Commission report - Annual report of the Cohesion Fund 1999
Date: 2001-01-11
Institutions: European Commission
Subjects: Cohesion Fund, activity report, dissemination of information, implementation of the budget

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 11.01.2001
COM(2000) 822 final

COMMISSION REPORT

ANNUAL REPORT OF THE COHESION FUND 1999

FOREWORD

This annual report on the activities of the Cohesion Fund covers the calendar year 1999.

Like the previous report, this report provides an overview of developments since 1993 in
order to give the reader a full picture of the current affairs of the Fund.

The reporting format reflects the requirements of the Cohesion Fund Regulation. It has been
adapted in order to take into account the comments made by the European Parliament, the
Economic and Social Committee and the Committee of the Regions.

It is hoped that it will serve as a useful reference document for all interested in the promotion
and furtherance of the economic and social cohesion of the Union.

2

TABLE OF CONTENTS

COMMISSION REPORT

ANNUAL REPORT OF THE COHESION FUND 1999 .......................................... 1

1.

1.1.

General background................................................................................................ 10

Convergence and economic development in the Cohesion countries ....................... 10

1.1.1. Greece ................................................................................................................... 10

1.1.2.

Spain ................................................................................................................... 11

1.1.3.

Ireland ................................................................................................................... 12

1.1.4.

Portugal.................................................................................................................. 12

1.2.

Conditionality......................................................................................................... 12

1.2.1.

Introduction............................................................................................................ 12

1.2.2. Council Decision concerning Greece ...................................................................... 13

2.

2.1.

Principles of implementation and assistance granted............................................... 13

Coordination with other Community policies.......................................................... 13

2.1.1.

Public procurement................................................................................................. 13

2.1.2.

Environmental protection ....................................................................................... 13

2.1.3.

Structural Funds ..................................................................................................... 14

2.2.

Transport and environment balance ........................................................................ 15

2.2.1.

The Cohesion Fund and environmental protection .................................................. 15

2.2.2.

Improving the trans-European transport network (TEN) in 1999............................. 16

2.3.

Implementation of the budget, commitments and payments .................................... 17

2.3.1. Budget available..................................................................................................... 17

2.3.2. Budget implementation........................................................................................... 19

3.

3.1.

Projects and measures adopted ............................................................................... 23

The Fund in each Member State ............................................................................. 23

3.1.1. Greece ................................................................................................................... 23

3.1.1.1. Environment........................................................................................................... 23

3.1.1.2. Transport................................................................................................................ 26

3.1.2.

Spain (including outermost regions) ....................................................................... 28

3.1.2.1. Environment........................................................................................................... 28

3.1.2.2. Transport................................................................................................................ 30

3.1.3.

Ireland ................................................................................................................... 31

3.1.3.1. Environment........................................................................................................... 32

3.1.3.2. Transport................................................................................................................ 32

3.1.4.

Portugal.................................................................................................................. 32

3

3.1.4.1. Environment........................................................................................................... 32

3.1.4.2. Transport................................................................................................................ 35

3.2.

Technical assistance and studies ............................................................................. 37

3.2.1. General policy of the Fund ..................................................................................... 37

3.2.2.

Technical assistance at the initiative of the Commission ......................................... 37

4.

4.1.

Monitoring, checks and irregularities...................................................................... 37

Monitoring: committees and missions..................................................................... 37

4.1.1. Greece ................................................................................................................... 37

4.1.2.

Spain ................................................................................................................... 39

4.1.3.

Ireland ................................................................................................................... 41

4.1.4.

Portugal.................................................................................................................. 41

4.2.

Inspection visits...................................................................................................... 42

4.2.1. Greece ................................................................................................................... 42

4.2.2.

Spain ................................................................................................................... 43

4.2.3.

Ireland ................................................................................................................... 44

4.2.4.

Portugal.................................................................................................................. 45

4.3.

5.

5.1.

5.2.

5.3.

5.4.

Irregularities and suspension of assistance .............................................................. 45

Evaluation and assessment...................................................................................... 46

General................................................................................................................... 46

Prior appraisal of projects ....................................................................................... 46

Cooperation with the EIB in examining projects..................................................... 46

Ex-post evaluation programme ............................................................................... 46

5.4.1.

Environment........................................................................................................... 47

5.4.2.

Transport................................................................................................................ 47

6.

6.1.

Inter-institutional dialogue, information and publicity............................................. 48

Annual report ......................................................................................................... 48

6.1.1.

European Parliament .............................................................................................. 48

6.1.2.

Economic and Social Committee ............................................................................ 48

6.2.

6.3.

Information to the Member States........................................................................... 50

Other information events ........................................................................................ 50

6.3.1.

Information to the social partners............................................................................ 50

6.3.2. Other

................................................................................................................... 50

6.4.

Commission measures on publicity and information ............................................... 51

ANNEXES .......................................................................................................................... 52

4

Economic environment and conditionality

INTRODUCTION

During the period 1993-99, the Cohesion Fund enabled the four beneficiary countries (Spain,
Greece, Ireland and Portugal) to sustain a substantial level of public investment in the areas of
the environment and transport, while complying with the goals of reducing expected budget
deficits through the convergence programmes drawn up in preparation for economic and
monetary union.

Budget implementation

Thanks to work on programming financial implementation carried out in liaison with the
Member States, two goals were achieved at the end of the period 1993-99:

– compliance with the aims of allocating financial resources among countries (in accordance

with the percentage ranges specified in the Regulation),

– balance between the two areas of assistance (transport and the environment).

Transport

In 1999 the Cohesion Fund committed a total of
1 523.5 million to transport projects. Total
assistance committed since 1993 to transport TENs projects by the Cohesion Fund and its
predecessor, the financial instrument, amounts to

8 325.7 million.

€

€

The European Parliament had hoped that the Cohesion Fund would be able to provide greater
in rail grew
assistance to rail transport. This was achieved in 1999, when investment
substantially in Greece, Spain and, to a lesser degree, Portugal.

The environment

In 1999 the Commission tightened the environment protection requirements under the two
Directives which affect Cohesion Fund projects: Directive 85/337/EEC 1985 on the
assessment of the effects of certain public and private projects on the environment (the ‘EIA’
Directive) and Directive 92/43/EEC on the conservation of natural habitats and of wild fauna
and flora (the ‘Habitats’ Directive).

Following the request made by Parliament when it was considering the previous report,
investment in the area of solid waste was stepped up in 1999 (Greece and particularly
Portugal).

Information and publicity

In 1999, the Cohesion Fund was discussed at two meetings between the Member States and
the Commission, the first in Brussels in January and the second in Madrid in July.

At the first meeting, the work of the Cohesion Fund in 1998 was presented to the Member
States while the second provided an opportunity for discussions on the future of the Cohesion
Fund (new Regulation).

There were also some seminars (principally in Lisbon) and a number of meetings.

5

In October a short guide was drawn to help the Member States cope with the new Cohesion
Fund Regulation 2000-06. The guide was presented to the Member States on 30 November.

Evaluation

The ex-post evaluation programme was launched to cover a period of three years starting in
mid-1998. A total of 120 projects will be evaluated over this period, 60 in each of the two
fields of Cohesion Fund assistance. So far, 71 projects have been evaluated, 40 in the
transport sector and 31 in the environmental field.

Sound financial management

In 1999, as in earlier years, no case of fraud was discovered and reported by the Member
States to the Commission anti-fraud unit (UCLAF).

Main developments in each country

The most important developments in each of the four beneficiary countries were as follows:

Greece

€

€

Greece received
million (37.5%) of the total going to environmental projects and
transport infrastructure.

550 million in assistance from the Cohesion Fund in 1999, with

€

206
343.7 million (62.5%) to

Cohesion Fund support by sector

Commitments

1993-98
€

million

1999
€

million

Total 1993-99
€

million

%

%

%

Greece

Environment

Drinking water

Waste water

Solid waste

Erosion
afforestation

and

Other

Total

Transport

Roads

Railways

539.6

598.3

6.3

55.6

57.9

1257.7

587.8

342.8

22.0

75.3

13.7

614.9

24.4

111.3

20.2

709.6

0.3

2.3

2.4

51.4

14.8

0

4.6

206

2.7

0.0

21.1

55.6

0.8

62.5

20.5

23.7

0.7

1.9

2.1

37.5

1 463.7

48.8

24.0

92.5

16.8

680.3

14.0

141.6

25.8

484.4

27.8

19.8

6

Airports

Seaports

Traffic
systems

control

Miscellaneous

Total

Total support

Environment

159.9

67.9

32.4

0

6.5

2.8

1.3

0.0

99.9

9.7

0

0

18.2

259.8

10.6

1.8

0.0

0.0

77.6

32.4

0

3.2

1.3

0.0

51.2

100

1190.8

48.6

343.7

62.5

1534.5

2448.5

100

550

100

2998

For the period 1993-99 the share of projects in the environment sector was 48.8%.

Transport

In 1999, the Commission allocated
343.7 million to the transport sector in Greece, 41% went
to rail infrastructure, 29% to airport infrastructure and the road sector accounted for 27%. In
1993-99 the share of transport stood at 51.2%.

€

7

Spain

€

1 757.6 million in assistance from the Cohesion Fund in 1999, with

Spain received
million (52.6%) of the total going to environmental projects and
transport infrastructure.

925.1
832.5 million (47.4%) to

€

€

COHESION FUND SUPPORT BY SECTOR

COMMITMENTS

€

1993-98

million

%

€

1999

million

%

€

Total 1993-99

million

%

951.6

1500.1

419.7

529.6

328.1

3729.1

2531.8

1134.1

73.2

25.3

29.1

3764.4

7493.5

12.7

20.0

5.6

7.1

4.4

49.8

33.8

15.1

1.0

0.3

0

50.2

100

259.4

567.9

61.3

35.4

1.1

925.1

79.2

725.1

0

28.2

0

832.5

1757.6

14.8

32.2

3.5

2.0

0.1

52.6

4.5

41.2

0

1.6

0

47.4

100

1211

2068

481

565

239.2

4654.2

2609

1860.3

73.2

25.3

29.1

4596.9

9251.1

13.1

22.4

5.2

6.1

3.6

50.3

28.2

20.1

0.8

0.3

0.3

49.7

100

Spain

Environment

Drinking water

Waste water

Solid waste

Erosion
afforestation

and

Divers

Total

Transport

Roads

Railways

Airports

Seaports

Miscellaneous

Total

Total support

Environment

The activities in 1999 concentrated on the continued implementation of priority projects
which had been defined in earlier years. For the period 1993-99 the share of projects in the
environment sector was 50.3%.

Transport

832.5 million to the transport sector in Spain, 87% went
In 1999, the Commission allocated
to rail infrastructure and the road sector accounted for 9%. In 1993-99 the share of transport
stood at 49.7%.

€

8

Ireland

€

Ireland received
million (55.7%) of the total going to environmental projects and
transport infrastructure.

269.6 million in assistance from the Cohesion Fund in 1999, with

150.1
119.5 million (44.3%) to

€

€

COHESION FUND SUPPORT BY SECTOR

COMMITMENTS

Ireland

€

1993-98

million

%

€

1999

million

%

€

Total 1993-99

million

%

Environment

Drinking water

Waste water

Solid waste

Other

Total

Transport

Roads

Railways

Airports

Seaports

Traffic
systems

Total

Total support

control

222.4*

358.3*

9.4

6.8

596.9

460.7

118.8

3.3

38.5

5.5

626.7

1223.6

18.2

29.3

0.8

0.6

48.8

37.8

9.7

0.3

3.1

0.4

51.2

100

28.7

121.4

0.0

0.0

150.1

96.7

22.9

0.0

0.0

0.0

119.6

269.6

10.7

45.0

0.0

0.0

55.7

35.8

8.5

0.0

0.0

0.0

44.3

100

251.1

479.7

9.4

6.8

747.0

462.7

118.8

3.3

38.5

5.5

748.3

1495.3

16.8

32.1

0.6

0.4

50.0

37.4

9.5

0.2

2.6

0.4

50.0

100

*

In the last annual report a drinking water project was mis-categorised as a waste water project.

