Communication from the Commission to the Council and the European Parliament - Connecting the Union's transport infrastructure network to its neighbours - Towards a cooperative pan-European transport network policy
Date: 1997-04-23
Institutions: European Commission
Subjects: European cooperation, common transport policy, research and development, trans-European network, transport infrastructure

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.04.1997 
COM(97)  172 final 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

Connecting the  Union's 
transport  infrastructure  network 
to its  neighbours 

Towards 

a cooperative pan-European transport network policy 

Executive summary 

Connecting  the  Union's  transport  infrastructure  network to  its  neighbours  requires a  cooperative 
pan-European transport  network strategy. This pan-European  network is vital for competitiveness, 
growth and jobs. 

The  Commission  strongly  believes  in  a  comprehensive  approach  to  the  pan-European  network, 
both  in  terms  of  geographical  coverage,  and  in  terms  of  the  range  of  network  issues  covered, 
going  beyond  infrastructure  to  inter-operability  and  use  of  intelligent  transport  systems  and 
compatibility with environmental objectives. 

In addition to Western  Europe, the pan-European  network will cover the countries  of Central and 
Eastern  Europe,  including  the  European  countries  of  the  Former  Soviet  Union, and  the  Union's 
partners in the Mediterranean. 

This  comprehensive  approach  needs  to  take  account  of  the  special  position  of  the  candidate 
countries  for  accession,  which  are  currently  assessing,  with  the  EU, the  transport  infrastructure 
needs  in  their  countries,  with  a view  to  extending  the  trans-European  transport  network  to  their 
territories. 

This  approach 
is  embodied  in  the  mechanism  of  a  pan-European  Networks  partnership.  It 
comprises five themes for action on the basis of a common approach towards sustainable mobility: 

•  The  Pan-European  Corridors  and  Areas  as  a  framework  for  ensuring  efficient  transport 
services  with  all  our  neighbours.  The  Commission  entourages  all  European  countries,  the 
Internationa!  Financial  Institutions  and  the  private  sector,  to  make  every  effort  to  complete 
these  corridors.  The  Commission  welcomes  the  efforts  being  made  in  the  Mediterranean 
Sas;n  to  achieve  a  similar  concrete  and  practical  approach  to  transport  investment  in  the 
area. 

•  The extension of the TENs to the applicant countries as part of the pre-accession strategy; 

•  A  common  European  approach  to  transport  technology,  in  particular  to  ensure  inter 
operability; 

•  The  encouragement  of  intelligent  transport  technologies  through-out  the  pan-European 
network; 

•  Co-operation on research and technology. 

Connecting the Union's transport infrastructure network to its neighbours 

Towards a cooperative pan-European transport network policy 

executive summary 

SIÏL 

Socio-economic  evaluation  and  strategic  environments!  assessment  fcrm  the  keystone  cf  any 
European-wide  network  strategy  and  must  therefore  be  integrated  into  the  five  themes  set  out 
above. 

In addition to these themes, the partnership must treat financial and instituticnal/reguistcry issues. 

On  Finance,  the  major  share  of  infrastructure  investment  cernes  from  national  sources;  but  the 
necessary  investment will not take place without external support. 

As  far  as the  candidate  countries  for  accession  are concerned,  a  mu'ti-ccuntry  TEN  programme 
should be established. This will strengthen the functioning of the market economy overall, and thus 
accelerate  adoption  of  the  acquis  communautaire  and full  development  of  common  policies.  For 
the Mediterranean, the case for more emphasis on transport  networks  spending will be reviewed. 
The  Commission  will  initiate  the  necessary  measures  to  ensure  horizontal  co-ordination  and 
compatibility  amongst  the  various  budget  instruments  for  transport  networks  investment  for  the 
corridors and areas. 

The  Commission  will  co-operate with  the  International  Financial  Institutions,  in  particular  EBRD, 
World Bank, EIB and EIF, in order to develop a coherent approach in supporting the realisation of 
the Pan-European transport corridors and areas. 

The institutional and regulatory aspects of the partnership must be evolutionary, based on the wide 
range of existing bodies. 

A continent-wide  partnership across the next two decades is needed to make Europe's transport 
network  meet the  needs of the twenty  first century. The Commission  is putting forward an action 
plan for this purpose which concludes this Communication. 

The concept  of  a  Pan-European  network  partnership,  and the  accompanying  action  plan  will  be 
presented to the Helsinki pan-European Conference in June. 

Connecting the Union's transport infrastructure network to its neighbours 

Towards a cooperative pan-European transport network policy 

executive summary 

A^ 

Introduction 

1.  Well developed and modern infrastructure is vital to the competitive strength of any economy. 
The  arguments  in  favour  of  TENs  within  the  EU,  apply  equally  to  their  extension  on  a  pan-
European  basis.  The  extension  of  trans-European  networks  to  our  neighbours  can  contribute 
directly  to sustained  and sustainable  improvement  in growth and competitiveness  and, therefore, 
to employment and social well-being through reduced costs and better export potential, both in the 
EU and in the countries concerned.. 

2.  But the  regional  development.aspect  to the  TENs  is  also  important.  The  disadvantages  of 
peripheral  and  less  prosperous  regions  can  be  corrected  through  increased  mobility  and  the 
improvement  of  physical  links. Just as this  is true within the Union so  it is between Western  and 
Eastern  Europe  and  with  the  Mediterranean  basin.  The  completion  of  the  Trans-European 
transport  network within the  EU remains a central  priority. Alongside this, the establishment  of  a 
coherent  framework  on  pan-European  level, ensuring  connections  and  interoperability,  needs  to 
be persued. 

3.  On  the  basis  of  the  Union's  various  agreements1  with  its  neighbours,  the  Commission  has 
over  the  years  taken  a  number  of  initiatives  involving  four  groups  of  countries  -  the  Central 
European  Countries  (CEC), the  New  Independent States  (NIS), the  EEA States and Switzerland, 
and  the  countries  of  the  Mediterranean  basin  -  aimed  at  promoting  the  interconnection  of  the 
Union's Trans-European Transport Network (TEN-Tr) with these countries' networks. 

