: core and comprehensive network

•Ambitious standards for all infrastructures

•Common deadlines to achieve the network (2030/2050)

•Corridors and coordinators for implementation

•Regulation instead of decision

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Revised TEN-T Guidelines: Rail infrastructure provisions

RequirementsComprehensive Network• Electrification• ERTMS• 1435mm gauge • Compliance with the requirements of the Technical Specifications for

Interoperability (TSI)• Connection with freight terminals

Core Network[see Comprehensive network plus]• Freight lines (>100 km/h, 750m train length, 22,5t axle load)

Priorities• ERTMS deployment• Noise impact mitigation• Meeting requirements and enhancing interoperability• Connect with inland waterway ports (where appropriate)

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Connecting Europe FacilityOne instrument – three sectors

Financing framework 2014-2020

Sectoral policy frameworks

(setting priorities for 2020, 2030, 2050)The "European Infrastructure Package"

(European Commission proposal, October 2011)

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Connecting Europe Facility

New funding framework:

• Stronger concentration of financial support on EU added-value projects

• Exploitation of cross-sectoral synergies

• Higher emphasis on the use of innovative financial instruments

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Transport investment needs

• EU transport system: €1.5 trillion of investment needs by 2030

• TEN-T: €500 billion by 2020

• TEN-T core network: €250 billion by 2020*

*Estimate based on discussions with MS on their project portfolio

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CEF: budget for Transport

€26.2 billion for TEN-T€14.9bn available to all Member States

€11.3bn to be transferred from the Cohesion Fund

To be spent via:Grants (estimated €24.2 billion)

Innovative financial instruments (€2 billion estimated market uptake)

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Specific elements for €11.3 bn transferred from the Cohesion Fund (the '€10bn')

Exclusively for transport projects in Member States eligible for the Cohesion Fund

Rail, IWW, cross-border (including road)

Finance difficult projects that the MS would not finance with Cohesion Fund

Respect of national allocations under the Cohesion Fund until end 2016

Binding national envelopes between 2014 – 2016, no contribution for financial instruments before 2016

(Max.) Co-funding rates - Cohesion Policy (max. 80-85%)

Specific Programme Support Actions for Cohesion Member States experiencing difficulties in proposing projects

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80 – 85 % of available budget for pre-identified projects listed in Part 1 of Annex

– 4 horizontal priorities – 9 core-network corridors– other important cross-border and bottleneck sections– delegated act foreseen to amend list

15 – 20 % for other projects of the core and comprehensive networks and for financial instruments

CEF Transport: eligibility

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CEF: co-funding ratesAll Member States

Member States eligible for Cohesion Fund

50% 85%

Cross border 40% 85%

Bottleneck 30% 85%

Other projects of common interest 20% 85%

Cross border 40% 85%

Bottleneck 40% 85%

Other projects of common interest 20% 85%

20% 85%

20% 85%

20% 85%

20% 20%

20% 20%

20% 20%

30% 85%SESAR, RIS, VTMIS (ground/onboard) 50/20% 85%ERTMS 50% 85%ITS for road 20% 85%

10% 85%

20% 85%

Types of Projects

(a) Studies (all modes)

(b)Works on

Rail

Inland waterways

Inland transport connections to ports and airports (rail and road)

Traffic management systems

Cross border road sections

New technologies and innovation for all modes of transport

Development of ports

Development of multi-modal platforms

Reduce rail freight noise by retrofitting of existing rolling stock

Freight transport services

Secure parkings on road core network

Motorways of the sea

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CEF: centralised management of grants

•Project selection and resources allocation • by COM/ TEN-T EA

•Same criteria for project proposals coming from all Member States

• Quality, maturity, EU added value, socio-eco-environmental impacts

•Concentration on projects with high EU added value

• cross-border missing links, boosting multimodality, ensuring interoperability of networks across borders and modes

•Increased efficiency of EU budget spending

• competition, "use-it-or-lose-it" principle

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CEF: centralised management of grantsWork programmes Multiannual & annual (COM)

Calls for projects Info Days (TEN-T EA + COM)

Application Paperless via TENtec; TEN-T EA support

Selection External evaluation (experts + TEN-T EA)Internal Evaluation (COM)

Funding Decisions For selected projects (COM)

Monitoring of project implementation

TEN-T EA + COM ("Use it or lose it")

€11.3 billion from the Cohesion Fund

Exclusively dedicated work programmes and calls

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CEF - Financial instruments

2 types:• Equity • Risk-sharing instruments to provide loans and/or

guarantees (such as LGTT or Project Bonds)

• Implementation by financial partners, such as EIB

• Combination of innovative financial instruments (e.g. Project bonds) and EU direct support (i.e. grants) to optimise the impact of financing

• Possibility to top up the CEF financial instruments: MS (directly or through Structural Funds), other EU funds and/or investors

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CEF: eligibility of projects in third countries

• Grants:Studies:

• ensuring the connection between the core network and the transport networks of the third countries

• completing the transport infrastructure in third countries which serve as links between parts of the core network in the Union

Studies and works:

• connect the core network at border crossing points; infrastructure necessary to ensure seamless traffic flow, border checks, border surveillance and other border control procedures

• implement traffic management systems in those countries

(Basis for defining the eligibility of projects - indicative maps annexed to the TEN-T guidelines)

• Financial instruments:Actions in third countries may be supported by means of the financial instruments if those actions are necessary for the implementation of a project of common interest.