Environment

The activities in 1999 concentrated on the continued implementation of priority projects
which had been defined in earlier years. For the period 1993-99 the share of projects in the
environment sector was 49.96%.

Transport

119.6 million to the transport sector in Ireland, 19.9%
In 1999, the Commission allocated
went to the rail infrastructure and the road sector accounted for 80.1%. In 1993-99 the share
of transport stood at 50.04%.

€

9

Portugal

€

Portugal received
million (59%) of the total going to environmental projects and
transport infrastructure.

549.7 million in assistance from the Cohesion Fund in 1999, with

324.2
225.5 million (41%) to

€

€

COHESION FUND SUPPORT BY SECTOR

COMMITMENTS

€

1993-98

million

%

€

1999

million

%

€

Total 1993-99

million

%

437.1

416.5

319.7

61.9

1235.2

779.7

266.2

115

59.6

1220.5

2455.7

17.8

17.0

13.0

2.5

50.3

31.8

10.8

4.7

2.4

0

49.7

100

70.5

135.9

117.6

0.2

324.2

76.6

67.8

44.9

36.2

225.5

549.7

12.8

24.7

21.4

0.0

59.0

13.9

12.3

8.2

6.6

0

41.0

100

507.6

552.4

437.3

62.1

1559.4

856.3

334

159.9

95.8

1446

3005.4

16.9

18.4

14.6

2.1

51.9

28.5

11.1

5.3

3.2

0

48.1

100

Portugal

Environment

Drinking water

Waste water

Solid waste

Divers

Total

Transport

Roads

Railways

Airports

Seaports

Traffic
systems

Total

Total support

Environment

control

For the period 1993-99 the share of projects in the environment sector was 51.9%.

Transport

225.5 million to the transport sector in Portugal, 20%
In 1999, the Commission allocated
went to airport infrastructure, 16% to seaports, 30% to rail infrastructure and the road sector
accounted for 34%. In 1993-99 the share of transport stood at 48.1%.

€

1.

GENERAL BACKGROUND

1.1.

Convergence and economic development in the Cohesion countries

1.1.1. Greece

Greece’s economic policy in 1999 was guided by the objectives of the updated
convergence programme submitted in September 1998 under the requirements of the
Stability and Growth Pact.1

1

OJ C 372, 2.12.1998.

10

Greece has been considered by the Council to be a country whose deficit has been
excessive since 1994, within the meaning of Article 104(6) of the Union Treaty.
Under paragraph 7 of that Article the Council has since then made annual
recommendations to Greece with a view to putting an end to this situation. In 1998,
to 2.5% of GDP, marginally above the
the general government deficit
Convergence Programme target. The general government debt ratio reached a peak
of 112.3 % of GDP in 1996 but declined thereafter by 6.0 percentage points to
106.3% of GDP in 1998.2 On 17 December 1999 the Council abrogated its decision
that an excessive deficit existed in Greece.3

fell

In 1999, the budgetary position of Greece turned out to be better than projected in the
Convergence Programme. The general government deficit was 1.6% of GDP as
against the 2.1% set in the Programme. The debt/GDP ratio also fell further, to
104.4%.

In December 1999, Greece submitted the first update of the Convergence Programme
covering 1999/2002. This was assessed by the Council on 31 January 2000.4

The 1999 update restates the strategy defined in the previous programme to achieve
the completion of nominal convergence at the beginning of 2000.

1.1.2.

Spain

In 1999 Spain's economic policy was guided by the objectives of the 1998 Stability
Programme. The programme reaffirmed the economic strategy followed in recent
years within the new framework of the participation of Spain in the EMU: promoting
healthy economic growth through fiscal consolidation and structural reforms.
Primary objectives of this policy are real convergence with European partners in
terms of per capita income and reduction of unemployment. The Programme was
considered by the Council as being in line with the Stability and Growth Pact5. On 25
January 2000, the Spanish government submitted the Stability Programme Update
which builds on the previous programme strategy covering the period 1999-2003,
and which was assessed by the Council on 28 February 2000.

Further progress in budgetary consolidation was achieved in 1999. According to the
latest official estimates, the general government deficit fell from 2.6% in 1998 to
1.1% of GDP in 1999, lower than the 1.3% envisaged in the Stability Programme
Update. This deficit reduction relied more on expenditure restraint, especially on
current expenditure, than on increased revenue. For 2000, the budgetary target of
0.8% of GDP was officially reduced recently to 0.4% with the aim of reaching a
balance in 2001. According to the Stability Programme Update,
the general
government accounts will register surpluses of 0.1% and 0.2% of GDP by the years
2002 and 2003 respectively. The debt-to-GDP ratio is expected in the 1999 update to
have fallen by 1.3 percentage points to 63.5% in 1999 compared to 66.4% forecast in
the original programme. This ratio is targeted to fall below 60% in 2002 and to
decline to 55.8% in 2003.

2

3

4

5

The changeover to ESA95, as from March 2000, implies a deficit of 3.1% of GDP in 1998 and a
debt/GDP ratio of 105.4, down from 111.3 in 1996.
OJ L 12, 18.1.2000, p. 24.
Council Opinion - OJ C 60, 2.3.2000, p. 4.
OJ C 124, 5.5.1999.

11

1.1.3.

Ireland

Implementation of Ireland’s stability programme in 1999 exceeded the expectations
of the authorities. The programme was considered by the Council as being in
conformity with the Stability and Growth Pact.6 Economic growth is estimated by the
authorities to have been 8.4% (some 1¾% above the authorities’ original projection).
The general government balance, before adjustments for special factors, was an
estimated surplus of 3.2% of GDP (twice that originally projected in the first stability
programme). It was boosted by the higher than expected growth in economic
activity. The government debt to GDP ratio fell to 52% in 1999.

Ireland presented its updated stability programme – 2000-02 – in December 1999; it
incorporates measures
was assessed by the Council on 31 January 2000.
announced in the budget, also in December 1999. The programme confirms that
Ireland will continue to meet the objectives of the Stability and Growth Pact with
surpluses on the general government balance in each of the years to 2002. A further
sharp decline in the gross debt to GDP ratio, to about 36% in 2002, is projected.

It

1.1.4.

Portugal

Budgetary developments in 1999 took place in the framework of the Portuguese
stability programme. This programme was considered by the Council as broadly in
line with the Stability and Growth Pact requirements.7 Provisional estimates show
that the government deficit reached 2.0 % of GDP in 1999, in line with the target set
in the stability programme. Buoyant tax revenues, thanks also to the ongoing efforts
to make the tax administration more efficient, helped in meeting this target, with
current primary expenditure also seeing rapid growth.

Portugal submitted its updated stability programme, covering the period 2000-04, on
17 February 2000. The programme envisages a gradual reduction of the general
government deficit from 1.5 % of GDP in 2000 to a balanced budget in 2004. The
debt-to-GDP ratio is projected to decline from 57.1% in 2000 to 48.4% in 2004.
Rising primary government surpluses coupled with significant proceeds from
privatisation are behind this decline.

1.2.

Conditionality

1.2.1.

Introduction

Under Article 6 of Council Regulation (EC) No 1164/94, assistance from the
Cohesion Fund is conditional on the sound management of the general government
finances. Assistance for new projects in a beneficiary Member State can be
suspended if the Council decides that an excessive deficit exists in that Member State
and if that decision is not abrogated in accordance with Article 104 of the Treaty.

Every spring the general government deficits for the previous year are assessed using
the Commission's spring economic forecasts based on budget data for the past year
reported by the Member States before 1 March. Every autumn the general

6

7

OJ C 42, 17.2.1999.
OJ C 68, 11.3.1999.

12

government deficits for the current year are assessed using the Commission's autumn
economic forecasts, after verification of their reliability.

1.2.2. Council Decision concerning Greece

On 17 December 1999 the Council abrogated its Decision of 26 September 1994 on
the existence of an excessive government deficit in Greece8. The political agreement
for this Decision was reached in the Ecofin Council of 29 November 1999, based on
a recommendation from the Commission, adopted by the College on 10 November.

Accordingly, Article 6 of the Cohesion Fund Regulation ceased to apply to Greece
and so the Commission did not produce an assessment of compliance with
conditionality by Greece in autumn 1999.

2.

PRINCIPLES OF IMPLEMENTATION AND ASSISTANCE GRANTED

2.1.

Coordination with other Community policies

2.1.1.

Public procurement

Since the Cohesion Fund was established,
the Commission has paid particular
attention to ensuring that Community legislation on public procurement is correctly
transposed into national law and that the Community rules are scrupulously adhered
to in the context of Community financial assistance. This is of particular importance
in the case of assistance from the Cohesion Fund in view of its high rates of financial
participation, which call for particular scrutiny by the Commission to verify open and
fair access in public procurement.

In its verification missions,
the Commission undertakes routine checks on
compliance with the relevant Community directives on public procurement and the
correctness of the tender selection procedures. Close monitoring by the Commission
of projects approved by the Fund has enabled national administrations to better
understand and apply Community procedures for the award of public contracts and
tendering. The Commission finds
that national authorities and Monitoring
Committees cooperate increasingly well and respond exhaustively to the questions it
raises in the course of its consideration of applications for project finance and its
monitoring of project implementation.

2.1.2.

Environmental protection

Article 8 of Council Regulation (EC) No 1164/94 establishing a Cohesion Fund
states that projects are to be in keeping with Community policies, including those
concerning environmental protection.

The objectives of Community policy on the environment are set out in Article 174 of
the Treaty. They cover:

• preserving and improving the environment;

8

OJ L 12, 18.1.2000.

13

• protecting human health;

• the rational utilisation of natural resources.

in particular,

The Community programme of policy and action in relation to the environment and
sustainable development (the Fifth Action Programme) - adopted by Resolution of
the Council in 1993 - provided for the Cohesion Fund to assist in the achievement of
the Treaty objectives and,
in resolving detailed Community
environmental issues such as the reduction of water pollution and appropriate waste
management. As well as focusing on key environmental themes, the Programme also
concentrated on the need to integrate the environmental dimension into other
Community policies in order to change and influence the undesirable side effects of
certain economic activities. This latter aspect is of concern to the Cohesion Fund in
that transport infrastructures are the other investment priorities to which funding is
channelled.

Furthermore, in July 1997, to improve and strengthen the internal procedures which
it had adopted in 1993, the Commission gave its agreement to a range of measures
intended to ensure that greater account is taken of environmental considerations
when policy and administrative decisions are taken. Hence the European Parliament
has adopted increased appropriations for the environment (‘Greening of the Budget’).

2.1.3.

Structural Funds

The Structural Funds, in particular the ERDF and occasionally the EAGGF Guidance
Section, are normally consulted on applications and decisions, including amendments
if these are substantial. The relevant departments provide ample advice on specific
issues for which they are responsible.