4.  While the  approach  followed so far  has  been pragmatic  and has  led to a number  of  positive 
developments,  it has been somewhat  piecemeal, taking advantage of opportunities as they arose. 
There  are  also  a  number  of  major  gaps,  particularly  in  former  Yugoslavia,  where  the  peace 
process  will  create  new  obligations  and  opportunities,  and  in  the  Eastern  Mediterranean,  where 
political  tensions  have  so  fa^  made  it  difficult  to  conceive  and  implement  a  coherent  approach. 
Furthermore,  modifications  in  the  nature  and  quality  of  the  Union's  relationship  with  its  different 
neighbours,  particularly  the  candidate  countries  and  those  in  the  Mediterranean  basin,  suggest 
that a more comprehensive strategy  needs now to be devised. 

5.  Such a strategy  should  contribute to consolidating  the various actions at different  levels and 
infrastructure  development. 
pursuing  a  Pan-European,  balanced  multimodal 
Furthermore,  it  should  promote  a  joint  approach  to  sustainable  network  planning  between  the 
Union and  its  partners  and finally  focus  investment  on  priority  transport  infrastructure  projects  for 
the Union and respectively the CECs, the NIS and the countries of the Mediterranean basin. 

transport 

laments  of  a transport  network  strategy 

6.  The above  mentioned  goals  should  be  implemented  through  ongoing  activities,  based  on  five 
elements of a transport network strategy  : Pan-European transport corridors and areas,  extending 
the Trans-European  Network approach to new Union members, a common approach to the use of 
transport  technology,  the  intelligent  use of transport  networks, and  Pan-European  co-operation  In 
R&D.  Based  on  tnese  strategic  elements  the  Commission  would  like  to  see  a  Europe-wide 
Transport Networks Partnership. 

7.  Design  and  development  of  the  pan-European  transport  network  including  its  corridors  and 
areas  must integrate environmental  concerns  in relation to all five themes: Sustainable  mobility  in 
Europe as a whole  must  be an  inbuilt goal of all transport  infrastructure  development.  Therefore, 
socio-economic  evaluations  together with  strategic  environmental  assessment  form the  keystone 

the Europe Agreements (and Transport Agreements where they  apply) with the Central and Eastern  European 
States  , the Partnership and Cooperation agreements with the New Independent States and the Euro-
Mediterranean agreements with the  states around the  Mediterranean basin, the EEA Agreement with Norway, 
Iceland and Liechtenstein, the Transport Agreement with  Switzerland, the Association Agreements with 
Turkey, and with Malta and Cyprus 

1  4 

of  any  European-wide 
network  strategy.  Since  methodology  is  moving  and  R&D  brings 
permanently  new  developments  network  designer  and  developers  also  need  a  permanent 
exchange of knowledge with the scientific community  in this field, in particular they should draw en 
the methods that are currently  being developed by the Commission  in implementation  of  the TEN 
Guidelines and the Transport RTD programme. 

The Pan-European  transport  corridors  and areas 

Pan-European Transport Corridors 

8.  The  second  Pan-European  Transport  Conference  on  Crete  in  19S4  identified  nine  priority 
transport corridors for Central and Eastern Europe as the main transport links forming the basis for 
further  work.  The  nine  corridors  are  shown  in  the  maps  attached  and  will  be  described  in  a 
brochure, to  be issued  by the  Commission  services  in April; the  maps and the  brochure  present 
the status of work in early  1997. See also the annex for details 

9.  The concept of corridors  had, and continues  to have, a significant  influence  on  International 
Financial  Institutions'  support  for  transport  infrastructure  investments.  In  particular  the  G24 
transport group  meetings  (involving  investors,  banks and administrations),  have supported  efforts 
to  turn  the  corridors  into  reality;  the  corridor  concept  was  also  instrumental  in  streamlining  the 
investment  proposals  for  transport  infrastructure  in  the  light  of  resources  available.  The 
their 
Memoranda  of  Understanding  between 
commitment and further enhanced the role of the corridors as focal points for investment. 

the  countries  concerned,  have  underlined 

10. 
Infrastructure  investment  requires  the  identification  of  viable  projects,  to  be  financed  from 
national  budgets,  the  Community  budget,  loans  from  Financial  Institutions  and  possibly  from 
private investors . In order to select such projects for early implementation a set of criteria v/ere set 
out in the report which the Commission  presented at the Crete Conference. The criteria2 are now 
more  or  less  accepted  for  important  infrastructure  projects  in  Central  and  Eastern  Europe.  This 
results from the  practice of the  last two years  in the  G24 working groups  and  in Community  fora 
dealing with the TEN, and gives a firm basis for future investments. The Commission will promote 
these criteria for the selection of all projects where the Community  is participating. 

11.  So far, mainly for pragmatic  reasons, the corridors have principally covered road, rail and, to 
a limited extent, waterways  (the Danube). However, for the sake of achieving sustainable  mobility 
all  over  Europe  all  modes  of  transport  should  be  considered  according  to  their  comparative 
advantages: A pan-European  corridor  must be multimodal in its concept, while  its  implementation 
on  the  basis  of  a  socio-economic  and  environmental  analysis,  might  give  preference  to  certain 
modes of transport. 

Pan-European Transport Areas 

In the ongoing considerations  about the required infrastructure  it has become apparent that 
12. 
the  concept  of  corridors  is  not  entirely  appropriate  for  areas  such  as  the  BISCK  Sea  and  its 
connections  to  the  Aegean,  the  Arctic  region  of  Europe,  or  the  Mediterranean  Basin  and  its 
constituents  such  as the  Adriatic  Sea. These  areas  need special  attention  in  order  to  determine 
the  optima!  mix  of  links,  nodes  and  shipping  and  aviation  facilities.  The  Commission  therefore 
proposes  to  complement  the  corridor  concept  by  an area  concept:  The  Fan-European  transport 
areas. This will also be presented tc the Pan-European Conference in Helsinki. 

