TransportTransport

The EU Trans-European Transport Network Policy

& The Connecting Europe Facility

Lia Potec, Policy officerEuropean CommissionDG Mobility and TransportUnit B4 Connecting Europe – Infrastructure Investment strategies19/11/2014

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The new TEN-T maps• Comprehensive network to

ensure accessibility to all regions

• Core network focusing on the strategically most important parts

• Maps contained in Annex I to the Regulation

• List of nodes in Annex II

• Indicative comprehensive network maps for the neighbouring countries in Annex III

• Standards for all modes

• Deadlines 2030/2050

TEN-T Comprehensive and Core NetworkRailways (passengers) and airports

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TEN-T Network Standards (1/3)Railways

• Comprehensive Network • Electrification• ERTMS• 1435mm gauge• Connection with freight terminals

• Core Network[see Comprehensive network plus]

• freight lines (>100 km/h, 750m train length, 22,5t axle load)

TEN-T Comprehensive and Core NetworkRailways (freight), ports and rail-road terminals

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TEN-T Network Standards (2/3)Roads

• Comprehensive Network • High quality roads i.e.

motorways, expressways, conventional strategic roads

• Core Network[see Comprehensive network plus]

• Rest areas on motorways all 100 km, including appropriate parking space for commercial road users

• Availability of clean fuels

TEN-T Comprehensive and Core NetworkRoads, ports, rail-road terminals and airports

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TEN-T Network Standards (3/3)Other modes

TEN-T Comprehensive and Core Network

Inland waterways and ports

Comprehensive NetworkImplementation and deployment of telematic applications (RIS, VTMIS, e-maritime services, SESAR)Connection of airports and ports to TEN-T network by 2050

Core Network[see Comprehensive network plus]

Availability of clean fuels at airports and portsConnection of ports and airports to TEN-T network by 2030

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TEN-T Core Network Corridors and European Coordinators

9 multimodal corridors 9 multimodal corridors (defined until 2020*)(defined until 2020*)•Implementation toolsImplementation tools•Support the core network implementation Support the core network implementation •Synchronise investments (Corridor Work Plan), including Synchronise investments (Corridor Work Plan), including deployment of new technologies and telematic applicationsdeployment of new technologies and telematic applications•Alignment with the Rail Freight CorridorsAlignment with the Rail Freight Corridors

•Involvement of stakeholdersInvolvement of stakeholders•European Coordinators also for ERTMS and Motorways of the SeaEuropean Coordinators also for ERTMS and Motorways of the Sea

* Alignment identified in Annex I of the Connecting Europe Facility Regulation* Alignment identified in Annex I of the Connecting Europe Facility Regulation

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Scandinavian-Mediterranean Corridor

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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"

€33.2bn to finance projects of EU common interest

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Connecting Europe Facility: budget

Budget: €33.2 billion in current prices

- €26.250 billion for transport (including €11.3 billion reserved for Cohesion MS)

- €1.141 billion for broadband and digital services

- €5.850 billion for energy infrastructure

To be spent via

- grants

- innovative financial instruments

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Other EU sources of financing for TEN-T (2014 -2020)

• European Structural and Investment Funds

- Cohesion Fund and European Regional Development Fund: ~€35bn

• Loans from the European Investment Bank

- Approximately €6.5bn per year (estimated €45.5 on 2014 -2020)

• Leftover from 2007-2013 Cohesion Fund

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CEF (tansport): Budget allocation

80 – 85 % of total budget for core network projects pre-identified in Annex I to the CEF Regulation

• Horizontal priorities

• Sections on the core network corridors

• Other important core network cross-border and bottleneck sections

15 – 20 % of total budget for • Other projects on the core network• Projects on comprehensive network (max 5%)• Projects in third countries• Financial instruments (10%)

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CEF: Priorities

•Modes•Rail, inland waterways, multimodal platforms (ports, rail-road terminals)

• Sections•Missing links, cross-border, bottlenecks, intermodal connections

•Horizontal•ERTMS, SESAR, other telematic systems (RIS, ITS, e-Maritime...)

•Motorways of the Sea, including alternative fuelling (LNG) deployment

•New technologies and innovation focusing on decarbonisation, safe and secure infrastructure, ports and airports

• Geographical •Core Network, Corridors on the Core Network

• Political priorities: Commission Communication COM(2013)940

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CEF in SwedenPre-identified projects in Annex I

Baltic – Adriatic Corridor

Other core network sections

Horizontal priorities (traffic management, new technologies)

Turku/Naantali – Stockholm Ports, MoS – port interconnections, icebraking capacity

Stockholm - Malmö (Nordic Triangle) Rail – works ongoing on specific sections

Trelleborg - Malmö – Göteborg – NOborder

Rail, port, MoS – works, multimodal platforms and port hinterland connections

Bothnian Corridor: Lulea – Oulu Rail cross-border – studies and works

Sundsvall – Umea – Lulea Rail bottleneck – studies and works

Stockholm – Gävle – Sundsvall Rail – works

Mjölby – Hallsberg – Gävle Rail – works

Bothnian – Kiruna – NO border Rail – studies and works

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CEF in FinalndPre-identified projects in Annex I

North Sea – Baltic

Scandinavian – Mediterranean

Other core network sectionsBothnian Corridor: Lulea – Oulu Cross-Border Rail studies and worksHelsinki – Oulu Rail upgrading of sections