Well established and permanent coordination arrangements are also necessary since
Article 9 of Regulation (EC) No 1164/94 establishing a Cohesion Fund stipulates
that no item of expenditure may be assisted from both the Cohesion Fund and the
Structural Funds. In addition, combined assistance for a particular project from the
Cohesion Fund and any other Community source, such as for example the TENs
budget, must not exceed 90% of total expenditure.

According to the decisions of the Edinburgh Summit, the combined commitment
appropriations under Objective 1 of the Structural Funds and the Cohesion Fund are
meant to allow a doubling in real terms of Community financial assistance for the
Objective 1 regions in the four cohesion countries. In Spain, where only part of the
country is eligible for assistance under Objective 1, a commitment allocation of ECU
7 950 million from the Cohesion Fund was included in the Objective 1 Community
support framework for 1993-99. In this way the Cohesion Fund is contributing to the
real doubling of Community assistance for Spain's least prosperous regions. As a
‘non-regional’ Fund,
the Cohesion Fund does not record assistance granted by
region. Attainment of the aim of doubling in real terms the Union’s solidarity effort
for Spain's poorest regions lies entirely in the hands of the central and autonomous
regional governments.
the
channelling of
finance into these regions must be assured by the national
government, which has the authority to present to the Cohesion Fund appropriate
applications for funding of projects in the regions concerned, and it is the job of the
Objective 1 Monitoring Committee to assess progress towards this target.

In accordance with the principle of subsidiarity,

14

Thanks to these coordination procedures, no case of double financing has been
detected during the various inspection visits. However, as mentioned in previous
reports, the Fund does agree to support clearly identified stages of projects to which
the ERDF may be providing assistance for other stages, in particular on very large
transport infrastructure projects.

2.2.

Transport and environment balance

Council Regulation (EC) No 1164/94 establishing a Cohesion Fund requires a
suitable balance to be struck between projects in the field of the environment and
projects relating to transport infrastructure.

The Commission explained its position in this regard in its communication in 1995 to
the Council, the European Parliament, the Economic and Social Committee and the
Committee of the Regions9 in which it undertook to strive, in partnership with the
beneficiary countries, to ensure that, over 1993-99 as a whole, equal amounts of
assistance should go to transport projects and to those in the field of the environment.

Early in the period,
unevenness but balance was achieved over the period 1993-99 taken as a whole.

the breakdown of appropriations showed considerable

TRANSPORT/ENVIRONMENT BALANCE (*)

% OF COMMITMENT APPROPRIATIONS

Beneficiary country

Transport

Environment

1999

1993-99

1999

1993-99

Greece

Spain

Ireland

Portugal

Total

62.5

47.7

44.8

41

48.7

51.2

49.7

50.0

48.1

51.8

37.5

52.6

55.2

59

51.3

48.8

50.3

50.0

51.9

48.2

(*)

Excluding technical assistance

2.2.1.

The Cohesion Fund and environmental protection

In 1999, the Commission stepped up environmental protection requirements under
two directives which affect Cohesion Fund projects.

These are:

– Directive 85/337/EEC on the assessment of the effects of certain public and

private projects on the environment (‘EIA Directive’), and

9

COM(95) 509 final.

15

– Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and

flora (‘Habitats Directive’).

EIA Directive

Amending Directive 97/11/EC, which was to be transposed by March 1999,
introduced thresholds and objective criteria to determine the projects which should
be assessed from the point of view of the extent of their impact on the environment.
The list of projects for which an EIA is required in all cases was extended and
greater provision made for public participation in the decision-making process.

Habitats Directive

This directive set 10 June 1998 as the deadline for drawing up lists of sites to be
protected under Natura 2000. It also increased the checks to ensure that, where sites
are likely to be affected by a project receiving Community finance, the Member
States concerned take all necessary steps from the point of view of the environment.

2.2.2.

Improving the trans-European transport network (TEN) in 1999

In the transport sector, the Cohesion Fund finances only infrastructure projects of
common interest identified under the guidelines adopted by Decision 1692/96/EC of
23 July 1996 of the European Parliament and the Council. These guidelines provide
the basis for the selection of projects to be assisted by the Cohesion Fund.

Given its specific objectives and the significant resources at
the
Cohesion Fund plays a key role in the development of the TENs within the four
beneficiary Member States of the Cohesion Fund. For the period 1993-99, a total of
€
8.3 billion, representing approximately half the Fund’s budget, was allocated to
transport projects (see table below). For the period 2000-06, the Cohesion Fund
intends to allocate the same proportion of its budget to transport projects.

its disposal,

The Cohesion Fund has worked closely with the four beneficiary Member States to
determine priorities for measures, and coordinates its assistance with that of the EIB,
the ERDF and the TENs budget to ensure that resources are deployed as effectively
as possible. In 1999, the Cohesion Fund and DG Transport continued to maintain
close contact in order to ensure a consistent approach to the implementation of TENs
projects. Inter-departmental meetings and consultations on TENs projects financed
by the Cohesion Fund took place regularly. This cooperation should be reinforced
during the 2000-06 period to allow Cohesion Fund resources to have the greatest
possible impact on implementing the TENs in the beneficiary countries.

Within the planned transport networks, priority has generally been given to key road,
rail and maritime routes, which provide or upgrade the main links between the
Cohesion countries and the rest of the EU. Other assisted projects are intended to
improve communications and trade between peripheral regions and the main centres
of economic activity within the countries concerned, and to improve the continuity of
the networks close to urban centres. The many town and city by-passes or ring roads
financed by the Cohesion Fund have served the function of both improving network
links and mitigating the adverse environmental effects of traffic in towns and city
centres.

16

Concerning the high priority projects endorsed by the Essen European Council
the Cohesion Fund has given particular emphasis to the
(December 1994),
implementation of the high priority projects that lie wholly or partly within the
territories of the Cohesion Member States: high speed train South;
the Greek
motorways (Pathe and Via Egnatia); the Portugal/Spain multimodal link; Cork-
Dublin-Belfast rail link; and the Ireland-UK-Benelux road link.

In 1999 the Cohesion Fund committed a total of
1 523.5 million to transport
projects.10 Total assistance committed since 1993 to transport TENs projects by the
Cohesion Fund, and its predecessor, the financial instrument, amounts to
8 325.7
million.

€

€

Commitments to TENs projects by transport sector

Sector

Commitments 1993-98

Commitments 1999

Total commitments

€
million

% of total

€
million

% of total

€
million

% of total

1993-99

Roads

Railways

Ports

Airports

Other*

Total

4 362.1

1 861.9

191.3

351.5

37.9

64.1

27.4

2.8

5.2

0.6

345.2

958.5

45.9

144.8

29.1

22.5

4 706.1

63

3

9.5

1.9

2 819.2

237.2

496.2

67.0

6 804.7

100.0

1 523.5

100.0

8 325.7

56

33.7

3

6

0.8

100.0

*Including VTS (vessel traffic systems for maritime surveillance)

2.3.

Implementation of the budget, commitments and payments

2.3.1.

Budget available

in December 1992 agreed on the financial
The Edinburgh European Council
endowment for the Cohesion Fund over the period 1993-99 and provided
15 150
million at constant 1992 prices for those Union members whose per capita GNP is
less than 90% of the Union's average. The annual budgetary provisions are adjusted
to allow for the Union's average annual increase in prices.

€

10

This includes commitments to new projects, or new stages of existing projects, as well as additional
commitments to projects approved in previous years (new annual instalments or amendments to earlier
decisions).

17

TREND OF BUDGETARY ALLOCATIONS

Commitment appropriations

€

million

Year

1993

1994

1995

1996

1997

1998

1999

Total

1992 prices

1500.0

1750.0

2000.0

2250.0

2500.0

2550.0

2600.0

15150.0

Cumulated 1992
prices

1500.0

3250.0

5250.0

7500.0

10000.0

12550.0

15150.0

Price adjusted

1565.0

1853.0

2151.7

2443.7

2748.7

2870.7

3118.0

16750.8

Cumulated
adjusted amounts

1565.0

3418.0

5569.7

8013.4

10762.1

13632.8

16750.8

Commitments implemented

Per year

1564.6

1853.1

2151.7

2443.6

2748.7

2870.7

3117.7

Cumulated

1564.6

3417.7

5569.4

8013.1

10761.8

13632.5

16750.2

% of
allocation

total

9.3

20.4

33.2

47.8

64.2

81.4

100

The table shows the annual breakdown of allocations at 1992 prices and in price-adjusted values.

By the end of 1999 the Commission had committed all the financial appropriations of
the Cohesion Fund for 1993-99 and 91.6% of payment appropriations had been
implemented. The reasons why not all these appropriations could be used were the
late arrival of some applications for payment arrived late and the workload on
Commission staff.

Annex I to the Cohesion Fund Regulation sets out the indicative breakdown among
the eligible Member States for 1993-99.

% of total appropriations

Greece

Spain

Ireland

Portugal

Indicative
allocation range

16 to 20

52 to 58

7 to 10

16 to 20

In implementing the Cohesion Fund, the Commission has carefully followed the
guidelines set by the Council and has targeted the central rates of the indicative
allocation for the beneficiary countries. The following tables shows in detail the
financial allocation implemented by the Commission for the four cohesion countries
in the period to 1999.

18

COMMITMENTS IMPLEMENTED (%)

BY BENEFICIARY MEMBER STATE

Year

Greece

Spain

Ireland

Portugal

Technical
assistance

Total

1993

1994

1995

1996

1997

1998

1999

1993-99

17.9

54.9

9.1

18.1

0.02

100

17.9

54.9

9.1

18.0

0.03

100

18.0

55.0

8.8

18.0

0.09

100

17.9

54.9

9.1

18.0

0.09

100

18.0

55.1

8.9

17.9

0.07

100

18.0

54.9

9.0

18.1

0.06

100

17.6

56.2

8.7

17.6

0

100

17.9

55.1

8.97

17.98

0.05

100

2.3.2.

Budget implementation

Funding for 1999 amounted to
was increased by
Article 7(6) of the Financial Regulation.

€

3 117.7 million in commitment appropriations. This
11 379 000 following the reconstitution of appropriations under

€

€
€

Appropriations for payments initially stood at
to
of

2 876.675 million but were reduced
1 876.675 million under ‘Notenboom’ budgetary procedure following a transfer
1 000 million to item B2-1200 “Objective 1 (ERDF-CSF)”.

€

€

’000

1998

1999

Budget (1)

Implement
ation %

Initial
budget

Actual
budget (1)

Implement
ation %

Carryovers
to 1999

Engagements

2 870 700

100.0

3 117 700

3 129 060

100.0

Payments

2 448 475

100.0

2 876 675

1 876 675

91.6

None

157.7

(1) Including supplementary and amending budget, transfers, carryovers and reconstitution of appropriations

Compared with 1998, appropriations for commitments increased by 9% in 1999
while those for payments fell by 30%. Since 1999 was the last year of the 1993-99
programming period, the need for payment appropriations was proportionately less
than the amounts committed because a large part of the commitments did not result
in the payment of advances (commitments of further annual instalments, retention of
the final balance).

Commitments in 1999

The appropriations for commitments in the 1999 budget were fully used in
accordance with the relevant breakdown, both by country and by area of assistance.

As the table below shows, the quota fixed for Spain was slightly higher than the
middle of the bracket (55%) in order offset the imbalances built up in previous years.
In the last year of the Fund, it was essential to make a rigorous breakdown among the
Member States of all the appropriations actually used throughout the period 1993-99,
in accordance with the mid-point of the bracket laid down by the Fund Regulation
(Spain 55%, Portugal and Greece 18%, Ireland 9%).

19

The amount for the environment (51.3%) was also slightly higher in order to secure
balance over the period 1993-99.

