TRANS-EUROPEAN NETWORKS - 1996 ANNUAL REPORT - Communication from the Commission to the European Council, the Council and the European Parliament
Date: 1996-12-06
Institutions: European Commission
Subjects: energy grid, report, telecommunications, transmission network, transport network

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 06.12.1996 
COM(96) 645 final 

TRANS-EUROPEAN  NETWORKS 

1996 ANNUAL  REPORT 

Communication  from  the  Commission  to  the  European  Council,  the 
Council  and  the  European  Parliament 

INTRODUCTION 

1.  SUMMARY 

2.  PROGRESS  ACHIEVED  ON  SPECIFIC  PROJECTS 

A.  ENERGY 

B.  TELECOMMUNICATIONS 

C.  TRANSPORT 

3.  TEN-RELATED  LEGISLATION 

A.  GUIDELINES  AND  RELATED  LEGISLATION 

B.  T EN  GUIDELINES  COMMITTEES 

C.  EDICOM  AND  IDA  LEGAL  BASIS 

4.  FINANCING  THE  TEN:  ACTIVITIES  OF  THE  UNION'S  FINANCIAL 

INSTRUMENTS 

A.  TEN  FINANCIAL  ASSISTANCE  REGULATION 

B.  STRUCTURAL  FUNDS 

B.l  Regional  Fund 

B.2.  Cohesion  Fund 

C.  EIB  AND  ECSC  LOANS 

D.  EIF 

F.  EVALUATION 

5.  FINANCING  THE  TEN:  OTHER  ISSUES 

A.  TRANS-EUROPEAN  TRANSPORT  BUDGET 

B.  PUBLIC/PRIVATE  PARTNERSHIPS  (PPP) 

General 
Kinnock  High-Level  Group 
Public  policy  risks  consultation 

C.  EIF  EQUITY  PARTICIPATION 
6.  EXTERNAL  RELATIONS 

A.  CENTRAL  AND  EASTERN  EUROPEAN  COUNTRIES  (CEEC) 

TINA  (Transport  Infrastructure  Needs  Assessment) 
Helsinki  Pan-European  Transport  Conference 

A 

1 

2 

4 

4 

4 

5 

7 

7 

8 

8 

11 

11 

15 
15 

15 

17 

18 

19 

20 

20 

20 

20 
•.  .  .  21 
22 
22 
.  23 

23 
23 
23 

PHARE 
Electricity  link-ups 
Natural  gas  link-ups 
Energy  Charter 
EU-CEEC  Forum  on  the  information  society 

B.  MEDITERRANEAN  BASIN  COUNTRIES 

Electricity  link-ups 
Natural  gas  link-ups 
Euro-Mediterranean  forum  on  energy 
Euro-Mediterranean  forum  on  the  Information  Society 
Transport 

C.  OTHER  COUNTRIES 

7.  POLITICAL  AND  REGULATORY  PROBLEMS 

A.  ENERGY 

B.  TELECOMMUNICATIONS 

C.  TRANSPORT 

8.  THE  TEN  AS  A  SOURCE  OF  EMPLOYMENT 

A.  CONFIDENCE  PACT 

B.  REPORT  TO  THE  EP 

9.  OTHER  UNION  POLICIES  WITH  A  TEN  DIMENSION 

A.  EUROPEAN  COMPANY  STATUTE 

, 

B.  COMPETITION  POLICY 

C.  PUBLIC  PROCUREMENT 

D.  COMPLEMENTARITY  WITH  STRUCTURAL  POLICIES 

•.  .  . 

E.  TRANSPORT  POLICY 

F.  ENVIRONMENT 

ANNEX  I:  PROGRESS  MADE  ON  THE  ENERGY  NETWORKS  IN  1996 

ANNEX  II:  PROGRESS  MADE  ON  THE  TRANSPORT  NETWORKS  IN  1996 

ANNEX  III:  LIST  OF  TENFAC  MEETINGS  SEPT.  1995 

-  DEC.  1996 

ANNEX  IV:  ENERGY  PROJECTS  FINANCED  UNDER  REGULATION  2236/95 

ANNEX  V:  TELECOMS  PROJECTS  FINANCED  UNDER  REGULATION  2236/95 

st 

23 
24 
24 
24 
24 

25 
25 
25 
25 
25 
25 

26 

27 

27 

27 

27 

29 

29 

29 

32 

32 

32 

. 

32 

33 

33 

33 

35 

48 

52 

53 

57 

ANNEX  VI:  IDA  TELEMATIC  PROJECTS  FINANCED  IN  1996 

59 

ANNEX  VII:  TRANSPORT  PROJECTS  FINANCED  FINDER  REGULATION  2236/95 

. . .. 

62 

ANNEX  VIII:  MAJOR  TEN  PROJECTS  FINANCED  BY  THE  REGIONAL  AND  COHESION  FUNDS 

IN  1996 

ANNEX  IX 

: EIB  LOANS  FOR  TEN  AND  TEN-RELATED  PROJECTS 

70 

75 

ANNEX  X  :  "THE  LIKELY  MACROECONOMIC  AND  EMPLOYMENT  IMPACT  OF  INVESTMENTS 

IN  TRANS-EUROPEAN  TRANSPORT  NETWORKS" 

78 

3 

INTRODUCTION 

The  European  Council  requested  that  the  Commission  submit  to  it  each  year  in 

December,  a report  on  the  trans-European  networks. 

Furthermore,  article  16 of  the  TEN  Financial  assistance  regulation  requires  the 

Commission  to  submit  an  annual  report  on the  activities  carried  out  under  this 
regulation  to  the  European  Parliament,  the  Council,  the  Economic  and  Social 
Committee  and  to  the  Committee  of  the  Regions  for  their  appraisal. 

To  avoid  duplication,  the  Commission  has  combined  these  two  annual  reports 

into  this  present  document. 

1. SUMMARY 

The. year  under  review  saw  major  efforts  to  make  substantial  progress  towards  the 
implementation  of  the  TEN: 

• 

the  adoption  at  last  of  the  guidelines  for  the  energy  and  transport  TEN  and  the 
imminent  adoption  of  those  for  telecommunications; 

on  the  basis  of  the  figures  available  for  the  first  ten  months  of  the  year,  Union 
funding  of  TEN  projects  in  1996  will  be  substantially  higher  than  in  1995; 

steady  if  unspectacular  advances  on  many  of  the  TEN  projects; 

recognition,  in  particular  in the  Confidence  Pact  for  Employment,  of  the 
significant  role  the  TEN  can  play  in  stimulating  employment; 

the  setting  up  of  a High-level  group  of  government  and  private  sector 
representatives  to  propose  recommendations  on  how  public/private  partnerships 
could  be  facilitated  in  the  transport  priority  projects  (henceforth  called  "specific 
projects"); 

valuable  preparatory  work  on  connecting  the  TEN  to  the  Union's  neighbours, 
especially  in  the  applicant  central  and  eastern  European  countries  (with  a  view 
to  enlargement)  and  the  Mediterranean  Basin; 

first  year  of  normal  implementation  of  TEN-Telecoms  after  the  adoption  of  the 
Euro-ISDN  guidelines  in November  1995; 

• 

the  IDA  programme  reached  its  cruising  speed; 

in  addition,  the  breakthrough  as regards  the  liberalisation  of  the  electricity 
market,  the  resumption  of  negotiations  on  the  liberalisation  of  the  gas  sector, 
the  Commission's  various  Green  and  White  Papers  on  internalising  the  external 
costs  of  transport  infrastructure,  the  "Citizens" Network"  and  the  revitalisation 
of  the  railways  all  contributed  to  create  a more  favourable  context  for  the  TEN. 

But  important  obstacles  remain  and  call  for  further  significant  efforts  to  overcome 
them  and  there  have  been  disappointments: 

• 

• 

the  Ecofin  Council  failed  to  reach  agreement  in  October  on  the  "topping  up"  of 
the  budgetary  resources  for  the  14 transport  specific  projects; 

in  the  telecommunication  sector,  the  basic  bottleneck  is the  lack  of  applications 
and  services  in  domains  of  public  interest  matching  the  socio-economic  needs 
of  citizens  and  SMEs;  in  this  area,  the  uncertainty  on  short  term  commercial 

viability,  due  to  the  innovative  character  of  the  application  or  service  and  the 
difficult  organisational  requirements  can  discourage  private  initiative; 

too  many  national  administrations  still  see  problems  in  purely  national  terms, 
rather  than  viewing  them  in  Union-wide  terms  and  in  a network  perspective 
and  therefore  do  not  give  the  TEN  the  priority  they  deserve; 

the  legal  framework  at  Union  level  may,  in  certain  cases,  not  be  sufficiently 
adapted  to  the  specific  needs  of  large  scale  infrastructure  projects  of  common 
interest  in  the  transport  sector  and  its  application  requires  early  clarification; 

as  regards  PPP,  problems  have  been  identified  in  particular  relating  to  transport 
pricing,  public  procurement  and  the  European  Company  Statute; 

authorization  difficulties  are  holding  back  some  of  the  electricity  priority 
projects;  in  particular,  France  decided  unilaterally  in  February  to  abandon  the 
planned  route  for  the  Cazaril  - Aragon  link-up. 

There  is  therefore  an  urgent  need  to: 

continue  the  in-depth  analysis  of  the  financial  situation  of  the  priority  transport 
projects  and  facilitate  private  sector  involvement  (public-private  partnerships), 
especially  for  those  projects  where  there  are  limits  to  traditional  public 
financing; 

stress  the  Union  benefit  of  the  TEN  transport  projects  (and  to  develop 
appropriate  methods  to  quantify  this  benefit).  On  this  basis,  Member  States 
should  be  persuaded  to  adapt  their  national  priorities  to  European  priorities; 
Union  financial  instruments  should  support  this  objective; 

where  necessary,  seek  appropriate  improvements  in  the  legal  framework  at 
Union  level  or  clarification  regarding  the  application  of  the  rules,  in  order  to 
facilitate  the  implementation  of  the  priority  transport  projects,  and  in  particular 
the  development  of  public-private  partnerships  for  these  projects.  The  Kinnock 
High-level  Group  will  explore  the  relevant  issues. 

• 

increase  efforts  among  Member  States  to  co-ordinate,  simplify  and  accelerate 
procedures  for  the  granting  of  authorizations  while  making  transparent  the 
environmental  and  other  criteria  for  approval  of  projects  on  their  territories; 
this  is particularly  necessary  in  the  case  of  electricity  projects,  with  their  higher 
degree  of  visibility; 

to  foster  the  launch  of  interoperable  applications  and  services  which 
demonstrate  the  transition  towards  the  information  society  and  demonstrate 
clear  socio-economic  benefits  for  citizens  and  SMEs. 

2. PROGRESS  ACHIEVED  ON SPECIFIC  PROJECTS 

A.  ENERGY 

As  regards  the  10  specific  projects  identified  by  the  Essen  European  Council,  good 
progress  was  made  in  1996  on  the  gas  projects.  Most  electricity  projects  still 
encounter  problems  in  obtaining  authorizations,  particularly  for  environmental  reasons 
(see  also  chapter  7-A),  while  for  some  of  them  financing  has  not  yet  been  settled. 
Progress  was  made  in  particular  on the  following  projects  with  the  involvement  of  the 
EIB: 

The  construction  of  the  Algeria/Morocco/Iberian  Peninsula  main  gas pipeline  is 
completed. 
The  main  pipeline  for  the  Greek  natural  gas  project  has  been  built  and  the 
financing  of  the  remaining  works  for  the  high  pressure  gas  transmission 
network  has  been  secured  thanks  to  an  EIB  loan. 
As  regards  the  Russia-Belarus-Poland-EU  gas  pipeline,  the  connection  of 
Eastern  Germany  with  Western  Poland  is now  complete  and  work  has 
commenced  on  other  sections  in  Germany  and  in  Poland. 
The  Northern  Portugal-Spain  electricity  connection  is now  partly  operational 
though  the  project  is  not  yet  completed. 

Progress  has  also  been  achieved  on  an  additional  number  of  non-priority  energy 
projects  included  in  the  Guidelines  as adopted  by  the  Council  and  the  European 
Parliament,  together  with  other  projects  proposed  by  the  Commission  for  inclusion  in 
those  Guidelines  (see  Annex  I  for  the  state  of  advancement  of  these  projects). 

B.  TELECOMMUNICATIONS 

The  TEN-Telecoms  action  in  1996  was  based  on  the  Euro-ISDN  guidelines  already  in 
force.  With  the  adoption  of  the  new  set  of guidelines  in  December  or  in  early  1997, the 
Commission's  action  will  be  able  to  expand  to  its  full  extent  in  1997. 

This year,  a number  of validation  and demonstration  projects  were selected  following  the 
call  for  proposals  published  on  13  April  1996;  they  involve  63  partners  in  14  Member 
States. They  address  a number  of areas where there are clear  socio-economic  interests to 
use  advanced  telecommunications  applications  and  services: network  of  city  information 
highways,  tele-medicine,  distance  education  and  training,  access  network  to  cultural 
heritage  generic  services,  telework  and  electronic  commerce  for  SMEs. A detailed  list of 
the  projects  is to  be  found  in  Annex  VI. 

The results of the call have shown that promoters encounter difficulties  in organising  their 
partnerships  and  their  business  plans  for  trans-European  projects  of  this  kind.  Financial 
institutions  also  have  problems  in  providing  funds  for  the  implementation  of  projects, 
where  the  immaterial  part  is  so  important. 

After  its  formal  adoption  by  the  Council  in  November  19951,  the  IDA  (Interchange  of 
Data between Administrations)  programme reached  its cruising speed in  1996.  The  IDA 
work programme, after  having received unanimous support from  the Member  States, was 
adopted  by  the  Commission  on  4 July  19962. Among  the  actions  launched  are: 

•  Pilot  and  operational  networks  for  the  exchange  of  data  between  administrations  in 

key  fields  such  as  social  security,  employment  services,  customs  and  indirect 
taxation,  agriculture,  fisheries,  public  procurement,  statistics,  commercial  policy, 
competition  policy,  support  to  a number  of  European  Agencies  and  the  Union 
decision-making  process. 

•  Implementation  of  e-mail  communication  facilities  for  the  European  Institutions,  and 

the  necessary  connections  with  a number  of  committees. 

•  A  number  of  horizontal  measures  addressing  issues  common  to  all  networks  and 

fostering  the  implementation  of  common,  re-usable  solutions,  in  order  to  optimise 
interoperability,  streamline  network  development  and  ensure  value  for  money. 

A  detailed  list  of  these  various  projects  is to  be  found  in  Annex  VII 

The  "IDA  '96  Conference"  in  Rome  on  20-21  June  1996  served  to  disseminate  up-to-
date  results  and  examine  the  further  development  of  trans-European  telematic  networks 
for  public  administrations.  The  debate  highlighted  the  strategic  role  that  these  networks 
can  play  as  a catalyst  of  industrial  competitiveness  in  the  Information  Society. 

C.  TRANSPORT 

Steady  if  unspectacular  progress  was  made  in  1996  on the  implementation  of  the  14 
specific  projects  agreed  at  the  Essen  European  Council  in  December  1994.  Details  are 
to  be  found  in  Annex  III.  Mention  should  be  made  here  nevertheless  of  some  of  the 
more  important  and  symbolic  advances: 

•  A  new  company  was  set  up  to  plan  the  Austrian  part  (Lower  Inn  Valley  section)  of 

the  Brenner  axis  between  Munchen  and  Verona; 

•  work  has  started  on  the  construction  of  the  new  HST  line  between  Leipzig  and 

Niirnberg; 

•  the  UK  authorities  awarded  the  operating  concession  for  the  HST  rail  link  between 

London  and  the  Channel  to  the  London  & Continental  railways  consortium; 

•  The  "déclaration  d'utilité  publique"  was  granted  to  the  French  part  of  the  HST  East; 

Council  decision  95/468/EC  of  6.11.95,  OJ  L 269  of  11.11.95,  p. 23 
SEC(96)1251/4 

•  An  intergovernmental  commission  was  set up  to  study  the  legal  structure  of  the 
future  entity  responsible  for  the  implementation  of  the  Lyon-Torino  project. 

•  For  the  Torino-Milano  and  Milano-Venezia  sections,  concessions  have  been  granted 

to  the  Italian  High-Speed  Rail  company  TAV. 

•  Two  concessions  have  been  granted  for  sub-projects  of  the  Greek  motorway 

PATHE:  the  Rio-Antirio  fixed  link  and  the  Athens  bypass. 

•  Work  on  the  Danish  access  routes  to  the  Ôresund  Fixed  Link  has  been  progressing 

well  and  is  expected  to  be  completed  next  year. 

•  The  Cork-Dublin-Belfast-Larne-Stranraer  railway  link  will  be  completed  in  1996  as 

far  as the  part  in the  Irish  Republic  is concerned;  the  sections  in the  UK  are 
expected  to  be  completed  in  1997. 

At  the  same  time,  progress  has  been  made  on  some  other  projects  of  common  interest 
identified  in  the  guidelines,  notably:  the  Semmering  base  tunnel  project  in  Austria,  the 
Berlin-Hannover  HST  link  in  Germany,  the  Milano-Bologna-Firenze-Roma-Napoli 
HST  link  in  Italy  as well  as  a number  of  ports  projects  and  projects  in the  telematics 
sector. 

3.  TEN-RELATED  LEGISLATION 

A.  GUIDELINES  AND  RELATED LEGISLATION 

The  year  under  review  saw  the  long-awaited  adoption  by  the  EP  and  the  Council  of 
the  guidelines  for  the  energy  and  transport  networks  on,  respectively,  5 June  (the 
Council  had  already  adopted  the  decision  on the  accompanying  measures  for  the 
energy  sector  on  28  March)3  and  23  July4.  The  telecommunications  guidelines  are 
expected  to  be  adopted  in  December  1996  or  early  1997. This  represents  a  major  step 
forward. 

The  Council  also  adopted  the  directive  on  HST  interoperability5  on  23  July. 

Following  the  mandate  from  the  Essen  European  Council  concerning  environment 
networks  and  the  definition  in  1995  of  criteria  for  "Joint  Environmental  Projects" 
(JEPs),  the  Environment  Policy  Review  Group,  consisting  of  Directors-General  from 
the  Member  states's  environment  ministries,  at  its  meeting  in  September  1996,  decided 
that  each  member  would  by  15 November  1996  indicate  whether  further  exploring  the 
potential  of  the  project  examples  there  was  an  interest  in  further  defining  pre-
feasibility  terms  of  reference  and  future  steps.  The  responses  received  from  the 
Member  States  up  to  15 November  indicate  that  there  is no  interest  in  further  pursuing 
Joint  environmental  projects  within  the  criteria  set  for  the  water  and  waste  sectors. 

On  24  July  the  Commission  put  forward  a proposal6  to modify  the  original  list  of  43 
energy  projects  of  common  interest  in the  guidelines  by  adding  a further  31  projects. 
This  modification  was  necessary  to  take  account  of  the  enlargement  of  the  Union  to 
Austria,  Finland  and  Sweden,  to  reflect  the  rapid  evolution  of  the  energy  situation  in 
Europe  since  the  Commission  first  made  its proposals  in  1994  and  to  honour 
commitments  made  during  the  negotiation  of the  initial  decision.  The  European 
Parliament  approved  this  proposal  without  amendments  (at  its first  reading,  on  12 
November  1996). 

Although  not  strictly  related  to  the  networks  as  such,  mention  is made  here 
nevertheless  of  the  major  breakthrough  in  June  1996  on  the  liberalisation  of  the 
electricity  market,  when  an  extraordinary  Energy  Council  reached  political  agreement 
on  a  common  position  on  the  draft  Electricity  Directive  which  was  then  formalized  by 
the  Council  in  July. 

Decision  no.  1254/96/EC;  OJ  L  161  of  29  June  1996 
Decision  no.  1692/96/EC;  OJ  L 228  of  9  September  1996 
Directive  96/48/EC;  OJ  L235  of  17  September  1996 
COM  (96)  390 

Encouraged  by  this  success  the  Council  pesumed, under  the  Irish  Presidency,  the 
negotiation  of  the  Commission's  proposals  for  implementing  the  internal  market  in  the 
gas  sector.  In  parallel,  the  Presidency  and  the  Commission  had  an  extensive  round  of 
consultations  with  all  parties  interested  in  gas  market  liberalization.  The  Treaty  rules 
including  the  competition  rules  and  procedures,  are  naturally  applicable  to  the  energy 
sector.  This  means  in  particular  that  TEN  should  not  lead  to  a reinforcement  of  any 
dominant  position  of  undertakings  which  control  them. 

Following  the  political  agreement  among  Member  States  to  liberalise  all 
telecommunications  services  and  infrastructure  by  1st January  1998, with  a  transition 
period  for  certain  Member  States,  the  Commission  adopted  in  February  1996 a 
Directive  amending  the  90/388/EEC  Services  Directive.  It  also  specified  that 
restrictions  on  use  of  alternative  infrastructure  for  services  already  liberalised  should 
be  lifted  by  1 July  1996. 

B.  T EN  GUIDELINES  COMMITTEES 

Following  the  adoption  of  the  various  guidelines,  three  new  committees  have/will 
come  into  existence: 

-  a committee  (type  III  A)  for  the  energy  TEN;  it  met  once  and  gave  a  favourable 
opinion  on  the  Commission's  proposals  to  specify  the  list  of  projects  of  common 
interest; 

-  an  advisory  committee  for  the  transport  TEN  for  the  exchange  of  information  on 
plans  and  programmes;  it  held  its  first  meeting  on  18 November  and  discussed  its 
function  and  structure  and  general  questions  of  implementing  the  guidelines. 

-  a  committee  (type  III A)  is expected  to  be  set  up  for  the  telecommunications  TEN; 

its  initial  meeting  will  take  place  early  in  1997. 

These  committees  are  of  course  quite  distinct- from  the  TEN  financial  assistance 
committee  in  its  various  forms  (set  up  under  Council  Regulation  2236/95  to  assist  the 
Commission  in  granting  financial  aid  for  TEN  projects  of  common  interest  -  see 
chapter  4A  below)  and  should  not  be  confused  with  it. 

C.  EDICOM  AND  I DA  LEGAL  BASIS 

The  Edicom  programme  is an  inter-administration  telematic  network  for  statistics  in 
relation  to  the  trading  of  goods  between  Member  states.  On  26  March  the  Court  of 
Justice,  acting  on  a complaint  lodged  by  the  EP,  with  the  backing  of  the  Commission, 
ruled  that  the  programme  should  have  been  based  on  article  129  D  of  Title  XII  of  the 
Treaty  and  not  on  article  235. The  Commission  promptly  presented  a  modified 
proposal  based  on  article  129  D,  renewing  the  programme  for  the  period  1996-2000. 