13.  The implementation of such areas would follow the same rules and criteria as in the case of 
corridors*. It may be appropriate tc  conclude memoranda of understanding amongst the countries 
in the  area  leading  to  special  but  realistic  study  programmes  to foster  efficiency  of  the  transport 

^ 

See annex 

infrastructure  in  the  relevant  areas  and  to  meet  high  standards  in  terms  of  safety  and 
environmental  protection, and hence to  benefit  Pan-European  sustainable  mobility  of  passengers 
and goods. 

14. 
In  the  Mediterranean,  priority  must  be  given  to  facilitating  and  improving  waterborne 
transport flows. However,  in the longer term, it will be necessary to develop an overall approach to 
the  planning  of  an  efficient  transport  infrastructure  in  the  Maghreb,  Mashrak  and  Middle  East, 
including  links  through  Turkey,  and  its  connection  to  the  TEN-Tr  in  the  South  of  the  European 
Union  and  to  the  evolving  network  in  South  Eastern  Europe  and  the  Black  Sea  area.  Here  an 
approach based on the development of an overall, multimodal network has been agreed. 

Extending the Trans-European Network approach to new Union members 

15.  Within the comprehensive  'pan-European,' approach advocated  in this communication,  it is 
clear  that  the  position  of  the  candidates  for  EU  membership  has  to  be  given  special  treatment, 
since these countries should ultimately  be incorporated into the EU's own TEN system. This is one 
part  of  the  pre-accession  strategy,  and  relates  closely  to  the  recent  information  note  on  the  re 
orientation of the PHARE programme in the context of the pre-accession strategy. 

16.  On 23 July  1996 the  European  Parliament  and  Council  adopted  Community  guidelines  for 
the  development  of  the  trans-European  transport  network3  (TEN-Tr).  These  guidelines  establish 
orientations,  up to  the  year  2010, for  the  development  of  a  multimodal  transport  network  on  the 
Union's territory, in particular through promoting the interconnection and interoperability  of national 
networks  and  fostering  its  intelligent  use  and  compatibility  with  Community  environmental 
objectives. 

17.  The  trans-European  transport  network  is  primarily  designed  for  the  benefit  of  the  Union's 
citizens:  it  aims  to  allow  free  movement  of  people,  goods  and  services  throughout  the  Union, 
giving  countries  and  regions  appropriate  access  to  European  centres,  while  respecting  the 
environment. 

18.  With  respect  to  the  candidate  countries  for  accession  the  Commission  services  have,  in 
response  to  the  recommendation  of  the  structured  dialogue  between 
the  Council  and  CEC 
Transport  Ministers  on  28  September  1995,  launched  a  process  -  the  Transport  Infrastructure 
Needs  Assessment  (TINA)  -  which  is  intended  to  help  identify  the  broad  lines  of  necessary 
measures  regarding  TEN  in  the  candidate  countries,  and  to  identify  priorities  and  projects  of 
common  interest.  In  particular,  the  economic  viability  of  projects  and  possible  ways  of  financing 
them  will  be  examined.  Strategic  environmental  assessments  will  be  integrated  in  the  TINA 
process. 

19.  This  process  is co-ordinated  by the TINA group of senior officials  from Member  States and 
candidate countries.  By the end of 1998 the group plans to present a first draft report on how the 
network could be extended. 

20.  With  a view  to  the  development  of  a  pan-European  network  strategy,  it  is  envisaged  that 
one element of the TINA  process will be the development  of  links between the extended  TEN-Tr 
and  the  networks  of  other  countries  of  Central  and  Eastern  Europe  (e.g.  Albania,  Bosnia-
Herzegovina, FYROM), the European NIS and other third countries. 

21. 
In the candidate countries, corridors and areas will, through the TINA process, gradually  be 
incorporated  into  a  denser  trans-European  transport  network.  The  Pan-European  transport 
corridors and areas, will however,  in the medium and long term, remain the basic infrastructure for 
trade  between  the  enlarged  Union,  the  New  Independent  States  and  their  regions,  and  the 
Mediterranean basin. 

Decision No 1692/96/EC (OJ L228 of 9 September 1996) 

Tovjards  a common  European  approach  ire transport 
Interoperability of transport infrastructure,  its network and management 

technology 

Interoperability, amongst other issues4,  relates to the different technically  possible solutions 
22. 
for  a  transport  network  and  the  transport  services  using  it.  Usually  technical  interoperability  is 
accomplished  by  developing  standards  and  agreements  at  the  level  of  economic  operators: 
suppliers, service  providers  and transport  companies.  For safety  reasons  but aiso since  transport 
was  until  recently  mainly  a  public  sector  domain,  the technical  specifications  were  often  set  by a 
regulator/  framework.  Due to  the  increasing  market  orientation  of  Europe's  transport  sector,  the 
right balance between standardisation en one hand and regulatory  measures on the ether must be 
developed. 

23.  For  the  various  modes  of  transport  interoperability  ensures  that  different  technologies  can 
be used in parallel and that services  using different  technologies  may  use the same Infrastructure. 
It includes also the interconnection  cf various public or private systems existing in Europe. On the 
basis cf interoperable networks transport operators can supply transport services in the safest and 
most cost effective way, minimising harm to the environment and at the same time competing with 
each other for the benefit of the transport sector as a market place. 

24.  Work  regarding  standardisation  and  common  approaches  to  ensure  interoperability  has 
been pursued in various fora; in international organisations such as the UN-ECE for land transport, 
(MO for maritime transport  and  EUROCONTROL  or  ECAC for air transport,  CEN,  CENELEC  and 
ETSI for the development of European standards. 

25.  Major work on the network  infrastructure  for  land transport  has been carried out by the UN-
ECE  In their  agreements  concerning  roads  (AGR),  railways5  (AGC),  combined  transport  (AGTC) 
and  most  recently  concerning  inland  waterways  (AGN).  All  these  agreements  are  subject  to 
ratification  by  the  Member  countries  of  the  UN-ECE,  but  not  all  havs  signed  yet.  In  order  tc 
streamline  Pan-European  transport  infrastructure  development,  the  Commission  urges  those 
States to ratify the agreements as soon as possible. 

26. 
Interoperability  is one cf the fop priorities cf the TEN-T guidelines.  Network  interconnection 
and interoperability  with third-country  networks  is to be determined on a case-by-case  basis. The 
Treaty on European Union mentions it as one area for projects of mutual interest for the Union and 
third countries. 