€

million

Member State

Spain

Ireland

Portugal

Greece

Technical assistance

Total

Breakdown

Commitments

3129.1

Transport Environ.

TOTAL

Quota

%

832.5

121.8

225.5

343.7

925.1

150.1

324.2

206.0

1.523.5

48.69%

1.605.4

51.31%

1.757.6

1.757.6

271.9

549.7

549.7

271.9

549.7

549.7

0.2

56.17

8.69

17.57

17.57

0.00

3.128.9

3.129.1

100.00

Part of the commitments went to provide finance for projects adopted in 1999.
However, the vast bulk arose from the commitment of the instalment for 1999 of
assistance granted to projects adopted in previous years. In the case of certain major
projects already adopted, this 1999 instalment was substantial because it had to cover
expenditure on projects planned for 1999 and subsequent years. The Commission
also had to commit from the 1999 budget all the assistance granted to projects
adopted that year. Approval of the Cohesion Fund Regulation in July 1999 meant
that resources available after 1999 could not be taken into account when decisions
were adopted and commitments made.

Payments in 1999

The main features of the consumption of payment appropriations were:

– the transfer of

€

1 000 million under the Notenboom procedure,

– the under-consumption of the funding available.

The transfer was made for the following reasons (which were not known when the
budget proposals were drawn up):

– most commitments concerned expenditure over several years. Payments, by
contrast, concern expenditure implemented in 1999 and so only a small part of the
commitment made,

– for many projects nearing completion, the only payment to be made is that of the
balance. Under the rules on financial implementation, the balance may not be paid
until the project has been completed physically and financially and the final report
drawn up,

– some projects adopted were financed using special arrangements under which
public expenditure is used only towards the end of the project and resulted in the
payment of very small advances.

20

Failure to use all the payment appropriations available was due to the fact that a large
number of applications for payment reached the Commission in December 1999. The
work-load of the Commission departments concerned at the end of the year meant
that these applications could not be charged to 1999.

Summary of commitments and payments in 1993-99

The following tables provide an overall view for 1999 and the whole period since
1993 of the breakdown of commitment and payment appropriations by beneficiary
Member State and by sector. Article 7(4) of the Regulation establishing a Cohesion
Fund authorises the Commission à spend up to 0.5% of the total allocation to the
Fund at its own initiative measures but so far it has been prudent in using this
possibility.

COMMITMENTS AND PAYMENTS BY BENEFICIARY MEMBER STATE
AND SECTOR IN 1999

€

Total

million

€

Transport

million

% of total

Commitments

€

Environment

million

% of total

Greece

Spain

Ireland

Portugal

Technical assistance

Total

Greece

Spain

Ireland

Portugal

Technical assistance

Total

549.7

1757.6

271.9

549.7

0.2

3129.1

247.6

941.7

190.4

331.8

3.1

1714.6

343.7

832.5

121.8

225.5

-

1523.5

134.6

282

51.7

183.2

-

651.5

Payments

62.5

47.7

44.8

41

-

48.7

54.3

30

27.9

55.2

-

38

206

925.1

150.1

324.2

-

1605.4

113

659.7

138.7

148.6

-

1060

37.5

52.6

55.2

59

-

51.3

45.7

70

72.8

44.8

-

62

21

COMMITMENTS AND PAYMENTS BY BENEFICIARY MEMBER STATE

€

Total

million

2998,2

9251

1495,3

3005

8,4

16760,9

1938.7

6022.3

1112.5

2562.1

7.8

11643.4

Greece

Spain

Ireland

Portugal

Technical assistance

Total

Greece

Spain

Ireland

Portugal

Technical assistance

Total

AND SECTOR 1993-99

€

Transport

million

% of total

Commitments

1534,6

4597

748,3

1446

-

8328,3

Payments

1012.8

3665

587.8

1361.3

-

6626.9

51,2

49,7

50,0

48,1

-

49,7

52.2

60.9

52.8

53.1

-

56.9

€

Environment

million

% of total

1463,6

4654

747,0

1559

-

8424,3

925.9

2357.3

524.7

1200.8

-

5008.7

48,8

50,3

50,0

51,9

-

50,3

47.8

39.1

47.2

46.9

-

43.1

The following table shows the allocations by sector and the most relevant sub-items
in environment and transport. The table gives totals for the period from 1993 to
1998, the details for 1999 and totals for the period until end-1999.

Allocations by sector

All beneficiaries 1993-98

€

million

%

Environment

1999
€

million

Total 1993-99
€

million

%

%

Drinking water

2142.7

31.4

433.9

13.9 2576.5

Waste water

2881.2

42.3

936.5

29.9 3817.8

Solid waste

Erosion control
and
afforestation

755.1

585.2

Other

Total

Transport

Roads

Railways

454.7

6818.9

4362.1

1861.9

11.1

193.7

6.2

948.8

8.6

35.4

1.1

622.7

6.7

5.9

0.2

458.4

100

1605.4

51.3 8424.2

64.1

345.2

11

4706.1

27.4

958.5

30.6 2819.2

22

15.4

22.8

5.7

3.7

2.7

50.3

28.1

16.8

Airports

Ports

Traffic
systems

Other

Total

351.5

191.3

control

37.9

5.2

2.8

0.6

144.8

45.9

0

4.6

496.2

1.5

237.2

0

37.9

29.1

0.9

29.1

6804.7

100

1523.5

48.7 8325.7

Total support

13623.6

3128.9

100

16749.9

3

1.4

0.2

0.2

49.7

100

3.

PROJECTS AND MEASURES ADOPTED

3.1.

The Fund in each Member State

3.1.1. Greece

In 1999, the Cohesion Fund allocated a total of
62.5% to projects in the transport sector and 37.5% to environmental projects.

549.7 million to projects in Greece -

€

3.1.1.1. Environment

The overall strategy for the adoption of projects was the same as in the past for the
priority sectors of water supply, waste-water treatment, waste management and
nature protection.

The list of all the projects adopted or amended in the field of the environment is
shown in the table in Annex III.

Water supply

This category of projects includes one major project, to supply water to Thessaloniki
from the River Aliakmon, further work on the Evinos major project11 to supply water
to Athens and improvements to the Mornos aqueduct,12 which links with the Evinos
major project.

In the case of the project to supply water to Athens, the Cohesion Fund paid attention
to the sound management of water resources and improvements to the water-supply
pipes. The Evinos/Mornos tunnel has been used to supply water to Athens since
summer 1995. The Cohesion Fund also facilitated appointment of a project manager
for the Athens water supply company (EYDAP) and approved finance for the
management and transport of water (remote management and operation).

11

12

The Evinos project is continuing following approval of its third, penultimate, phase.
Extension of the Mornos aqueduct was approved as regards the points where it enters the Athens urban
area.

23

In view of Athens’ needs for external supply networks and in order to guarantee its
water supplies, the Cohesion Fund approved finance to improve links between
Athens and other drinking water reservoirs at Yliki and Marathon.

In the case of the major project to supply water to Thessaloniki, the Fund was
concerned to ensure sound management of water resources, monitoring of existing
facilities and the engagement of a project manager. Despite the considerable efforts
made to implement the project, it is regrettably suffering from substantial delays
caused by technical difficulties.

It is also monitoring closely the project to establish a bank of hydrological and
meteorological data to help improve the management of the country’s water
resources.

The Cohesion Fund has begun a thorough evaluation of the project to supply water to
Rhodes and neighbouring islands as part of the environmental master plan for the
Dodecanese. Initial finance for studies and a project manager was supplemented by
finance for a panel of experts and purchase of the land required.

Waste water treatment

The main principles followed in granting this assistance were:

– to adopt projects which are, as far as possible, complete, operational and
consistent with an overall strategy and integrated with the economic and social
development of each region,

– to protect the environment, given that the projects enjoying priority would be
primarily those benefiting towns near to a sensitive area and/or with a population
of over 15 000 people on which the Community timetable imposes certain
immediate priorities (1998/2000).

All finance has been granted on the basis of complete applications and a thorough
study has been carried out on each project, as well as prior appraisals and on-going
evaluations.

A large number of projects concerned with the treatment of waste water and effluent,
mainly from urban areas, have been part-financed in a number of large and medium-
sized regional towns.

The award of the contract for the second stage of the major project providing a
biological treatment plant for Athens located on the island of Psyttalia was closely
monitored. This project is of the highest priority and is essential; it was the subject of
a thorough prior appraisal. When it comes into operation, it will help improve water
quality in the Gulf of Saronikos and so also the environment of the urban areas
nearby.

Financing of the second stage of the biological waste-water treatment station in
Thessaloniki continued during 1999. This project is of the utmost importance for
water quality in the Gulf of Thessaloniki area and will serve the second largest city in
Greece. Specifically regarding water quality in the Gulf,
the Cohesion Fund
approved a project for the biological treatment of waste water in the tourist area of
Thessaloniki, whose treated effluent is also discharged into the Gulf. This work,

24

together with the Kalochori drainage project, constitutes a series of measures to
improve the environment in the region.

As suggested by the Greek authorities, the Cohesion Fund gave greater attention to
the on-going evaluation of this project. The two parties agreed on operational
improvements to conclude the project.

In addition to the major projects, the Cohesion Fund is also part-financing a number
of other water supply and drainage projects throughout Greece.

The new projects include:
€

• the Aposselemi dam,

8.3 million;

• Messolonghi, waste water and treatment station,

• Zakynthos, water and waste water,

€

6.1 million;

€

5.4 million;

• Alexandroipolis, water,

• Kalymnos, waste water,

€

13 million;
€

3.4 million;

• Mantoudi-Prokopi, waste water,

• Plomari, water and waste water,

€

4 million

€

3.5 million;

• Archanes, waste water,

€

2.6 million;
€

• Sarantapotamos, water course,

2.5 million;

• Elassona, waste water,
€

• Corinth, rain water,

5 million

€

4.7 million;

• Kalamata - waste and rain water -

€

1.8 million.

Waste management

In 1999 the Cohesion Fund received and considered applications for assistance to
finance major waste treatment projects in Athens and Thessaloniki. Because these
projects were not fully prepared and lacked adequate management structures, no
finance could be proposed for them in 1999.

The Cohesion Fund provided part-finance for the following projects:

• Rhodes, tip,

€

2.2 million;
€

2.3 million;

• Messolonghi, tip,
€

• Komotini, tip,

2 million;

• Corfu, tip,

€

2.2 million

25

• Aridea-Pella, tip,

€

1.8 million.

Pilot projects

In 1998 the Greek authorities adopted the Master Plan for the pilot project to restore
Lake Koronia and the study on the integrated pilot project for the island of Santorini.

In 1999, the Cohesion Fund provided finance for the first phase of each of these
projects, i.e.:

• the rehabilitation of lake Koronia,

€

2.5 million;

• a coordinated measure for the treatment of waste, waste-water and desalination to

€

1.6 million.

produce drinking water from sea water on Santorini,

Nature conservancy

In 1999 the Cohesion Fund continued to part-finance the “GAIA” Centre project for
research and training on the environment, providing

500 000.

€

3.1.1.2. Transport

In the transport sector, the Commission approved aid totalling
93 million to finance
various sections of the Pathe and Egnatia motorways (priority projects for the TENs
142 million was provided to finance rail projects
European networks). In addition,
€
(principally the Patras-Athens-Thessaloniki route) and
10 million to finance
projects in the port sector (infrastructure in the port of Piraeus).

€

€

Measures in the transport sector were financed in coordination with the ERDF
“Transport” programme and in accordance with the priorities laid down in the TEN.