The  European  Parliament,  supported  by  the  Commission,  has  also  brought  a  case 
before  the  Court  of  Justice  for  the  repeal  of  the  Council  decision  adopting  the  IDA 
programme,  arguing  that  the  legal  basis  for  this  decision  should  have  been  art.  129D 

of  the  EC  Treaty  (concerning  trans-European  networks).  A judgement  is not  expected 
before  1997. 

Tabic  1:  EU  FINANCING  OF  THE  TEN  (million  ECU) 

Sector 

Type  of  assistance 

Instrument 

1993-1994 

1995 

TRANSPORT 

Loans 

Guarantees 

Grants 

EIB'  2 

EIF  l2 

ERDF1  ' 

4  028 

75.9 

884.0 

3  310 

85.2 

115.0 

1996 
to  date 

TOTAL 
to  date 

2  229 

9  567 

303 

" 461.40 

2  639 

3  638 

Cohesion  Fund 

1887.5 

1  107.6 

1088 

4  083.1 

ENERGY 

Grants,  interest, 
rate  subsidies,  loan 
guarantees,  co-
financing  of  studies 

TEN  budget  line 

(of  which  the 14 
specific  projects) 

Loans 

Guarantees 

Grants 

EIB1  2 

EIF12 

ERDF'  3 

Co-financing  of 
studies 

TEN  budget  line 

TELECOMMUNICATIONS 

Loans 

Guarantees 

Grants 

Co-financing  of 
studies 

EIB12 

EIF12 

ERDF1  ' 

385 

180 

1  077 

207.7 

675.7 

0 

3  787.8 

156.1 

294.7 

240 

280 

905 

181,05 

211.23 

572.28 

745 

11.90 

87.8 

12 

506.6 

19.40 

0 

22 

1  067 

240 

1  265 

[9+7] 

2  889 

459.6 

2  028.5 

[21+7] 

1  063 

5  357.4 

9 

173 

18 

184.5 

467.7 

58 

TEN  budget  line 

18 

TEN  and  TEN-related  projects 
Signed  projects 
Usually  includes  appropriations  committed,  for  the  1996-99  period. 

4. FINANCING  THE TEN: ACTIVITIES OF THE UNION'S 
FINANCIAL INSTRUMENTS 

Table  1 on the preceding  page gives an overall  view of Union  financial  support  for  TEN 
and  TEN  related  projects.  Since the figures  for  1996 refer  in some cases to only the  first 
ten or eleven months of the year it is not possible to compare them exactly  with those  for 
1995;  it  is clear  however  that there  has been  a significant  increase  of  funding  in most  if 
not  all  sectors. 

This  table,  and  those  which  follow,  deal  only  with  Union  funding.  It  must  be 
remembered,  however,  that  the  Member  States  and  the  private  sector  also  contribute  to 
the  financing  of the  TEN,  in many  cases  investing  much more than  the Union.  In  future 
reports  an  effort  will  be  made  to  include  such  figures  when  available. 

A.  T EN  FINANCIAL  ASSISTANCE  REGULATION 

The  TEN  financial  assistance  committee  (TENFAC),  set  up  under  Council  Regulation 
2236/954  came  into  existence  formally  in  September  1995  and  held  its  first  meeting  on 
10 October  of  the  same  year. 

It  discussed  energy  matters  at  two  meetings  in  1995  and  gave  a  favourable  opinion  on 
24  feasibility  and  other  studies to which  the  Commission  proposed  to  grant  aid  totalling 
ECU  12.2  million.  These  studies  concerned  12  projects  of  common  interest  from  the 
Guidelines  list,  of  which  three  were  Essen  priority  projects  (the  France-Spain  and  the 
Spain-Portugal  electricity  interconnections  and  the  Greek  natural  gas  project). 

In  1996 the  Committee  met once to discuss energy  questions and  approved  36  feasibility 
and  other  studies  for  which  the  Commission  is  proposing  grant  aid  totalling  ECU  16 
million.  Further  details  are  to  be  found  in  Annex  IV.  These  studies  concern  8  projects 
from  the  guidelines  list,  of  which  two  are  Essen  priority  projects  (the  France-Spain 
electricity  interconnection  and the  Greek natural  gas project),  as well as  14 projects  from 
the  additional  list  proposed  by  the  Commission. 

TABLE  2:  ENERGY 

1995 

1996 
[Guidelines  +  additional  list] 

MECU 

6.5 

5.7 

12.2 

% 

53% 

47% 

MECU 

3.73  +  3.88 

5.17  +  3.59 

% 

46% 

54% 

100% 

8.90  +  7.47 

100% 

ELECTRICITY 

GAS 

TOTAL 

OJ  L 228  of  23  September  1995 

Under  the  TEN  Regulation,  financial  assistance  for  energy  projects  is  normally 
restricted  to  feasibility  studies,  and  this  was the  case  in  1995  and  1996.  However, 
given  that  in  some  cases  projects  may  be  delayed  and  financing  problems  thus  arise, 
the  Commission  would  like  to  keep  open  the possibility  of  using  some  of  the  resources 
available  as  other  forms  of  assistance,  on  the  basis  of  case-by-case  justification. 

The  TENFAC  committee  discussed  telecommunications  projects  at  two  of  its  meetings 
in  1995  and  gave  a  favourable  opinion  on  18 ISDN  measures  for  which  the 
Commission  proposed  financial  assistance  totalling  ECU  11.4 million.  This  brought  to 
a  total  of  ECU  22.6  million  the  total  financial  aid  granted  by  the  Commission  under 
the  TEN-Telecom  budget  line  in  1995.  A  list  of  these  measures  is  to  be  found  in 
Annex  V. 

In  1996 the  committee  devoted  one  meeting  to  telecommunications  and  approved  11 
validation  and  demonstration  projects  amounting  to  ECU  18.101  million.  These 
projects,  unlike  those  in  the  energy  or  transport  sectors,  do  not  relate  to  bearer 
physical  infrastructure,  but  to  telecommunication  applications  of  public  interest  and 
generic  services.  They  are  specified  through  a procedure  of  open  call  for  proposals,  on 
the  basis  of  criteria,  priorities  and  eligible  domains  of  public  interest  defined  in  the 
relevant  legislation. 

TABLE  3:  TELECOMMUNICATIONS 

1995 

MECU 

0.75 

2.81 

-

-

1.23 

1.76 

% 

6.6 

24.7 

- 

-

-

10.8 

15.5 

1996 

MECU 

0.51 

0.49 

2.59 

5.00 

-

3.71 

% 

2.8 

2.7 

14.3 

27.6 

-

20.6 

3.62 

31.9 

2.83 

15.7 

1.19 

11.37 

10.5 

100% 

2.94 

18.10 

16.3 

100% 

Health 

Education 

Culture 

City 
information 

Transport 

Interoperability 
of  generic 
services 

Electronic 
commerce 

Tele-working 

TOTAL 

12 

As  regards  transport,  the  TEN  financial  assistance  committee  held  one  meeting  in 
1995  and  gave  a  favourable  opinion  on  92  projects  and  studies  for  which  the 
Commission  proposed  financial  assistance  totalling  ECU  240  million. 

The  committee  held  two  meetings  in  1996. At  its  meeting  on  8th  May  it  welcomed  the 
Commission  's  multiannual  indicative  programme  (MIP)  as  a framework  for  granting 
financial  assistance  from  the  TEN-Transport  budget  line  for  projects  of  common 
interest  in  the  period  1996-99.  This  framework  should  facilitate  the  work  of  the 
committee  in  the  transport  sector  in  the  years  ahead.  At  its  meeting  on  25  July  the 
Committee  gave  a  favourable  opinion  on  107 projects  and  studies  for  which  the 
Commission  proposed  financial  assistance  totalling  ECU  280  million.  Further  details 
are  to  be  found  in  Annex  VII. 

Table  4  gives  a break-down  of  Union  financing  of  transport  projects  by  main  sectors. 
In  accordance  with  the  decision  of  the  Cannes  European  Council,  75%) of  the  money 
available  was  given  over  to  the  14 specific  projects  in  1995 and  1996. 

TABLE  4:  TRANSPORT  (TYPE  OF  PROJECT) 

1995 

1996 

MECU 

% 

MECU 

% 

181.05 

75.44 

211.23 

75.44 

45.42 

18.92 

49.65 

17.73 

13.53 

240 

5.64 

100% 

19.12 

280 

6.83 

100% 

14  specific 
projects 
(including 
ERTMS) 

Traffic 
management 

Other 

TOTAL 

Table  5 shows  the  break-down  of  the  Union's  financing  of  transport  projects  by  the 
various  types  of  intervention.  It  should  be  stressed  that  the  predominance  of  studies  as 
compared  to  other  types  of  intervention  is perfectly  normal.  The  Union's  role  is to  act 
as  a  catalyst  by  facilitating  the  launching  of  projects,  hence  the  emphasis  on  feasibility 
and  other  studies,  which  reduce  the  level  of  risk  in  their  development  stage.  In  the 
Commission's  opinion,  the  co-financing  of  feasibility  studies  is the  most  efficient  way 
of  spending  the  Union's  limited  budget.  The  Union's  financial  resources  are  not  meant 
to  replace  funding  at  the  national  level  but  to  help  mobilize  additional,  non-traditional 
funds,  in  particular  in  the  context  of  PPP.  The  financing  of  the  actual  construction 
works  is primarily  the  responsibility  of  the  promoters,  helped,  if  need  be,  with  interest 
rebates  and  guarantee  premium  subsidies,  which  explains  why  only  a  small  percentage 
of  Union  resources  under  Regulation  2236/95  is  given  over  to  this  type  of  funding. 

13 

TABLE  5:  TRANSPORT  (TYPE  OF  INTERVENTION) 

1995 

1996 

MECU 

% 

MECU 

% 

170.10 

70.88 

189.59 

67.71 

24.41 

0 

45.49 

240 

10.17 

0 

18.95 

100% 

72.71 

0 

17.70 

280 

25.97 

0 

6.32 

100% 

Feasibility 
studies 

Interest  rebates 

Loan  guarantees 

Direct  grants 

TOTAL 

As  Table  6  shows,  by  far  the  greater  part  of  Union  spending  on transport  under 
Regulation  2236/95  goes  to  rail  projects.  This  reflects  the  fact  that  this  mode  is  given 
high  priority  at  national  and  Union  level  and  that  great  efforts  are  being  made  to 
advance  these  projects  which  are,  in many  cases,  characterized  by  their  particularly 
high  cost,  large  scale  and  cross-border  nature.  But  it  also  translates  the  Commission's 
political  commitment  to  favour  transport  modes  that  are  as  environment-friendly  as 
possible. 

TABLE 6: TRANSPORT PROJECTS (MODE) 

1995 

1996 

MECU 

165.16 

18.81 

0 

0.52 

2.59 

52.92 

% 

68.82 

7,83 

0 

0.22 

1.08 

22.05 

MECU 

173.62 

35.37 

1.50 

3.66 

3.77 

62.08 

% 

62.01 

12.63 

0.54 

1.30 

1.35 

22.17 

240 

100% 

280 

100% 

Rail5 

Road 

Inland 
waterways 

Sea  /  ports 

Air 

Traffic 
management 

TOTAL 

Includes  partially  combined  transport 

14 

B.  STRUCTURAL  FUNDS 

The  Union's  Regional  (ERDF)  and  Cohesion  Funds  are  by  far  the  main  source  of 
Union  grants  for  TEN  projects,  as table  1 above  clearly  brings  out.  The  Regional  Fund 
finances  TEN  and  TEN-related  projects  in  Objective  1 areas  while  the  Cohesion  Fund 
finances  TEN  projects  in  the  four  "Cohesion  Member  States" (Greece,  Ireland, 
Portugal  and  Spain). 

B.l  Regional  Fund 

In  1996, the  following  programmes  and  projects  were  the  main  beneficiaries  of 
commitments  for  funding;  details  are  to  be  found  in Annex  VII: 

Energy 

•  The  introduction  of  natural  gas  into  Portugal  and  the  interconnection  of  the 

Portuguese  grid  to  the  Spanish  networks  under  INTERREG  II; 

•  The  Spanish  section  of  the  Algeria-Morocco-EU  gas  pipelines  and  extensions  to 

some  Andalusian  cities; 

•  The  introduction  of  natural  gas  into  new  Spanish  regions  (Western  pipeline  project 

and  the  Valencia-Orihuela-Cartagena  project); 

•  Upgrading  of  the  existing  LNG  terminal  at  Huelva  and  Cartagena. 

Telecommunications: 

• 

Improvement  of  the  telecommunications  networks  in  Greece 

Transport: 

•  PATHE  and  VIA  EGNATIA  motorways  in  Greece; 

•  Athens  - Thessaloniki  railway; 

•  Trunk  roads  in  Italy; 

•  Trunk  roads  in  Ireland. 

B.2.  Cohesion  Fund 

Table  7 below  gives  the  annual  commitments  made  by  the  Cohesion  Fund  in  favour  of 
TENs  transport  projects  since  1993  in  each  of  the  beneficiary  Member  States.  These 
figures  include  commitments  for  projects  adopted  in  the  year  in  question  as  well  as 
new  annual  instalments  for  projects  adopted  previously. 

15 

Table  7:  Cohesion  Fund  financing  of  TENs  projects  -
total  by  Member  StateCommitments  1993-1996(MECUS) 

MEMBER  STATES 

1993 

1994 

SPAIN 

PORTUGAL 

GREECE 

IRELAND 

606.4 

498.9 

160.8 

200.2 

105.1 

86 

134 

96 

1995 

610.2 

240.5 

159.7 

97.2 

19966 

711.2 

187.5 

88 

101.3 

1993-199 

2426.7 

789 

486.8 

380.5 

TOTAL 

958.3 

929.1 

1107.6 

1088 

4083 

Table  8 provides  a  breakdown  of  amiual  commitments  by  transport  sector.  This 
illustrates  the  continuing  predominance  of  roads  in  Cohesion  Fund  financing,  reflecting 
the  needs  and  priorities  of  the  Member  States  concerned.  However,  in  terms  of 
absolute  figures,  the  financing  of  other  transport  modes  such  as railways  and  ports  is 
nevertheless  important. 

Table  8:  Cohesion  Fund  financing  of  TENs  projects 

-  by  transport  sector 

Commitments  1993-1996 

Sector 

1993 

1994 

1995 

19967 

Total 
1993-
1996 

Mecu 

672.6 

% 

70 

Mecu 

% 

Mecu 

619.6 

66 

832.5 

% 

75 

Mecu 

% 

Mecu 

837.5 

76 

2962.2 

% 

72 

Roads  & 
motorways 

Railways 

162.2 

16 

278.5 

29 

178.4 

16 

218.8 

20 

837.9 

20 

Ports 

Airports 

Vessel 
Traffic 
Systems 

Total 

16.1 

91.7 

15.6 

1 

9 

1 

31 

0 

0 

3 

0 

0 

67.4 

23.7 

5.5 

6 

2 

1 

16 

15.7 

0 

1 

1 

0 

130.5 

131.1 

21.1 

o 
j 

o 
J 

0 

958.2 

100 

929.1 

100 

1107.5 

100 

1088 

100 

4082.8 

100 

Provisional 

Provisional 

16 

A  table  in  Annex  VIII  gives  the  latest  position  regarding  assistance  from  the  Cohesion 
Fund  for  the  five  specific  projects  which  directly  concern  the  Cohesion  countries, 
namely  : High-speed  train  south,  Greek  motorways,  Lisbon-Valladolid  motorway, 
Cork-Dublin-Belfast  rail  link  and  the  Ireland-UK-Benelux  road  corridor.  For  a  variety 
of  reasons,  progress  on  these  projects  has  been  slow  this  year,  with  the  only  additional 
financial  commitments  so  far  being  made  in  favour  of  the  Republic  of  Ireland  section 
of  the  Ireland-(UK)-Benelux  priority  project. 

C.  EIB  AND  ECSC  LOANS 

The  EIB  has  a  long  experience  in  the  financing  of  infrastructure  of  European  interest 
and  has  always  considered  the  development  of  the  trans-European  networks  as  one  of 
its  priorities.  Since  the  previous  report,  the  EIB  has  substantially  extended  its 
commitments  and  its  lending  to  the  TENs  for  most  of  them  in  conjunction  with 
Community  budgetary  resources,  while  developing  the  utilisation  of  its  TEN  window 
on  numerous  occasions. 

Since  November  1995, ECU  9 300  million  of  loans  for  41  projects  have  been 
approved  by  the  EIB's  Board  of  Directors  for  transport  projects  on  the  TENs.  It 
represents  an  average  of  about  30% of  their  total  cost.  Loans  for  these  projects  and 
previous  ones  approved  totalling  ECU  1 800  million  have  been  signed  to  date,  an 
increase  of  more  than  50%) on  the  situation  described  in the  report  to  the  Madrid 
European  Council  in  December  1995. 

On  the  14  specific  projects  adopted  in  Essen,  the  EIB  has  already  granted  loans  for  9 
of  them  or  their  initial  phase  for  an  amount  of  ECU  5 500  million  (out  of  ECU  8 000 
million  committed  for  financing).  This  is an  increase  of  40% on  approvals  and  32% on 
loans  contracts  over  last  year's  activity,  due  mainly  to  new  loans  for  the  PBKAL  HST, 
the  Ôresund  link  and  the  Nordic  triangle.  Using  its  TEN  window  facility,  the  EIB  has 
extended  maturity  for  several  projects  and  approved  ECU  250  000  of  subsidies  for 
preparatory  studies  concerning  some  Austrian  sections  of  the  Brenner  axis. 

During  the  same  period,  the  EIB's  Board  has  approved  loans totalling  ECU  1 500 
million  for  8 projects  on  gas  and  electricity  TENs,  about  27% of  their  total  cost.  To 
date,  ECU  2  200  million  have  been  signed.  It represents  an  increase  of  126%) on  the 
Madrid  report  figure. 

EIB  financing  has  been  approved  for  seven  of  the  ten  priority  projects  adopted  at  the 
Essen  Council  for  ECU  2  200  million  since  1993  of  which  loans  contracts  totalling 
ECU  1 600  million  have  been  signed,  for  projects  like  the  Greek  gas  pipeline,  the 
Algeria/Morocco/Iberian  Peninsula  project  and  the  Russia-Poland-EU  gas  pipeline. 

In  parallel  with  its  growing  involvement  in  favour  of  transport  and  energy  TENs 
projects,  the  EIB  contributes  actively  to  the  development  of  telecommunication 
networks  of  European  interest.  Since  last  year,  the  EIB's  Board  has  approved  ECU 
2  300  million  of  loans  for  telecommunication  network  projects  and  loan  contracts 
amounting  to  ECU  4  700  million  have  so  far  been  signed  mainly  for  mobile 
telephony,  telecommunication  satellite  and  optical  fibre  rail  network. 

17 

During  the  year  1996,  the  Commission  has  approved  4 ECSC  loans  for  a total  of  ECU 
329  million  for  the  benefit  of  TEN  projects.  The  most  significant  loan  approvals 
concern  the  Ôresund  and  Transgas  projects  for  a total  of  ECU  293  million.  These 
loans  have  not  yet  been  disbursed. 

D.  EIF 

As  of  31  October  1996 the total  EIF  portfolio  of  outstanding  signed  operations  since 
inception  was  ECU  1229  million.  Of  this  TEN  projects  accounted  for  90%o (transport 
38%o, energy  37%) and  telecommunications  15%>). In the  course  of  1996 the  EIF  signed 
loan  guarantees  of  ECU  615  million  for  10 projects  (transport  ECU  303  million, 
energy  ECU  240  million  and  telecommunications  ECU  9 million).  The  Fund  has 
guaranteed  financing  in  the  following  specific  projects:  Malpensa  Airport,  Natural  Gas 
Network  in  Portugal,  Gas  Interconnection  Portugal-Spain  and  the  Channel  Tunnel  Rail 
Link  section  of  the  PBKAL  HST.  The  EIF  plans  to  involve  itself  in  the  financing  of 
other  specific  projects  adopted  at  Essen. 

Following  the  decision  of  its  General  Meeting  in  June  the  EIF  will  be  able  to  take 
equity  holdings  in  initiatives  linked  to  TEN  projects  (See  also  chapter  5 D).  The 
Fund's  activities  in  this  domain  will  initially  be  modest. 

E.  IDA 

In  1996  the  Union  plans  to  spend  ECU  24  million  on the  horizontal  actions,  generic 
services  and  25  specific  sectoral  projects  that  compose  the  IDA  programme  (the  TEN 
financial  regulation  does  not  apply  to  the  IDA  programme).  The  table  below  gives  the 
main  items  of  expenditure;  a detailed  list  of  the  projects  financed  is to  be  found  in 
Annex  VI. 

Table  11  : IDA  spending8 

SERVICE 

TOTAL  BUDGET 
(ECU) 

D GI 

DGIII 

DGIV 

DG  V 

DG  VI 

DG  XIV 

DGXV 

DG  XXI 

Eurostat 

Informatics  Directorate 

AGENCIES 

Secretariat-General 

Generic  services  all  sectors 

GRAND  TOTAL 

F.  EVALUATION 

850  000 

3  710  000 

400  000 

1.837  000 

1 290  000 

250  000 

1 100  000 

5 555  000 

3 050  000 

1 015  000 

225  000 

1 200  000 

3  518  000 

24  000  000 

In  line  with  the  SEM  2000  programme,  the  Commission  is taking  steps,  in  close 
collaboration  with  the  Member  states,  who  have  a major  and  central  role  to  play,  to 
reinforce  the  monitoring  and  evaluation  of  projects  and  policies.  The  TEN  financial 
assistance  committee  discussed  the  matter  at  its meeting  on  25  July  1996. 

These  figures  are  based  upon  a  budget  resulting  from  the  assignment  of  ECU  6 
million  to  the  EDICOM  programme  and  upon  the  assumption  that  ECU  7.5  million 
presently  in  reserve  will  be  released  by  the  European  Parliament.  Furthermore,  due  to 
the  late  adoption  of  the  IDA  decision  a  number  of  measures  were  carried  forward 
from  1995  to  1996  for  a total  value  of  ECU  15.798  million.  These  measures  are  NOT 
included  in  the  above  table. 

