1. EU Funding for TEN-T Infrastructure 2014 -2020
Stéphane Ouaki
European Commission, DG Mobility and Transport Head of Unit, Connecting Europe - Infrastructure investments strategies Bucharest, 9 October 2013

2. The EU TEN-T framework Strategic framework Policy framework
White Paper for Transport
Policy framework
Revised TEN-T Guidelines
Funding framework
Connecting Europe Facility
Cohesion Fund
European Regional Development Fund

3. The White Paper for Transport
30% 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
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.

4. 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

5. Revised TEN-T Guidelines: Rail infrastructure provisions
Requirements
Comprehensive 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)

6. Connecting Europe Facility One instrument – three sectors
Transport Guidelines
Energy Guidelines
Telecom Guidelines
Financing framework
Sectoral policy frameworks
(setting priorities for 2020, 2030, 2050)
The "European Infrastructure Package"
(European Commission proposal, October 2011) 6

7. 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

8. 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

9. 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)

10. Specific elements for €11
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 %)
Specific Programme Support Actions for Cohesion Member States experiencing difficulties in proposing projects

11. CEF Transport: eligibility
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 11

12. CEF: co-funding rates 12

13. 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 13

14. CEF: centralised management of grants
Work 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

15. 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

16. 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.

17. 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.

18. CEF in Romania

19. TEN-T Network Comprehensive and Core Network
Inland waterways and ports

20. TEN-T Network Comprehensive Network Core Network
Railways, ports, rail-road terminals
Core Network
Railways (freight), ports, rail-road terminals

21. TEN-T Network Comprehensive network Core Network Railways and airports
Railways (passengers) and airports

22. TEN-T Network Core and Comprehensive networks
Roads, ports, rail-road teminals and airports

23. 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)

24. 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!

25. 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
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

26. 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

27. Thank you for your attention!