The Cohesion Fund and the ERDF work together since they both contribute to
financing the extension and modernisation of the Greek rail and motorway networks,
in particular the Pathe and Egnatia motorways. These networks require further
improvement and the establishment of warehouse centres to make them easier to use.

The Cohesion Fund is using appropriations for technical assistance to finance the
study on the Lesvos centre. It believes that this approach could help involve the
private sector, which would benefit from the rapid and efficient transport of goods.
More rapid transport of goods based on an efficient system (ports linked to networks
with intermodal platforms for combined transport), would help reduce the selling
price of goods, so increasing exports to the Member States and directly and indirectly
creating jobs.

The list of all projects adopted or amended in the field of transport may be found in
the table in Annex III.

Roads

The strategy involves the completion of the two main road routes in Greece, the
Egnatia and Pathe motorways.

Via Egnatia motorway

26

The section Ag. Nikolaos-Koumaria progressed well and the section is expected to
be open to traffic in July 2000; the final report will be ready at the end of 2000.

The Ag. Sillas interchange is complete and the other projects, Ag. Andreas –N.
Karvali, MR 4+937-MR 9+400 and ‘Construction of six viaducts’, which concerns
the Kavala by-pass, have progressed well. The whole section is expected to be in use
by traffic from the end of 2000.

Pathe motorway

The sections “Patras by-pass” and “Iliki-Kastro-Martino” are finished and the final
report
is expected in the first half of 2000. The “Martino-Atalanti-Arkitsa-Ag.
Konstantinos-Viaduct” section is almost finished and construction of the “Tragana
tolls” is progressing well. These sections are being used by traffic.

On the 20-km-long “Rahes-Ag. Theodori junction” section, of which 15 km is being
used by traffic, the second stage of a complementary contract is expected to be
financed by the Cohesion Fund next year with completion planned for the end of
2001.

“Skotina-Litohoro-Dion-Katerini”: The whole section is in use by traffic apart from 1
km. The second phase of a complementary contract is expected to be financed by the
Cohesion Fund next year with completion planned for the end of 2001.

Air traffic control

Installation of the four terminal radars has been completed, as have the quality
controls required. Only the radome from the Rhodes terminal radar is missing. It
should be installed in February 2000 and will be followed by operating checks.

Procedures for the installation of the three long-range radars at Thassos, Rhodes and
Karpathos are progressing.

After some delay, the Aeronautical Investigation system and the Safety Management
system progressed in 1999 and it is hoped that a contractor for each one will be
selected during 2000. Particularly in the case of Safety Management, results are
expected by the end of 2000.

Railways

In 1999, the rail projects already approved continued to progress, although some
remained considerably behind schedule. Representatives of the Cohesion Fund
Directorate checked the progress of all the projects in the course of ad hoc missions
during the year.

It was also found that the management of ERGOSE needed improvement. The Greek
authorities agreed to take the steps required.

Sea transport

One port project was adopted in 1999. It concerns the construction of quays where
cruise ships can moor in the Palataki area of the port of Piraeus, the project received
assistance amounting to

9.7 million.

€

27

3.1.2.

Spain (including outermost regions)

To reach a balance in the budget allocation between transport and the environment in
Spain over the period 1993-99, the Cohesion Fund sought to provide greater financial
assistance to environmental projects so that over the period 1997-99 the breakdown
would be 55% to environmental projects and 45% to transport projects. (see list of
projects in Annex III).

3.1.2.1. Environment

Water supply

During the period 1993-99, Cohesion Fund assistance for water supply projects
amounted to

1 211 million, 13.1% of total Community assistance to Spain.

€

The aim was to increase the available volume of high-quality drinking water through
the construction of infrastructure to catch, transport and treat water and regulatory
work on existing infrastructure. A warning system (SAIH) was installed with
Cohesion Fund assistance in all main water basins.

In 1999, the Cohesion Fund contribution of
259 million to water supply represented
28% of resources available for environmental projects in Spain. This required ten
new decisions and seven amending decisions, with increased costs permitting the
inclusion of extra elements.

€

Most of the decisions adopted in this field concentrated on problems of upgrading
existing supply systems and improving water quality so that it complied with the
criteria set out in Community Directives 80/778/EEC and 98/83/EC.

The aim of the projects adopted in the Madrid region was to ensure water supplies to
rapidly growing urban areas in all circumstances by making greater use of the
opportunities for interconnection among six separate water sources. A more rational
management of resources is being sought through improved coordination.

Other large cities and regions of Spain such as Salamanca, Albacete, Cartagena,
Alicante, the lower Ebro and the Balearic Islands benefited in 1999 from the
adoption of projects which will, in due course, guarantee supplies and quality in line
with Community directives.

Waste-water treatment

In 1993-99, considerable progress was made in this area, mainly thanks to assistance
2 068 million. These
from the Cohesion Fund, which provided grants totalling
accounted for 22.4% of the appropriations allocated to Spain for the seven-year
period. This investment permitted implementation of the Spanish national plan for
drainage and waste-water treatment, adopted in 1995, and compliance with Directive
91/271/EEC.

€

€

During 1999 this sector absorbed a very large part of the resources available for
Spain,
567.9 million or 32.3% of the total. Of the 18 decisions adopted, five
concerned amendments (further work or additional phases) and 13 concerned new
projects involving treatment stations or integrated drainage systems in the following
Autonomous Communities: Andalusia, Balearic Islands, Canary Islands, Cantabria,

28

Castille-Leon, Catalonia, Madrid and Valencia. The projects include adoption of the
to cover
system at Prat de Llobregat
construction of a biological treatment station, an under-sea discharge and a network
of collectors to serve nine municipalities in the Barcelona metropolitan area.

in Catalonia, at a cost of

204 million,

€

The particular emphasis which the Cohesion Fund has placed on financing projects
in the outlying regions of the beneficiary countries resulted in the financing of waste-
water treatment stations on the two largest islands of the Canaries archipelago at a
cost of

25 million.

€

Waste management
€

In 1999,
€

70.3 million was devoted to waste management projects. Of this amount,
47.7 million (68%) corresponded to commitments for projects approved in previous
years (new annual instalments or amendments to earlier decisions) and the rest to
commitments for two newly approved projects. In both cases, the new projects are to
implement the regional waste management plans of the regions where they are
located. These plans are based on agreements between the national government and
the Autonomous Communities, which are responsible for waste management in their
territories.

With the 1999 commitments, the waste management sector has accounted for
481
million, 10.3% of the expenditure by the Cohesion Fund on environment projects
since 1993.

€

Protecting and reclaiming the coastline
€

9 million to finance an environmental restoration project on the
A decision granting
shore of the ría de Ferrol was adopted. Its main aim is to restore natural features as
far as possible, provide access to the coast and restore run-down areas.

Afforestation and erosion control projects

In 1993-99, the decisions adopted relating to afforestation and erosion control
565 million of assistance from the Cohesion Fund,
projects in Spain involved
12.1% of the environment budget for Spain.

€

These projects stem from the Spanish Reforestation Plan drawn up for 1995-99 and
include a series of operations carried out under the responsibility of the Directorate
for Nature Conservation of the Spanish Ministry of the Environment, and of the
Autonomous Regions.

The projects cover the following principal activities:

– replanting of vulnerable areas using appropriate tree and shrub species;

– treatment of existing forested areas to improve the vegetation and maintain an

equilibrium between soil protection and forest cover;

– small infrastructure works to stabilise the banks of rivers and streams;

– afforestation and treatment of areas damaged by fire or at risk of being damaged.

29

The projects were all aimed at fighting soil erosion and desertification in vulnerable
regions and at protecting and regenerating forests damaged by fire. They extend over
all the major river basins of Spain and represent a concerted response to the fact that
an estimated 40% of the country’s land area is faced with serious erosion problems.

€

In 1999, two new projects were approved (
19.5 million) in the regions of Valencia
and the Ebro basin. The projects approved in previous years were revised in 1999 to
include new measures in areas where these activities need to be expanded. The most
recent information received suggests that practically all the works will be finally
completed in 2000.

3.1.2.2. Transport

1999 was a year of consolidating Spanish transport infrastructure projects with only a
few new decisions adopted.

The Cohesion Fund made a substantial financial contribution to Spanish transport
infrastructure projects, principally road and rail, in line with the objectives of the
“Plan Director de Infraestructuras 1993-2007” and the Community’s guidelines for
the development of the trans-European transport network (see 2.2.2. above). A total
€
of
4 597 000 of assistance from the Fund has been committed since 1993, 50.3% of
the total allocation for Spain.

Commitments for road projects accounted for
transport) and those for rail projects

€

1 859 200 (40.4% of that total).

€

2 611 000 (56.8% of the total for

Roads and motorways

from then on the emphasis became somewhat

Road projects accounted for the major part of Cohesion Fund assistance in Spain
until 1997,
less marked. The
importance of such investment reflects the need to complete and upgrade the
extensive Spanish main road system in response to the rapid growth of road traffic.
All the projects supported by the Cohesion Fund aim to meet the objectives of the
TENs and of the general plan for roads in Spain. These include the completion of the
most heavily used motorway corridors, the connection of outlying regions with the
major centres of economic activity, a reduction in the excessively radial structure of
the Spanish road network, the relief of urban congestion and the integration of the
Spanish road network with that of its EU neighbours.

In line with these objectives, Cohesion Fund assistance was concentrated on the main
corridors (see Annex).

The Cohesion Fund has placed great emphasis on monitoring projects approved in
earlier years. This has been done primarily via the information (physical and
financial
indicators) submitted by the Spanish authorities, by the information
submitted when applying for intermediate or final payments of grant and via
missions to monitor project implementation on the ground.

Railways

The “Plan Director de Infraestructuras 1993-2007” identifies the main priorities for
upgrading Spain’s rail infrastructure, including the development of high-speed lines,
improvement of track, signalling and other structures on existing lines, and general

30

safety and conservation measures. The Cohesion Fund has contributed to the
financing of these actions wherever they relate to the development of the TENs.

Since 1993, Cohesion Fund assistance has been concentrated on the projects listed in
the Annex.

Ports and airports

The total assistance provided for ports and airports accounts for 2.2% of the transport
budget (

101.4 million) and has been spent exclusively in the Balearic Islands.

€

Vessel Traffic Systems (VTS)

Projects in this category relate to the control of maritime traffic and the fight against
marine pollution. No new project was adopted in 1999. In fact, no new request for
assistance in this category was introduced in 1999. In the period 1993-99
25.3
million was granted to VTS projects under the National Plan for VTS.

€

3.1.3.

Ireland

As described in previous reports, the balance of commitments under the Cohesion
Fund for Ireland has moved over time from support for relatively small projects to
support for large projects with multi-annual budgets, and away from the approval of
new projects towards the continuing implementation of major projects. Activities in
1999 saw the continuation of this trend. Assistance was mainly allocated to projects
aided in earlier years with no entirely new projects approved. The year was also
characterised by the completion of a good number of projects in both sectors.

As in recent years, the bulk of assistance in the environment sector was committed to
the continued implementation of priority projects, either to new stages of projects
which the Commission had assisted in earlier years or to annual instalments of aid to
larger projects approved earlier. The one new project stage assisted was Dublin
Region Waste Water Scheme Stage V. No entirely new project was added in 1999.