19 

5. FINANCING  THE  TEN:  OTHER  ISSUES 

A.  TRANS-EUROPEAN  TRANSPORT  BUDGET 

Following  the  conclusions  of  the  Essen  (December  1994),  Cannes  (June  1995)  and 
Madrid  (December  1995)  European  Councils  with  regard  to  the  financing  of  the 
priority  transport  projects,  the  Commission  tabled,  in  April  1996,  a proposal  to  revise 
the  financial  perspectives  with  a view  of  increasing  the  funds  available  for  the  TEN-T 
by  ECU  1000 million.  This  proposal  was  based  on  the  identification  of  additional 
needs  for  TEN-T  assistance  of  ECU  1700 million  during  the  period  1997-1999;  these 
additional  needs  were  calculated  on  the  basis  of  preliminary  requests  submitted  by 
Member  States  and  resulted  from  thorough  analyses,  especially  of  the  specific  projects 
identified  by  the  Essen  European  Council,  carried  out  by  Member  States,  the 
Commission  and  the  European  Investment  Bank  during  workshops,  seminars  and 
bilateral  discussions. 

On  the  occasion  of  the  Florence  European  Council,  President  Santer  presented  a 
revised  proposal.  Following  this,  the  ECOFIN  Council  set  up  an  ad  hoc  group  of 
Representatives  of  the  Ministers  of  Finance,  presided  by  Mr.  Gallagher.  During  three 
meetings,  held  in  July  and  September,  the  "Gallagher  group"  examined  the  proposal 
without,  however,  reaching  agreement  about  a  "top-up".  In  its  final  report  submitted  to 
the  ECOFIN  Council,  this  group  recommended,  however,  that: 

i) 

ii) 

iii) 

iv) 

projects  which  are  ready  should  go  ahead  using  the  existing  resources; 

the  Council  should  confirm  the  priority  nature  of  the  TENs  and  current 

planned  budgetary  provisions  for  TENs  should  be  respected; 

every  effort  should  be  made  to  remove  non-finàncial  delaying  factors; 

the  question  of  reallocation  could  be  considered  within  the  relevant 
normal  budgetary  procedure  for  the  Budgets  of  1998  and  1999. 

On  14  October,  the  ECOFIN  Council  endorsed  the  Gallagher  report. 

B.  PUBLIC/PRIVATE  PARTNERSHIPS 

(PPP) 

General 

In  line  with  the  requests  of  the  European  Council,  the  Commission  has,  throughout 
1996,  continued  to  seek  ways  of  facilitating  public-private  partnerships  as  a  means  of 
financing  the  TEN;  as  in  previous  years,  this  analysis  was  done  in  a  "bottom-up" 
approach  by  focusing  on  the  specific  transport  projects. 

20 

During  the  course  of  1996,  Commission  services  have  been  actively  involved  in 
informal  consultations  with  a representative  group  of  experts  from  the  private  sector  in 
the  field  of  transport  construction,  with  the  aim  of  examining  the  obstacles  to  PPPs 
and  finding  possible  solutions  from  the  construction  industry's  perspective.  However, 
following  the  establishment  of  the  High-Level  Group  on  Public-Private  Partnership 
Financing  of  Trans-European  Network  Transport  Projects  ("Kinnock  Group":  see 
below),  it  was  agreed  by  all  concerned  to  continue  these  discussions  within  the  larger 
framework  of  the  High-Level  Group.  The  preliminary  findings  drawn  from  these 
consultations,  together  with  the  outcome  of  analysis  done  previously  on  various  other 
issues  related  to  PPP,  formed  the  basis  for  a discussion  paper  tabled  to  the  Kinnock 
Group. 

In  its  report  on  "The  Impact  and  Effectiveness  of  the  Single  Market9"  the  Commission 
stressed  that  "overcoming  the  barriers  to  PPP  should  be  a priority  for  the  Union  in 
order  to  make  sure  that  priority  investment  plans  are  executed  in  time".  This  is 
potentially  important  for  transport  where  most  of  the  financing  difficulties  are 
encountered. 

Regrettably,  for  the  same  reasons  as explained  in the  1995  report  to  the  Madrid 
European  Council10  (paras.  28-34),  progress  in  some  Member  States  towards  PPPs  has 
not  been  encouraging.  It  should  be  noted,  however,  that  several  PPP-type  transport 
projects  are  proceeding,  notably  in  Greece,  the  UK,  Italy,  Germany,  Austria,  Denmark 
and  Sweden. 

In  the  telecommunications  sector,  the  financing  of  trans-European  networks  projects  is 
primarily  a matter  for  the  private  sector  and  market  forces.  However  public  support  in 
the  framework  of  Public  Private  Partnerships  has  also  a role  to  play  in  stimulating  the 
launch  of  projects  whose  socio-economic  viability  is recognised  but  whose  short  term 
commercial  profitability  is not  high  enough  to  mobilise  private  investment. 

Kinnock  High-Level  Group 

At  the  informal  Transport  Council  in  Rome  on  12-13 April  Commissioner  Kinnock 
suggested  that  a  High-Level  Group,  comprising  personal  representatives  of  the 
Ministers  of  Transport  and/or  Finance  and  members  of  the  private  sector  and  the  EIB, 
could  be  set  up  to  find  ways  of  accelerating  the  implementation  of  public-private 
partnerships;  especially  as  regards  TEN  specific  transport  projects.  This  proposal 
received  broad  support  from  the  Transport  Ministers  and  was  strongly  backed  by 
President  Santer  in  the  context  of  his  initiative  for  a Confidence  Pact  on  employment. 

The  High-Level  Group  on  Public-Private  Partnership  Financing  of  Trans-European 
Network  Transport  Projects  (the  "Kinnock  Group")  held  three  plenary  meetings  on  23 
September,  11  October  and  28 November,  establishing  five  sub-groups:  two  on  the 
"HST  East-European"  and  the  "HST  South"  projects,  and  three  on  more  horizontal 
issues,  namely  "New  Public-Private  Partnerships  in  the  Railway  Sector",  "Legal  and 

9  COM(96)  520  final 
10 CSE  (95)  571 

21 

Administrative  Issues"  and  "Economie  and  Financial  Issues".  The  HLG  and  its  sub 
groups  will  examine  problems  identified  at  Union  level  and  thoroughly  explore 
possible  solutions  with  regard  to  the  establishment  of  public-private  partnerships.  The 
final  report,  to  be  submitted  to  the  European  Council  in June  1997,  is expected  to 
draw  conclusions  with  respect  to  various  issues  currently  affecting  the  progress  of 
transport  infrastructure  projects. 

The  negative  decision  with  regard  to  the  top-up  of  the  transport  TEN  budget  line  is 
expected  to  affect  the  progress  of  several  projects,  in particular  the  large  cross-border 
rail  projects.  In  a  number  of  these  cases,  additional  transport  TEN  funding  would  have 
helped  facilitate  private-sector  involvement  (reduction  of  risk  through  co-financing  of 
trial  bores  for  expensive  tunnels,  contributions  to  settling  financing  plans,  etc.).  In  the 
face  of  this, the  Kinnock  Group  is challenged  to  seek  solutions  to  advance  projects  as 
much  as possible,  despite  being  limited  in the  funds  available  for  the  transport  TEN. 
The  Group's  work  should  also  provide  a  solid  basis  for  a possible  re-consideration  of 
budgetary  issues  as  set  out  in the  recommendations  of the  Gallagher  Group. 

Public  policy  risks  consultation 

In  its  report  to  the  Madrid  European  Council  (para. 32) the  Commission  announced  that 
it  was  examining  ways  of  reducing  public  policy  risks,  since  these  had  been  identified 
by  the  private  sector  as  a particular  obstacle  to  its  involvement  in  PPPs.  In  the  first 
half  of  1996 the  Commission  services  drafted  a working  paper  which  identified 
various  options  in  this  respect.  The  issues  are  being  considered  within  the  framework 
the  Kinnock  High-Level  Group,  with  a view  to  reaching  conclusions  on  the  scope  for 
action  at  Union  level. 

C.  EIF  EQUITY  PARTICIPATION 

On  18 June  the  EIF  General  Meeting  in  Lisbon  voted  to  allow  the  Funds,  as  provided 
in  its  Statutes,  to  undertake  equity  operations,  thus  allowing  the  EIF  henceforth  to 
invest directly  in  individual  TEN  projects.  The  Commission  welcomes  this  step  whilst 
acknowledging  that  initially  the  resources  available  for  this  purpose  will  be  limited. 

22 

6. EXTERNAL  RELATIONS 

A.  CENTRAL  AND  EASTERN  EUROPEAN  COUNTRIES  (CEEC) 

TINA  (Transport  Infrastructure  Needs  Assessment) 

Following  the  decision  taken  by  the  Transport  ministers  at  the  September  1995 
structured  dialogue  meeting,  a working  group,  made  up  of  senior  officials  from  the  15 
Union  Member  states  and  the  ten  applicant  central  and  eastern  European  countries,  was 
set  up  to  undertake  jointly  a transport  infrastructure  needs  assessment  (TINA)  of  the 
enlarged  Union  based  on the  transport  TEN  guidelines  for  the  present  Union  adopted 
recently.  It  held  two  plenary  sessions  in  May  and  July,  adopted  its terms  of  reference 
and  had  a  discussion  on  financing  problems.  It  established  three  geographically 
orientated  sub-groups  which  met  in  October  to  begin  a review  of  the  national  transport 
infrastructure  plans  of  the  acceding  countries  in the  light  of  the  guideline  requirements. 
The  TINA  group  will  report  to  the  transport  TEN  Network  Committee.  The  outline 
plans  for  an  enlarged  transport  TEN  are  scheduled  for  discussion  with  a  wider 
audience  at  the  end  of  1998  . 

Helsinki  Pan-European  Transport  Conference 

The  Commission,  the  EIB  and  the  Member  states  together  with  the  ECMT  and  the 
UN-ECE  have  been  busy  preparing  for  the  June  1997  Third  Pan-European  Transport 
Conference  at  Helsinki,  in  particular  on  adjustments  to  the  "Crete"  corridors  to  take 
into  account  changes  in  the  political  environment  since  1994,  such  as  the  peace 
process  in  former  Yugoslavia.  In  addition,  memoranda  of  understanding  on  the 
development  of  the  Via  Baltica  and  of  "Crete"  Corridors  I  and  III  were  signed  in  the 
course  of  the  year  and  that  on  Corridor  V has  advanced  almost  to  the  point  of 
signature. 

PHARE 

The  Commission  has  continued  to  support  actively  through  the  Phare  programme 
actions  aimed  at  connecting  Central  European  Countries  with  the  Union's  TENs. 
Around  ECU  280  million  have  been  earmarked  in  1996  for  assistance  programmes  to 
the  transport  sector.  The  bulk  of  these  funds  aims  at  developing  the  "Crete  Corridors". 
Phare  has  provided  assistance  for  all  the  nine  Corridors,  ranging  from  pre-investment 
and  feasibility  studies  to  the  actual  co-financing  of  physical  infrastructure  projects, 
with  a  special  focus  on  the  transit  facilitation  at  border  crossings  situated  on  the 
Corridors. 

Electricity  link-ups 

As  regards  the  development  of  energy  TEN  between  the  Union  and  its  neighbours,  a 
major  step  forward  was  taken  in  December  1995  when  the  CENTREL  electricity  grid, 
involving  Poland,  Czech  Republic,  Slovakia  and  Hungary,  was  linked  up  with  the 
UCPTE  grid,  which  covers  Western  Europe  outside  of  Scandinavia.  The  extension  of 
the  expanded  UCPTE  grid  to  the  Balkan  countries  and  the  establishment  of 
connections  and  interfaces  with  the  CIS  countries  are  currently  being  studied;  these 
studies  are  being  funded  under  the  PHARE,  TACIS  and  TEN  programmes.  In 
September  the  Commission  set  up  a task  force,  within  the  Black  Sea  regional  energy 
centre,  to  draw  up  a  list  of  priority  energy  interconnections  in the  Balkans; this  list 
will  cover  both  electricity  and  gas.Another  important  development  is the  Baltic  Ring 
electricity  study,  co-financed  by  the  Union  and  covering  all  the  countries  in  the  Baltic 
area. 

Natural  gas  link-ups 

Of particular  importance  this year  has been  the  completion  of  the  first  section  of  the 
Russia-Belarus-Poland-EU  gas  pipeline  and  the  improvement  of  the  gas  transport 
network  in  Bulgaria  to  ensure  the  transport  of  Russian  gas to  the  new  Greek  gas 
network.  An  important  feasibility  study  has  also  been  launched  on the  construction  of 
a  new  pipeline  to  deliver  Russian  gas  to  Italy  via  Ukraine-Slovakia-Hungary-Slovenia. 

The  year  under  review  has  also  seen  a study  of  the  Nordic  gas  grid  and  of  many  other 
projects,  such  as  Austria-Hungary,  Austria-Slovakia  and  Germany-Czech  Republic-
Austria-Italy.  Further  details  on  all  these  projects  are to  be  found  in Annex  I. 

Finally,  studies  of  further  East-West  gas  interconnections  and  of  regional  projects  of 
interest  to  central  and  eastern  European  countries  and/or  Union  Member  states  have 
been  or  are  currently  being  financed  under  the  PHARE  programme,  including  a  study 
of  the  Baltic  area just  completed. 

Energy  Charter 

Following  the  signature  of  the  Energy  Charter  Treaty  and  the  Energy  Charter  Protocol 
on  energy  efficiency  and  related  environmental  aspects  on  17 December  1994,  the 
process  of  ratification  by  the  European  Union  is ongoing:  Member  States  (at  least  a 
majority  of  them)  are  expected  to  finalise  their  ratification  process  by  the  end  of  the 
year.  Ratification  by  at  least  30  countries  is necessary  for  the  Treaty  to  enter  into 
force;  meanwhile,  the  Treaty  will  be  applied  by  most  of  the  contracting  parties  on  a 
provisional  basis. 

EU-CEEC  Forum  on  the  information  society. 

Ministers  from  the  central  and  eastern  European  countries  met  with  Commissioner 
Bangemann  and  with  representatives  of  the  industry,  research  organisations  and 
financial  institutions  of  the  Union  in  Prague  in  September  1996. The  Forum  provided 
a  platform  for  information  exchange  and  discussion  on  the  various  aspects  of  the 
Information  Society  including  strategy  and  policy  formulation  and  implementation  of 

24 

demonstrations  and  pilot  projects.  These  projects  were  further  discussed  on  8 October 
in  the  framework  of  the  "structured  dialogue"  between  the  EU  "Industry"  Council  and 
the  ministers  from  the  CEEC;  four  working  groups  were  set up. 

B.  MEDITERRANEAN  BASIN  COUNTRIES 

Electricity  link-ups 

The  Mediterranean  Basin  countries  are  not  connected  to  the  UCPTE  network,  but a 
project  to  link  up  Spain  and  Morocco  is under  way  and  work  has  begun  on  the  first 
stage  of  a connection  between  Greece  and  Turkey. 

Natural  gas  link-ups 

This  year  saw  the  [near]  completion  of  the  gas  pipeline  which  will  transport  Algerian 
natural  gas, via  Morocco,  to  Spain  and  Portugal  initially  and  to  other  Union  countries 
at  a  later  stage.  This  project  was  one  of  the  specific  projects  identified  by  the  Essen 
European  Council.  Work  is  also  well-advanced  on  a  second  pipeline  between  Algeria 
and  Italy  via  Tunisia. 

Euro-Mediterranean  forum  on  energy 

As  a follow  up  to  the  Euro-Mediterranean  Conference  in  Barcelona  in  December  1995, 
the  Italian  Presidency  organised  a Euro-Mediterranean  ministerial  conference  on 
energy  questions  in  Trieste  on  7-9  June  1996. The  Commission  adopted  on  3 April  a 
communication  on  "A  Euro-Mediterranean  partnership  in  the  energy  sector"11.  This 
document  sketches  out  the  main  lines  of  action  the  Commission  intends  to  pursue  in 
the  follow-up  to  the  Barcelona  Euro-Mediterranean  Conference  as regards  energy  and 
highlights  energy  TEN  as  one  of  the  main  areas  of  cooperation  between  the  Union  and 
the  countries  of  the  Mediterranean  Basin.  The  Trieste  Conference  approved  a  work 
programme  and  agreed  to  set  up  a  Euro-Mediterranean  energy  forum  to  oversee  its 
implementation. 

Euro-Mediterranean  forum  on  the  Information  Society 

The  Italian  presidency  also  organised  a  Euro-Mediterranean  forum  on  the  Information 
Society  in  Rome  on  30-31  May  1996. This  conference  brought  together  some  300  top-
level  participants  and  laid  the  foundations  for  increased  cooperation  between  the  two 
sides  of  the  Mediterranean  particularly  in the  fields  of  infrastructures  and  norms. 

Transport 

Discussions  on  linking-up  the  Union's  transport  TEN  with  the  countries  of  the  western 
Mediterranean  Basin  took  place  in  the  context  of  the  meetings  of  the  Western 

COM  (96) 149 

25 

Mediterranean  Transport  Ministers  (particularly  at  their  second  meeting  in  Rabat  on  22 
September  1995)  . 

Only  preliminary  work  has  yet  been  undertaken  in  the  eastern  part  of  the 
Mediterranean  although  a meeting  on  regional  integration  in  the  transport  sector  in  the 
Eastern  Mediterranean  will  be  organised  by  Cyprus  in  spring  1997. 

Maritime  transport  is  of  paramount  importance  in  linking  the  countries  of  the 
Mediterranean  Basin  to  the  Union  and  at  a meeting  in  Cyprus  on  14-16  October  the 
EU  and  its  Mediterranean  partners  examined  ways  to  implement  a multi-annual  rolling 
work  programme  for  maritime  transport  in the  Mediterranean,  including  the 
identification  of  possible  projects  of  mutual  interest  suitable  for  Community  financing. 

The  Union  held  bilateral  discussions  in  October  with  Malta  and  Cyprus  concerning 
their  participation  in  the  TEN. 

C.  OTHER  COUNTRIES 

Several  electricity  and  natural  gas projects  linking  the  Union  and  Switzerland  and 
Norway  are  currently  under  way  or  planned  (see  Annex  I  for  details). 

The  Commission  services  launched  a tender  in  July  1996  for  a  comparative  study  of 
surface  transport  routes  between  Europe  and  Asia  (following  up  on  an  independent 
initiative  foreseen  pre-ASEM).  Work  is to  start  in  March  1997,  with  the  final  report 
due  in  September  1997. 

26 

7. POLITICAL AND REGULATORY  PROBLEMS 

A.  ENERGY 

Several  priority  projects  in  the  electricity  sector  are  continuing  to  be  confronted  with 
difficulties  of  an  administrative  nature,  due  primarily  to  delays  in the  granting  of 
building  authorizations.  These  delays  arise  generally  from  the  opposition  of  local 
environment  protection  bodies,  which  is reflected  in  the  attitude  of  local  and,  to  some 
extent,  the  national  administrations.  This  is true  in particular  of  the  electricity 
interconnection  projects  between  France  and  Italy,  France  and  Spain  (the  French 
authorities  announced  unilaterally  on  1 February  that  they  were  abandoning  the 
planned  route  and  looking  for  another),  Italy  and  Greece  (opposition  by  the 
municipalities  concerned  to  the planned  route)  and,  to  a  lesser  extent,  Spain  and 
Portugal. 

B.  TELECOMMUNICATIONS 

In  the  telecommunications  sector,  the  term  "infrastructure"  covers  the  three  layers  of  a 
network:  bearer  physical  infrastructure,  generic  services  and  applications.  In  this 
sector,  the  bottleneck  is mainly  the  availability  of  applications  and  services  matching 
the  socio-economic  needs  of  the  citizens  and  of  the  SMEs. In  this  domain,  the 
uncertainty  on  short  term  commercial  viability,  due  to the  innovative  character  of  the 
application  or  service  or  difficult  organisational  requirements  can  discourage  the 
private  initiative.  The  Union  intervention  will  be  used  to  reduce  the  financial  risk 
created  by  these  uncertainties  and  allow  an  interesting  application  or  service  of  public 
interest  to  be  launched  on  a trans-European  basis  in the  framework  of  a public  -
private  partnership. 

C.  TRANSPORT 

Diverging  priorities  among  Member  States  involved  in the  specific  projects  constitutes, 
in  some  cases,  a  delaying  factor  in  the  preparatory  phase.  It  seems  therefore  crucial  to 
underline  further  the  Union  benefit  of  the  transport  TEN  projects  (and  to  develop 
appropriate  methods  to  quantify  this  benefit).  On  this  basis,  Member  States  should  take 
account  of  the  guidelines  decided  at  Union  level  and  adapt  their  national  priorities  to 
European  priorities;  Union  financial  instruments  should  support  this  objective. 

The  legal  framework  may,  in  certain  cases,  not  be  sufficiently  adapted  to  the  specific 
needs  of  large-scale  transport  infrastructure  projects  in the  transport  sector,  or  the 
application  of  existing  rules  requires  early  clarification.  As  regards  the  development  of 
public-private  partnerships,  problems  have  in  particular  been  identidfied  with  respect 
to  transport  pricing,  public  procurement  and  the  European  Company  Statute.  The 
High-Level  Group  on  public-private  partnership  is analysing  these  problems;  no 
conclusions,  however,  can  be  drawn  at this  stage. 

27 

As  far  as the  competition  rules  are  concerned,  the  Commission  has  adopted  guidelines 
in  its  1995  report  on  TENs,  in  particular  to  speed  up  the  procedures.  Once  a  specific 
agreement  has  been  notified,  and  provided  that  the  parties  have  contacted  the 
Commission,  the  Commission  will  take  the  final  decision  within  6 months. 

8. THE  TEN AS A SOURCE  OF  EMPLOYMENT 

A.  CONFIDENCE  PACT 

In  the  "Confidence  Pact"  which  he  unveiled  on  5 June,  President  Santer  stressed  that 
the  implementation  of  the  TEN  and  the  construction  of  the  14 specific  projects  could 
contribute  substantially  to  creating  employment,  directly  and  indirectly  (the  Confidence 
pact"  covers  of  course  a much  wider  field  than just  the  TEN).  This  echoed  the  ideas 
underlying  Title  XII  of  the  Treaty  and  the  arguments  put  forward  in  the  Commission's 
1993  White  Paper  on  "Growth,  competitiveness,  employment".  The  TEN,  in  addition 
to  their  immediate  benefits  for  the  energy,  telecommunications,  transport  (and 
environment)  sectors,  will  also  have  a broader  positive  impact  on  social  and  economic 
cohesion,  on  the  implementation  of  the  internal  market  and  on  growth,  competitiveness 
and  employment. 