Horizontal priorities (traffic management, new technologies)

Helsinki - Tallinn Ports, MoS - port interconnections, (further) development ofmultimodal platforms and their interconnections,icebreaking capacity, MoS

Hamina Kotka – Helsinki Port, rail - port interconnections, rail upgrading, icebreakingcapacities

Helsinki Rail - airport-rail connection

RU border – Helsinki Rail - works ongoing

Helsinki – Turku Rail - upgrading

Turku/Naantali – Stockholm Ports, MoS - port interconnections, icebraking capacity

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CEF grants: co-funding rates

Types of ProjectsCEF General Budget

CEF Cohesion Envelope

(a) Studies (all modes) 50% 85%(b)Works on

Rail Cross border 40% 85% Bottleneck 30% 85%Other projects of common interest 20% 85%

Inland waterwaysCross border 40% 85%Bottleneck 40% 85%Other projects of common interest 20% 85%

Inland transport connections to ports and airports (rail and road) 20% 85%

Development of ports 20% 85%

Development of multi-modal platforms 20% 85%

Reduce rail freight noise by retrofitting of existing rolling stock 20% 20%

Freight transport services 20% 20%

Secure parkings on road core network 20% 20%

Motorways of the sea 30% 85%

Traffic management systems SESAR, RIS & VTMIS 50/20% 85%ERTMS 50% 85%ITS for road 20% 85%

Cross border road sections 10% 85% (core network)

New technologies and innovation for all modes of transport 20% 85%

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Complementarity CEF – ESI Funds (1)CEF ESI Funds

• High EU added-value on TEN-T Corridors and core network (as pre-identified in Annex I of the CEF Regulation)

• More sustainable modes of transport: rail, IWW

• High EU added-value projects to remove bottlenecks in transport networks, by supporting TEN-T infrastructure on both the core and comprehensive networks

• All modes of transport

• Regional mobility, through connecting secondary and tertiary nodes to TEN-T infrastructure

• Network effect: strong coordination of investments in TEN-T needed

• Common project pipeline for ESI Funds and CEF, to be included in the Operational Programmes

• Corridors Work Plans

• National Transport Master Plans

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CEF grants: direct management

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• The Multi-annual Work Programme (MAP)• € 11 billion total, including €4bn from the Cohesion envelope

• Only for projects pre-identified in Annex I of CEF (Corridors, other sections on the core network, horizontal priorities)

• The Annual Work Programme (AP)• € 930 million

• Other projects on the core network

• Comprehensive network

• Connections with neighbouring countries

• Specific priorities which complement actions under the MAP

(e.g.: Freight Transport Services, Actions to reduce rail freight noise)

CEF: 2014 calls for proposals (GRANTS)

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CEF: Programme Support Actions

• Support to participation in the core network corridors of (all) Member States

• Strengthening administrative capacity of the Member States eligible for the Cohesion Fund

• Technical assistance services for the development and implementation of projects implementing the TEN-T core network in the MS eligible to the Cohesion Fund

• Technical assistance to improve capacity building for Railway Infrastructure Managers eligible to the Cohesion envelope

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CEF: Financial instruments (1)

• Added Value• Attract private investors to support the deployment of transport

infrastructure projects of common European interest.

• Obtain the best possible deal for the European tax-payer

• Give access to finance to projects that would not be able to do it or only at very high price

• Financial Instruments = 10% of the CEF envelope

• Between EUR 1,300 and 2,400 million foreseen• Possible increase up to 20% of the CEF envelope, is set in the legal

base• The estimated leverage effect is expected to range between 6 to 15;

i.e. 1 EUR CEF to generate up to 15 EUR project finance

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CEF: Financial instruments (2)Full eligibility

TEN-T core & comprehensive, all modes

Projects with identifiable revenue streams or commercial benefits and long-term repayment

high speed rail, ports and airports development, motorways, locks, rail connection to airport...

support to rail infra managers, equipment of fleet with clean fuels or with on-board traffic management systems...

deployment of clean fuels or traffic management systems on ground and on-board, joint procurement for clean urban transport or road electrification...

Partnership with financial institutions, such as EIB

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Financial instruments (3)

• Type of Financial instruments

• Equity intrumentsRisk-capital, e.g. Marguerite Fund

Investing in equity reduces the need for debt and reduces the level of risks

• Debt instrumentsGuarantees and risk-sharing instruments, e.g. LGTT and Project Bonds

- LGTT to support bank lending

- Project Bonds made to support investment from Capital Market investors (Pension funds, insurance companies)

CEF can contribute to the RSFF (Risk-Sharing Finance Facility under FP7/Horizon 2020).

- RSFF can provide loans or guarantee for projects with innovation, research or technological risks, up to 50% of the eligible costs.

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CEF: Financial instruments (4)€ 1 million from the EU Budget can generate € 20+ million in investments (leverage effect)

European Investment Bank

Senior Debt in forms of

loans or bonds

Project Company,

- paying investment

costs, interests, operational

costs…

-Receiving revenues (from

users, authorities…)

-Reimbursing debt

EquityFunds from project

sponsors or infrastructure owners

Funds from CEF

Financial partner (EIB or national

investment banks)

Banks providing loans or Bonds

bought by Pension Funds and insurance company)

Total cost:

€700m €100m

€600m

€100m€30m

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Thank you for your attention!

lia.potec@ec.europa.eu