More than 80% of the assistance for environment projects in 1999 went to waste-
water projects. As in previous years, waste-water treatment projects within the
largest urban areas and in environmentally sensitive areas, which are required by
Community Directives to be completed not later than the end of the decade, were the
priorities for assistance. The project stages which saw the completion of assistance
were the main drainage schemes in Wexford (Stage II), Dublin (Stage II), Dundalk
(Stage II), Cork (Stage II) and Drogheda (Stage II). The Commission continued to
support groups of related water-treatment projects in lake and river catchments with
the aim of maximising the impact of aid already committed for the environmental
protection of these areas. The catchment projects where Community assistance was
completed in 1999 are in the River Suir basin and the Lough Ree area.

Assistance to water supply projects in 1999 concentrated on the continued upgrading
of the water supply to the Greater Dublin Area and on the water-conservation
projects in Dublin. Water conservation has remained a priority for assistance since a
consultancy study in 1996 showed that leakage control is often more cost-effective
than the construction of new primary infrastructure.

31

In transport, the bulk of the budget was used for the continuing implementation of
major projects on the trans-European road network, with most assistance in 1999
going to projects on the Dublin-Belfast route.

In the rail sector assistance was completed to the to the project covering sections of
the Dublin-Galway, Dublin-Sligo, Dublin-Waterford and Mallow-Tralee lines and to
the extension of the DART in Dublin.

A list of projects may be found in Annex III.

3.1.3.1. Environment

Waste-water treatment

The main part of the assistance was committed to annual instalments of aid for large
projects under construction and a new stage of a project for which the Commission
had already provided assistance.

Water supply projects

The main part of the assistance was committed to completing annual instalments of
aid for two projects already under construction.

3.1.3.2. Transport

Roads

€

In 1999,
98.9 million was committed to road projects. All the assistance went to
annual instalments of aid to large projects which were already under construction. No
entirely new transport project was approved in 1999 though an additional stage of a
major motorway project was supported in part by a single annual instalment.

With a view to sound financial management, the Commission took a decision to
reduce the assistance granted to two projects which were experiencing delays related
to environmental aspects. This resulted in increased funds being committed to the
Drogheda bypass project (stage II).

Rail

€

A sum of
priority projects on the rail network.

22.9 million was committed in final annual instalments to two existing

3.1.4.

Portugal

3.1.4.1. Environment

During the period 1993-99, the priorities in the environment sector remained the
supply of drinking water, the collection and treatment of waste water and the
management of solid urban waste.

Over the period as a whole, the environment accounted for 51.9% of Cohesion Fund
assistance to Portugal, having increased substantially in recent years, and particularly
in 1999, when it accounted for 59% of the total committed.

32

Again over the period as a whole, the breakdown by area of assistance shows that
waste water accounted for the largest share of commitments (18.4% of the total -
€
507 million) and

552 million), followed by the supply of drinking water (16.9% -

€

€

the treatment of solid waste (14.6% -

437 million).

In 1999, commitments for waste-water and waste-treatment projects speeded up
(respectively 24.7% and 21.4% of the total). This was the result of efforts by the
Member State to make up the delay in implementing Directive 91/271/EC.

In the case of waste treatment, priority was given to the collection and treatment
systems set out in the strategic plan financed by the Cohesion Fund and adopted by
Portugal in 1996.

Between 1994 and 1999, the percentage of the population of Portugal affected by
these three areas was:

Supply of drinking water

Waste-water treatment

Waste treatment

1994

77%

21%

42%

1999

90%

70%

94%

Supply of drinking water

Cohesion Fund assistance for the supply of drinking water in 1993-99 totalled
507
million, about 17% of total assistance from the Fund to Portugal and one third of the
amount allocated to the environment sector in that period.

€

The assistance strategy used concentrated heavily on the three most densely
populated regions of Portugal (Greater Lisbon, Greater Oporto and the Algarve), in
an attempt to make up the backlog in this area and Portugal and comply with
Community Directives 80/778/EEC and 98/83/EC.

The introduction of inter-municipal management systems has helped complete large-
scale projects which are ideally suited to the assistance strategy selected. They offer
substantial economies of scale and the use of reliable technical and management
resources.

In 1999, the level of Cohesion Fund assistance in this area fell to about 13% of the
total committed because in this last year there were no more budgetary resources
available for the adoption of new projects, apart from the commitment of annual
instalments for major projects in progress and the extra finance required to complete
work on preparation of the national Plan for water and the water catchment plans.

Waste-water treatment

Cohesion Fund assistance for waste-water treatment concerned almost exclusively
the three most heavily populated urban areas of Portugal: Lisbon, Oporto and the
Algarve. The few exceptions to this geographical criterion were projects to provide
solutions to particularly severe environmental problems whose urgency required
rapid and sometimes substantial assistance.

33

In 1999, commitments from the Cohesion Fund in this sector totalled 24.7% of the
resources allocated to environmental projects.

Despite this work, the situation as regards waste-water treatment is still lagging well
behind the schedule set out in Directive 91/271/EEC for the installation of treatment
systems and so greater efforts will be required in future. As shown by the study
carried out for the Cohesion Fund by WS Atkins International, Portugal needs
considerable investment in the treatment of urban waste water if it is meet all the
Community standards.

In 1999, the Commission and the Portuguese authorities stepped up work on waste
water by providing it with the largest slice of investment for the environment. This
enabled significant progress to be made in implementing the Community Directives
in this field, particularly Council Directive 91/271/EEC of 21 May 1991 as amended
by Commission Directive 98/15/EC of 27 February 1998.

In the case of assistance granted as a result of new decisions, in 1999 the waste-water
sector received
11 045 750 in new appropriations, allocated to a single new
project (see Annex III).

€

First phase of the integrated project to clean up the basins of the Rio Lis and the
Ribeira de Seiça: this integrated system for the drainage and treatment of waste water
discharged into these basins from urban areas includes solutions for treating waste
water from pig farms located there, which cause substantial pollution. The solutions
planned apply the polluter-pays principle and include contributions from the Ministry
of Agriculture and farmers, through their associations. The solution adopted, whose
overall aim is to improve the quality of the environment in the Lis basin, will act as
an example for other similar cases in other water basins in Portugal.

Waste

As in 1998, the work of the Cohesion Fund on urban waste concentrated mainly on
monitoring the implementation of projects adopted in previous years.

€

Only one new item of assistance was adopted in 1999, for the first phase of the
project for a unit to process waste on the island of Madeira. This first phase entails an
31 million. It
46 million, of which the Cohesion Fund is providing
investment of
includes the construction and equipment of an incinerator for urban waste and a
this project will provide an
second for hospital waste. When it
integrated solution to the problem of waste produced on the islands of Madeira and
Porto Santo. The investment is substantial because it involves improvements to the
environment, public health and the quality of life. It will also have a direct and
positive impact on tourism, which is of key importance for the economy of the
archipelago.

is completed,

€

The first period of implementation of the Cohesion Fund will conclude at the end of
1999. This makes it possible to make a general assessment of assistance in the waste
sector from the Fund to Portugal throughout the period 1993-99.

Preparation in 1996 of the strategic Plan for solid urban waste, part-financed by the
Cohesion Fund, identified the problems and defined the strategy for assistance, to
correct the poor indicators reflecting Portugal’s treatment of urban waste.

34

To provide the infrastructure required, Portugal adopted a management model based
on the establishment of inter-municipal bodies, associations of municipalities and
mixed capital (public and private) companies

Throughout the period, the Cohesion Fund has financed six projects under the
responsibility of inter-municipal bodies, three under the responsibility of associations
of municipalities and two under the responsibility of mixed capital companies. These
projects, together with the one to process waste on Madeira, account for the bulk of
assistance from the Fund. Total investment amounts to
646 million, to which the
Fund has contributed
438 million, 14.6% of the total appropriations allocated to
Portugal over the period.

€

€

These projects have resulted in the construction of a network of basic infrastructure
to provide adequate management of urban waste. They cover virtually the whole of
the Portuguese coastline, where the population density is greatest. This includes
some 7.2 million people, 73% of the population, living on about 29% of the land
area.

3.1.4.2. Transport

• A year of consolidation

Because 1999 was the end of the first period of Cohesion Fund assistance, it saw
principally the consolidation of transport infrastructure projects in Portugal rather
than the launch of new projects.

Accordingly, the commitments of
related solely to the 1999 instalments of projects approved in earlier years.

225.5 million made in 1999 for transport projects

€

€

29.3 million out of total assistance of

In 1999, it was possible to pay the balance of the assistance granted to the Vasco da
311.2 million), following
Gama bridge (over
a number of discussions with the Portuguese authorities to ensure full compliance
with the environmental clauses attached to the Community part-financing. During the
year, the Commission was also able, following receipt of the relevant final report, to
financially close the projects concerning the Beira Alta railway line.

€

• Preparations for the next period of assistance

1999 provided an opportunity to begin considering with the Portuguese authorities
the future of the work of the Fund, starting from an overall view of what had been
achieved since 1993. As far as transport is concerned, this is briefly sketched out
below.

At a number of meetings with the Portuguese authorities, mainly at round tables
organised before the presentation of Portugal’s Regional Development Programme,
the Commission took the opportunity to announce its priorities for action and express
its concerns, particularly as regards the environment.

• Stress was laid on the following guidelines:

– a rigorous evaluation of the resources available for 2000/06 which would help
improve the definition of priorities, particularly as regards completion of the

35

trans-European transport networks, and the coordination of assistance from the
various Community instruments;

– concentration would be possible on implementation of Essen priority project No 8

(“Multimodal link between Portugal and Spain and the rest of Europe”);

– priority would be given to improving the performance of rail and sea transport to
permit the transfer of road traffic to less polluting forms of transport and help
promote sustainable development;

– greater use of the PPP (public/private partnership) approach should help increase
the multiplier effect of Community assistance and make possible the part-
financing of a broader range of projects.

• Overall view of achievements since 1993

1 446 million
The financial contribution to transport since 1993, which amounted to
(48.1% of total funding to Portugal), was the key to a strategy aimed at ensuring the
appropriate integration of Portugal into the trans-European network and making its
transport system more effective, despite its outlying situation.

€

Thanks to assistance from the Fund, which, particularly at the beginning of the
period, concentrated quite heavily (29% of Portugal’s ‘quota’), on road transport, the
Lisbon-Madrid and Lisbon-La Coruña routes could be completed and construction of
the Lisbon-Valladolid route speeded up. These three high-priority routes form part of
the trans-European network and the last two also form part of Essen priority project
No 8.
In addition, a decisive contribution was made to eliminating serious
bottlenecks in the urban areas of Lisbon (by part-financing projects such as the
internal and external ring roads, extensions to the motorway north of the city and the
new bridge over the Tagus) and Oporto (increasing the capacity of the Oporto/Aguas
Santas stretch and some of the works concerning the ‘Freixo’ bridge).

€

A considerable effort (
334 million, 11% of the total) was made throughout this
period to assist the two rail corridors of strategic importance linking Portugal with
the centre of Europe. The Fund assisted a number of projects included in the overall
plans to modernise these two rail lines in order to support the ambitious programme
of infrastructure investment which Portugal undertook in this area. Work on the
‘Beira Alta’ line was completed, mainly thanks to joint assistance from the Cohesion
Fund and the ERDF, while the programme to modernise the Nord line will continue
in 2000/06.

Sea transport also received assistance from the Fund throughout this period but this
did not exceed 3% of the total. The Fund gave priority in the allocation of its
assistance to investment in short-haul sea transport (the ports of Lisbon and Leixões)
likely to encourage the transfer of some land traffic to the sea and to measures to
promote interoperability with other modes of transport and port safety (ports of
Leixões and Sines).