B.  REPORT  TO  THE  EP 

In  a resolution  on  the  1997 budget  voted  at the  end  of  its  March  session  in  Brussels 
the  EP  asked  the  Commission  to  submit  to  it  a report  on the  employment  creation 
potential  of  the  TEN.  The  Commission  plans  to  submit  its  report  presenting  a  first 
tentative  assessment  ("The  likely  macroeconomic  and  employment  impact  of 
investments  in  trans-European  transport  networks")  to  the  Parliament  in  November. 
The  executive  summary  of  this  report  is to  be  found  in  annex  X;  its  main  points  are  : 

-  The  economic  effects  of  the  completion  of  the  14 specific  projects  identified  by  the 
Essen  European  Council  are  highly  positive:  the  cumulative  gain  in  GDP  would 
exceed  560  billion  ECU  by  the  year  2030.  This  represents  a  socio-economic  return 
of  some  11%. 

-  The  completion  of  the  14 specific  projects  identified  by  the  Essen  European 

Council  would  create  additional  employment  of  700,000  man  years  during  the  first 
decade  (1998-2007).  The  construction  of  the  full  transport  TEN  as  set  out  in  the 
Community  guidelines  would  lead  to  an  increase  in  employment  of  some  3,200,000 
man  years. 

-  Based  on  a  set  of  cautious  assumptions,  the  range  of  estimates  for  long  term 

permanent  employment  effects  in the  economy  as  a whole  is between  130,000  and 
230,000  extra jobs  for  the  14 Essen  projects  and  between  594,000  and  1,030,000 
extra jobs  for  all  the  projects  in  the  T-TEN  guidelines.  However,  if  workers  could 
be  persuaded  to  take  the  productivity  increases  resulting  from  TEN  investment  in 
additional  employment  rather  than  higher  real  wages,  then  the  increases  in jobs 
would  be  dramatically  higher:  from  at  least  570,000  in  the  case  of  the  14 Essen 
projects,  to  as  much  as  4,700,000  for  the  whole  network. 

29 

- 

It  is  important  to  point  out  that  the  above-mentioned  estimations  are  based  on  the 
assumption  that  there  is  no  significant  overcapacity  in  the  economy  and  that, 
therefore,  T-TEN  investments  tend,  in the  short-term,  to  crowd  out  some  alternative 
investment  projects  that  would  otherwise  be undertaken.  However,  the  present 
macroeconomic  environment  in  the  European  Union  with  high  unemployment  and 
low  interest  rates  indicates  that  significant  spare  capacity  seems  to  be  available. 
Accordingly,  it  can  be  expected  that  a political  push  for  quick  T-TEN 
implementation  would  generate  even  more jobs  than  estimated  on  the  basis  of  the 
conservative  assumptions  used  in this  report. 

-  Macroeconomic  and  structural  policies  are particularly  important  for  likely 

employment  effects.  This  is especially  true  for  those  policies  that  influence  the 
functioning  of  goods,  capital  and  labour  markets  by  enhancing  competition, 
reducing  rigidities  and  facilitating  structural  adjustment. 

-  Transport  infrastructure  investments  on their  own  will  clearly  not  solve  Europe's 

unemployment  problem  and  T-TENs  should  not  be judged  solely  on  their  ability  to 
create jobs.  Other  important  benefits  are  likely  to  accrue. 

At  the  same  time  DG  XIII  and  DG  XVII  undertook  more  limited  studies  of  the 
employment  creation  potential  of  TENs  in the  telecommunications  and  energy  sectors 
respectively.  It  is  important  to  note  that  the methodologies  used  in  these  two  studies 
are  not  the  same  as that  used  in  the  report  for  the  EP  and  therefore  the  results  cannot 
be  compared. 

The  DG XIII  desk  study  reviews  the  results  of  the  most  recent  studies  which  have 
attempted  to  investigate  the  impact  of  investment  in telecommunications  and  the 
development  of  the  information  society  on  employment,  and  to  derive  from  the 
fragmented  views  which  they  offer  the  likely  impact  of  the  ECU  2 000  million 
expected  to  be  generated  by  Community  action.  Using  relatively  optimistic 
assumptions,  it  estimates  that  a pro-active  scenario  of  ICT  investments  such  as  the  150 
-billion  ECU  mentioned  in  the  Commission's  White  Paper  on  Growth,  Competitiveness 
and  Employment  over  a  15 year  period  (1993-2008),  would  result  in  a  long  term  1.3% 
incremental  increase  in job  creation.  For  each  million  ECU  of  TEN  investment 
induced  by  the  Community  contribution  there  would  be  a  long  term  increase  of  12 
jobs.  On  the  other  hand,  studies  made  at  national  level  indicate  that  the  number  of jobs 
created  for  every  ECU  1 million  invested  in  the  information  infrastructure  lies  in  the 
range  of  2.5  and  37.5 jobs.  In  a  different  context,  a recent  study  of  the  impact  of 
telecommunications  liberalisation  on  employment  in  Europe  indicates  that  the 
combined  effects  of  liberalisation  and  technology  diffusion  spearheaded  by 
infrastructure  investments,  notably  in  alternative  infrastructures  and  interactive 
multimedia  applications,  could,  according  to  one  of  the  scenarios,  create  900,000  jobs 
by  2005. 

The  report  stresses  that  "these  numbers  have  to  be  treated  with  extreme  caution  as 
there  are  based  on  extrapolations  from  different  countries,  which  themselves  are 
subject  to  considerable  methodological  and  practical  difficulties  and  uncertainties.  In 
particular,  considerable  difficulties  exist  in trying  to  accurately  quantify  the  multiplier 

30 

effects  of  investments  in telecommunications  infrastructures  that  can  "spill  over"  onto 
almost  every  other  sector  of  the  economy." 

According  to  the  DG  XVII  study,  "available  figures  on  temporary  employment  show 
that  approximately  20,000  man-years  can  be  expected  during  the  building  phase  of  a 
sample  of  electricity  networks  (corresponding  investments:  1,300  MECU)  and 
approximately  15,000 man-years  in the  building  of  a  sample  of  gas networks  (for 
investments  of  2,600  MECU).  Taking  into  account  the  (small)  differences  in projects, -
and  adjusting  for  the  extent  of  inaccuracy  in the  figures  provided,  lead  to  rough 
estimates  of  65,000  man-years  for  a total  (actual  blown)  investment  of  4,000  MECU 
on  electricity  networks  and  35,000  man-years  for  a total  (actual  known)  investment  of 
11,500  MECU  on  gas networks.  This  predicted  total  of  100,000  man-years  should  be 
spread  over  the  duration  for  building  the  energy  TEN  (between  5 and  10 years: 
average  of  10,000  to  20,000  man-years  a year)." 

31 

9. OTHER  UNION POLICIES WITH A TEN DIMENSION 

A.  EUROPEAN  COMPANY  STATUTE 

The  Commission  takes  the  view  that  "project  authorities"  should  be  created  - at  least 
temporarily  - to  organise  and  implement  major  infrastructure  projects.  The 
development  of  such  authorities  would  be  facilitated  if  a European  Company  Status 
existed,  which  would  allow  their  development  into  profit-making  bodies  once 
construction  starts.  At  present  no  suitable  legal  vehicle  exists  at  Union  level,  thus 
unnecessarily  increasing  project  costs  and  hampering  development.  The  "Confidence 
Pact"  which  the  Commission  submitted  to  the  Florence  European  Council  stressed  the 
need  for  the  Council  to  adopt  the  ECS  as quickly  as possible.  In  the  absence  of 
progress  on  the  ECS  the  Commission  is  studying  the  possibility  of  proposing  a  limited 
form  of  ECS  tailor-made  for  TEN  projects. 

B.  COMPETITION  POLICY 

Evolution  of  the  situation  since  the  last  report 

In  the  course  of  1996  the  Commission  pursued  its  efforts  to  provide  parties  involved 
in  the  financing  of  TEN  with  all  the  necessary  information  on  the  competition  rules 
that  would  allow  them  to  qualify  for  exemptions  decisions. 

As  announced  in  the  1995  TEN  annual  report,  the  Commission  set  up  a  one-stop  help 
desk  (fax+32-2/295  65  04)  to  advise  project  managers  and  other  interested  parties  as 
regards  Union  legislation  on  competition  policy  and  public  procurement.  Few  requests 
for  information  were  made.  Those  that  were  made  were  dealt  with  promptly  and  to  the 
satisfaction  of  the  inquirers. 

C.  PUBLIC  PROCUREMENT 

In  order  to  avoid  delays  in  projects  as a result  of  misunderstandings  related  to  the 
Union's  public  procurement  rules,  the  Commission  also  recommended  in  its  1995 
annual  report  on  the  TEN  that  project  managers  of  the  14 specific  projects  should 
consult  the  Commission  before  the  publication  of  tender  documents.  For  this  purpose  a 
One-Stop  Help  Desk  (fax  +32-2/295  65  04)  was  established  in  the  Commission  to 
channel  such  requests.  The  number  of  consultations  made  in  1996  was  small. 

To  inform  all  interested  parties  about  the possibilities  for  public/private  sector 
cooperation  offered  by  the  Union's  public  procurement  rules  and  allow  them  to 
express  and  discuss  their  project  needs,  a Green  Paper  on public  procurement  in  the 
EU  will  be  issued  in  the  course  of  the  following  months. 

32 

D.  COMPLEMENTARITY  WITH  STRUCTURAL  POLICIES 

As  the  figures  in  Table  1 of  Chapter  4  show,  the  Structural  Funds  are  by  far  the  main 
source  of  Union  funding  for  the  TEN.  It  is vital  therefore  that  the  Member  states 
ensure  continuing  horizontal  and  vertical  coordination  between  on  the  one  hand  their 
departments  dealing  with  transport,  energy,  telecommunications,  and,  on  the  other 
hand,  the  various  levels  of  national,  regional  and  local  administration  involved  in 
channelling  financial  assistance  from  the  Structural  Funds.  In practical  terms  it  is 
essential  that  officials  whose  primary  concern  is regional  development  should  be 
adequately  informed  and  kept  up-to-date  as regards  the  Union's  TEN  policy. 

E.  TRANSPORT  POLICY 

The  Commission  made  in  the  course  of  the  last  twelve  months  two  transport  pricing 
proposals  which  are  directly  relevant  to  the  development  of  TENs  tlirough  PPPs  and  to 
ensuring  fair  competition  among  the  different  modes  of  transport.  In  its  Green  Paper 
"Towards  fair  and  efficient  pricing  in  transport"14  the  Commission  devotes  one  of  the 
chapters  to  the  question  of  infrastructure  costs  and  congestion,  pleading  for  cost 
recovery  through  user  charges  and  pointing  out  the  importance  of  efficient 
infrastructure  pricing  to  facilitate  the  introduction  of  PPPs.  The  second  proposal12  aims 
at  renewing  the  "Eurovignette"  93/89/EEC  directive  with  a view,  further  to  the  general 
objective  of  furthering  the  development  of  the  internal  market  in  road  transport,  to 
ensuring  a  better  recovery  of  costs  associated  with  road  use,  including  infrastructure 
recovery  plus  externalities.  This  would  allow  for  a greater  differentiation  in  charges  in 
line  with  costs,  and  would  be  a  step  towards  the  principle  of  territoriality  in  charging 
for  road  use. 

The  various  green  and  white  papers  which  the  Commission  adopted  in  the  course  of 
the  last  12 months  on  "A  citizens  network13",  "Towards  fair  and  efficient  pricing  in 
transport"14  and  "The  revitalisation  of  Europe's  railways"15  have  contributed  in  a  broad 
way  to  create  a  more  favourable  context  for  TEN. 

F.  ENVIRONMENT 

The  green  and  white  papers  mentioned  above  have  also  helped  create  a  greater 
awareness  of  the  need  to  ensure  that  the  development  of  the  TEN  should  be 
compatible  with  the  Union's  environment  protection  and  sustainable  development 
policies.  The  Commission  has  on  several  occasions  expressed  its  intention  to  study 
further  the  environmental  consequences  of  the  trans-European  transport  network.  The 
Decision  of  the  European  Parliament  and  the  Council  of  23  July  on  Community 
guidelines  for  the  development  of  the  transport  TEN  requires  the  Commission  to 
develop  methods  for  the  strategic  environmental  assessment  of  the  whole  network  and 

COM  (96)  331.  24  July  1996 
COM  (95)  601  of  21  November  1995 
COM  (95)  691  of  20  December  1995 
COM(96)  421  of  23  July  1996 

33 

for  corridor  assessments. The results of this work shall, where appropriate, be taken 
into account  by the Commission  in its report on the revision  of the guidelines, which 
is due on  1 July  1999. The Commission  services have started  technical  work with a 
view to responding to this requirement. 

34 

ANNEX  I:  PROGRESS  MADE  ON  THE  ENERGY  NETWORKS  IN  1996 

•  Projects  of  common  interest  included  in the  Guidelines (Decision no  1254/96  EC of  5 

June  1996 O.J.  no  L  161) and 

•  Projects proposed  by the  Commission for  inclusion in the  Guidelines (COM  (96) 390  of 24 

July  1996).  (in italic) 

(Short  indication of  the  stage reached  by  these projects by  end  1996) 

ELECTRICITY NETWORK PROJECTS 

PROJECT 

STAGE  REACHED  AND 
E.U.  FINANCIAL  INTERVENTION 

al  UNITED  KINGDOM 

Connection  by  submarine  cable  of Northern  Ireland  to 
Scotland. 

*  Island  Magee-Coylton 

a4  GREECE  -  ITALY 

Connection  by  submarine  cable  of  Greek  network  to  Italian 
network  through  north-western  Greece  and  south-eastern  Italy. 

*  Ipiros-Puglia 

u7  UNITED  KINGDOM 

Connection  by submarine  cable  of  the  Isle of  Man. 

Authorisation  procedures  ongoing. 
Expected  commissioning:  1997. 
EU  financial  intervention 
CSF:  81  MECU. 

Project  declared  as  "priority  project"  at  the  Essen 
Summit  (December  1994). 

Study  completed  but  construction  delayed  by 
authorisation  procedures. 
EU  financial  intervention 
REGEN: 
INTERREG: 
EIB  loan: 

35  MECU 
78,5  MECU 
100  MECU 

Pre-feasibility  studies  ongoing. 
Commissioning  Autumn  1999. 
EU  financial  intervention 
TEN line:  co-jinancing  of studies  (under 
appraisal) 

bl  GERMANY  -  DENMARK 

Connection  by  submarine  cable  between  the  German  network 
(UCPTE)  and  Denmark's  eastern  network  (NORDEL). 

This  project  became  operational  in  1996. 

*  Bjawerskov-Bentwisch 

_ 

I 

35 

b4 

FRANCE  -  BELGIUM 

Completion  of  connection  between  the  two  countries'  networks 
through  north-eastern  France  and  southern  Belgium. 

Authorisation  procedures  ongoing, 
Commissioning:  1999. 

*  Moulaine-Aubange. 

b5  FRANCE-  GERMANY 

Strengthening  of  the  connections  between  the  two  countries. 

Authorisation  procedures  ongoing. 
Commissioning  in  1999 

b6 

FRANCE  -  ITALY 

Connection  between  the  two  countries'  networks  through  south- 
eastern  France  and  north-western  Italy. 

*  Grand  île-Piossasco 

b7 

FRANCE  -  SPAIN 

Land  connection  between  the  two  countries'  networks  through 
south-western  France  and  northern  Spain. 

' 

*  Cazaril-Aragon  or  alternative  route/layout. 

Project  declared  as  "priority  project"  at  the  Essen 
Summit  (December  1994). 

Authorisation  procedures  ongoing, 
Expected  beginning  of  works:  1998. 
Commissioning:  2000. 
EU  financial  intervention 
TEN  line:  co-financing  of  studies  in  1995. 

Project  declared  as  "priority  project"  at  the  Essen 
Summit  (December  1994). 

Project  suspended.  75% of  the  Spanish  line  built, 
Feasibility  studies  on  new  routes  ongoing. 
EU  financial  intervention 
TEN  line:  co-financing  of  studies  in  1995 

[and  in  1996]. 

b9  BELGIUM  -  LUXEMBOURG 

Connection  between  the  two  countries'  networks. 

*  Aubange-Bertrange 

Authorisation  procedures  ongoing. 
Commissioning:  2000. 

36 

blO  SPAIN  -  PORTUGAL 

Strengthening  and  completion  of  connections  between  the two 
countries  through  the  regions  of  northern  Portugal  and  north- 
western  Spain. 

Project  declared  as  "priority  project"  at  the  Essen 
Summit  (December  1994). 

*  Aldeadavila-Douro  International. 

*  Mesôn-Lindoso 

Pre-feasibility  studies. 
Expected  beginning  of  works:  2002. 
Commissioning:  2004. 

In  operation  since  December  1995 through  a 
longer  circuit.  The  complete  project  will  be 
operational  in  the  beginning  of  1997. 

EU  financial  intervention 
CSF  (Spain) 
EIB  loan: 

3  MECU 
26  MECU 

blO(a)  SPAIN  -  PORTUGAL 

New  connection  between  the  two  countries  through  the Southern 
region  of  Portugal  and  the South-West  of Spain 

Prefeasibility  studies, 
Commissioning:  after  2000. 

b ll  FINLAND  -  SWEDEN 

Strengthening  interconnections  north  of  the  Gulf  of  Bothnia. 

Project  decided. 
EU  financial  intervention 
TEN  line:  co-financing  of  studies  in  1995 

[and  in  1996]. 

bl2  AUSTRIA  -  ITALY 

Strengthening  connections  between  the North  of  Italy  and  the 
Austrian  network. 

*  Lienz-Cordignano. 

. 

Authorisation  procedures  ongoing. 
Commissioning:  2002. 
EU  financial  intervention 
TEN  line:  co-financing  of  studies  in  1995. 

bl3 

IRELAND  -  UNITED  KINGDOM  (N.  IRELAND) 

Strengthening  of connections  between  Ireland  and  Northern 
Ireland. 

Pre-feasibility  studies  ongoing. 
EU  financial  intervention 
TEN line:  co-financing  of studies  (under 
appraisal) 

bl4  AUSTRIA  -  GERMANY 

Strengthening  of  the  connections  between  the  two  countries. 

Commissioning:  after  2000. 

37 

bl5  THE  NETHERLANDS-  UNITED  KINGDOM 

Connection  by submarine  cable  between south-eastern  England 
and  central  Netherlands. 

c2  DENMARK 

Connections  by  submarine  cable  between  the  country's  western 
(UCPTE)  and  eastern  (NORDEL)  networks. 

Pre-feasibility  studies  ongoing, 
EU financial  intervention 
TEN line: co-financing  of studies  (under 
appraisal) 

Project  declared  as  "priority  project"  at  the  Essen 
Summit  (December  1994). 

Project  decided.  Discussions  on  the  financing  of 
the  project  are taking  place.  The  initial  date  for 
commissioning  (1997)  has  been  postponed. 

c3  THE  NETHERLANDS 

Strengthening  connections  in  the  North-East  of  the  country. 

Under  construction. 

*  Zwolle-Meeden-Eemshaven. 

c4  FRANCE 

Strengthening  connections  in  the North-East  of  the  country. 

Authorisation  procedures  ongoing. 
Commissioning:  1999. 

*  Sierrentz-Mulbach. 

c5  ITALY 

Strengthening  and  developing  connections  on  the  East-West  axes 
in  the  North  of  the  country  and  on  the  North-South  axis. 

*  15  sub-projects. 

c5(a)  ITALY 

Some  sections  are  under  construction  and  others 
in  the  authorisation  procedure  phase. 
Commissioning  from  2001  to  2004. 
EU  financial  intervention 
TEN  line:  co-financing  of  studies  in  1995. 

Strengthening  and  development  of connections  on the East-West 
axis  in  the  North-West  of  the  country  and  on  the North-South 
axis  in  the  centre  of  the  country. 

Feasibility  studies  ongoing. 
Commissioning: from  2000  to  2002. 
EU financial  intervention 
TEN line:  co-financing  of studies  (under 
appraisal) 

c6  SPAIN 

Strengthening  and  developing  connections  in  the  regions  in  the 
North  of  the  country  and  in  the  regions  along  the  Mediterranean 
axis. 

North  axis: two  out  of  three  sections  are  under 
construction,  the  other  in  the  feasibility  study 
phase.  Commissioning  will  vary  from  1996  to 
2000. 
Mediterranean  axis:  the  sections  of  the  South  are 
under  construction  and  the  expected 
commissioning  date  is  1997. The  section  that 
will  connect  with  France  is  in  the  feasibility 
study  phase  and  commis 
sioning  is  expected  for  the  year  2004. 

EU  financial  intervention:  EIB  loan  (25,1 
MECU)  for  the  line  Pinar-Tajo. 
TEN  line:  co-financing  of  studies  in  1995 

[and  in  1996]. 

c7  PORTUGAL 

Strengthening  connections  necessary  for  interconnections  with 
Spain  in  the  North  and  Centre  of  the  country. 

*  Recarei-Douro  International 

Feasibility  studies.  Commissioning:  June 2001. 

Pego-Rio  Maior  II. 

c8  GREECE 

Authorisation  procedures  ongoing. 
Commissioning:  September  98. 

EU  financial  intervention: 
TEN  line:  co-financing  of  studies  for  the 
Recarei-Douro  International  line  in  1995. 

Strengthening  connections  on  the  East-West  axis  in  the North  of 
the  country. 

Prefeasibility  studies. 
Commissioning  : 2000-2002. 

c9  IRELAND 

Strengthening  of connections  in the North-West  of  the country. 

Feasibility  studies  ongoing. 

clO  SPAIN 

Strengthening  and  development  of connections  in the North-East 
and  West of  the  country,  in particular  to  connect  to the network 
production  capacities  of  electricity  generated from  wind-power. 

Pre-feasibility  studies  ongoing, 
Feasibility  studies  and  Environmental  Impact 
Assessments  in  1997 and  1998. 
EU  financial  intervention 
TEN line:  co-financing  of studies  (under 
appraisal) 

39 

ell 

SWEDEN 

Strengthening  and  development  of  internal  connections. 

. 

Feasibility  study  in  1997. 

cl2  GERMANY 

Development  of connections  in the North  of  the country. 

d2  GERMANY-  POLAND 

Strengthening  of  the connections  between  the  two  countries. 

Some  sections  under  construction.  Other  sections: 
authorisation  procedures  ongoing. 
Planned  commissioning  of  the complete  project: 
1998. 

Hagenwerder  (DE) - Mikulowa  (POL): 
commissioning  1998. 
Neuenhagen  -  Vierraden (DE) -  Krajnik  (POL): 
commissioning  after  2000. 

d3  GERMANY-  NORWAY 

Connection  by  submarine  cable  between  northern  Germany 
(UCPTE)  and  southern  Norway  (NORDEL). 

