WRITTEN QUESTION P-1566/02

by Freddy Blak (GUE/NGL) to the Commission

(28 May 2002)

Subject: Conflict of interest in DG-Transport

The Commission adopted in September 2001 a Decision (C (2001) 2654) establishing an Indicative Multiannual Programme for the granting of Community Financial Aid to TEN transport projects for the period 2001-2006. One of the chosen priorities is a Greek motorway, Via Egnatia (priority no 7). According to the Decision one of the selected beneficiary entities is Egnatia S.A., which is chaired and directed by the husband of the competent Head of Unit under the instructions of whom the financial assistance is supervised.

Will the Commission agree that there is a serious conflict of interest?

Can the Commission inform the Parliament of the following:

- How much EU funding was given to this project in 2001 and in 2002?

- What is the backing national decision for providing the 50 % national contribution?

Answer given by Mrs de Palacio on behalf of the Commission

(25 June 2002)

The Indicative Multiannual Programme (IMP) to which the Honourable Member refers was adopted by the Commission on 19 September 2001 in accordance with the provisions of Council Regulation (EC) No 2236/95 of 18 September 1995 laying down general rules for the granting of Community financial aid in the field of trans-European networks(1) as amended by Regulation (EC) No 1655/1999 of the European Parliament and of the Council of 19 July 1999(2).

For the period 2001-2006 the IMP includes EUR 30 million for studies and technical support measures for the Egnatia section of priority project No 7 (PATHE-EGNATIA), part of the trans-European transport network (TEN-T). In response to an application made by the Greek Ministry of the Economy, following the Commission's analysis and the usual comitology procedure, financial aid under the 2001-2006 TEN-T budget was fixed in indicative terms in the IMP. The beneficiary is the Greek Minister for the Economy. Egnatia Odos SA is the project manager.

In 2001, EUR 12,5 million were allocated under the programme to this project. No decision has yet been taken on the annual allowance for 2002 (EUR 12 million).

The EU contribution is based on participation up to 50 % of the estimated costs. The request from the Ministry must guarantee that the remaining 50 % is funded by the Greek authorities. When making payments, the Commission will check that the EU contribution is not more than the authorised 50 % of the cost of the project and that the overall amount is not exceeded in decisions regarding annual amounts allocated.

The construction project has also received funds from the European Regional Development Fund (ERDF), the Cohesion Fund and loans from the European Investment Bank (EIB).

The Egnatia highway project is managed by Egnatia Odos SA, a company owned by the Greek State (Ministry of the Environment, Planning and Public Works). The company was set up, after negotiation with the Commission, under Community Support Framework II.

The Commission wishes to inform the Honourable Member that it is already aware of the situation he reports. In response to a request from the Directorate-General for Energy and Transport, an administrative inquiry into the matter was instigated on 20 March 2001, with the agreement of the Head of Unit concerned.

For the duration of the inquiry, any questions on the project in question will be dealt with by the official responsible for TEN-T projects for Greece, who will report directly to the competent director. The head of unit mentioned in the question is not, therefore, in charge of managing or monitoring the project.

(1) OJ L 228, 23.9.1995.

(2) OJ L 197, 29.7.1999.