As regards air transport, only one project – Funchal airport on Madeira – received
160 million (5% of the total) to improve access to this
Fund support of some
outermost region and boost the tourist sector, which is of great importance to the
island.

€

36

3.2.

Technical assistance and studies

3.2.1. General policy of the Fund

To carry out its management duties successfully and make the assistance granted
more effective, the Cohesion Fund Directorate calls on a number of experts and
consultants in the various sectors to which it provides assistance.

Consultants in fact play a very important role in assessing, analysing and monitoring
the projects submitted for part-financing by the Fund. Experts can supplement the
Commission’s technical expertise with their practical and up-to-date knowledge of a
variety of subjects and so help it meet its obligations better.

3.2.2.

Technical assistance at the initiative of the Commission

Technical assistance schemes using outside consultants are very important in helping
the Cohesion Fund carry out its duties.

This work extends the range of knowledge available within the Commission.

in accordance with the
The consultants are chosen through calls for
procedures laid down by Directive 92/50/EEC on tenders for public services and are
thus among the best in Europe.

tender

Most of the consultants working for the Cohesion Fund are companies from
countries other than the cohesion countries. They often work alongside consultants
from the beneficiary countries.

€

From the 1999 budget of the Cohesion Fund
157 412 was committed for technical
assistance measures and studies, slightly less (down 10%) than in 1998 because a
number of the framework contracts for technical assistance in the areas of concern to
the Fund are multi-annual contracts which were still in force and did not require new
commitments.

The budget committed in 1993-99,
resources committed by the Fund.

€

8.6 million, was about 0.05% of the total

The present framework contracts are now expiring. Accordingly, two major calls for
tenders were published in June to choose consultants for the new period which will
begin in 2000. A consortium of consultants was chosen for a contract in the field of
transport and another consortium in the field of the environment
the
Commission in its technical assessment of the projects to be financed or already in
progress.

to assist

4.

MONITORING, CHECKS AND IRREGULARITIES

4.1.

Monitoring: committees and missions

4.1.1. Greece

Monitoring Committees

37

The Monitoring Committee for Cohesion Fund projects met several times in March
and October 1999 in the cases of transport and the environment. Ad hoc Committees
also met, for Spata, for the Evinos and Eydap projects and for the Psyttalia
(environment) project.

These Monitoring Committee meetings are chaired by the Secretary-General of the
Greek Ministry for Economic Affairs. They comprise the Secretaries-General of the
other Ministries concerned with Cohesion Fund assistance, representatives of the
Commission, i.e. the Cohesion Fund and the other Directorates and Directorates-
General concerned, representatives of the EIB, other representatives of the Greek
Ministries and representatives of the associations of local councils and mayors as
project promoters.

The Committee considered tables summarising each decision and project and reports
on each project. The Commission pays particular attention to compliance with
Community policies.

The various meetings of the Monitoring Committee also provided an opportunity to:

– notify the amounts of commitments and payments in 1999 for projects in Greece

in the fields of transport and the environment;

– notify the authority designated by the Member State, the supervisory Ministries
and final beneficiaries of the results of consideration of the new applications for
assistance;

– secure direct knowledge of the problems encountered by the final beneficiaries in

carrying out the works;

– explain the position of each side (Member State and Commission) on the future
status of projects, eligibility of expenditure and information to be provided to the
Commission;

– hear from the Greek authorities about possible amendments to be made in 1999 to

projects already approved, on which the Commission has to state an opinion.

Implementation of the PATHE and Egnatia transport projects in 1999 progressed
satisfactorily in terms of commitments and construction. Considerable delays in
implementing rail projects were noted and the Commission sent a warning letter.

The ad hoc Committee for the new Athens airport at Spata met twice in 1999. It
looked at the physical and financial progress of the project and at compliance with
Community policies, particularly on the environment, and with the special provisions
of the Commission decision, which relate chiefly to the completion of access roads to
the airport and the installation on schedule of navigational equipment. Thanks to the
efforts of all the parties concerned, the necessary steps have been taken. Construction
of the airport is also proceeding as planned.

The physical and financial implementation of environmental projects during 1999
was generally satisfactory, although there are delays in some projects. Where the
explanations of these delays did not appear convincing, the Commission sent a
warning letter based on Annex VI to the decisions granting assistance from the
Cohesion Fund.

38

The ad hoc Committee for the Evinos project met twice in 1999. It is monitoring the
supply of water to Athens from the river Evinos and the projects of the Athens water
company (EYDAP) concerned with the transport of water and the management of
water resources in the Athens conglomeration.

The Evinos project is being monitored in physical, financial and technical terms. A
large part of the project part-financed by the Cohesion Fund has been completed and
preparation of the extended final study has advanced as desired. Montgomery
Watson has started to act as project manager for the EYDAP projects.

The Monitoring Committee for the second stage of biological treatment for Athens at
Psyttalia met twice in 1999. The project is being monitored in physical, financial and
technical terms.

Inspection visits

As part of the launching of pilot projects, the Cohesion Fund carried out two
missions during 1999 to Thessaloniki, to Lake Koronia, so that the project to protect
that lake could begin. There was considerable discussion with the Greek local,
regional and national authorities on the spot and these authorities also met experts
chosen by the Cohesion Fund to draw up the master plan for this project with the
participation of representatives of the villages around the lake to keep them informed
and make them aware of the environmental, economic and social importance of the
project. Adoption of the first phase at the end of 1999 will mean that work on
protecting Lake Koronia can begin.

Other missions were also undertaken throughout 1999 to launch the Santorini pilot
project (water supply, waste-water treatment and waste). These again entailed
discussions with the local,
regional and national authorities and providing
information to the population of the island on the importance of the project.
Adoption of the first phase at the end of 1999 will help improve the protection of the
environment on Santorini by providing an overall view of the problems encountered.

Particular attention was paid to projects around Thessaloniki to provide the city with
drinking water from the river Aliakmon and to clean up the Gulf of Thermaikos.

Other inspections were also carried out in 1999 by Cohesion Fund rapporteurs. They
are listed, with the quality control inspections, in Annex II to this report.

4.1.2.

Spain

Monitoring Committees

In 1999, two meetings of the Monitoring Committee were held in Madrid, the
eleventh meeting on 27, 28 and 29 April and the twelfth on 19, 20 and 21 October.

There are seven sub-committees:

• Committee for the HST South project: Madrid-Barcelona line

• Committee for transport projects submitted by the national government

• Committee for afforestation projects

39

• Committee for projects submitted by local authorities

• Committee for environmental projects submitted by the national government

including water projects

• Committee for projects submitted by the Autonomous Communities

• Committee for public/private partnerships

The Committee considered some 220 monitoring reports on the situation of projects
and groups of projects.

Work on a number of projects had been completed although administrative questions
concerning the winding-up of contracts is delaying despatch of the final reports and
hence payment of the balance. A request has been made that
the final report
accompanying the payment of the balance should specify that the goals set have been
achieved and set the project in the context of a plan.

The projects have been implemented efficiently but there are some management
problems arising from the large number of amendments and mergers.

The committee on public-private partnership projects met for the first time in 1999. It
is concerned with projects which have a private financing component. Contracts for
most of these projects are awarded in the form of a concession. Others are managed
by public companies established with the participation of national, regional and local
government.

Since these Monitoring Committees were the last before the new Regulation came
into force, they provided an opportunity to use the experience acquired to consider
the past and guidelines for the future.

Reflections on the forthcoming period are of three types:

(1)

(2)

(3)

changes made by the new Regulation,

the new principles of a strategic context for Cohesion Fund assistance,

new management practices aimed at greater simplicity, efficiency and
transparency.

Monitoring missions

The missions carried out permitted on the spot visits to projects being implemented
and those being considered. Meetings with the bodies responsible for
the
presentation and implementation of projects were organised to obtain more details on
the various sectoral plans of the regions visited. The missions enabled progress on
the works to be checked, difficulties encountered in implementing the projects to be
clarified and, in the case of projects under consideration, the goals sought to be better
understood.

The list of these missions may be found in Annex II.

40

4.1.3.

Ireland

Monitoring Committee

The Monitoring Committee in Ireland met on two occasions in 1999, on 15 April and
25 November.

As in previous years, the Commission was represented by the Cohesion Fund
Directorate and representatives of other Directorates with an interest in the Fund’s
operations in Ireland. The Irish authorities were represented by the Department of
Finance, which chairs and provides the secretariat
the Committee, by
representatives of the Irish government departments responsible for the sectors
receiving assistance and representatives of the public agencies responsible for the
implementation of projects (e.g.
the port
Irish Rail,
authorities). As in previous meetings, representatives of certain local authorities
responsible for the design, implementation and management of road, water-treatment
and water-supply projects also participated.

the state rail company,

for

In general, the Commission continued to be happy with the quality of the information
supplied on the management of projects. In a minority of projects it was necessary,
however,
information on certain subjects with a view to
establishing an accurate picture of progress or on the reasons for delays in project
completion.

to request additional

The Commission was generally satisfied with the progress achieved. While there was
clear progress with the successful completion of a number of projects in 1999
approximately half of all projects remained to be completed at end-1999. In
particular the Commission expressed concern about the number of environmental
projects for which time extensions were requested and the scale of cost increases
reported for some projects. The Commission maintained its position that increases in
grant aid would be accepted only if detailed justification were provided to explain the
cost increases. Any increases would be subject to the availability of resources. This
position has been accepted by the Irish authorities and no specific requests were
made for cost increases to be met.

Inspection visits

The missions are listed in Annex II.

4.1.4.

Portugal

Monitoring Committee

During 1999, the Monitoring Committee met twice, on 25 and 26 March and on 26
and 27 October. These meetings, which continue to use a systems-analysis approach
which highlights the links between the various projects and the overall coherence of
assistance, are still of the utmost importance for the correct monitoring of each
project. This is where problems in project implementation can be identified and the
best solutions sought.

These meetings cover a number of specific Monitoring Sub-committees. In addition
to a general Monitoring Committee, committees for the projects on urban waste and
the extension of Funchal airport on Madeira have been established. The project to

41

finance the Alqueva hydroelectric power station is also being monitored by the
the
Structural Fund Monitoring Committee for
Integrated Development of the Alqueva area (PEDIZA), which met twice in 1999.

the Specific Programme for

Inspection visits

Besides attending meetings of the Monitoring Committee, unit DG REGIO-E-2
undertook a number of inspections in 1999 to assess progress on projects, to see on
the spot the problems encountered during implementation and to seek the best
solutions which would allow the projects to be implemented normally.

This unit also took part in technical meetings to define or improve the assistance
strategies in certain areas of concern to the Cohesion Fund, particularly water
management and rail transport, and in meetings on the application of new financing
techniques, including the public-private partnership (PPP).

The inspections carried out by unit REGIO-E-2 in Portugal are listed in Annex II.

4.2.

Inspection visits

4.2.1. Greece

Checks by DG Regional Policy

The inspection departments of DG Regional Policy carried out a mission in January
to look at how the systems of declarations of expenditure within the Ministry of the
National Economy in Athens worked and to examine financial management and
implementation by final
monitoring by the competent authorities and project
beneficiaries.

The projects checked were:

93-94.09.61.070 - Goulandris Museum Centre for environmental research and
training in the history of nature.

95.09.65.040 - New Athens airport at Spata.

94.09.61.027 - Sewerage network in Keratea.

93.09.65.005 - Piraeus ring road.

94.09.65.005 - Quay II at the new N. Ikonion container station in Piraeus.