Feasibility  studies. 
Commissioning:  2003. 

d5 

ITALY  -  SWITZERLAND 

Strengthening  connections  between  northern  Italy  and 
Switzerland. 

Under  construction. 
Commissioning:  1997  or  1998. 

*  Gorlago-Robbia. 

(18  GREECE-  BALKAN  COUNTRIES 

Strengthening  of connections  between  Greece and,  respectively, 
Albania,  Bulgaria  and former-Yugoslavia,  including  the 
restoration  of  the connections  with  the North  of former- 
Yugoslavia  and  the  UCPTE  network. 

• 

Feasibility  studies:  ongoing. 
EU  financial  intervention 
TEN line: co-financing  of studies  (under 
appraisal) 

<\9  GREECE  -  TURKEY 

Connections  between  the  two  countries  through  north-eastern 
Greece. 

*  Thessaloniki-Hamitabat. 

Section  from  Thessaloniki  (GR)  to  Philippi  (GR): 
under  construction. 
Section  from  Philippi  (GR)  to  Hamitabat  (TU): 
planned. 

40 

dlO  UNITED  KINGDOM  - NORWA Y 

Connection  by submarine  cable  between  the NorthJeaster/eastern 
England  and  southern  Norway  (NORDEL). 

d ll  THE  NETHERLANDS-  NORWAY 

Connection  by  submarine  cable  between  the  north-eastern 
Netherlands  (UCPTE)  and  southern  Norway  (NORDEL). 

dl3  SPAIN  -  MOROCCO 

Connection  by  submarine  cable  between  southern  Spain  and  the 
Moroccan  network. 

*  Pinar-Melloussa. 

dl4  BALTIC  RING:  GERMANY  -  POLAND  -  RUSSIA  -

ESTONIA  -  LATVIA  -  LITHUANIA  -  SWEDEN  -
FINLAND  -  DENMARK  -  BELARUS. 

Strengthening  and  developing  connections  between  these 
countries'  networks  by  overground  and/or  submarine  cables. 

(115  SWEDEN  -  NORWAY 

Strengthening  of  the  connections  between the  two  countries. 

Pre-feasibility  studies  completed. 
Feasibility  studies  and  seabed  survey  in  1997 
and  1998. 
Commissioning:  2004. 
EU  financial  intervention 
TEN line: co-financing  of studies  (under 
appraisal). 

Project  decided. 
Commissioning:  2001. 
EU  financial  intervention  : 
TEN  line  : co-financing  of  studies  [in  1996]. 

Under  construction. 
Commissioning:  1997. 
EU  financial  intervention: 
Co-financing  of  studies  from  the  1995  TEN 
budget. 
INTERREG:  12.5  MECU. 

Pre-feasibility  studies, 
EU  financial  intervention  : 
TEN  line:  co-financing  of  studies  in  1995 

[and  in  1996]. 

Some  sections  are  in the  authorisation  procedure 
phase.  Others are  in the feasibility  or  pre-
feasibility  stage. 
EU financial  intervention 
TEN line:  co-financing  of studies  (under 
appraisal) 

(116  EU  -  BELARUS  -  RUSSIA  -  UKRAINE 

Development  of connections  and  interface  between  the  (extended) 
UCPTE network  and  the  networks  of third  countries  in Eastern 
Europe,  including  the  relocation  of  the  HVDC conversion 
stations  operating previously  between Austria  and  Hungary, 
Austria  and  the  Czech  Republic  and  Germany  and  the Czech 
Republic. 

Some  technical  studies  have  been/will  be 
undertaken. 
EU financial  intervention 
Interface study  supported  by  PHARE/TACIS 
TEN line:  co-financing  of studies  (under 
appraisal) 

41 

NATURAL GAS NETWORK PROJECTS 

PROJECT 

STAGE  REACHED  AND 
E.U.  FINANCIAL  INTERVENTION 

e4  SPAIN 

Setting  up  gas  networks  in  the  regions  of  Galicia,  Extremadura, 
Andalusia,  Valencia-South,  Murcia,  including  an  LNG  terminal 
in  Galicia. 

e5  PORTUGAL 

Setting  up  in  the  country,  in  particular  along  the  Atlantic 
coastline,  of  a gas  network. 

*  Setubal-Braga. 

e5(a)  PORTUGAL 

Construction  of an  LNG  terminal  on  the Atlantic  coast. 

42 

Galicia:  project  decided. 
Commissioning:  June  1998. 
Extremadura:  under  construction. 
Commissioning:  June  1998. 
Andalusia:  under  construction. 
Commissioning:  1997. 
Valencia  South:  under  construction. 
Commissioning:  September  1997. 
Murcia:  under  construction. 
Commissioning:  September  1997. 
Enlargement  LNG  terminal  Cartagena:  project 
planned.  Commissioning:  2000. 
LNG  Galicia:  project  postponed. 

EU  financial  intervention: 
INTERREG  II:  80  MECU  committed  for 
interconnections  with  Portugal  (through  Galicia 
and  through  Andalucia  and  Extremadura). 
CSF: 
Valencia-Cartagena:  107  MECU  under 
appraisal.. 
Upgrading  LNG  terminal  at  Huelva 
(Andalucia):  7 MECU  committed. 
Western  pipeline  (Castilla  y  Leôn,  Extremadura 
and  Asturias):  95  MECU  under  appraisal. 
Oviedo-Ribadeo  (Asturias):  10 MECU  under 
appraisal. 

Project  declared  as  "priority  project"  at  the 
Essen  Summit  (December  1994). 

Under  construction.  Commissioning:  beginning 
of  1997. 
EU  financial  intervention 
REG EN: 
82 
INTERREG  II:  70 
CSF: 
EIB  loan  (354  MECU)  and  ECSC  loan  (102 
MECU)  for  this  project  and  its  interconnec 
tions  with  Spain  (see  project  f6). 

21 

Planning  phase. 
Possible  date  of  operation:  2002 

PROJECT 

STAGE  REACHED  AND 
E.U.  FINANCIAL  INTERVENTION 

e6  GREECE 

Setting  up  a gas  network  in  the  country,  in  particular  along  the 
Aegean  coastline,  including  an  LNG  terminal  in  Attica  and 
storage  facilities. 

*  Bulgaria-Athens 

LNG  at  Revithoussa. 

fl  IRELAND  -  UNITED  KINGDOM  (N.  IRELAND) 

Connection  between  the  gas  networks  of  Ireland  and  the  United 
Kingdom  (Northern  Ireland). 

Project  declared  as  "priority  project"  at  the 
Essen  Summit  (December  1994). 

Main  North-South  pipeline:  construction 
completed  and  commissioning  : end  1996. 
High  pressure  branches  and  LNG  terminal: 
under  construction. 

EU  financial  intervention 
REGEN: 
INTERREG  II: 
CSF: 
EIB  loan: 
ECSC  loan: 

87 
180 
262 
300 

83 (+  97  requested). 

TEN  line:  In  1995, co-financing  of  studies  for 
storage  facilities  and  extensions  of  the  network. 
[In  1996], co-financing  of  a study  for  the 
introduction  of  gas  in  Crete. 

Prefeasibility  studies. 
Possible  commissioning:  2000. 
EU  financial  intervention: 
TEN  line:  co-financing  of  studies  in  1995. 

f2  UNITED  KINGDOM  -  CONTINENT 

Submarine  connection  between  the  gas  networks  of the  United 
Kingdom  and  the  continent  through  Belgium. 

Construction  works  began  in  October  1996. 
Authorisation  procedures  ongoing. 
Expected  commissioning:  October  1998. 

*  Bacton-Zeebrugge. 

f3  LUXEMBOURG  -  GERMANY 

Establishing  a connection  to  supply  Luxembourg  from  the 
German  networks. 

Prefeasibility  studies. 

fS 

FRANCE-SPAIN 

Strengthening  of  transport  capacity  between  the  two countries. 

For  a new  line: feasibility  studies  ongoing; 
probable  commissioning  in 2001. 
For  a  new  compressor  station  :  authorisation 
procedures  and  beginning  of the  work  are 
expected  in  1997; commissioning  probably  in 
1999. 

43 

PROJECT 

STAGE  REACHED  AND 
E.U.  FINANCIAL  INTERVENTION 

f6 

PORTUGAL  -  SPAIN 

Constructing  gas  pipelines  to  supply  Portugal  through  southern 
Spain  and  to  supply  Galicia  and  Asturias  through  Portugal. 

Project  declared  as  "priority  project"  at  the 
Essen  Summit  (December  1994). 

*  Leiria-Cordoba 

Braga-Tuy-Oviedo. 

P 

FRANCE 

Connection  through  Southern  Spain: 
under  construction. 
Commissioning:  beginning  of  1997. 

Connection  to  Galicia:  work  about  to  begin. 
Commissioning:  end  1997. 
EU  financial  intervention 
INTERREG: 
Portuguese  CSF: 
EIB  and  ECSC  loans: 

(see  project  e5). 

150 
6 

Connection  of the  networks  of  the South-West  and  of the South 
of  the country. 

Authorisation  procedures  ongoing, 
Commissioning  by July  1997. 

f8 

AUSTRIA  -  GERMANY 

Strengthening  of  transport  capacity  between Austria  and 
Bavaria. 

Authorisation  procedures  ongoing. 
Expected commissioning:  1998. 

f9 

AUSTRIA  -  HUNGARY 

Connection  between  the  networks  of  the two  countries. 

The line  Baumgarten  (A)  -  Gyôr  (H)  has  been 
completed.  Gas  deliveries  began  in  October 
1996. 
For  the line  Wiener Neustadt  (A)  - Sopron  (H) 
a feasibility  study  is  under  way. 

flO  AUSTRIA  -  SLOVAKIA 

Connection  of Austria  to  underground  storage  in Slovakia. 

Under construction. 
Expected commissioning  date:  1997. 

fll 

AUSTRIA 

Connection  between  gas pipelines  linking  Austria  to, 
respectively,  Germany  and  Italy. 

Authorisation  procedures  ongoing, 
Beginning  of the  work  expected  in 1997. 
Commissioning  by Autumn  1998. 

44 

PROJECT 

STAGE  REACHED  AND 
E.U.  FINANCIAL  INTERVENTION 

fl2  GREECE  -  ALBANIA 

Connection  between  the  networks  of  the  two  countries. 

Preliminary  data  collection  ongoing. 
EU  financial  intervention  : 
TEN line  : co-financing  of studies  (under 
appraisal) 

gl 

IRELAND 

Developing  natural  gas  storage  facilites  to  supply  the  Irish 
network. 

Prefeasibility  studies, 
EU  financial  intervention 
TEN  line:  co-financing  of  studies  [in  1996]. 

g3 

FRANCE 

Extending  capacity  of  existing  LNG  terminal  in  western  France. 

*  LNG  of  Montoir. 

g4 

ITALY 

Prefeasibility  studies. 

Construction  of  new  LNG  terminal  to  allow  diversification  of 
supplies,  in  particular  for  electricity  generation. 

Authorisation  procedure  phase, 
Expected  commissioning  date: 2001. 

*  LNG  terminal  at  Montalto  di  Castro. 

g7 

FRANCE 

Extension  of  underground  storage  capacities  in  the South-West 
of the  country. 

Authorisation  procedures  ongoing, 

g8 

SPAIN 

Development  of  underground  storage  capacity  on  the  country's 
North-South  axis. 

*  Storage  at  Huete. 

Storage  at  Nueva  Carteya. 

g8(a)  SPAIN 

Development  of  underground  storage  capacities  on the 
Mediterranean  axis. 

Feasibility  studies. 
EU  financial  intervention 
TEN  line:  co-financing  of  studies  in  1995 

[and  in  1996]. 

Feasibility  studies  ongoing. 
Commissioning  between  1998 and  2005. 
EU  financial  intervention 
TEN line:  co-financing  of studies  (under 
appraisal) 

45 

PROJECT 

STAGE  REACHED  AND 
E.U.  FINANCIAL  INTERVENTION 

g9 

PORTUGAL 

Constructing  an  underground  storage  facility. 

Prefeasibility  studies. 
EU  financial  intervention: 
Portuguese  CSF  : 52  MECU. 

g ll  BELGIUM 

Extending  existing  underground  storage  capacity  in  northern 
Belgium. 

*  Storage  at  Loenhout. 

Project  decided. 

gl2  DENMARK 

Extending  underground  storage  capacity  by  increasing  capacity 
Feasibility  study  phase, 
on  existing  sites  or  creating  a new  site  close  to  the  frontier  with  Commissioning:  2000. 
Germany. 

EU  financial  intervention 
TEN  line:  co-financing  of  studies  in  1995 

[and  in  1996]. 

gl3 

AUSTRIA 

Extension  and  development  of  underground  storage  capacities. 

Puchkirchen: feasibility  studies  and 
authorisation  procedures  ongoing. 
Expected  commissioning  in 1999. 
Eurostorage  Baumgarten: feasibility  studies 
ongoing. 
EU  financial  intervention 
TEN line  : co-financing  of studies  for 
Eurostorage  Baumgarten  under  appraisal. 

hi  NORWAY-  FRANCE 

Construction  of a  4th gas  pipeline from  Norwegian  resources 
(North  Sea)  to  the  Continent. 

Authorisation  procedures  ongoing. 
Works will start  early 1997. 
Commissioning  1998. 

h3  NOR WA Y - DENMARK  - SWEDEN  -  FINLAND  -

R USSIA  -  BA L TIC ST A TES 

Creation  and  development  of connections  between  the networks 
of  these  countries  with  a  view  to setting  up an  integrated gas 
network, 

Feasibility  study  phase, 
Works are expected  to start  in  1998 foi-
commissioning  between  2002  and  2005 for  the 
several  stages  of the  projects. 
EU  financial  intervention 
TEN line:  co-financing  of studies  (under 
appraisal) 

46 

PROJECT 

STAGE  REACHED  AND 
E.U.  FINANCIAL  INTERVENTION 

h4  ALGERIA  -  SPAIN  -  PORTUGAL  -  FRANCE 

Construction  of  new  gas  pipelines  to  allow  Spain  and  Portugal 
initially,  and  subsequently  France,  to  be  supplied  from  Algeria 
via  Morocco. 

Project  declared  as  "priority  project"  at  the 
Essen  Summit  (December  1994). 

1st phase (up  to  Cordoba):  commercial 
operational  began  in November  1996. 
2nd  phase  (to  connect  with  France): 
prefeasibility  studies. 
Commissioning:  after  2000. 
EU  financial  intervention: 
EIB  loans: 641  MECU  for  works  from  Algeria 
to  Tarifa. 
Spanish  CSF:  99  MECU. 

h5  ALGERIA  -  TUNISIA  -  ITALY 

Increasing  the  transport  capacity  of  the  trans-Mediterranean  gas  Work  well  advanced, 
pipeline  to  Italy  from  Algerian  resources. 

Commissioning:  1997. 

h6  RUSSIA  -  UKRAINE  -  EU 

Increasing  transport  capacity  to  the  European  Union  from 
Russian  resources  via  the  main  existing  axis  through  the 
Ukraine,  Slovakia  and  the  Czech  Republic. 

Prefeasibility  studies. 

h7  RUSSIA  -  BELARUS  -  POLAND  -  EU 

Creation  of  a second  transport  axis  from  Russian  resources  to 
the  European  Union  via  Belarus  and  Poland. 

Project  declared  as  "priority  project"  at  the 
Essen  Summit  (December  1994). 

Section  in  Poland  : under  construction  (a  first 
phase,  including  the  Oder  crossing,  has  been 
completed). 
Sections  in  Germany  : authorisation  procedures 
ongoing/completed,  some  sections  under 
construction. 

h ll  BULGARIA  -  GREECE 

Improvements  to  the  gas  transportation  network  in  Bulgaria  to 
ensure  supplies  from  Russian  resources  to  the  new  gas  network 
in  Greece. 

First  phase  : construction  near  completion. 
Link  to  project  e6. 
EU  financial  intervention 
PHARE  (Interreg):  4  MECU. 

hl2  BELGIUM  -  GERMANY 

Connecting  gas  pipeline  between  the  Belgian  and  the  German 
networks. 

Authorisation  procedures  ongoing, 
Commissioning  1998. 

*  Including  the  Berneau-Eynatten  connection. 

47 

PROJECT 

STAGE  REACHED  AND 
E.U.  FINANCIAL  INTERVENTION 

hl3  GERMANY-  CZECH  REPUBLIC  - AUSTRIA  -  ITALY 

Construction  of  a system  of  connecting pipelines  between the 
German,  Czech, Austrian  and  Italian  gas  networks. 

h 14  RUSSIA  -  UKRAINE-  SLOVAKIA  -  HUNGARY-

SLOVENIA  -  ITALY 

Construction  of  a  new gas pipeline,  from  Russian  resources, to 
Italy. 

First phase  (20 km from  Mauerkirchen  (A)  to 
Burghausen  (DE) just  completed. 
Other phases  are  at  the planning  feasibility 
study stage. 
Commissioning  will  vary from  1996 to  2001. 
EU financial  intervention 
TEN line: co-financing  of studies  (under 
appraisal) 

technical 

First phase:environmental  and 
feasibility  studies  ongoing.  Work is expected  to 
start  in  1997 with  commissionning  expected  in 
1999/2000. 
Second phase:  2003-2005:  several  possibilities 
are open.. 
EU financial  intervention 
TEN line:  co-financing  of studies  (under 
appraisal) 

Specification  of  the  project  (Commission  Decision  96/537/EC  of  30  July  1996 O.J.  no  L 230). 

ANNEX  II:  PROGRESS  MADE  ON  THE  TRANSPORT  NETWORKS  IN  1996 

A. The  14 Specific  projects 

PROJECT 

PROGRESS MADE IN  1996 

HST North-South 

For  the Austrian  part of the Brenner  [Inn Valley 
section],  a new company was created  in January  which  is 
responsible  for  the preparatory phase prior  to the 
authorization  to build. Detailed technical, financial,  legal 
and  economic studies for  the entire Miinchen-Verona 
axis,  launched by the  German, Austrian, Italian 
governments  and  the Commission are making good 
progress  and  will  be  finished  in December. 

48 

HST  PBKAL 

With  regard  to  the  northern  part  of  the  project  (Berlin-
Nurnberg),  new  construction  work  was  begun  on  the 
Leipzig-Erfurt  and  Erfurt-Nurnberg  sections  while  work 
has progressed  as planned  between  Berlin  and  Leipzig  / 
Halle  (upgrading). 

In  July,  the  British  government  granted  to  the  London  & 
Continental  Railways  consortium  the  concession  to  run 
the  HST  rail  link  between  the  Chunnel  and  London. 

An  investment  contract  was  concluded  early  in  the  year 
between  the  German  government  and  the  Deutsche  Bahn 
AG  for  the  construction  of  the  new  HST  line 
Cologne-Frankfort. 

Work  on  the  Brussels-Lille  and  Brussels-Netherlands 
border  axes  progressed  as  anticipated;  a new  financing 
structure  was  set  up  in  Belgium  which  should  make  it 
possible  to  fill  at  least  a part  of the  financing. 

In  the Netherlands,  an  agreement  was  concluded  finally 
on  the  route  of  the  Amsterdam-Belgian  border  axis. 

HST  South 

The  Figueras-Perpignan  international  section  : a trial 
bore  for  a  8 km  tunnel  was  begun  in  the  autumn. 

HST  East 

The  "déclaration  d'utilité  publique"  was  granted. 

HST  France-Italy 

An  intergovernmental  Commission,  to  study  the  possible 
legal  structure  for  the  entity  in  charge  of  carrying  out  the 
international  section  of  Montmelian-Torino  was  set  up. 

For  the  Torino-Milano  and  Milano-Venezia  sections,  a 
concession,  including  the  preparation,  construction  and 
the  upkeep,  was  granted  tov the  TAV  company;  the  state 
contributions  to  improve  the  project's  profitability  were 
ensured;  the  private  contributions,  however,  still  remain 
to  be  supplemented. 

Betuwe  line 

Greek  motorways 

For  the  Betuwe  line,  legislative  progress  was  made  even 
if  the  solution  results  in  a considerable  increase  in  the 
cost,  which  still  remains  to  be  covered. 

Concessions  were  granted  for  specific  sections  of  the 
Motorways  in  Greece:  the  Rio-Antirio  fixed  link  and  the 
ring-road  around  Athens. 

49 

Lisbon-Valladolid 
motorway 

In  June,  the  Florence  European  Council  formally  took 
note  of  the  proposal  by  the  Portuguese  and  Spanish 
governments  to  modify  priority  project  n°8  of  the  Essen 
list  A  and  thus  to  create  a multimodal  link  between 
Portugal  and  Spain  on the  one  hand  and  the  rest  of 
Europe  on  the  other.  A  seminar  was  organized  in  October 
where  the  project  in  its extended  scope  was  analyzed.  The 
Commission  welcomed  the  multimodal  Portuguese 
approach  and  its coherence  with  the  objectives  of  the 
TEN  guidelines  and  confirmed  that  all  the  sub-projects 
were  already  identified  in their  annexes  I  and  II. 

Cork-Dublin-Belfast- 
Larne-Stranraer 

The  railway  project  in Ireland  is  likely  to  be  completed 
considerably  before  the  date  envisaged,  thanks  to  major 
contributions  from  the  Cohesion  Fund. 

Malpensa  airport 

Ôresund  fixed  link 

Nordic  Triangle 

Work  is proceeding  according  to  schedule  (completion  of 
the  entire  project  expected  in  2000).  The  Italian  Ministry 
of  Transport  has  issued  the  decree  laying  down  the  rules 
for  moving  air  traffic  from  Linate  to  Malpensa. 

The  construction  of the  tunnel  and  the  bridge  foundations 
are  advancing  well,  as is the  preparation  of  the  access 
routes. 

A  significant  number  of  railway  and  road  projects  are 
under  construction;  in the maritime  and  port  sectors, 
studies  are  in  hand. 

Ireland/UK/Benelux 
road  link 

The  Irish  part  of  the  IRL/UK/Benelux  road  project  is 
progressing  well,  thanks  to  ERDF  and  Cohesion  Fund 
interventions. 

West  Coast  Line 

A  decision  concerning  the  finalisation  of  the  financing 
plan  is expected  shortly. 

B.  OTHER  PROJECTS 

PROJECT 

PROGRESS  MADE  IN  1996 

Semmering  base  tunnel, 
Austria 

The  pre-qualification  tender  in  view  of  a  BOT 
concession  for  a 42  km  long  section  of  the 
Pontebbana  axis  (Vienna-Tarvisio/Ljubljana), 
including  the  21  km  long  Semmering  base  tunnel, 
was  concluded  and  the  final  tender  has  been 
launched;  the  tendering  procedure  is planned  to 
be  finalized  in  early  1997.  The  execution  of a 
trial  bore  (to  be  included  as  a  service  tunnel  in 
the  ultimate  tunnel  system)  has  been  started  in 

I  1996. 

