1. European Structural and Investment Funds for railways in Poland 2014- 2020 24 November 2015 Wolfgang Munch, Deputy Head of Unit DG Regional and Urban Policy

2. Regional Policy Outline 1.ESI Funds in 2014-2020 2.Allocations for transport investments in Poland: 2014-2020 versus 2007-2013 3.Railway investments in 2014-2020: opportunities 4.Lessons learnt from 2007-2013 & the way forward

3. Regional Policy ESI Funds in 2014-2020 (1)  A reform of the policy for the 2014-2020: ex-ante conditionalities, thematic concentration, results-orientation, performance framework.  Link of EU funding with EU economic governance: European Semester, CSRs.  Complementarities with Investment Plan for Europe: Cohesion Policy tripled the resources for FI compared to 2007-13 period (EUR 3,8 billion).  Simplification: a high-level group on reducing the administrative burden for beneficiaries (eligibility, FI, reporting, audit and control).  New challenges: review of the Europe 2020 strategy and 'Lagging behind regions' initiative (demographic change; governance).

4. Regional Policy ESI Funds in Poland in 2014-2020 Structural Funds in Poland contribution represents 65% of public investments (without national co-financing counted) Transport  Remains in Poland the most important sector in terms of financial allocations (some 26 bn EUR).  Significant shift towards a more balanced investment portfolio and environment-friendly means of transport. In this context, notable increase of investments in rail and urban transport compared to 2007-2013.  Focus on EU added value, by promoting investments largely on TEN-T network and less on local networks.

5. Regional Policy ESI Funds in Poland in 2014-2020 Transport  Requirement for a comprehensive transport plan in the frame of ex ante conditionalities, including a project pipeline and measures for enhancing administrative capacity.  Concrete provisions for investments in ports, ensuring prior assessment of possibilities for private financing to avoid crowding out, only core TEN-T ports.  Strict limitation of investments in airports to safety and environmental performance, only core TEN-T airports  Enhancing multimodal transport, specific focus on freight.

6. Regional Policy Outline 1.ESI Funds in 2014-2020 2.Allocations for transport investments in Poland: 2014-2020 versus 2007-2013 3.Railway investments in 2014-2020: opportunities 4.Lessons learnt from 2007-2013 & the way forward

7. Regional Policy Allocations for transport investments in Poland: 2007-2013

8. Regional Policy Allocations for transport investments in Poland: 2014-2020

9. Regional Policy Outline 1.ESI Funds in 2014-2020 2.Allocations for transport investments in Poland: 2014-2020 versus 2007-2013 3.Railway investments in 2014-2020: opportunities 4.Lessons learnt from 2007-2013 & the way forward

10. Regional Policy Railways in 2014-2020: opportunities  Increase of allocation by 84% compared to 2007-2013, CEF included.  Priority on TEN-T network, core and comprehensive, connection to industrial & economic centres (feeder lines).  Continuation of multi-location projects bringing better performance and increased safety to the network.  Special attention to freight.  Special attention on the development of secondary lines and their connection to the TEN-T under Eastern Poland and regional programmes.  Purchase of rolling stock to complement investments in infrastructure.

11. Regional Policy Outline 1.ESI Funds in 2014-2020 2.Allocations for transport investments in Poland: 2014-2020 versus 2007-2013 3.ESIF funded railway investments in 2014-2020: conditions and results of programme approval process 4.Lessons learnt from 2007-2013 & the way forward

12. Regional Policy Lessons learnt from 2007-2013 and the way forward (1)  Railway has been the most problematic sector in 2007- 2013. The loss of funds in the period 2007-2013 will be avoided by transferring funds away from railway to urban transport.  Phasing of projects between the two periods will also help avoiding loss of funds by pushing expenditure into the future.  There was a significant shift in the types of projects implemented: instead of modernisation, more revitalisation and purchase of rolling stock. Thus, limited progress in modernisation of railway corridors.

13. Regional Policy Lessons learnt from 2007-2013 and the way forward (2) Main problems identified:  Despite a number of restructurings and some improvements, capacity of PKP PLK SA (and other involved authorities) remain weak:  Poor quality of preparatory and tender documentation  Delays and bottlenecks in EIA process  Weak organisation and coordination within PLK and with other members of PKP group.  Low financing capacity of PKP/PLK.  Complex and not adapted legal framework, including public procurement (tendering and contracting).  Weak planning process (strategic documents prepared too late and not coherent to each other).

14. Regional Policy Lessons learnt from 2007-2013 and the way forward (3) Steps taken so far:  As of 2012, mobilisation of authorities, the beneficiary, construction companies to accelerate implementation. The set-up of the Railway Task Force worked in that direction.  Better planning and programming of projects, through ex-ante conditionalities (Implementing Document) and at national level (Multi-Annual Programme for Railway investments).  Ongoing actions on the improvement of administrative capacity of PLK and an action plan included in the ID for 2014-2020.  Legislative changes (Act on railway transport, amendments on the public procurement law, easier access to national co-financing by PKP/PLK).

15. Regional Policy Lessons learnt from 2007-2013 and the way forward (4) Despite the steps taken:  In the start of period 2014-2020, delays are already being observed in the first stages of project planning and implementation.  The project pipeline is back-loaded, with the construction phase of most projects planned for post-2018. Reaching the milestones for the performance framework in the OP Infrastructure & Environment will also be a challenging task, despite that these milestones are mediocre compared to roads.

16. Regional Policy Conclusions  Need for reform of PKP/PLK has been highlighted by the European Semester since 2010.  Political commitment is necessary to:  put PKP/PLK on equal footing with the performing road sector;  transform PKP/PLK into an organisation with sufficient capacities to implement EUR 10 bn EU support until 2023.

17. Thank you for your attention!