A4-0372/98

Resolution on the Commission Communication to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on public-private partnerships in trans-European transport network projects (COM(97)0453 - C4-0020/98)

The European Parliament,

- having regard to the Communication from the Commission (COM(97)0453 - C4-0020/98),

- having regard to its earlier resolutions and reports on infrastructure policy and the financing of the trans-European networks (TENs) in the field of transport,

- having regard to the final report, published in May 1997, of the High-Level Group on the financing of the TENs by means of public-private partnerships (PPPs),

- having regard to the conclusions adopted by the Council on 9 October 1997 on PPPs in the area of TEN projects, aimed at accelerating implementation of those projects,

- having regard to the report submitted by the Commission to the Cardiff European Council on the state of progress of the fourteen priority projects (COM(98)0356),

- having regard to the report of the Committee on Transport and Tourism and the opinion of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0372/98),

A. whereas the financial reference amount for Community aid in the area of the TENs is ECU 1800 m for the financial period 1995-1999; whereas the financial perspectives submitted in the meantime for the period 2000-2006 propose only the allocation of ECU 5 bn for that objective,

B. whereas this level of funding from the Union budget falls visibly short of what is required for the needs and challenges arising from the creation of the TENs,

C. having regard, at national level, to the continuing problems of financing transport infrastructure projects arising, in particular, from the well-known restrictions affecting public investment,

D. whereas unless private investment is mobilized for the TENs the EU will fail to make significant progress in the field within a reasonable time,

E. whereas PPPs can and should be used as a key instrument for the creation of the TENs, improving their financial viability and enhancing the profitability of the projects, while also helping keep construction costs under control,

F. whereas in the case of publicly/privately financed infrastructure projects it is more important than ever to assess the possible impact on the environment in detail and at an early stage; whereas the existing Community rules in this area regarding environmental impact assessment are inadequate; and whereas a strategic environmental impact assessment of the whole project and of all possible alternatives appears appropriate,

G. whereas the success of PPPs requires a genuine alliance and a clear and suitable division of project risks between the two sectors, on the basis of the necessary equilibrium between commercial criteria, on the one hand, and social, environmental and macroeconomic criteria, on the other,

H. whereas the contribution of the private sector should not stop at financing, and use should be made of private-sector experience in the technical, commercial, financial and management spheres, so as to optimise the cost/efficiency ratio in the implementation of the TENs; whereas this will entail private-sector participation from the drawing-board and planning stages right up to the actual exploitation of the TENs,

I. whereas the Commission must ensure effective coordination of all Community measures affecting the TENs, and especially between the financing arrangements for the TENs and those of the Structural Funds, the Cohesion Fund, the European Investment Fund (EIF) and the European Investment Bank (EIB),

J. having regard to its recent recommendations on European Economic Interest Groups (EEIGs), especially the need for a pilot scheme for a financial instrument to encourage cross-border investment,

K. whereas separation of infrastructure ownership from its management and increased devolution of fiscal autonomy to regional governments constitute pragmatic steps to diversify the risks borne by the market and promote enlarged private participation in infrastructure financing,

L. mindful that in rail transport the State's fundamental responsibility for providing the infrastructure is enshrined in Directive 91/440/EEC on the development of the Community's railways ((OJ L 237, 24.8.1991, p. 25.)) (preamble and Article 7),

M. whereas the Commission recently submitted a proposal (COM(98)0172) ((OJ C 175, 9.6.1998, p. 7.)) for the revision of Regulation (EC) No. 2236/95 laying down general rules for the granting of Community financial aid in the field of trans-European networks ((OJ L 228, 23.9.1995, p. 1.)); whereas this proposal, which also sets out the objective of encouraging PPPs, has been the subject of a separate opinion,

N. having regard, in addition, to the need for the Member States to commit themselves in practical terms to establishing the trans-European networks, via national transport policies in line with the decisions of the Essen European Council,

1. Stresses that the development of the TENs is a decisive factor for the internal market, the competitiveness of the EU economy, growth, economic and social cohesion and job creation policy, as was stressed at the Luxembourg European Council on employment;