I 

50 

Berlin-Hannover  HST 

Milano-Bologna-Firenze- 
Roma-Napoli  HST 

Procedures  have been  completed  and  work  started 
on  the  270  km  long  line  reducing,  after 
completion,  the  travelling  time  between  Berlin 
and  Hannover  to  lh45. 

Milano-Bologna  : planning  procedures  are  on 
going  and  are expected  to  be  completed  in  1997 
(granting  of  building  permission). 
Bologna-Firenze  : work  has  been  started  in  1996. 
Roma-Napoli  : work  is progressing. 

51 

ANNEX  III:  LIST  OF  TENFAC  MEETINGS  SEPT.  1995  -  DEC.  1996 

1995 

10 October  (morning) 

horizontal  affairs 

10 October  (afternoon) 

telecommunications 

11  October 

12  October 

9  November 

energy 

transport 

energy 

20  November 

telecommunications 

1996 

26  March 

8  May 

25  July 

horizontal  affairs 

transport 

transport 

13  September 

telecommunications 

25  October 

energy 

12 November 

horizontal  questions 

52 

ANNEX  IV:  ENERGY  PROJECTS  FINANCED  UNDER  REGULATION  2236/95 

A.  COMMUNITY FINANCIAL  SUPPORT  IN  1995 

Registration 
number of the 
study 

Identification  of the  projects 
subject  of the study 

E2/95 

(b11)*  FINLAND-SWEDEN 

Increased  electricity  transmission 
capacity 

Maximum 
Eligible 
Cost of 
the study 

(in ECU 
'000) 

150 

Maximum 
Amount  of 
the 
Community 
financial 
support 

(in  ECU 
'000) 

Community 
Financial 
support  as 
percentage 
of the 
eligible  cost 

(in  %) 

75 

50 

E5/95 

(b11)  SWEDEN-FINLAND 

150 

75 

Increased  electricity  transmission 
capacity 

E6/95 

(d14)  SWEDEN-POLAND 

1600 

800 

Electricity  interconnection 

E21-22/95 

(d14)  BALTIC  RING 

5000 

2500 

Electricity  interconnection 

E34/95 

(d14)  BALTIC  RING 

395 

150 

50 

50 

50 

38 

50 

274 

137 

175 

87.5 

50 

200 

100 

50 

1475 

737.5 

165 

82.5 

50 

50 

160 

80 

50 

300 

150 

50 

E7/95 

(c5) 

E14/95 

(c5) 

E15/95 

(c5) 

Peak  power  exchange 

ITALY 
Vado-Ligure-Morigallo  electricity 
line 

ITALY 
Santa  Barbara-Tavarnuzze 
electricity  line 

ITALY 
Pietrafitta-Santa  Barbara 
electricity  line 

E16/95 

(c5) 

ITALY 
Piedilago  pumped  storage 

E11/95 

(d6) 

E19/95 

(b6) 

E23/95 

(c6) 

ITALY-  AUSTRIA 
Cordignato-  Austrian  border 
electricity  line 

ITALY-  FRANCE 
Piossasco-Moncenisio  electricity 
line 

SPAIN 
Cantabrian  Sea  : Penagos-
Guenes  electricity  line 

53 

E24/95 

(c6) 

E25/95 

(c6) 

E27/95 

(b7) 

E28/95 

(b7) 

SPAIN 
Cantabrian  Sea  : Guenes-ltxaso 
electricity  line 

SPAIN 
Cantabrian  Sea  :  Soto-Penagos 
electricity  line 

SPAIN-FRANCE 
Pirineo  connection  substation 
electricity  line 

SPAIN-FRANCE 
Aragôn-Cazaril  electricity  line 

250 

125 

50 

180 

90 

50 

280 

140 

50 

400 

200 

E3/95 

(d13)  SPAIN-MOROCCO 

1275 

637.5 

E30/95 

(c7) 

New  cable  route  for the  electricity 
interconnection 

PORTUGAL-SPAIN 
Reinforcement  of the  electricity 
interconnection 

634 

317 

G1/95 

(f1) 

IRELAND-N.IRELAND 
Natural  gas  interconnector 

300 

150 

G2/95 

(g12)  DENMARK 

2975 

1487.5 

Toender  natural  gas  storage 

G3/95 

(gS) 
(h4) 

SPAIN 
Natural  gas  underground  storage 
at  Nueva  Carteya 

1884 

942 

50 

50 

50 

50 

50 

50 

G4/95 

(g8) 

SPAIN 
Natural  gas  underground  storage 
at  Huete 

2665 

1332.5 

50 

G5/95 

(eS) 

GREECE 
Natural  gas  underground  storage 

2000 

1000 

G6/95 

(e6) 

GREECE 
Extension  of  main  natural  gas 
transmission  system 

1540 

770 

50 

50 

TOTAL 

24427 

12166 

Same  reference  as  in  guidelines  (O.J.  N° C216.  21/08/1995). 

54 

B.  [a list of studies  approved  for  1996] 

Registration 
number of 
the study 

MEMBER STATE  -  COMPANY 

Identification  of the  project* 
subject  of the study 
and  main scope of the study 

E35/96 

(c6) 

E38/96 

(b7) 

E40/96 

(dl4) 

E46/96 

(dl4) 

SPAIN  -  Red  Eléctrica  de  Espana 
Electricity  interconnections  (at  400  K.V) Sentmenat  -
Bescano  and  Bescano  -  Line  Vic/Baixas  (Mediteranean 
axis). 
Environmental  impact  and  basic  engineering  studies  for 
both  lines. 
Economic  and  technical  feasibility  study  for  the  second 
line. 

SPAIN  -  Red  Eléctrica  de  Espana 
Alternative  routes  for  the  France-Spain  electricity 
interconnection  through  the  Central  Pyrenees. 
Economic  feasibility,  environmental  impact  and  basic 
engineering  studies:  Spanish  share. 

FINLAND  -  IVO  Transmission  Services  Ltd 
Increased  utilisation  of.the  existing  HVDC  electricity 
interconnection  (submarine  cable)  Finland-Sweden. 
Feasibility  and  technical  studies,  including  laboratory 
tests  :  Finnish  share. 

SWEDEN  -  Svenska  Kraftnat 
Increased  utilisation  of  the  existing  HVDC  electricity 
interconnection  (submarine  cable)  Finland  -  Sweden. 
Feasibility  and  technical  studies,  including  laboratory 
tests  :  Swedish  share. 

Maximum 
eligible  cost of 
the study 

Community 
financial 
support  as 
percentage 
of the eligible 
cost 

Maximum 
amount of the 
Community 
financial  support 

(in  ECU  '000) 

(in  %) 

(in  ECU  '000) 

440 

50 

220 

710 

50 

355 

450 

50 

225 

650 

50 

325 

E52/96 

( d l l)  NETHERLANDS  -  N.V.  Samenwerkende 

3,000 

50 

1,500 

elektriciteits-produktiebedrijven 
(Sep) 

Electricity  interconnection  (submarine  cable) 
Netherlands  -  Norway. 
Studies  for  electrode  design  and  evaluation  of 
reliability  and  availability,  including  submarine  cable 
tests. 

FINLAND  -  Teollisuuden  Voimansiirto  Oy 
Increasing  electricity  transmission  capacity  between 
South  of  Finland  and  Russia  (St  Petersburg  area). 
Preparatory,  feasibility  and  technical  studies,  including 
the  follow-up  of  environmental  aspects. 

FRANCE  -  Electricité  de  France 
Alternative  routes  for  the  France-Spain  electricity 
interconnection  through  the  Central  Pyrenees. 
Economic  feasibility,  environmental  impact  and  basic 
engineering  studies  :  French  share. 

E55/96 

(dl4) 

E62/96 

(b7) 

:>:> 

480 

50 

240 

300 

50 

150 

Registration 
number of 
the study 

MEMBER  STATE  -  COMPANY 

Identification  of the  project* 
subject  of the study 
and main scope of the study 

Maximum 
eligible  cost of 
the study 

Community 
financial 
support  as 
percentage 
of the eligible 
cost 

Maximum 
amount of the 
Community 
financial  support 

(in ECU '000) 

(in  %) 

(in ECU '000) 

E63/96 

(dl4)  GERMANY  -  PreussenElectra 

1,430 

50 

715 

G12/96 

(g8) 

G13/96 

(g8) 

Gi4/96 

(g8) 

G15/96 

(g8) 

East-West  High  Power  Electricity  Transmission  System 
-  Baltic  route. 
Study  of  the  technical,  economic,  financial,  legal  and 
environmental  aspects. 

SPAIN  -  ENAGAS 
Natural  gas  underground  storage  at  Val le  del  Ebro 
(North-South  axis). 
Preliminary  seismic  survey. 

SPAIN  -  ENAGAS 
Natural  gas  underground  storage  at  Cuenca  de 
Cantabria  (North-South  axis). 
Preliminary  seismic  survey. 

SPAIN  -  ENAGAS 
Natural  gas  underground  storage  at  Brihuega  (North-
South  axis). 
Drilling  of  one  exploration  well. 

SPAIN  -  ENAGAS 
Natural  gas  underground  storage  at  Cerro  Gordo 
(North-South  axis). 
Preliminary  seismic  survey. 

1,008 

50 

504 

1,008 

50 

504 

1,943 

50 

971.5 

394 

50 

197 

G16/96 

(gl) 

IRELAND  - 

Marathon  International  Petroleum 
Ireland  Limited  (MIPIL) 

636 

50 

318 

G17/96 

(e6) 

G18/96 

(gl2) 

Natural  gas  underground  storage  in  "Kinsale  Area". 
Feasibility  and  technical  studies. 

GREECE  -  DEPA  S.A.  (Public  Gas  Corporation) 
Natural  gas  network  on  the  island  of  Crete,  including  a 
LNG  terminal. 
Feasibility,  environmental  and  other  studies. 

DENMARK  -  Dansk  Naturgas  A/S 
Extension  of  the  natural  gas  underground  storage  at 
Stenlille. 
Tri-dimensional  seismic  survey. 

TOTAL 

1,940 

50 

970 

3,424 

50 

1,712 

17,813 

50 

8,906.5 

* Same reference  as  in  the guidelines  Decision  (OJ N° L  161, 29.06.1996) 

56 

A N N EX  V:  T E L E C O MS  P R O J E C TS  FINANCED  UNDER  R E G U L A T I ON  2236/95 

A.1995  ISDN 

Ref. 

I  Title 

I  Maximum  EU 
Contribution 
(in  ECU) 

TI1.1 

TI.1.2 

TI.1.3 

TI.1.6 

TI.2.1 

TI.2.2 

TI.2.3 

TI.2.3 

TI.2.3 

TI.2.5 

TI2.5 

TI.2.6 
TI.2.6 

TI.2.6 

TI.2.6 

TI.2.7 

TI.2.7 

TI.2.8 

Euro-label  profiles:  Desk-Top  Multimedia 
Conferencing 

Migration  strategies  from  Euro-ISDN  onwards 

Euro-ISDN  Bulletin  Board 

Development  of  Euro-services:  Euro  Green  Line, 
Euro  Kiosk 
Euro-ISDN  for  an  integrated  public  health  care 
network 

Euro-ISDN  to  interconnect  traffic  information 
centres. 

European  Tiertiary  Education  network  (I) 

European  Tiertiary  Education  network  (II) 

European  Tiertiary  Education  network  (III) 

Euro-ISDN  as a platform  for  teleworking  (I). 

Euro-ISDN  as a platform  for  teleworking  (II) 

Electronic  trading  for  SMEs  using  Euro-ISDN  (I) 
Electronic  trading  for  SMEs  using  Euro-ISDN 
(H) 
Electronic  trading  for  SMEs  using  Euro-ISDN 
(HI) 
Electronic  trading  for  SMEs  using  Euro-ISDN 
(iv) 
Trans-regional  learning  using  Euro-ISDN  (I) 

; 

Trans-regional  learning  using  Euro-ISDN  (II) 

740,150 

491,100 

208,250 

320,500 

750,000 

1,231,314 

678,000 

590,000 

630,000 

165,000 

1029,000 

264,898 
984,250 

764,450 

485,462 

397,492 

488,400 

Euro-ISDN  awareness  for  SMEs 

T Q T AL 

1,125,563 
11,371,929 

57 

B.1996 ISDN 

Réf. 

Acronym 

Title 

Maximum  EU 
Contribution 
(in  ECU  '000) 

41.02 

61.01 

TELEPOLIS 

INFOCITIES 

City  information  network 

71.03 

TEN-TREND 

21.03 

31.02 

PAIDEIA 

MOSAIC 

51.01 

TAGIS 

11.03 

MEDSALUS 

51.02 

NOPROBLEMS 

31.01 

DCC 

51.03 

GTS 

Income  for  content  through 
billing  and  clearing 

T e l e w o r k i ng 
E n t e r p r i se 
development 

R e m o te 
N e t w o rk 

PAIDEIA  in TEN-Telecom 

Methods  and  tools  to  create 
and  maintain  virtual  museums 

access 

Trans-European 
to 
Generic  ISDN-based  services 
Euro-ISDN  Professional  tele-
t he 
c o l l a b o r a t i o n; 
mediterranean  network 
for 
health  care  knowledge  sharing 

reliable 

proprietary 

Non 
electronic  mail  systems 
Common  digital  platform  for 
cultural  content 

Global  Telecommunication 
Services 

61.05 

DYP 

Dynamic  Yellow  Pages 

5  000 

1  530 

2  948 

495 

918 

1  700 

513 

1  573 

1  680 

440 

1 304 

TOTAL 

18  101 

58 

ANNEX  VI:  IDA  TELEMATIC  PROJECTS  FINANCED  IN  199616 

Project 

SIGL  - exchange  of product  and  license 
information 

total  budget 

850  000 

Service 

DG  I 

DG  I  Total 

DG  VI 

DG  VI 

DG  VI 

DG  VI 

DG  VI  Total 

ANIMO  - animal  movements 

PHYSAN  - phyto  sanitary  control 

SHIFT  - veterinary  controls 

FIS  -  IDES  (under Horizontal  Generic Services) 

DG  XV 

SIMAP  - electronic public procurement 

DG  XV 

Horizontal  Activities  - Legal,  Contractual  &  QC 
(under Horizontal  Generic Services) 

DG  XV  Total 

DG  XXI 

VIES  -  vat  information  exchange system 

DG  XXI 

CCN/CSI  (under Horizontal  Generic Services) 

DG  XXI 

EXCISE  CONTROL 

DG  XXI 

QUOTA 

DG  XXI 

DG  XXI 

SCENT  CIS/FISCAL  -  Customs and  indirect 
taxation,  agriculture 

TARIC  -  Customs and  indirect taxation,  third 
country  import/export 

DG  XXI 

EBTI  - european  binding  tariff  information 

DG  XXI 

TRANSIT  - goods  traffic 

DG  XXI  Total 

Eurostat 

EDICOM  - electronic  data  interchanges  on 
commerce 

850  000 

150  000 

940  000 

200  000 

0 

1 290  000 

800  000 

300  000 

1 100  000 

2  100  000 

35  000 

20  000 

300  000 

1 000  000 

850  000 

850  000 

400  000 

5  555  000 

0 

16  These  figures  are  based  upon  a  budget  resulting  from  the  assignment  of  ECU  6  million  to  the 

EDICOM  programme  and  upon  the  assumption  that  ECU  7.5  million  presently  in  reserve  will  be 
released  by  the  European  Parliament.  Furthermore,  due  to  the  late  adoption  of  the  IDA  decision 
a  number  of  measures  were  carried  forward  from  1995  to  1996  for  a total  value  of  ECU  15.798 
million.  These  measures  are  NOT  included  in  the  above  table.  The  TEN  financial  regulation 
does  not  apply  to  the  IDA  programme. 

59 

Eurostat 

DSIS  - distributed  statistical  information services 

1 800  000 

Eurostat 

EXTRACOM  -  exchange  of foreign  trade statistics 

450  000 

Eurostat 

SERT  -  company  statistics 

Eurostat 

Horizontal  Activities  (under Horizontal  Generic 
Services) 

Eurostat  Total 

All  sectors 

Horizontal  Generic  Services,  including  legal  & 
security  aspects 

All  sectors  Total 

DI 

DI  Total 

Implements  support  of  horizontal  actions  at  EC 
level 

AGENCY 

European  Medicine  Evaluation  Agency 

AGENCY 

European  Monitoring  Centre  on  Drugs 

AGENCY 

Translation  Centre 

AGENCY 

European  Environment  Agency 

AGENCY 

RESMA  -  Trademarks 

AGENCIES  Total 

DG  IV 

FOURCOM 

DG  IV  Total 

DG  V 

DG  V 

DG  V 

DG  V  Total 

TESS  (SOSENET)  - telematics for  social  security 

EURES  - employment  database 

CARE  - disease  control  and  monitoring 

DG  X 

Illegal  Traffic  of  Cultural  Goods 

DG  X  Total 

DG  XIV 

FIDES  -fisheries  data  exchange 

DG  XIV  Total 

SG 

SG 

SG  Total 

Communication  &  Mgmt.  of  Official  Documents 
(Trilogue) 

REITOX  - Drugs  and  Drug Addiction 

600  000 

200  000 

3 050  000 

3 518  000 

3  518  000 

1 015  000 

1 015  000 

0 

225  000 

0 

0 

0 

225  000 

400  000 

400  000 

700  000 

737  000 

400  000 

1 837  000 

0 

0 

250  000 

250  000 

1 200  000 

0 

1 200  000 

60 

DG  III/B/6 

Awareness  &  Promotion 

DG  III/B/6 

Coordination  &  Support 

DG  III/B/6 

Practical  Intro,  of  Electronic  Mail  based  on  X.400 

DG  III/B/6 

Horizontal  Activities  -  Generic  Services 

260  000 

200  000 

150  000 

0 

DG  III/B/6 

Horizontal  Activities  - Architecture  ...TESTA 

3  100  000 

DG  III/B/6 

Horizontal  Activities  - Legal,  Contractual  &  QC 

0 

DG  III/B/6  Total 

Grand  Total 

3  710  000 

24  000  000 

61 

ANNEX  VII:  TRANSPORT  PROJECTS  FINANCED  UNDER  REGULATION  2236/95 

A. 1995 

Title of supported  project/study 

mm m  Mode™  Support 
i4> 1995 

I. TEN SPECIFIC PROJECTS 
1. HST/Combined  transport  Berlin-Verona 

Studies  on the Brenner  axis for the improvement  of the 
economic  and financial  feasibility  of the  Miinchen-Verona  link 
Feasibility  studies  on the Brenner  axis for new  access  routes 
to the Brenner  base  tunnel  (in Italy) 
Planning  and design  studies  for the Brenner  axis:  Lower Inn 
Valley  section 
Brenner  axis  (project):  Lower  Inn Valley  section,  construction 
of  3rd and 4th track  between  Kufstein  and Baumkirchen 
Upgrading  of the  Berlin  - Halle/Leipzig  railway  line 

Total for PP N°1 

2.  HST PBKAL 

TGV - PBKAL-Belgium  (interest  rebates) 
Technical  and design  studies  for the PBKAL-NL 
Feasibility  study  on the Channel  Tunnel  Rail  Link 

Total for PP Nb2 

3. HST South 

Study  on the TGV  Madrid-Barcelona-Perpignan-Montpellier: 
section  Madrid-Barcelona-French  border 
Study  on the TGV South:  railway  line  Spain-  France  Atlantic 
side  (Vitoria -Dax) 
Study  on the TGV South:  railway  line  Languedoc-Roussillon 

4.  HST East 

Technical  studies  APS  for the HST-EST  European 

Total for PP N°3 

Total for PP N°4 

5.  Betuweline 

Technical  and design  studies  for the Betuwe  line 

Total for PP N°5 

6.  HST/Combined  Transport  France-Italy 

Studies  for the HST/Combined  transport  line  Turin-Milan-
Verona-Venice 
Study  on the international  transalpine  connection  between 
Lyon  and  Turin. 

Total for PP N°6 

S 

S 

S 

P 

p 

P(IR) 
S 
S 

s 

s 

s 

s 

s 

s 

s 

R 

R 

R 

R 

R 

R 
R 
R 

R 

R 

R 

0.800 

1.730 

6.500 

0.500 

24.900 
$4.430 

20.000 
6.ÔÔÔ 
17.000 
45.ÔÔÙ 

4.950 

0.500 

0.500 

5.950 

R 

22.000 

R 

R 

R 

22.000 

7.000 
7.ÔÔÔ 

10.179 

6.000 

16.179 

'  P =  projet;  S =  Study 
18  R =  Rail;  C =  Combined  transport;  M = roads;  A = Airports;  S = Sea/ports;  T =  Traffic 

management;  V = Vessels;  G =  Satellites. 

MECU 

62 

7. Greek  Motorways 

Road study  "Makri  -  Industrial  area  of  Alexandroupolis" 
(EGNATIA) 
Studies  for  the  Maliakos  fixed  link  (Consultant  Services  for  the 
preparation  of the  future  concession  -  PATHE) 
Road  Study  "Tempi  Valley  Exit  - Skotina  Intersection"  (PATHE) 
Road  study  "Girtoni  - Tempi  Valley  entrance"  (PATHE) 

S 

§ 

§ 
S 

Total for  PP N°7 

M 

M 

M 
M 

10.  Malpensa  Airport 

Malpensa  2000 

Total for  PP N*10 

P(lft) 

A 

1.750 

2.5ÔÔ 

1.ÔÔÔ 
Ô.75Ô 
6.000 

1.800 
1.800 

11.  Oresund  link  (rail/road)  Denmark-Sweden 

Studies  for  the  Danish  access  routes  to  the  Oresund  fixed  link 

Design  studies  and  environmental  studies  and  monitoring 
Studies  for  the  Oresund  fixed  link 

Total for  PP N''11 

12.  Nordic  Triangle 

Financial,  socio-economic  and  environmental  studies  on the 
Nordic  Triangle  in  Finland 
Studies  on  rail  infrastructure  of the  Nordic  Triangle  in  Finland 
Studies  on the  road  part  of the  Nordic  Triangle  in  Finland  (E 
18) 
Construction  and  improvement  of  railway  link  of the  Nordic 
Triangle  in  Finland 
Construction  and  improvement  of  road  sections  (E  18) of  the 
Nordic  Triangle  in  Finland 
Study  on  the  development  of  Finland's  Sea  Infrastructure 
Study  on the  traffic  management  system  on TERN  in  Finland 
Feasibility  Study  for  upgrading/re-alignment  of  sub-sections  of 
Stockholm-Malmô  railway  line  (Planning  phase) 
Studies  on  Gôteborg-Mellerud-Kornsjô  railway  line  (upgrading 
of three  sub-sections) 
Upgrading  of  Malmô-Gôteborg  railway  line  for  high-speed, 
including  doubling  of  track  (project) 

Total for  PPN°12 

13.  Ireland-UK-Benelux  road  link 

Studies  in  England  and  Northern  Ireland  on  the  Ireland-UK-
Benelux  road  link. 