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CEF in Romania (railways)

Grants (indicative envelope within the €11.3 bn proportional to RO share under the Cohesion Fund)

CEF Annex includes an important project portfolio for RO, with several major projects, including cross-border connections and bottlenecks projects.

RO economy will greatly benefit: enhanced connections to the rest of the TEN-T network & to the neighbouring third countries.

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CEF in Romania

Horizontal Priorities

Innovative Management & Services Single European Sky – SESAR

Innovative Management & Services Telematic Applications Systems for Road, Rail, Inland Waterways and Vessels (ITS, ERTMS, RIS and VTMIS)

Innovative Management & Services Core Network Maritime Ports, Motorways of the Sea and Airports, safe and secure infrastructure

New technologies and innovation New technologies and innovation in accordance with Art. 39 (a) - (d) of the revised TEN-T Guidelines

Orient/East-Med

Budapest – Arad – Timişoara – Calafat

Rail upgrading in HU nearly completed, ongoing in RO

Vidin – Craiova Road Cross-border upgrading

Rhine – Danube

Budapest - Arad Rail studies for high speed network between Budapest and Arad

Arad - Brasov - Bucuresti - Constanta Rail upgrading of specific sections; studies high-speed

Main – Main-Donau-Canal IWW Studies, works on several sections & bottlenecks; IWW ports: multimodal interconnections with rail

Giurgiu, Galați Port Further development of multimodal platforms, connections with the hinterland: studies, works

Danube (Kehlheim - Constanța/ Midia/ Sulina)

IWW studies and works on several sections and bottlenecks; IWW ports: multimodal interconnections

Bucuresti – Danube Canal IWW Studies & works

Constanta Port, MoS port interconnections, MoS (including icebreaking services)

Craiova – Bucuresti Rail Studies and works

Other sections on the core network

Timişoara – Serbia border Cross-Border - Rail

Iasi- R. Moldova border Cross-Border - Rail

Suceava - Ukraina border Cross-Border - Rail

Targu Neamt – Ungheni Cross-Border - Road

Alba–Iulia – Turda – Dej – Suceava – Paşcani – Iaşi

Other Core Network - Rail

Bucuresti - Buzau Other Core Network - Rail

Ploiesti - Suceava Other Core Network - Rail

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TEN-T Network

Comprehensive and

Core NetworkInland waterways and

ports

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TEN-T Network

• Comprehensive Network

• Railways, ports, rail-road terminals

• Core Network• Railways (freight), ports, rail-

road terminals

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TEN-T Network

• Comprehensive network

• Railways and airports

• Core NetworkRailways (passengers) and airports

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TEN-T Network

• Core and Comprehensive networks

• Roads, ports, rail-road teminals and airports

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PP22 - a concrete example of TEN-T project implementation (I)

2 major lines in Romania:

• Arad – Bucharest – Constanta (East/West)

• Arad – Timisoara – Craiova – new Danube Bridge at Vidin (North/South)

Better interconnection of Bucharest and Constanta to central Europe; connects Bucharest with major urban nodes

Better interconnection of the Black Sea and Greek ports to central Europe

Fully integrated in the future Core Network Corridors (Orient/East Med & Rhine/Danube)

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PP22 - a concrete example of TEN-T project implementation (II)

State-of-implementation

PP22 has progressed well in RO, where National & European priorities coincides (East/West)

PP22 hasn’t progressed much on the North/South sections

Recommendations from PP22 Coordinator

Need to be realistic in terms of standards for developping PP22. PP22 is mostly freight.

Need to prepare a project portfolio for CEF!

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Other EU sources of funding for TEN-T

•Cohesion Fund (CF)• Priority to TEN-T sections (both core and comprehensive)• Co-funding up to 85% of eligible costs (according to art. 22 and art. 110(3)

of the draft CPR Regulation)• €10 bn (€11.3 bn in current prices) transferred to CEF

•European Regional Development Fund (ERDF)• A part of ERDF to be dedicated to transport infrastructure• Priority to TEN-T sections (both core and comprehensive)• Connecting secondary and tertiary nodes to TEN-T infrastructure• Less developed regions: up to 85% of eligible costs• Transition regions: up to 75% of eligible costs

Ex-ante conditionality: • a comprehensive transport plan, including a dedicated section for railways • a realistic and mature project pipeline• administrative capacity for project preparation and delivery

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Update on the Connecting Europe Facility

• Conclusive informal trilogue: 27/06• Vote in the TRAN/ITRE EP Committee: 7/10

•Next steps (// with TEN-T guidelines)• Vote in the EP Plenary: 24/10• Adoption by Council: end October• Publication in the Official Journal: mid-November• Entry into force: one day after publication• Entry into application: 01/01/2014

•BUT: First transport work programmes - only after the adoption of a delegated act detailing the funding priorities

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•Thank you for your attention!

•stephane.ouaki@ec.europa.eu

•http://ec.europa.eu/transport/infrastructure/index_en.htm