27.  The candidates for accession are required to approximate their legislation to the Community 
acquis;  interoperability  is  an  issue  here;  and  in  the  context  of  the  existing  Memoranda  of 
Understanding  interoperability  issues  should  be addressed  en  a  regular  basis.  The  Commission 
considers  network interoperability  as a major objective for co-operation  in a pan-European  network 
partnership. 

The intelligent  use of  transport  networks 

28.  The  intelligent  use  of  the  transport  network,  mainly  through  efficient  traffic  management 
systems, while  rather  moderate  in investment  needs, can  result  in  major  improvements  on  traffic 
flows, thus increasing the  use of the capacity  of existing  infrastructure. The Commission  therefore 
supports  the  implementation  of  such  concepts.  Most  of  these  systems  have  global  application 
features and are not specific to the Union's territory. This applies specially to: 

VTMIS: 

ERNP: 

a vessel traffic  management  and  information  system  for  European  waters 

Europe's  future  Radio-navigation  Plan which  is  under  preparation 

^ 

5 

for full definition of interoperability  refer to Directive 96/48 23 July  1996 article 2, §b 

Further to the efforts of the UN-ECE the railway companies  have recently created an European Economic 
Interest Grouping (EEIG) specifically for highspeed train technologies 

ATM 

GNSS 

ERTMS 

RTT 

TEDIM 

Air  Traffic  Management  consistent  with  the  European  Air  Traffic  Control  Harmonisation 
and Integration Programme (EATCHIP) 

Global Navigation Satellite System: of clear significance for future ATM systems and likely 
to become of great importance for all kinds of traffic management systems^ 
European  Rail Traffic  Management  System, consisting  of  a control  command  system  for 
the European Railways, developed within the Union's R&D programmes and activities 
Road  Transport  Telematics  can  help  optimise  existing  infrastructure  capacities,  link 
networks and services, improve safety  and reduce the  negative effects  of transport  on the 
environment 
TEDIM  (Telematics  for  Trade  Logistics  and  Delivery  Management)  operated  by  Finland, 
Russia  and Germany  in the  Baltic  sea area; could  usefully  be extended to other  areas  in 
Europe such as the Black sea or the Adriatic. 

in  the  transport  sector  to  harness 
This  list  of  activities  should  demonstrate  the  ongoing  efforts 
modern  technologies  offered  by  the  information  and  telecommunication  sector.  The  Commission 
invites  its  European  neighbours  to join  these efforts  where  appropriate. 

29. 
Investment  in  intelligent  transport  networks  brings  significant  benefits  relative  to  the  size  of 
the  investment:  Developing  the  infrastructure  for  the  intelligent  use  of  transport  networks  requires 
funds  amounting  to  up  to  10%  of  physical  infrastructure  costs  while  allowing  to  accomodate  30% 
more  traffic  wihtout  additional  capacity  investment.  It is an  area  that  seems  ripe  for  private  sector 
involvement  particularly  for  so-called  "added-value"  services.  Public-private  partnerships  have 
already  started  and will  be encouraged. 

Pan-European  co-operation 

in  transport  research 

Transport  has  always  been  an  important  sector  for  innovation  in  our  economies.  For  this 
30. 
reason  the  Union  has  reserved  an  important  share  for  transport  in  its  Research  and  Development 
and  Demonstrations  framework  programme.  Furthermore,  the  topic  of  pan  European  transport 
infrastructure  is  an  essential  component  of  the  various  areas  of  strategic  transport  research 
(namely:  understanding  mobility,  economics  of  transport  system,  developing  intermodality,  system 
organisation  and  interoperability,  integration  of  new  technologies,  policy  assessment)  under  the 
Community's  Research  and  Development  and  Demonstrations  Framework  programme. Within  the 
"Policy  assessment"  area  one  important  task  deals  with  the  'strategic  assessment  of  corridor 
developments,  TEN  improvements  and their  extension  to the  CEEC/NIS'. 

The  Commission  considers  co-operation 

31. 
in  transport  R&D  with  its  neighbours  as  an 
important  part  of  its co-operation  policy,  and for the  candidate  countries  for  accession, as  a  means 
to accelerate  the  adaptation  of their  transport  sector  to that of the  Union.  Most  countries  in  Europe 
also  have  national  programmes  to  promote  their  transport  sector.  Under  the  present  4th 
Framework  Programme,  the  specific  programme  on  Transport  research  is  open  to  CECs/NIS 
participation.  Furthermore,  funding  is  available  through  the  specific  programme  on  international 
co-operation  (INCO)  to  support  the  participation  of  organisations  from  these  countries  in  projects 
of  the  Transport  programme^  Up  to  March  1997,  25  different  partners  from  such  countries  are 
involved  in 24  projects  and  the  Community's  contribution  to their  participation  amounts  1.2  MECU. 
This will  be  pursued  in the  5th  Framework  Programme. 

Towards a Europe-wide Transport Networks  Partnership 

32.  Given  the  goal  of  the  creation  of  a  multimodal  transport  network  across  the  European 
continent  as  a  whole,  the  concept  of  a  Europe-wide  Transport  networks  Partnership  between  the 
Union,  MS  governments,  the  governments  of  other  interested  countries,  the  International  Financial 
Institutions  and  the  private  sector  seems  an  appropriate  way  forward,  particularly  for  evolution  of 
regulatory  and organisational  structures. 

Building  on  the  previous  experience  of  infrastructure  development  in  this  region,  such  a 
33. 
partnership  should  aim  at  giving  possible 
financial 
transactions,  and  similarly  for  construction  and  transport  service  providers  and  the  equipment 

investors  a  stable  framework 

for  their 

industry.  The governmental partners  must develop transparent sets of rules which allow investors 
a  clear  view  of  the  political  and  administrative  risks  on  their  projects,  while  complying  with  EU 
policies concerning competition, environment and public procurement. 

34.  Such  a partnership  on the  Pan-European  level could also foster  the  establishment  of  legal 
entities which could help to manage efficiently  large scale investment  projects  of a  Pan-European 
nature. 

