1. FINANCING OF PUBLIC TRANSPORT INFRASTRUCTURE IN EUROPE Maria-Pilar Machancoses Regeneration & Planning Manager Centro

2. Study Purpose To provide evidence about how public transport infrastructure (capital expenditure) is financed throughout Europe expanding understanding for investors and enabling all to learn from good practice 16 cities participated – Amsterdam, Barcelona, Berlin, Birmingham, Budapest, Copenhagen, Helsinki, London, Lyon, Madrid, Paris, Sheffield, Stockholm, Stuttgart, Turin and Vilnius

3. Who is responsible for financing infrastructure? Bus – Decisions tend to be local with limited involvement by Central Govt. Buses can be owned by operators or authorities Light Rail/Metro - Usually partially funded by Central Govt (30%-95%). Rolling stock owned by authorities leased to operators. Heavy Rail – Most decisions and funding by Central Govt though local contributions required. Few fully local schemes due to cost. Rolling stock decisions strong State influence

4. Scheme Appraisal and Prioritisation Cost benefit analysis (CBA) widely used with local variation Differing emphasis put on CBA in decsions Other factors eg regeneration relevant Often some degree of negotiation with financing authority Prioritisation usually within a fixed transport budget

5. Sources of funds/Role of Transport Authority Wide range – mainly public money, some fare box, Public Private Partnership, EU, Business and developers Degree of TA control varies with greater control where regional Govt stronger and where authorities tend to have greater autonomy

6. Specific Transport Funds Versement Transport - France GVFG – Germany Property taxation – Barcelona Fund for national free travel for retired – UK Fuel taxation – Turin 50% traffic fines – Ile de France

7. Most financing decisions based on social benefits rather than profitability though revenue impacts can be relevant Rail based modes have greater state involvement Given need for TAs to bid for funds local investment heavily influenced by national policies Potential for Govts/EU to promote national/international policies via investment Conclusions

8. Next Steps More detailed study of a few (3-4) schemes showing strengths and weaknesses of each system New working group? Links with European Bank to aid better targeting of funds Lobbying of EU and national Govts to ensure best use of resources

9. Contact Details: Maria-Pilar Machancoses Regeneration & Planning Manager Centro (Birmingham – West Midlands, UK) Maria-pilarmachancoses@centro.org.uk