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