In October, the European Commission launched the third call for financing the transport projects through the Connecting Europe Facility worth EUR 1.9 billion. Part of the amount is dedicated to member states that are eligible for financing through the Cohesion Fund in order to create an improved integration of these states across the EU. Transport infrastructure projects need massive financing and member states must identify other co-financing methods too, since the EU cannot cover the necessary amount to reach the set objectives of developing a well-integrated transport system.
Across the EU, the demand for transport investments is much higher than the value of available funds. According to the EU, the railway sector needs investments worth EUR 430 billion by 2030 for which the parties involved have to identify new methods and measures to finance infrastructure. To stimulate investments, through EFSI, by the end of the year, EU will launch the “2016 CEF Blending Call” with extended deadline for submitting project proposals. The combination of CEF grants with EFSI financing is worth EUR 1 billion. To stimulate investments, EC announced in July that it would extend the EFSI financing plan by the middle of 2018 to mobilize EUR 315 billion.
The allocation of financing considers the much more systematic and innovative use of financing which is a means of mobilizing EU’s limited resources. Also, EIB targets that at least 40% of EFSI funds should favour sustainable and eco-friendly transport modes, such as railway transport. Moreover, the CEF and EFSI instruments should consider projects with potential incomes and there are already two such railway projects.
The EU countries need to create and implement innovative measures in order to manage and develop an integrated transport system and an integrated network with efficient services that would ensure the necessary transport services. Within the new financing policies for transport services, railway transport is a priority as it manages to meet all requirements and elements that define a modern transport system: it is efficient, environmentally friendly, capable to carry heavy and very heavy goods etc.
Within CEF, the value of transport projects for 2014-2020 is of over EUR 24 billion for TEN-T project co-financing of which EUR 11.3 billion are funds available to the member states that are eligible for financing through the Cohesion Fund. For the transport segment, CEF focuses on cross-border projects aimed to eliminate agglomerations in the network or to create transport connections where there are none on both the Core and the Comprehensive network, but also on horizontal priorities, such as traffic management systems. Also, CEF supports innovative projects to determine an improved use of infrastructure, to reduce the environmental impact of the environment, to boost energy efficiency and safety.
Within the 2014 calls, the Commission signed 263 grant agreements worth EUR 12.8 billion. Also, for the 2015 calls, 195 financing agreements worth EUR 6.7 billion will be signed (by the end of November 2016).
More financing for Cohesion states
The 2016 call is the third CEF call for proposals, announced in October, worth EUR 1.9 billion. The deadline for submitting projects is February 7, 2017, and since August 2017 the financing agreements will be prepared and signed. The most significant part of the total amount EUR 1.1 billion goes to the member states eligible in the Cohesion Fund, the rest of EUR 800 million representing the indicative budget for all EU countries.
Three financing objectives are considered to allocate financing. Within the Cohesion calls, EUR 250 million will be granted to eliminate agglomerations on the network and reduce missing links, to optimise railway interoperability, especially on cross-border sections. Priorities include Core Network projects.
General calls are worth EUR 190 million and include the elimination of agglomerations on the network, the elimination of missing links, and the implementation of sustainable and efficient transport systems. Financing priorities include projects on the Core and Comprehensive Networks, connections with neighbouring countries, freight transport services and reduction of railway freight transport noise. “Within 2016 calls – Annual Work Programme EUR 20 million will be delivered for freight transport services, EUR 20 million for rail freight noise, EUR 40 million for cross-border connections to neighbouring countries and EUR 110 million to the cross-border infrastructure projects on both comprehensive and core TEN-T not pre-identified in the Annex I of the CEF Regulation,” said Stéphane Ouaki, Head of Unit, Connecting Europe, Infrastructure Investment Strategies – EC, during the Railway PRO Investment Summit.
Within the Multi-Annual Work Programme, the General envelope is EUR 650 million, and the horizontal priorities are SESAR (EUR 300 million), ITS (EUR 120 million), Innovation (EUR 80 million), ERTMS (EUR 70 million), Core Network urban nodes (EUR 40 million) and Motorways of the Sea (EUR 40 million). The EUR 849.5 million Cohesion envelope include the infrastructure projects on the TEN-T Core Network in sustainable modes of transport and horizontal priorities.
by Pamela Luica
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