Total for  PP N°13 

14. West  Coast  main  line  • 

Feasibility  study  and  associated  design  work  for  the 
modernisation  of  the  West  Coast  MainLine,  and  consideration 
of  the  implications  of  interoperability  and  inter-modal  freight 
operations 

Total for  PP N°14 

Command  Control  pilot  project  for  HST  network 

Feasibility  study  on  ERTMS  (European  Rail  Traffic 
Management  System)  for  harmonisation  at  the  European  level 
of  safety  and  rail  traffic  management. 

S 

s 

s 

S 
s 

P(|R) 

P(|R) 

S 
s 
s 

s 

p 

s 

s 

s 

R/M 

5.000 

R/M 

10.000 
15.000 

M,R,P 

Ô.Ô53 

R 
M 

ft 

M 

S 
TM 
R 

R 

R 

M 

1.260 
1.928 

0.680 

0.965 

0.210 
0.454 

0.665W 

0.555 

5.280 

12.050 

2.ÔÔ0 

2.000 

R 

8.600 

8.600 

T,R 

7.500 

Total  for  Control  command  project 

TOTAL  SPECIFIC  PROJECTS 

7.500 

181.509 

II.  TRAFFIC  MANAGEMENT  AND  OTHER  PROJECTS 

1.  Air  traffic  management 

New  North  West  Monopulse  Secondary  Surveillance  Radar 
Data  and  Transmission  Facilities 
Replacement  /Upgrading  Radar  systems 
Replacements  of  Shanwick  High  Frequency 
Transmitters/Receivers 

p 
P(IR) 
P(IR) 
P 

T,A 
TA 
T,A 
T,A 

0.190 
Ô.23Ô 
0.240 
0.330 

63 

Installation  of  Monopulse  Secondary  Surveillance  Radar 
(MSSR)  at  Porto  Santo 
Installation  of  Monopulse  Secondary  Surveillance  Radar 
(MSSR)  Porto 
Improvement  of  data  networks  to  fulfil  EUROCONTROL 
Standards 
Transmission  and  Receiving  systems 
Conventional  Secondary  Surveillance  Radar  Upgrading  to 
Monopulse  (MSSR) 
Radar  2000 
Upgrade  of  Radar  Coverage 
Study  for  a  North  European  Automatic  Dependant  Surveillance 
Broadcast  (ADS-B)  Network 
Study  for  Pre-Operational  Mode-S  station 

Total  for Air  traffic  management 

2.  Road  traffic  management 

Traffic  Management  Centre  in  Ludwigsburg 
Study  for  Traffic  Management  on the  TERN  in the  Netherlands 
Traffic  Management  on the  TERN  in the  Netherlands 
Study  for  the  integrated  Control  and  Information  System for 
traffic  on  the  motorway  network  of the  Grand  Duche of 
Luxembourg 
Study  on the  national  integration  of the  European  guidelines 
for  traffic  monitoring 

Study  for  the  control  and  information  road  traffic  system  on the 
Portuguese  trans  European  Road  network 
Demonstration  of  RDS/TMC  on  accesses  to  Madrid 
Study  for  the  demonstration  of  the  RDS/TMC  service  in the 
area  of  Madrid 
Study  for  the  implementation  of  RDS-TMC  service  in the 
Spanish  part  of  the  TERN 
Feasibility  study  on  the  European  Data  Exchange  Network 
between  traffic  information  centres  on the  trans-European  road 
network 
Study  for  the  Central  European  Road  Telematics 
Implementation  Concertation 
Study  for  the  South  Europe  Road  Telematics  Implementation 
Study  for  the  national  RDS-TMC  implementation  in the  United 
Kingdom  and  its  interconnexion  across  national  frontiers 
Study  for  the  creation  of  a traffic  information  and  control  center 
in  the  Walloon  Region 
Study  for  transport  telematics  implementation  project  in  • 
Flanders 
Study  on  harmonisation  of  levels  of  services  and  organisational 
measures  (Road  Traffic  Management) 
Study  for  the  creation  on  an  European  Centre  for  electronic  fee 
collection  qualification 
Study  for  the  completion  of  the  traffic  information  centres 
network  in  Spain 
Completing  the  network  of  the  Traffic  Management  Centers 
Study  on  the  RDS/TMC  Information  Service  on  TERN  in  Italy 
Installation  of  advanced  signalling  and  management  systems 
in  the  M-40  ring  motorway  around  Madrid 
Study  for  the  implementation  of  advanced  signalling  and 
management  systems  in the  M-40 
Implementation  of  the  National  Traffic  Management  Master 
Plan 
Study  on  the  European  coordination  for  the  implementation  of 
the  RDS-TMC  traffic  information  services 
Study  for  the  adaptation  of  RDS - TMC  in  Germany 

(Road  Traffic  Management) 

Total  for  Road  traffic  management 

3.  Maritime  traffic  management 

P 

P 

P 

w p 

p 
p 
s 

s 

p 
s 
p 
s 

s 

s 

p 
s 

s 

s 

s 

s 
s 

s 

s 

s 

s 

s 

p 
s 
p 

s 

p 

s 

s 

T,A 

",A 

T,A 

TA 
T.A 

TA 
T,A 
T,A 

T,A 

T,M 
T,M 
T,M 
T,M 

T,M 

T,M 

T,M 
T,M 

T,M 

T,M 

T,M 

T,M 
T,M 

T,M 

T,M 

T,M 

T,M 

T,M 

T,M 
T,M 
T,M 

T,M 

T,M 

T,M 

T,M 

Ô.31Ô 

Ô.3Ô0 

0.500 

Ô.5ÔÔ 

Ô.65Ô 

Ô.85Ô 
2.0ÔO 
2.ÔÔÔ 

8.ÔÔÔ 
16.100 

Ô.26Ô 

0.050 

0.268 

0.300 

Ô.47Ô 

Ô.35Ô 

0.410 
0.135 

0.185 

Ô.4ÔÔ 

0.400 

Ô.4ÔÔ 

0.450 

0.500 

0.500 

0.500 

Ô.1ÔÔ 

0.180 

Ô.74Ô 

0.930 
1.7ÔÔ 

0.600 

2.480 

3.680 

0.110 
16.098 

Study  for  the  ship  reporting  and  information  system  Northsea  1 

S 

1 

T,V 

1 

0.120 

64 

Ship  reporting  and  information  system  Northsea 
(implementation) 
Study  for  the  Ship  Reporting  System  93/75/EEC 
Ship  Reporting  System  93/75/EEC  (implementation) 
Study  for  the  implementation  of  the  VTMIS  in  Greece 
VTS  - improvements  (Midlife  conversion  of VTS  Rotterdam) 
Etude  de  mise  à niveau  des  CROSS  et  des VTS  portuaires 
pour  l'intégration  dans  le  réseau  transeuropéen  VTMIS 
Etude  préalable  à  la  mise  à  niveau  des  systèmes  de traitment 
des  informations  radar  et de  gestion  des  radiocommunication 
des  CROSS 
VTS  System  implementation  in the  Messina  Strait  (TRITON) 
Studies  for  the  TEDIM  (Baltic  Sea  Telematic  Platform) 

Total  for  Maritime  traffic  management 

4.  GNSS 

Feasibility  study  for  the  provision  of  navigation  and  positioning 
services  through  the  use  of  INMARSAT  III  navigation 
transponders 

Total for GNSS 

5. Other  Projects 

Luxembourg  Airport  Motor  Testing  Platform  (project) 
Feasibility  Study  on  the  multimodal  system  Adriatic  Corridor 
Study  on  modernization  of  Northern  line 
Improvement  of  the  railway  link  Groningen-Leer 
Study  (first  phase)  of  the  Milano-Ventimiglia  line,  section  S. 
Lorenzo-Finale 
Preliminary  studies  for  the  design  for  the  connection  of  the 
railway  line  with  the  Gottard  (Milano  -  Chiasso) 
Feasibility  Study  on  the  Fehmarn  Belt  fixed  link 
Feasibility  Study  on  the  Fehmarn  Belt  fixed  link 

Total for  Other Projects 

TOTAL  FOR  TRAFFIC  MANAGEMENT  AND  OTHER 
PROJECTS 
GRAND TOTAL 

P 

S 
P 
S 
P 
S 

S 

P 
S 

T,V 

T.V 
T,V 
T.V 
T,V 
T,V 

T,V 

TV 
T,V 

0.040 

Ô.Ô64 
0.038 
0.400 
0.450 
0.205 

0.415 

1.001 
0.530 
3.263 

S 

T.G 

9.500 

P 
S 
S 
P 
S 

S 

S 
S 

9.500 

Ô.79Ô 
1.000 
1.640 
1.500 
2.000 

A 
R/M/P 
R 
R 
R 

R 

2.600 

R/M 
R/M 

2.000 
2.000 
13.530 

58.491 

240.000 

The  Commission  will  adopt  the  list  of  projects  by  the  end  of  the  year. 

B.  1996 

Brenner:  Inn Valley  section.studies 
Legal  and  financial  studies  on  Munchen-Verona  axis: AU,D,I;  (AU 
coordinates) 
HST  North-South  Berlin-Nurnberg-Munchen-Verona; 
Sections:Arnstadt-Erfurt  and  Grobers-Leipzig 
Feasibility  studies  on  the  Brenner  axis  for  new  access  routes  to  the 
Brenner  base  tunnel 

Total  Project  N°1 

2. HST  PBKAL 

HST  PBKAL;  Section  Raunheim-Frankfurt 
Feasibility  study  on  the  Channel  Tunnel  Rail  Link 

Total  Project  N°2 

3.  HST  SOUTH 

Study  on  the  HST  South:  Madrid-Vitoria-Dax,  section  Y Vasca 
Study  on  the  HST  South:  feasibility  and  executive  study  Catayud-
Ricla;  executive  study  for  Lleida-Barcelona  and  rest  of Madrid-
Zaragoza 

S 
S 

p 

s 

p 
s 

s 
s 

R 
R 

R 

R 

R 
R 

R 
R 

8.5000  MECU 
1.5ÛÛÔMECU 

15.5000  MECU 

1.5ÔÔ0MECU 

27.0000  MECU 

2Ô.0ÔÔÔ MECU 
25.0000  MECU 
45.0000  MECU 

0.3235  MECU 
1.7265  MECU 

65 

Studies  on  HST  South  -  Languedoc-Roussillon:Perpignan-Spanish 
border 
Studies  on  HST  South  - Languedoc-Roussillon:  Montpellier-
Perpignan 

Total  Project  N°3 

4.  HST  EAST 

HST  EastSaarbrucken-Mannheim  and  Kehl-Appenweier 
HST  East  -Etudes  techniques  d'avant  projet  détaillé 

5.  Betuweline 

Betuweline  Study  1996 

6. HST/Combined  Transport  France-Italy 

Total  Project  N°4 

Total  Project  N°5 

Studies  on  the  HST/  Combined  Transport  Lyon-Torino:Lyon-
Montmélian 
Studies  on  the  HST/  Combined  Transport  Lyon-Torino:Montmélian-
Turin 
Studies  for  the  HST  Lyon-Trieste:section  Torino-Milano-Verona-
Venezia-Trieste 
Studies  on the  international  transalpine  connections  between  Torino-
Lyon 

Total  Project  N"6 

7. Greek  Motorways 

PATHE:Elefsina  -Stavros-Spata  airport  motorway  and  Imittos 
Western  peripheral  motorway 
Road  studies  of  Patras  by  pass;  road  links  with  the  new  port  and  the 
city  of  Patras  (techn.  studies-PATHE) 
Access  to  Via  Egnatia:  Road  study  "Siatista-Kristallopigi" 
Study  for  electronic  toll  collection  on  toll  motorways  in  Greece 
(PATHE  /  EGNATIA) 

Total  Project  N°7 

8.  Lisbon-Valladolid 

Studies  on  the  road  axis  Lisbon-Vilar  Formoso 
Studies  on the  modernisation  of the  Northern  Line 

Total  Project  N°8 

S 

S 

P 
S 

s 

s 

s 

s 

s 

p 

s 

s 
s 

s 
s 

R 

R 

R 
R 

R 

R 

R 

R 

R 

M 

M 

M 
M 

M 
R 

3.7000  MECU 

Ô.52ÔÔ MËCU 

6.3500 MÉCU 

5.ÔÔÔ0 MECU 
11.4Ù00MËCU 
16.4000 MECU 

lo.ooûo  MECU 
10.0000 MECU 

4.0000  MECU 

8.8ÔÔÔ MECU 

22.00Û0  MECU 

2.0000  MECU 

36.8000  MECU 

7.9100  MECU 

0.1000  MECU 

0.2500  MECU 
0.1500  MECU 

8.4700  MECU 

2.2500  MECU 
1.1000  MECU 
3.3500  MECU 

10.  Malpensa  Airport 

Malpensa  2000  Airport 

11.  Oresund  link  (rail/road)  DK-SW 

P(IR) 

A 

2.0000  MECU 

Total  Project  N°10 

2.0000  MECU 

0resund  fixed  link:  all  works 

P(IR) 

R/M 

9.ÔÔÔÔ MECU 

Danish  access  routes 

P(IR) 

R/M 

4.2000  MECU 

Studies  for  Traffic  Management  on  the  motorway  link  to  Oresund 
Studies  for  Swedish  access  routes  to  Oresund 

Total  Project  N°11 

S 
s 

12.  Nordic  Triangle 

Studies  on  road  sections  (E18)  in the  Nordic  Triangle  in  Finland 
Construction  and  improvement  of  road  E18  (Finland) 
Implementation  of  Traffic  Management  systems  for  TERN  in  Finland 
Studies  for  Traffic  Management  systems  for  TERN 

S 
P(IR) 
P 
S 

M,T 
R/M 

M 
M 
M,T 
M,T 

Ô.5ÔÔÔ MECU 
3.5000  MECU 
17.2000 MECU 

1.2000  MECU 
2.5000  MECU 
0.2080  MECU 
0.5ÔÛÙ MECU 

66 

Construction  and  improvement  of  railways  in the  Nordic  Triangle  in 
Finland 
Studies  on  railways  in  the  Nordic  Triangle  in  Finland 
Vessel  traffic  service  networks  in  Finland 
Studies  on the  development  of  Finland's  Sea  Infrastructure 
Development  of  Port  Infrastructure  in  the  Nordic  Triangle 
Study  on  Stockholm  Arlanda  Airport  (runway)  Nordic  Triangle 
Feasibility  study  for  upgrading  and  tunnel  covering  of  E6 Môlndal 
(Nordic  Triangle) 
Feasibility  study  for  upgrading  of  railway  section:  Sodra-Stambanen 
(Nordic  Triangle) 
Feasibility  study  for  upgrading  of the  railway  line  Gôteborg-Kornsjo 
(Nordic  Triangle) 
Study  on the  Nordic  Triangle:  Trelleborg  intermodal  terminal 
Study  on the  Nordic  Triangle:  Port  of  Stockholm  and  Norvik 
development  project 
Study  on the  Nordic  Triangle:  Gôteborg  ferry  lines  terminal 

Total  Project  N°12 

13.  Ireland-UK-Benelux  road  link 

Study  on the  Newry-Dundalk  cross  border  road  link 
Three  English  studies  on the  IRL-UK-Benelux  road  link:Bridge 
Assessment  study;  A14  route  strategy  study;M6/M11  capacity  studies 
Study  on  ROADLINK  Network  -  Real Time  Traffic  Information 

Total  Project  N"13 

14. West  Coast  main  line 

West  Coast  Main  Line-Works 
West  Coast  Main  Line-Studies 

ERTMS 

Total  Project  N°14 

P 

S 
P 
S 
S 
S 
S 

s 

s 

s 
s 

s 

s 
s 

s 

p 
s 

R 

R 
V,T 
s 
p 
A 
M 

R 

R 

P 
P 

P 

M 
M 

M,T 

R 
R 

5.0250  MECU 

0.475Ô  MECU 
0.70ÛO  MECU 
0.3Û7Ô  MECU 
0.1050  MECU 
1.125Ô MECU 
0.2070  MECU 

4.503Û  MËCU 

1.6500  MECU 

0.0500  MECU 
0.0050  MECU 

0.1750  MECU 
18.9750  MECU 

0.3250  MECU 
1.7000  MECU 

0.3000  MECU 
2.3250  MECU 

4.8000  MECU 
2.4ÔÛÔ MECU 
7.2000 MECU 

ERTMS  (European  Rail  Traffic  Management  System)  Feasibility  study 
Total  Project  ERTMS 

s 

TR 

Total  Priority  Projects  + ERTMS 

10.2250  MECU 
10.2250  MECU 

211.2350  MECU 

II.  Traffic  Management  and  other  projects 

1.  Air  traffic  management 

Radarsystems  -  upgrade 
ATN  Trials  Infrastructure  in  Germany 
SACTA  Phase  III 
Study  for  ATN  Trials  Infrastructure 
Study  for  the  development  of Air  Situation  Display 
Study  on  the  technical  and  operational  problems  related  to  the 
implementation  of  the  8.33  KHZ VHF  (ATM) 
Study  on  the  Installation  of  ARTEMIS 
Implementation  of  the  National  aeronautical  data  network 
Automatic  Dependant  Surveillance/Controller  Pilot  Data  Link 
Communications  study 

Enhancement  and  replacement  of  radar  systems 
New  Lisbon  ATM  and  Voice  communications  control  systems-
G ETAL IS 
ATN  Implementation  feasibility  studies 

2.  GNSS 

Total ATM  Projects 

GNSS,  phase  2,  Experimental  programme  Braunschweig  studies 
GNSS,  phase  2,  SATNAV  Differential  Station  Frankfurt  a.M.  study 

p 
s 
p 
s 
s 
s 

s 
p 
s 

p 
p 

s 

s 
s 

A,T 
A,T 
A,T 
A,T 
AT 
A,T 

A,T 
A,T 
A,T 

A,T 
A,T 

AT 

0.7400  MECU 
3.8ÔÔÔ MECU 
1.0000  MECU 
5.4ÔÔÔ MECU 
3.1500  MECU 
Ô.1ÔÔÔMECU 

1.3000  MECU 
Ô.55ÔÛ MECU 
0.1560  MECU 

Û.83ÛÔ MECU 
1.2000  MECU 

Ô.745Û MECU 
18.9710  MECU 

G,T 
G,T 

Ô.7ÔÔÔ MECU 
0.5120  MECU 

67 

Feasibility  study  tor  the  implementation  of  a navigation  by  satellite 
network 
Installation  of  Differential  GNSS  network  in  NL 

S 

P 

Total  GNSS  Projects 

3. Road  traffic  management 

Cross  Border  Route  Guidance  System  Nuremberg  - Prague  /  Linz  -
Prague  study 
Completing  the  network  of  Traffic  Managment  Centres  in  Spain 
Implementation  of the  National  Traffic  Management  Master  Plan  : 
Dynamic  signalling  and  RDS-TMC  in the  TERN  in  Spain 
Study  on traffic  management  and  information  services  in the  Central 
European  area  (CENTRICO)  (B.NL.D.F) 
Implementation  of  traffic  management  and  information  services  in the 
Central  European  area  (CENTRICO)  (B,NL,D,F) 
Study  on traffic  management  and  information  services  on the  TERN 
in the  SERTI  area  (D,  F,  1, E) 
Implementation  of  traffic  management  and  information  services  on 
the  TERN  in the  SERTI  area  (D, F,  1, E) 
VIKING-Study  for  coordinated  road  traffic  management 
implementation  in  Northern  Europe  (D,  DK,  SW, SU) 
CORVETTE-Study  for  the  coordination  and  validation  of the 
deployment  of  advanced  transport  telematic  systems  in  alpine  areas 
(D, A,  1) 
Study  on  ITS  City  Pioneers  (Ertico) 
Implementation  of the  National  Traffic  Management  Master  Plan 
(SDER) 
Demonstration  and  installation  of  RDS-TMC  information  services  on 
the  TERN  in the  Northern  part  of  Italy. 
Study  of  National  RDS-TMC  implementation  in the  UK and  its 
inconnexion  across  national  frontiers 

Total  Road  TM  Projects 

4.  Maritime  traffic  management 

Study  on Traffic  monitoring  horizon  2005  (France) 
Renewal  of  the  radar  data  processing  equipment  of VTS  centres  in 
the  Channel 
Midlife  conversion  of  Rotterdam  VTS 
Ship  reporting  system  study:  NL coordinates  (NL,  B,  D, SF,  E, F) 
European  Coastal  VHF  DSC  Infrastructure  GMDSS 

Total  Maritime  TM  Projects 

5. Other  projects 

Pontebbana  axis:  Semmering  base  tunnel 
Seine  - Schelde  (Escaut)  inland  waterways  based  combined  transport 
study 
Socio-economic  study  of  the  maritime  accessibility  of the  ports  of 
Ghent  and  Terneuzen 
Feasibility  study-Tunnel  under  the  Warnow  (Hansestadt  Rostock) 
Feasibility  study  on  the  Nordlandkai  Lubeck 
Feasibility  study  for  the  HST  Copenhagen-Aalborg-Rodby 
Aalborg  East  Harbour 
Environmental  assessment  for  the  extension  of  the  Port  of  Aarhus 
Study  on  the  Med.  motorway:  Nerja-Motril 
Study  on  the  Lleida-Barcelona  motorway:Cervera 
Study  on  the  M50  Madrid  Ring 
Study  on the  Albacete-Murcia  motorway 
Feasibility  study  for  extension  and  development  in the  port  of 
Valencia 
EU study  for  RADEF  (Road  Administration  Exchange)  (B  coordinates) 
Studies  for  the  Port  2000  Le  Havre 
Study  for  the  Saint  Malo  Port 

s 

p 
p 

s 

p 

s 

p 

s 

s 

s 
P 

p 

s 

s 
p 

P 
s 
p 

p 
s 

s 

s 
s 
s 
s 
s 
s 
s 
s 
s 
s 

s 
s 
s 

68 

G,T 

G.T 

M,T 

M,T 
M.T 

M,T 

M,T 

M,T 

M,T 

M,T 

M.T 

M,T 
M,T 

M,T 

M,T 

V,T 
V,T 

V,T 
V,T 
V,T 

R 
1 

P 

M 
P 
R 
P 
P 
M 
M 
M 
M 
P 

M 
P 
P 

Ô.5000  MECU 

Ô.Ô91Ô MECU 
10.8030  MEÛU 

0.4500  MECU 

0.Ô550  MECU 
Ô.9Ô00 MECU 

5.2855  MECU 

2.161ÛMECU 

3.2625  MECU 

0.22Û5  MÊCU 

0.8750  MECU 

0.6000  MËCU 

Ô.5Û00  MËCU 
2.5000  MECU 

0.5000  MECU 

Ô.3ÔÛ0  MECU 

18.4295  MECU 

0.0175  MECU 
0.1390  MECU 

Ô.76ÔÔ MECU 
0.40Ô0  MËCU 
0.1250  MECU 
14475  MECU 

1.0ÔÔÛMECU 
1.5000  MECU 

Ô.5ÔÔÔ MECU 

2.0000  MECU 
0.0500  MECU 
Ô.4ÔÔÔ MECU 
Ô.25ÔÔ MECU 
0.1000  MECU 
4.0000  MECU 
1.0000  MECU 
2.2500  MECU 
2.0000  MECU 
Ô.5ÛÛÔ MECU 

Ô.415ÙMECU 
0.4000  MECU 
0.1ÛÛÛ MECU 

Feasibility  study  for  the  multimodal  transport  system  Adriatic  corridor 
(3 main  ports:  Igoumenitsa,  Patra.lraklion) 
Bologna  Airport:  2  studies 
Studies  for  the  reorganization  of the  road  access  to  the 
Marghera/Venice  port  area 
Luxembourg  Airport  terminal 
Scandinavia  Logi-link  extension  studies,  Port  of  Terneuzen 
Studies  for  TEDIM  (Baltic  Sea  telematic  platform) 
Studies  for  the  modernisation  of the  Great  Western  lines  -  route 
strategy 

Total  Traffic  Management  and  Other  Projects 

Total  Other  Projects 

0.3400  MECU 

Ô.4ÙÔÙ MECU 
0.1400  MECU 

0.2560  MECU 
0.2250  MECU 
Û.5Ô0Û MECU 
Ô.8Û0Ô MECU 

19.1200  MËÙU 

68.7650  MECU 

RTF 
~~R" 

GRAND  TOTAL 

280  MECU 

69 

ANNEX  VIII:  M A J OR  TEN  PROJECTS  FINANCED  BY  THE  REGIONAL  AND 
COHESION  FUNDS  IN  1996 

A. Essen  specific  projects  -  Cohesion  Fund  financing 

Commitments  and  applications for  grant 

PROJECT 

No  3.  High  Speed  Train  South 

Madrid-Barcelona-Perpignan 

Madrid-Vitoria-Dax 

Total  project  No 3. 