35.  Such a partnership  needs tc  be considered from three viewpoints: the  required  investment 
volumes  and their  financing; the  regulatory  and  institutional framework  and  its  limitations; and an 
action plan to launch such a partnership. 

Investment  costs  and  financing 

36. 
Infrastructure  investments  are  funded  through  a  number  of  complementary  instruments 
which vary significantly  across Europe, although, the most important source for investments is still 
national  budgets. Transport  infrastructure  measures at a European  level  have so far  been  mainly 
in the public sector.  However, a number of actions have involved the private sector.  In particular in 
airport  financing  and  port  investments  the  private  sector  has  begun  to  engage  in  public  private 
partnerships. 

37.  Expenditures  of  the  Member  States  for  infrastructure  relevant  to  the  Union  amount,  on 
average, to 1.2% of the EU's GDP6: in absolute terms this :s approximately 60 BECU/annum. This 
is  complemented  by  Community  funds,  e.g.  for  the  so-called  cohesion  countries,  from  EU 
structural  funds  and  a special  budget  line  for  the  TENs.  Compared  with  Member  States'  efforts, 
these Community contributions are moderate, but can have an important catalytic effect. 

38. 
In  our  neighbours,  some  Community  grant  finance  Is  available,  but  the  lion's  share  of 
investment  comes  from  the  IFIs  -  EIB,  EBRD  and  the  World  Bank  -  which  have,  since  1990; 
engaged  about  2.6  BECU  in  lending  in  Central  and  Eastern  Europe  (CECs  and  NIS),  with  their 
current joint  new  engagements  totalling  about  500  MECU  per  annum  in  infrastructure  measures. 
Possibilities for financial support differ according to the nature of the Community's  relationship with 
the countries concerned, and the instruments available. 

Central  European  countries 

39.  As  the  relations  with  the  candidate  countries  will  become  much  stronger  during  the 
accession process it can be expected that the volume of trade ar.d tourism between the Union and 
the  candidate  countries  will  also  rise.  This  will  ;ncrease  the  pressure  on  the  existing  rather 
inadequate  transport  network  and  substantial  transport  infrastructure  investments  will  therefore 
need to be achieved during the coming years. 

40.  Potential investment costs for establish.ing the TEN-Tr in the CECs7 have been estimated at 
50  to  90  BECL's  for  the  next  15  years,  merely  for  upgrading  roads  and  railways  tc  Western 
European  standards  to  meet  the  expected  growth  in  traffic,  without  considering  any  new  links. 
Since  national  budgets  of  the  CECs  are  restricted,  and  there  is  a  huge  maintenance  backlog, 
significant  external  assistance  wii!  be  required.  The  ECOFIN  Council  concluded  already  with 
respect  to  the  involvement  of  the  EIB  in  the  pre-accession  process:  "...  Member  States  and  the 
European  Commission  unanimously  declare  that  they  agree  to  the  creation  of  a  sizeable  pre-
accession support facility". 

for details see report of European Centre for infrastructure  Studies (ECIS), Rotterdam: The State of European 
Infrastructure 1S9G 

7 

Figures in this paragraph reflect  considerations  in "Transport Infrastructure Financing in Central and Eastern 
Europe" by M. Gaspard published at Presses de l'école national des Ponts et chaussées, France 

41.  Since  1992, the  PHARE  programme, acting  in the  10 applicant  countries, Albania,  Bosnia-
Herzegovina  and  FYROM,  has  funded  about  600  MECU  in  total  for  transport  infrastructure 
investments.  So  far  25%  of  the  total  PHARE  budget  may  currently  be  used  for  infrastructure 
investments. For the accession countries, a multi-country  TEN programme should be established. 
This will strengthen the functioning of the market economy overall, and thus accelerate adoption of 
the  acquis  communautaire  and  full  development  of  common  policies.  The  recent  PHARE  re 
orientation  indicates that  Phare will continue to finance or co-finance together with the EIB,EBRD 
and the World Bank  major  infrastructural  projects. A substantial volume of funds from private and 
public sector sources will continue to be invested annually in transport projects, mainly on the Pan-
European  corridors.  A  significant  increase  in  funding  between  now  and  2005  is  likely  to  be 
required 

The New Independent Slates 

42.  The  New  Independent  States  show  some  readiness  to  open  many  parts  of  their 
infrastructure  for  Pan-European  transport,  in  particular  as  regards  the  Pan-European  transport 
corridors  and  areas.  This  will  result  in  traffic  growth  which  will  create  bottlenecks  due  to 
inadequate  infrastructure.  Financial  support  for  investments  in  order  to  remove  such  bottlenecks 
would benefit  Pan-European transport and trade between the Union and the NIS. 

43.  The  main  source  for  finance  in  these  countries  will  continue  to  be the  World  Bank  Group 
and the EBRD while- through TACIS - Community  technical assistance  is provided  under the so-
called  Inter  State  programme  towards  the  realisation  of the  Crete  Corridor  II  (Germany,  Poland, 
Belarus,  Russia)  as well  as  Corridor  IX  (Finland,  Russia,  Ukraine,  Romania,  Bulgaria,  Greece). 
Morever,  quite  a  number  of  projects  are  sponsored  in  the  framework  of  the  Transport  Corridor 
Europe Caucasia Asia, established in 1993. 

44.  The  new  TACIS  Cross  Border  Cooperation  programme  will  come  into  full  operation 
resolving  specific  infrastructural  bottlenecks  on  key  border-crossings.  In  that  respect  small 
infrastructural  networks  improvements  will  be  co-financed.  Experience  with  this  programme  will 
provide a means for assessing the case for further adjustments. 

Mediterranean 
45. 
The financial  needs for transport  infrastructure  around the  Mediterranean  basin  still  need 
to  be  determined.  In  these  countries,  the  EIB  has  co-funded  several  projects  over  the  recent 
years,  under  the existing  Financial  Protocols. The  MEDA  programme  promotes  preparatory  work 
for the interconnection of transport infrastructure networks and for transport infrastructure projects, 
in  particular  through  feasibility  studies.  Consideration  should  be  given  to  extending  the  range  of 
such "soft" activities  in the bilateral and regional programming of MEDA.  However the financing of 
actual investments will have to continue to be provided from other sources such as the EIB or the 
World  Bank.  As  regards  the  Eastern  Mediterranean,  on  the  model  of the  G-24,  a forum  for  co 
ordination of aid has been established. 