2. Shares the view of the High-Level Group that environmental protection considerations should be addressed at the earliest possible stage in the project planning process (see COM(97)0453, point 3.5), and calls on the Commission to put forward appropriate methods for strategically assessing the environmental impact of the whole trans-European transport network (as already called for in Article 8(2)(a) of European Parliament and Council Decision No 1692/96/EC of 23 July 1996 on Community guidelines for the development of the trans-European transport network ((OJ L 228, 9.9.1996, p. 1.))), and to make a strategic environmental impact assessment a precondition in connection with PPPs;

3. Considers that policy concerning the TENs and their financing should respect the goals of a sustainable mobility policy, promoting a more integrated use of all transport modes and, in particular, intermodal transport favouring more environment-friendly modes, respect for the environment and safety, as well as the internalisation of external transport costs and suitable arrangements to ensure that infrastructure users contribute to the relevant investment and maintenance costs;

4. Considers that PPPs are an important means of accelerating the creation of the TENs, and that it is essential to establish, at both national and Community level, a suitable framework for the mobilization of the private sector in the area of infrastructure, in particular by creating conditions of legal security, a factor which is vital if the participation of private capital is to be encouraged;

5. Stresses that such an association between public and private sectors must respect the necessary equilibrium between commercial and socio-economic criteria in project planning, as well as the need for a suitable division of risks;

6. Points out that, in the interests of an optimum division of risks, the private sector must ensure that it is able to meet the commitments entered into in a PPP; stresses, accordingly, that a sound private financing scheme is crucial for the completion of the planned project on schedule, so that the public sector does not come under pressure, at a critical point in the construction work, to safeguard the project through additional subsidies;

7. Recommends that each PPP be analysed individually, with the analysis always including a cost/benefit comparison with a purely publicly financed alternative in terms of profitability and social and environmental consequences;

8. Stresses that the issue of PPPs cannot be considered in isolation from the budgetary restrictions on Member States that will flow from the Stability and Growth Pacts; it is therefore encouraging that EUROSTAT, in a methodological note (dated January 1998) on the financing, building and exploiting of public infrastructure by the enterprise sector, has concluded that PPPs should have no impact on public deficits in cases where no actual payments take place between the general government and private investors;

9. Emphasises that, while PPPs can in certain cases reduce the need for public aid for the TENs, the public sector cannot on those grounds cut back its efforts to assign and mobilise resources for infrastructures, in keeping with the economic and social profitability of projects;

10. Stresses, therefore, that the allocation of public resources has a vital role to play in this field, and, while aware of the present problems and restrictions affecting public funding, calls on the Member States, nonetheless, to devote at least 1.5% of their budget resources to the TENs, especially in view of the multiplier effect of such investment for the economy and jobs;

11. Considers it essential that Member States should commit themselves as a matter of priority to the establishment of the transport infrastructures of European interest, in line with the agreements reached by the heads of state and government at Essen;

12. Undertakes also, within its sphere of competence, to make all possible efforts to ensure a higher level of funding for the Community budget headings relating to the TENs;

13. Calls on the Member States and the Commission to make every effort to ensure that the legislation on public contracts applicable to infrastructure projects is both clear and flexible, given that legal certainty is a long-standing essential condition for the involvement of the private sector;

14. Calls on the Member States and the Commission to ensure adequate transparency and public participation in the planning process relating to publicly/privately supported projects, in accordance with the EU directives on public procurement and environmental impact assessment (Directive 85/337/EEC ((OJ L 175, 5.7.1985, p. 40.)) and its revised version) and with the Århus Convention on access to information and public participation in environmental decision-making;

15. Stresses the importance for transport infrastructure projects of the Community legislation on public contracts, public utility services and competition, and calls for its revision so as to favour PPPs;

16. Notes the Commission's expressed intention of examining, together with the EIB and the EIF, the possibility of improving the existing Community financial resources and of proposing new forms of long-term funding ('mezzanine funds'); considers it essential that the Commission submit proposals in this field (especially for making venture capital more easily available) as soon as possible;

17. Draws attention to the fact that PPPs can also be used for smaller-scale infrastructure projects, while also being of major potential value at local or regional level;

18. Calls on the Commission to keep it informed about any policy changes regarding the TENs projects listed in the Annex to the Communication;

19. Instructs its President to forward this resolution to the Council, the Commission and the governments of the Member States.

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