No  7  .  Greek  Motorways 

Commitments  1993-1996 

Grant 
applied 
for20 

1993 

1994 

1995 

1996 

total 
93-96 

Mecu 

Mecu 

Mecu 

Mecu 

Mecu 

Mecu 

8.02 

0.00 

8.02 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

8.02 

0.00 

8.02 

337.04 

0.00 

337.04 

Patras-Athens-Thessaloniki 

45.35 

13.06 

0.00 

0.00 

58.41 

354.07 

Via  Egnatia 

26.42 

9.21 

40.74 

0.00 

76.36 

506.46 

Total  project  No  7. 

71.77 

22.27 

40.74 

0.00 

134.7 

860.53 

No  8.  Lisbon-Valladolid 
motorway 

Portuguese  section 

Spanish  section 

23.82 

28.80 

0.00 

0.00 

0.00 

0.00 

Total  project  No  8. 

23.82 

28.80 

0.00 

0.00 

0.00 

0.00 

52.62 

0.00 

52.62 

0.00 

0.00 

0.00 

No  9. 
Cork-Dublin-Belfast-Larne  rail 
link 

Line  upgrading 

11.87 

20.60 

21.47 

0.00 

53.94 

0.00 

No  13.  Ireland/UK/Benelux 

N1/N7  road  corridor  in  Ireland 

8.50 

40.19 

30.83 

27.07 

106.5 

40.00 

TOTAL  SPECIFIC 
PROJECTS 

123.9 

111.8 

93.04 

27.07 

355.9 

1237.56 

20  Grant  requested  by  Member  State  authorities  in  applications  received  up  to  September  1996 

(includes  total  amount  of  assistance  from  Cohesion  Fund  foreseen  over  the  period  to  1999). 

70 

B.l.  The  Regional  Fund 

Energy: 

eligible 
cost 
(MECU) 
525.24 

ERDF 
grants 
(MECU) 
208.88 

325.24 

128.88 

Period 

Ref 

224.52 

89.91 

94-97 

23.00 

9.20 

94-97 

18.20 

7.28 

94-96 

59.52 

22.49 

94-96 

200.00 

80.00 

94-99 

1275.40 

534.60 

1275.40 

534.60 

Gas 

SPAIN: 

CSF: 

"Estrecho  Gibraltar-
Tarifa-Cordoba" 

Network  Campo 
Gibraltar  and  Jerez 

Instalaciones  GNL 
Huelvà 

Gasoduct  Valencia-
Cartagena  (1st  phase) 

INTERREG  II  B 
(Interconnection  with 
Portugal) 
GREECE: 

Introduction  of  natural 
gas  in  Greece21,  from 
Russia  and  Algeria,  of 
which: 

CSF  1994-1999 

825.40 

354.60 

94-99 

Initiative  INTERREG 
II  B 

450.00 

•  180.00 

94-99 

PORTUGAL: 

565.16 

237.00 

Natural  gas  network: 

INTERREG  II  B 

CSF 

UK: 

348.16 

217.00 

140.00 

94-99 

97.00 

94-99 

TOTAL: 

2624.80 

1071.18 

21 

• 
including  low  pressure  distribution  systems  in  Greece 

71 

Electricity 

GREECE 

eligible 
cost 
(MECU) 

ERDF 
grants 
(MECU) 

Period 

Ref 

REGEN-Cable 

50.00 

20.00 

94-99 

ITALY. 

REGEN 

INTERREG  II  B 

UK: 

CSF  Sub-programme  -
electricity  interconnector 
N.  Ireland  -  Scotland 

288.48 

86.77 

149.05 

139.43 

31.00 

55.77 

92-96 

94-99 

252.72 

86.48 

94-99 

TOTAL: 

591.20 

193.25 

Telecommunications: 

eligible  cost 
(MECU) 

ERDF 
grants 
(MECU) 

Period 

Ref 

Public  networks 

GREECE: 

OP  Telecom  CCA  II 

322.00 

173.00 

94-99 

Roads 

Transport: 

ERDF 
grants 
(MECU) 

eligible 
cost 
(MECU) 

Period 

Ref 

SPAIN: 

666.77 

433.40 

O.P.  Castilla  y  Leôn 
of  which  : 
Motorway  Lisboa-
Valladolid  PP8 

666.77 

433.40 

94-99 

179.37 

116.59 

94-99 

N°  94.11.09.006 
c(94)3043/3  du  25/11/94 

GREECE: 

1426.00 

847.00 

PATHE  (Patra-Korinth-
Athens-Thessaloniki) 
PP7 

VIA  EGNATIA  PP7 

600.00 

352.00 

94-99 

826.00 

495.00 

94-99 

72 

IRELAND: 

120.20 

90.00 

Cork  -  Portlaoise  (N8) 
PP13 

Cork  -  Wexford  (N24) 

Limerick  -Portlaoise-
Dublin 

ITALY: 

15.60 

11.70 

95-99 

28.70 

75.90 

21.50 

94-96 

56.80 

94-96 

OP  Road  infrastructure: 

490.00 

245.00 

94-99 

ERDF 
940509016 

Messina-Palermo 

Salerno-Reggio  Calabria 

Cagliari-Sassari 

Bari-Otranto 

Brindisi-Lametia  Terme 

UK: 

100.00 

155.00 

84.50 

42.50 

108.00 

50.00 

77.50 

42.25 

21.25 

54.00 

OP  Road  infrastructure: 

-

37.23 

94-99 

Dublin-Belfast 

Other Northern  Ireland 

24.81 

94-99 

12.42 

94-99 

TOTAL: 

2702.97 

1652.63 

Conventional  Rail 

GREECE: 

ERDF 
grants 
(MECU) 

eligible 
cost 
(MECU) 

Period 

Ref 

Athens-Thessaloniki 

293.00 

176.00 

94-99 

ITALY 

OP  Rail  Transport 
UK: 

Total  Rail: 

Belfast-Dublin 

Other Northern  Ireland 
TOTAL: 

2049.00 

1756.00 

704.00 

94-99 

-

53.92 

46.53 

94-99 

7.39 
933.92 

97-99 

73 

Airports 

IRELAND: 

Global  upgrading 
Dublin-Cork-Shannon 

Ports 

GREECE: 

Port  of  Patras 

Port  of  Volos 

Port  of  Rhodes 

Port  of  Souda 

IRELAND: 

Dublin  (Bulk  storage 
facility) 
Ringaskiddy  (idem) 

TOTAL: 

ERDF 
grants 
(MECU) 

eligible 
cost 
(MECU) 

Period 

Ref 

14.80 

7.40 

95-97 

C(94)  1971/3 

ERDF 
grants 
(MECU) 

eligible 
cost 
(MECU) 

Period 

Ref 

69.00 

44.00 

13.00 

8.00 

4.00 

7.40 

3.70 

3.70 
76.4 

41.00 

26.00 

8.00 

5.00 

2.00 

3.80 

94-99 

94-99 

94-99 

94-99 

1.90 

96-97 

C(94)  1771/3 

1.90 
44:80 

96-97 

C(94)  1771/3 

TOTAL  TRANSPORTS 

4843.17 

. 

2638.75 

74 

ANNEX  IX 

:  EIB  LOANS  FOR  TEN  AND  T E N - R E L A T ED  PROJECTS 

EIB PROJECTS  (ECLlni) 

Loans 
approved 

Finance contracts signed 
94 
93 
<93 

Total 

95 

96 

1.  PRIORITY  PROJECTS  (Essen  European  Council) 

8 079 

642 

1180 

1137 

1603 

924 

5485 

HIGH SPEED  TRAIN/COMBINED  TRANSPORT  NORTH  SOUTH  (DE/AT/IT) 
HIGH SPEED TRAIN  PBKAL (FR/BE/DE/NL/UK) 
HIGH SPEED TRAIN  SOUTH  (ES/FR) 
HIGH SPEED  TRAIN  EAST (FR/DE/LX) 
BETUWE  LINE / COMBINED TRANSPORT  (NL/DE) 
HIGH SPEED  TRAIN/COMBINED  TRANSPORT  FRANCE-ITALY  (FR/IT) 
GREEK  MOTORWAYS  (GR) 
PORTUGAL-SPAIN  MOTORWAY  (PT/ES)  - wider  project 
RAIL LINK  CORK-DUBLIN-BELFAST-[LARNE-STRANRAER]  (IE/UK) 
MALPENSA  AIRPORT (IT) 
FIXED RAIL/ROAD  LINK  BETWEEN  DENMARK  AND SWEDEN  (DK/SE) 
NORDIC TRJANGLE (NO/SE/F1) 
IRELAND  - UNITED  KINGDOM  - BENELUX  ROAD LINK  (UK/IE) 
WEST COAST  MAIN LINE  (UK) 

2.  FURTHER  PROJECTS  OF  IMPORTANCE  (Essen  European  Council) 

2.1  Projects  in the  European  Union 

2.2  Projects  with  neighbouring  countries 

3.  OTHER  TRANS-EUROPEAN  NETWORKS  PROJECTS 

3.1 Trans-European  road  network 
3.2 Trans-European  rail network 
3.3 Trans-European  port network 
3.4 Trans-European  airport  network 
4.  PROJECTS  IN  CENTRAL  AND  EASTERN  EUROPE 

4.1  Road corridors 
4.2  Rail corridors 
4.3 Ports 
4.4 Airports  and ATC 

TOTAL 

384 
1 786 

477 

370 

286 

350 
230 

119 

350 
1481 

1 389 
2 060 
44 
295 
688 
1 332 
131 

3 458 

2 958 
500 

7 783 

3 168 
3 096 
460 
1 059 

1 292 

812 
216 
69 
195 

61 
104 

109 
701 

143 
534 

104 

60 
11 

34 
598 
44 
20 
128 
149 
50 

10 
66 

312 
417 

357 
2003 
44 
124 
440 
626 
61 

425 

314 

274 

250 

1263 

176 
247 

176 
138 

234 
40 

250 

838 
425 

347 

626 

1434 

1055 

3462 

100 

23 
224 

260 
182 
32 
152 

413 
583 
299 
139 

633 
417 
5 

1406 
1182 
359 
515 

222 

259 

230 

261 

972 

168 

153 

54 

15 
91 

245 
16 

176 

54 

742 
16 
69 
145 

20 612 

642 

2174 

2336 

3541 

2490 

11182 

75 

FIB  PROJECTS  (IX'UM) 

Loans 
approved 

Finance  contracts  signed 
<93 

93 

94 

95 

96 

Total 

1.  PRIORITY  PROJECTS  (Essen  European  Council) 

1.1  Projects  in  the  European  Union 

ELECTRICAL  INTERCONNECTION  GREECE  -  ITALY 
ELECTRICAL  INTERCONNECTION  FRANCE  -  ITALY 
ELECTRICAL  INTERCONNECTION  FRANCE  -  SPAIN 
ELECTRICAL  INTERCONNECTION  SPAIN  -  PORTUGAL 
EAST  -  WEST  ELECTRICAL  INTERCONNECTION  DENMARK 
NATURAL  GAS  NETWORK  GREECE 
NATURAL  GAS  NETWORK  PORTUGAL 
GAS  INTERCONNECTION  PORTUGAL  -  SPAIN 

1.2  Projects  with  neighbouring  countries 

GAS  PIPELINE  ALGERIA  -  MOROCCO  -  EUROPEAN  UNION 
GAS  PIPELINE  RUSSIA  -  POLAND  -  EUROPEAN  UNION 

2.  FURTHER  PROJECTS  OF  IMPORTANCE  (Essen  European  Council) 

2.1  Projects  in  the  European  Union 

2.2  Projects  with  neighbouring  countries 

3.  OTHER  TRANS-EUROPEAN  NETWORKS  PROJECTS 

3.1  Trans-European  electricity  network 
3.2  Trans-European  gas  network 

2 248 

1 261 

100 

57 

526 
354 
224 

987 

641 
346 

2 195 

811 
1 384 

200 

315 

523 

593 

1 638 

153 

333 

250 

744 

50 

56 

200 

207 
255 
224 

153 

102 
224 

200 

161 

190 

343 

894 

200 

162 

190 

343 

552 
343 

160 

402 

222 

474 

1 258 

160 

142 
260 

91 
131 

49 
425 

442 
816 

4 443 

360 

716 

745 

1 067 

2 896 

76 

EIB  PROJECTS  (ECUM) 

Loans 
approved 

Finance contracts signed 
<93 

93 

94 

95 

96 

TOTAL 

1. PROJECTS  IN  THE  EUROPEAN  UNION 

1.1  Networks  and  Trunk  Exchanges 

1.2  Mobile  Telephony 

1.3  Satellites  and  Stations 

2.  PROJECTS  WITH  NEIGHBOURING  COUNTRIES 

2.1  Networks  and  Trunk  Exchanges 

2.2  Mobile  Telephony 

2.3  Satellites  and  Stations 

6  462 

5  136 

1  005 

321 

695 

680 

15 

666 

2  100 

839 

1  063 

4  668 

615 

2  006 

786 

368 

3  775 

51 

72 

22 

53 

395 

300 

110 

300 

130 

110 

300 

130 

571 

322 

540 

540 

TOTAL 

7  157 

776 

2  400 

969 

1  063 

5  208 

77 

ANNEX  X  :  "THE  LIKELY  MACROECONOMIC  AND EMPLOYMENT  IMPACT  OF 
INVESTMENTS  IN  TRANS-EUROPEAN  TRANSPORT  NETWORKS" 

Executive Summary 

There has been  increasing  interest  recently  in the  likely  economic  and  employment  effects  of 
investments  in Trans-European  Infrastructure  Networks.  This  report attempts  a first tentative 
assessment of these impacts of the construction  of one component of the networks, namely the 
Trans-European  Transport Network  (T-TEN)  In order to clarify  the issues involved, two cases 
were  analysed: 
firstly,  the  completion  of  the  14  projects  agreed  at  the  Essen  European 
Council,  constituting  an  estimated  remaining  investment  volume  of  about  90  billion  ECU; 
secondly,  the  realisation  of  the  transport  TENs  as  outlined  in  the  Community  guidelines 
(COM(94)106  final),  for  an  estimated  400  billion  ECU.  The  following  points  emerge  from 
this  analysis: 

•  The  macroeconomic  effects  of  the  completion  of the  Essen  projects  are  highly  positive: 
the  cumulative  gain  in  GDP  would  exceed  560  billion  ECU  by  the  year  2030.  Tins 
represents a socio-economic  return of about  11%.  There are very few  public  expenditures 
that  give  such  a  consistently  high  rate  of  return  over  such  a  long  period  of  time.  The 
rapid  completion  of  the  Essen  projects  would  thus  give  an  important  boost  to  the 
competitiveness  of  the  European  economy. 

•  The  employment  effects  can  be  separated 

temporary 
employment gains during the construction  period, and permanent  increases in employment 
during  the  operation  period. 

into  two  distinct  aspects: 

•  According  to  the  tentative  estimates  presented  in this  report,  the completion  of the  Essen 
T  -TENs  would  create  additional  employment  of  700,000  mail  years  during  the  first 
decade  (1998-2007).  The  construction  of  the  full  T-TENs  as  set  out  in  the  Community 
guidelines  would  lead  to  an  increase  in  employment  of  some  3,200,000  man  years. 

•  Permanent jobs  derive  from  the  increased  economic  activity  resulting  from  the  use  of the 
completed  network.  As pointed  out  already, this  increase  is likely  to  be  very  significant. 
The extent to which jobs are created, however, very  much  depends on the degree to which 
productivity  gains  flow  into  either  higher  wages  or job  creation.  On  the  assumption  that 
most  of  the  productivity  gains  are  taken  in  real  wages  -  a cautious  hypothesis  which  is 
based  on  historical  trends  -  the  range  of  estimates  for  long  term  employment  effects  in 
the  economy  as  a  whole  is  between  130,000  and  230,000  extra  jobs  for  the  14  Essen 
projects  and  between  594,000  and  1,030,000 extra jobs  for  all  the  projects  in  the  T-TEN 
guidelines.  However,  if  workers  could  be  persuaded  to  take  the  productivity  increases 
resulting  from  TEN  investments  in  additional  employment  rather than  higher  real  wages, 
then  the  increase  in jobs  would  be dramatically  higher:  from  at  least  570,000  in the  case 
of  the  14  Essen  projects,  to  as  much  as  4,700,000  for  the  whole  network.  These  net 
figures  mask  potentially  significant  changes at the sectoral  and  regional  levels which  have 
not,  however,  been  analysed  in  the  present  study.  They  nevertheless  confirm  the 
significant  potential  of  T-TEN  implementation  for  improving  the  Union's  employment 
performance. 

78 

• 

• 

It  is  important  to  point  out  that  the  above-mentioned  estimations  are  based  on  the 
assumption  that  there  is  no  significant  overcapacity  in  the  economy  and  that,  therefore, 
T-TEN  investments  tend,  in  the  short-term,  to  crowd  out  some  alternative  investment 
projects  that  would  otherwise  be  undertaken.  However,  the  present  macroeconomic 
environment  in  the  European  Union  with  high  unemployment  and  low  interest  rates 
indicates  that  significant  spare  capacity  seems  to  be  available.  Accordingly,  it  can  be 
expected that a political  push for  quick T-TEN  implementation  would generate even more 
jobs  than  estimated  on  the  basis of  the  conservative  assumptions  used  in  this  report. 

It  is worth  emphasising  in this context  that the relationship  between  T-TEN  construction 
and  increased  employment  is not automatic. Whether the improved  business opportunities 
are taken advantage of depends on accompanying  polices.  Transport  policy could  provide 
an important  impetus through the implementation  of fair  and efficient  pricing.  Additional 
impact  could  come  from  a well-designed  process of  liberalisation  in the transport  sector. 
Macroeconomic  and  structural  policies  are  particularly  important  for  likely  employment 
effects.  This  is especially true  for  those policies that  influence  the functioning  of  goods, 
capital  and  labour  markets  by  enhancing  competition,  reducing  rigidities  and  facilitating 
It  can  be  expected,  for  instance,  that  there  would  be  a  positive 
structural  adjustment. 
inter-relationship  between  the economic  benefits,  in terms  of  improved  productivity  and 
international  competitiveness, of the completion  of the Single Market Programme  as well 
as  Economic  and  Monetary  Union,  the  globalisation  of  the  world  economy  and  the 
development  of  the  Trans-European  Networks. 

In  conclusion,  the  initial  analysis presented  in this report  indicates that the completion  of  the 
Trans-European  Transport Network will make a positive contribution to employment creation -
but  will  not  solve the  unemployment  problem  -  in Europe.  However,  T-TENs  should  not  be 
judged  solely  on  their  ability  to  create jobs.  Other  important  benefits  are  likely  to  accrue. 
First,  the  T-TENs  will  significantly  raise  output  in  the  EU.  Furthermore,  the  T-TENs  also 
bring Europe  closer together.  This dimension  of economic and  social cohesion  is particularly 
important  for  the  more  peripheral  regions.  Under  certain  circumstances  there  should  also be 
environmental  benefits  due  to  a shift  of traffic  from  roads towards  other  modes of  transport. 
It  has  not  been  possible,  however,  to  analyse  these  aspects  in  the  present  study.  In  view  of 
the  above,  further  and  complementary  analysis  of  the  likely  economic,  employment  and 
environmental  effects  of  T-TEN  investments  would  clearly  be  desirable. 

Output  and  employment  effects  of the completion  of the  Essen T-TEN  projects  (central  case) 
compared  to the base case 

35.0 

20.0 

=  15.0 

180000 

160000 

140000 

20000 

1-9 

ISSN 0254-1475 

COM(96) 645 final 

DOCUMENTS 

EN 

15  07  11  12 

Catalogue  number  :  CB-CO-96-648-EN-C 

ISBN  92-78-13086-9 

Office  for  Official  Publications  of the European  Communities 

L-2985  Luxembourg