Overall coherence 
46. 
Networks have to be looked at in a coherent way: failure to complete a road link in Russia 
may  undermine  many of the benefits of linked investments  in accession countries.  But there is no 
programme  which  allows  the  Union  to  support  infrastructure  investments  along  the  length  of  the 
corridors  in  a  coherent  way.  The  rules  in  the  INTERREG  and  TEN  budget  line  for  the  Union's 
territory,  the  rules  in  PHARE  for  Central  and  South  Eastern  Europe,  in  TACIS  for  the  New 
Independent States, and in the MEDA programme are all different. 

47. 
It would  therefore  be a  major  step forward  if a co-ordinated  approach  could  be  envisaged 
which could cover all Pan-European transport corridors and areas in a consistent manner. This co 
ordinated  approach  would  seek  to  acknowledge  the  appropriateness  of  differentiation  in  some 
respects  (e.g.  maximum  percentage  subsidy)  and  the  differing  policy  objectives  of  these 
programmes, while seeking to remove  unnecessary  differences  (e.g. in terms of eligibility  criteria, 

co-financing  arrangements,  geographical  scope)  which  make  a  coherent  approach  to  network 
financing  difficult.  It  would  not  affect  existing  envelopes  for  particular  groups  of  countries,  but 
rather assure their co-ordinated use in support of the networks. 

Such  an  approach  would  fit  within  a  broader  framework  of  co-ordination  with  other  donors, 
essentially the IFIs. 

The regulatory and organisational framework 

48. 
A partnership may  be realised in different ways: from very  informal agreements to treaties 
between  sovereign  states.  The  action  of  the  G24  transport  working  party  is  an  example  of  an 
informal  partnership;  the  Commission  is  ready  to  continue  for  the  time  being  along  this  path. 
However,  there  are  a  number  of  agreements  -  the  Europe  Agreements  with  the  CECs,  bilateral 
transport agreements with several States, the Euro-Mediterranean Agreements - and  Memoranda 
of Understanding for several corridors which the Commission would like to use in a coherent way 
for the purpose of implementing the partnership. 

49.  A  range of existing  institutions  and  bodies are already  active in this area. The  Commission 
considers that an evolutionary  approach to institutional and regulatory development is appropriate, 
building  on  the  bodies  already  active  in  order  to  ensure  a  comprehensive  approach  to  pan-
European networks becomes a reality. In addition to the Community itself this will embrace: 

•  The Pan-European Transport Conference in Helsinki which is expected to confirm its support for the 

corridor strategy; 

•  The ECMT for the CECs and NIS, the BSEC for the Black Sea, and the Conference of Mediterranean 

Transport Ministers, which could undertake the necessary political follow up of this strategy. 

•  The framework of the G24 Transport Working Group  which provides the necessary Pan-Eurcpean 
forum involving the financial institutions and the private sector. A similar body for the Mediterranean 
has recently been created. 

•  For the applicant countries, the structured dialogue, in the context of the pre-accession strategy, which 

is appropriate for planning the formal integration of these countries into the TENs; 

•  The steering committees of the various corridors and areas set up under MoUs amongst the countries 

concerned. 

•  Ongoing co-operation with the International Financial Institutions, in particular EBRD, World Bank, EIB 

and EIF, which should be intensified, in order to develop a coherent approach in supporting the 
realisation of the Pan-European transport corridors and areas. 

50. 

Some of the central principles binding together the partnership should be 

the planning framework of "Pan-European transport corridors and areas" should be fully 
developed by all parties concerned and applied in discussions on future investment; 

ii  A consistent approach to project identification, based on the criteria developed in the context 

of the Crete Corridors and of the Community Guidelines for TEN-Tr; 

iii  the development of investment instruments which assess and grant support for projects on 

the basis of  principles and rules which are as similar as possible. 

iv  the development of the Public Private Partnership concept as an important tool for project 

specific investment partnerships, drawing on the results of the Kinnock High level group on 
PPPs in the Community, and the importance of organisational structures which allow the 
creation of single project entities for large investments. 

51.  The  Commission  is  ready  to  take  the  necessary  initiatives  to  establish  a  Pan-European 
Transport  Networks  Partnership.  For this  purpose  a series  of  initiatives  are set  out  in the  Action 
Plan attached. 

Action plan for a Pan-European transport networks  partnership 

In  order  to  foster  close  co-operation  among  all  parties  concerned  with  the  development  of  the 
necessary  transport  networks  on  the  European  continent,  the  Commission  would  like  to  see  a 
Pan-European  Transport  networks  Partnership,  to  operate  over  the  next  two  decades.  The 
Partnership  should  be  a  mechanism  for  co-ordinated  transport  planning,  studying  regulatory 
measures  and facilitating financial arrangements  at a Pan-European  level, based on the following 
initiatives. The Commission will present this partnership approach to the Helsinki Conference . 

The institutional and regulatory aspects of the partnership must be evolutionary, based on the wide 
range  of  existing  bodies.  The  Commission  will  keep  under  review  the  case for  new  institutional 
development.  The  Commission  will  report  in  Autumn  1998  on  progress  and  suggest  possible 
further actions. 

A: 

Towards co-ordinated transport planning: five themes for action 

1. 

2. 

Pan-European  transport corridors and areas: a planning  tool and investment  focus 
The  Commission will co-ordinate  preparatory  work for the Third  Pan-European  Transport 
Conference  in June  1997 in Helsinki and will, with the UN-ECE and the ECMT, forward a joint 
set of priority  pan-European  corridors  and areas, to provide the  long-term planning, framework 
for  the  development  of  the  pan-European  Transport  network.  The  Commission  hopes  the 
Conference will support this framework. 

Following  the  Third  Pan-European  Conference,  the  Commission  will  continue  to  use  the 
G24  framework  and  in  particular  its  regional  subgroups,  together  with  a similar  Group  for  the 
Mediterranean, 
financing  schemes 
together with the International Financial Institutions. 

infrastructure  development,  establishing 

to  promote 

3. 

As  a  basis  for  reviewing  the  progress  of  work  on  the  Pan-European  transport  corridors 
and  areas,  the  Commission  will,  where  appropriate  together  with  the  UN-ECE  and  the 
Secretariat of the ECMT, report to Transport Ministers in the relevant fora . 

4. 

The Commission will actively support the efforts of the States involved in Pan-European 
transport corridors and areas to conclude Memoranda of Understanding, in order to establish 
fora for studying their implementation, and to establish a basis for project specific  investment 
partnerships involving the private sector. 

5. 

As  regards  South  Eastern  Europe,  special  attention  will  need  to  be  given  to  integrating 
fully the countries of former Yugoslavia into the Pan-European  partnership, as a support for the 
reintegration of the region when the required conditions are in place. 

6. 

Extend  the  Trans-European Network approach to new  Union members 
in the  context  of the  pre-accession  strategy,  the  Commission  will  continue  the  Transport 
Infrastructure  Needs Assessment  (TINA)  process with the aim of extending the TEN-Tr  to the 
candidate countries for accession. A first report wiii be available by the end of  1998, which will 
be  taken  into  account  in  the  first  progress  report  on  the  development  of  the  trans-European 
transport  network due in 1999 which should deal with the question of extending the network to 
the potential new members. 

The structured dialogue within the framework of the Europe agreements will continue to provide 
a forum for political guidance of development in TEN in the accession countries. 

11 

A common approach to the use of transport technology 

7. 

The Commission will promote interoperability  and standardisation  actions in the context of 
the Pan-European transport corridors and areas and the development cf an extended  TEN-Tr, 
and encourage the involvement of these third countries in the relevant International bodies. 

The intelligent use of transport networks 
As priorities in this area, the Commission will: 

8. 

• 

in the framework  of G24, launch the necessary  work on GNSS with a view to  extending 
its coverage to all neighbouring countries in Europe. 

•  promote the idea of an interoperable Control Command system on the Pan-European rail 

transport corridors and areas, 

•  help to implement a coherent Vessel surveillance system in all European waters, 

•  promote  the  standardisation  of  road  traffic  management  systems  beyond  the  Union's 

borders, 

•  support all activities which will lead to a more efficient Air Traffic Management throughout 

the European Continent 

9. 

With  a view  to  supporting  in accordance with  the objectives  of  the  Community  policy  on 
sustainable development including the use of more environmentally friendly modes of transport, 
the Commission will give strong support to more efficient  travel  information  systems  based  on 
tools of the Information Society. 

10. 

Pan-European co-operation in R&D 
The Commission invites researchers on the European continent to cooperate more closely 
together  for  a  future  efficient  transport  network  in  Europe  which  supports  the  concept  of 
sustainable  mobility  across  Europe.  As  with  the  4th  Framework  Programme,  the  transport 
research programme in the 5th Framework  Programme will be open to CECs/NIS  participation 
together with funding through the international co-operation programme. 

11. 

The  Commission  will  induce  and  promote  the  application  of  strategic  environmental 

network assessment amongst others through demonstration studies. 

B: 

Financial Aspects 

12.The  Commission  will  continue  to  support  the  implementation  of  the  Pan-European  transport 
corridors and  areas from relevant Community  budget lines as they are available in the present 
budget  system.  It will  initiate  the  necessary  measures  to  ensure  horizontal  co-ordination  and 
compatibility amongst the various budget instruments for transport networks investment. 

13.The  Commission  strongly  recommends  that,  for  Europe  as  a  whole,  support  from  national 
funds  and  programmes  and  from  the  I Fis  should  principally  be  given  to  infrastructure  and 
network  projects  which  contribute  to  implementing  the  Pan-European  transport  corridors  and 
areas, or the main axes for Pan-European transport on the territory of the Union. 

14. As far as the candidate countries for accession are concerned., the Commission will put forward 
a  multi-country  TEN  programme  under  the  re-oriented  PHARE  Programme.  For  the 
Mediterranean, the case for more emphasis on transport networks spending will be reviewed. 

15.The Commission will co-operate with the International Financial institutions, in particular EBRD, 
World Bank, EIB and EIF, in order to develop a coherent approach m supporting the realisation 
of the Pan-European transport corridors and areas. 

12 

Annex 1 : Maps: The nine  Pan-European transport corridors and their connection to the 
TEN-Tr 
status February 1997 

Connecting the Union's transport infrastructure  network to its neighbours 

Towards a cooperative  pan-European  transport  natwork  policy 

Annex -  page  I 

4\ 

Implementation of transport infrastructure projects for the benefit of Pan-European 
transport. 

The  Treaty  establishing  the  European  Community  speaks 
about 

projects of common interest: 

for projects to be executed within the borders of the Union following 
the Community guidelines and supported by the Union following the 
provisions of the network financial regulation and 

projects of mutual interest: 

when projects extend across the Union's borders or lie within a third 
country. 

The  International  Financial  Institutions  restrict  themselves 
to what they define as 

bankable projects: 

which  are more  limited  in scope, with an upper  limit of the  order of 
500  Million  ECU, while  smaller  projects  are  even  more  welcome. 
Such projects form part, or are sections, of the  large scale  projects 
of common/mutual  interest or of priority corridors or areas 

The  Crete  conference  suggested  to  consider  the  relevant 
Pan-European transport  infrastructure  in a scheme of three 
layers ( see insert) 

While  layer  one  is  mainly  giving  guidelines  for  transport 
planners  based on commonly  accepted  network  outlines  of 
the  UN-ECE,  layer  two  and three  provide for  tools  in order 
to select investment priorities. 

Layer 2 is based in part on the TEM and TER networks and 
a number of assumptions: 

Firstly: 

every  participating  country  in  Central  and  Eastern  Europe 
should be touched by at least one corridor; 

Secondly:corridors should only be included if they are economically  viable 
and  if  there  is  a  realistic  perspective  of  financing  for  their 
development to an appropriate  level by the year 2010; 

Thirdly: 

the  corridors  chosen  should  be  consistent  with  a  network 
concept thus reinforcing their individual viability. 

The suggested three  layer concept as supported by the 
declaration  of 
the  second  Pan-European  Transport 
Conference,  Crete  14-16 March  1994,  can  broadly  be 
described as follows: 

Layer 1:  The long term perspective for  Pan-European 
infrastructure  development  of  common 
interest,  as  reflected 
the  international 
instruments  AGR,  AGC,  AGTC  developed 
under  the  auspices  of  the  UN/ECE.  No  time 
horizon  is  set  for  the  achievement  of  the 
networks laid down in those instruments. 

in 

Layer 2:  The  medium  term  priorities  of  common 
interest  up  to  2010.  For  the  European Union 
this  is  the  Trans-European Transport Network 
as  adopted  by  Council  and  European 
Parliament  in  July  1996.  For  Central  and 
Eastern Europe, these are a number of priority 
corridors  covering  all  modes  of  transport, 
including mainly the TEM and  TER networks, at 
present  9 corridors are  considered  as  listed at 
the Crete conference, to be revised on the next 
conference at Helsinki,  June 1997 

Layer 3:  The short term priorities of common  interest 
(  up  to  five  years).  Projects  must  be located 
on  corridors  as  defined  under  layer  2  or  be 
the  Community  guidelines  as 
identified  in 
projects  of  common interest.  For  Central and 
Eastern Europe, on the basis of a list of specific 
projects  presented,  these  priorities  should  be 
determined  through  the  application  of  agreed 
operational criteria for the selection of priorities. 
European  Union  priorities  are  set  out  in  the 
Community  guidelines;  additional  are  to  be 
determined  in  accordance  with  its  internal 
procedures. 

Selection  criteria for layer 3 

The  mandatory  selection  criterion  for  priority  projects  for  the  benefit  of  Pan-European 
transport shouid be those which contribute to implement the Pan-European transport corridors and 
areas.  Projects  should  be  regarded  to  contribute  to  the  implementation  of  the  Pan-European 
transport corridors and areas which cover 

* 

the necessary  and economically viable physical infrastructure of corridors and areas according to their action 
plans 

the necessary  infrastructure for the intelligent use of transport systems 

fostering new or appropriate technologies  including rolling stock where it helps to  promote the Common 
transport policy  (e.g. Combined transport support) 

improved rolling stock, when it helps to prevent expensive infrastructure  investments 

required services on the corridors  or in the areas for international transport services  ,  in particular at border 
crossings 

Connecting the Union's transport infrastructure network to its neighbours 

Towards a cooperative pan-European transport network policy 

Annex-  page  2 

S)ù 

Projects  develop  in  two  phases:  Project  preparation  and  investment:  The  phase  of  projects 
preparation  ("the  study  phase")  contains  all  the  necessary  steps  which  lead  to  its  maturity.  The 
study  phase  requires  public  support  in  particular  in  the  early  stages  of  preparation.  However,  il 
does not form part of investment schemes as addressed in this communication. It is considered as 
a mandatory  but separate part of the project, development. 

Investment projects to be selected must meet the following criteria: 

financial  -  potential  availability  of  financing  must  be  demonstrated,  realistically  detailing 
contributions  from  own  governmental  budgets,  foreign  grants  and  aid,  and  private  financing. 
Potential  revenues  from  the  operation  of  the  project  as  well  as  other  incentives  for  private 
financing  (revenue  transfer  from  existing  infrastructures,  land  grants,  etc.)  should  be  evaluated 
and, where  appropriate,  plans for  the financial viability  of  a  revenue  earning  entity  operating  the 
infrastructure should be prepared. 

economic - as a general rule, the rate of return should be at least of the order of  10%. Calculation 
should be based on an economic  analysis  in accordance with  best international standards, taking 
into account internal and external costs and benefits, such as those from the network effect of the 
project, increased business attraction, tourist traffic, and environmental effects. 

mature  -  ready  for  immediate  implementation;  this  means  that  the  study  phase  has  been 
successfully completed and the following issues and steps are solved or completed: 

finalisation of financial arrangements; compliance with possible financing conditions 
coherence  with  relevant  environmental  law  and  policy,  including  environmental  impact 
assessment and its following legal steps 
land acquisition, expropriations and following legal steps 
necessary  procurement 
full project feasibility study according to international state of the art 
this  in  particular  means,  that  negotiations  between  the  central  government  and  local 
governments concerned have been finalised 

environmentally  sustainable  -  be  selected  with  a  view  to  contributing  to  strike  an  appropriate 
modal balance and minimising environmental  impact: The direct,  indirect,  induced and cumulative 
effects  of the  project and its alternatives  should  be studied. This  should, amongst others,  include 
the  effects  on  alternate  modes  of  transport  resulting  from  diversion  caused  by  the  project,  the 
induced traffic effects and potential network effects of the project as well as the contribution of the 
project  to  a  balanced  infrastructure,  allowing  for  sustainable  mobility,  causing  the  least  negative 
environmental effects possible. 

interconnection/ interoperability: 
Improve  the  geographical  and  technical  interconnection 
and  interoperability  of  international  and  interregional  links:  a  significant  amount  of  existing  or 
potential international traffic  should be demonstrated, taking into account the average  international 
traffic  on the network as well as the specific situation of the location of the project (near to  border 
or  city,  etc.).  As  a  general  rule,  no  project  should  carry  less  then  10%  international  traffic 
(measured in PCU for roads and equivalent measures for other modes). 

Alternatively,  a project would  be supposed to serve  interconnection  and  interoperability  if 
at  least  three  parties  declare  their  willingness  to  participate  in  the  financing  of  the  project  or  a 
direct continuation thereof. 

Common  European  technical  standards  such  as  those  laid down  in the various  UN/ECE 
agreements  and  Community  instruments,  in  particular  CEN,  CENELEC  and  ETSÎ,  should  be 
respected as necessary to ensure interoperability. 

Connecting the Union's transport infrastructure network to its neighbours 

Towards a cooperative pan-European transport network policy 

Annex-  page  3 

/fr 

ISSN 0254-1475 

COM(97) 172 final 

DOCUMENTS 

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