The following were the main findings, which have been taken up with the national
authorities:

– cases of possibly ineligible expenditure, because either not covered by the

decision or incurred before the eligibility period;

– lack of separate accounting for the airport project;

– delays in submission of payment claims to Commission;

42

– deficiencies in the checking of expenditure declarations before the submission of

claims to Commission.

During a second mission, in February, DG Regional Policy inspectors looked at two
projects:

94.09.61.043 - Restoration of tips and study for the construction of a transit station
for waste in Thessaloniki.

94.09.61.075 - Water supply - drains and biological treatment of waste water in
Naoussa.

No particular findings requiring action were made during this audit.

Financial control

A first mission to Greece took place on 17 and 18 February 1999 and concerned
environment projects at Volos and Larissa (projects 95/09/61/062, 94/09/61/042,
94/09/61/062-1 and 96/09/61/085).

A second mission to Greece took place from 15 to 18 March 1999 and concerned
environmental and transport projects on Corfu (projects 94/09/61/028, 93/09/65/003
and 93/09/65/001).

Reports have been drafted concerning both control missions and these have been
forwarded to the national authorities. The main audit findings were discussed with
Greek internal audit authorities in the annual bilateral coordination meeting.

These were that:

– since eligible and ineligible expenditure were recorded in the same accounts, it
was difficult to ensure that declared expenditure corresponded with the accounting
system;

– it remained unclear whether and how statements of expenditure from project

managers are checked before submission to the Commission;

– advances paid by the Commission to the Ministry of Finance were only partially
(65%) forwarded to the project managers and it remained unclear when and under
what terms the remainder was transferred to the project manager.

4.2.2.

Spain

Checks by DG Regional Policy

In October, DG Regional Policy’s inspection staff examined a number of projects in
order to:

– check the effectiveness of the system of financial management and monitoring by
that of the Autonomous

level and at

the competent authorities at national
Communities,

– verify the implementation of certain projects by the final beneficiaries,

43

– verify the quality of checks on declarations of expenditure,

– analyse the impact of the projects on the development of the areas covered by the

programme.

The inspection covered the following projects:

95.11.65.001 - Baix Llobregat expressway

96.11.65.004 - Rías Bajas expressway, Alto Allariz-San Ciprián section

97.11.61.047 - SOGAMA

96.11.61.051 - Management of solid urban waste in the Barcelona Metropolitan Area

96.11.61.052 - Drainage in the Barcelona Metropolitan Area

94.11.61.021 - Environmental restoration in Ciutat Vella (Barcelona).

Financial control

An inspection in Spain took place from 17 to 20 May 1999 and concerned a part of
the transport project “Alta Velocidad Madrid-Barcelona-Frontera francesca” (project
95/11/65/007). Inspectors from DG Regional Policy also took part in this inspection
mission organised by DG Audit.

The main findings of the mission were that:

– the measures taken for the financial management of the project were examined

and found satisfactory;

– an adequate accounting system was employed and all back-up documentation was

made available:

– the audit was performed with satisfactory results with regards to the verification

of expenditure declarations submitted to the Commission;

– the DGAPP certified some data that had not been checked by this service.

The authority was recommended to carry out sample checks.

A report has been drafted and forwarded to the national authorities. The main audit
findings were discussed with Spanish internal audit authorities in the annual bilateral
coordination meeting.

4.2.3.

Ireland

Checks by DG Regional Policy

In 1999 the financial control unit of DG Regional Policy carried out one audit
mission in relation to the Cohesion Fund project Lough Mask Regional Water
Supply (Project No 94/07/61/019). The mission took place in Ireland as part of a
programme of similar controls between 21 and 25 June.

44

The management and control systems established by the national authorities were
examined and found to be functioning well. There were thorough checks on the
project by the implementing unit as well as by the recently formed Cohesion Fund
Internal Control Unit which carries out the 5% checks required by Commission
Regulation (EC) No 2064/97.

Considerable cost increases of around 50% on certain contracts were attributed to a
variety of factors (the use of price variation clauses, addition of extra works,
archaeological works, road restorations and land purchase fees). The national and
local authorities were asked to improve the quality of cost projections in the future.
In order to encourage improvements in this area the Commission has adopted a
general policy of not accommodating cost increases in Cohesion Fund projects.

4.2.4.

Portugal

Checks by DG Regional Policy

In February DG Regional Policy inspection staff examined two projects:

– water distribution on the Barlavento Algarvio

– waste water at Vila do Conde

The checks, which concerned primarily the rules governing public contracts,
compulsory purchases, guarantees, the eligibility of expenditure, payments, transfers
and compatibility with the Community policies, did not give rise to any particular
complaints about the project.

4.3.

Irregularities and suspension of assistance

Under Article 12 of Council Regulation (EC) No 1164/94, the Commission has
adopted Regulation (EC) No 1831/94 concerning irregularities and the recovery of
sums wrongly paid in connection with the financing of the Cohesion Fund and the
organisation of an information system in this field13.

Article 3 of the Commission Regulation requires the beneficiary Member States to
notify the Commission of any irregularities which have been the subject of
preliminary administrative or judicial investigations.

Since the entry into force of Regulations (EC) Nos 1831/94 and 1681/94 (which
applied to the cohesion financial instrument), the Commission has been notified of
five cases, three of them during 1999. One case notified by the Greek authorities
concerned non-compliance with the rules on public procurement and the other two,
notified by the Spanish and Irish authorities, concerned ineligible expenditure.

The anti-fraud unit carried out no investigations concerning the Cohesion Fund.

300 000 for measures to combat
Furthermore, budget heading B2-301, which had
fraud against the Cohesion Fund, was not used because the authorities concerned did
not seek funding and because of the reorganisation of the anti-fraud unit.

€

13

OJ L 191, 29.7.1994.

45

5.

EVALUATION AND ASSESSMENT

5.1.

General

In general, cost-benefit analysis is used for

For a thorough project appraisal, applications need to be supported with adequate
documentation and an economic analysis demonstrating that a project will generate
medium-term economic and social benefits commensurate with the resources
deployed.
In the
environment sector, however, there are often limits to a straightforward application
of the cost-benefit model, so in this sector the Regulation also allows the use of other
forms of analysis and demonstration of benefits. The preparation of cost-benefit and
other types of analysis is primarily the responsibility of the beneficiary Member
States. The Commission may, however, support appraisals and evaluation of projects
through technical assistance measures or within a first phase of project financing.

this purpose.

The Commission has been using technical expertise from outside consultants where
this is deemed appropriate and has a standing agreement with the European
Investment Bank for assistance with project appraisals.

5.2.

Prior appraisal of projects

Cost-benefit analyses or other forms of quantified analysis are obligatory for every
project submitted for Cohesion Fund assistance. Member States have made
substantial efforts to comply with this requirement and the quality of the economic
analyses submitted with project applications has improved. However,
further
progress remains to be made, in particular in the case of environment projects.
Greater consistency between different sectors of assistance and between the
approaches adopted by different countries is also desirable.

5.3.

Cooperation with the EIB in examining projects

The framework agreement on cooperation between the Cohesion Fund and the
European Investment Bank which was signed in 1994 expired in 1999. A new
framework agreement was signed on 16 June 2000 so that
this very useful
cooperation on the prior appraisal of projects could continue throughout the new
programming period until the end of 2006.

The agreement permits the on-going exchange of information, regular meetings and
the use of the EIB’s expertise in appraising projects for which the promoter or the
national authorities hoped to secure joint financing from the EIB and the Cohesion
Fund. The EIB’s expertise in large-scale projects and those of considerable financial
complexity enables the best combination of sources of finance (grants and loans) to
be found.

The new framework agreement on cooperation with the EIB concerns not only
Cohesion Fund projects, but also ISPA projects and major projects under the ERDF.

5.4.

Ex-post evaluation programme

The ex-post evaluation programme was launched for three years starting in mid 1998.
A total of 120 projects will be evaluated over this period, 60 in each of the two fields
of Cohesion Fund assistance. So far, 71 projects have been evaluated, 40 in the
transport sector and 31 in the environmental field.

46

5.4.1.

Environment

During 1999, a total of 18 environmental projects,
evaluated in the four Member States.

listed in Annex IV, were

The environmental impact of all the projects was satisfactory. Sanitation projects had
a more immediate and evident environmental benefit, even if, in some cases, the
delay in completing the scheme also delayed the environmental impact. Water supply
projects in general improved water management and led to better conservation of
water resources. Coastal, urban and natural environment
improvement projects
helped preserve flora and fauna and link the natural and urban environments.

In general, the projects analysed proved beneficial to the local population and to the
environment of the project area. Projects performed in accordance with initial
objectives, except for one water supply project (No 95/11/61/028-2) in Spain, which
started to operate late.

The projects had positive economic externalities, as a consequence of the positive
environmental effects. Some projects indirectly increased land values within the
impacted area and stimulated economic development, so prompting new activities
and employment.

5.4.2.

Transport

A total of 27 transport projects in Spain and Ireland were evaluated during 1999.
These projects are listed in Annex V. In Greece, none of the transport projects was
ready to be submitted to evaluation and the ex-post programme for this country did
not begin until 2000.

The main conclusions derived from the reports finalised in 1999 can be summarised
as follows:

• The projects assessed contribute substantially to achievement of the goals of
social and economic convergence by reducing the gap between regions and
countries inside the EU.

• Cross-border positive impacts have been achieved, so contributing to market

integration inside the European Union.

• Access to large parts of the territory of the Cohesion countries has dramatically
communication

translating into better

comfortable

and more

improved,
conditions.

• Traffic flows on TENs routes and national networks connections have generally
improved more than expected. Travel time saving have been considerable and
safety conditions have improved significantly.

• Large metropolitan areas have secured substantial benefits:

reduction of
congestion costs, a better performance of urban systems, abatement of negative
environmental impacts and new opportunities for urban development.

47

Environmental issues have been carefully considered, especially in most modern
projects. The necessary measures have been implemented in a way which minimises
any negative environmental impact.

6.

INTER-INSTITUTIONAL DIALOGUE, INFORMATION AND PUBLICITY

6.1.

Annual report

Article 14 of the Cohesion Fund Regulation requires the Commission to present an
annual report on the activities of the Fund for examination and opinion to the
European Parliament, the Council, the Economic and Social Committee and the
Committee of the Regions.

The Commission approved the Annual Report covering the year 1998 on 15 October
1999 and then duly transmitted it to these institutions.

6.1.1.

European Parliament

Overall, Parliament was very satisfied with the performance of the Cohesion Fund in
1998.

It congratulated the Commission and the Member States on its sound budgetary
implementation in 1998 and the lack of fraud in that year.

As regards transport infrastructure, Parliament welcomed the increased investment in
rail and sea transport rather than roads in response to its request, first made in 1998,
for increased financing to go to more environmentally-friendly means of transport.

Parliament stressed the need for greater attention to be paid to the treatment of solid
waste. The Commission noted that so far Cohesion Fund projects had concentrated
on those areas covered by Community Directives, drinking water, waste-water
treatment and the treatment of solid waste, which had itself absorbed 14% of the total
budget, considerably more than the average for 1993-97.

Parliament was concerned about the date of presentation of the 1998 Report (October
1999), which it considered late. Although the Commission understood Parliament’s
arguments, it pointed out that some delays were unavoidable: if the report were to be
useful, it had to be as complete as possible, and this took time. In any case, relations
between Parliament and the Commission were sufficiently close for problems to be
discussed outside the formal setting of consideration of the annual report.

Parliament regretted that a study carried out by the London School of Economics
(LSE) had taken five years to be completed (the time taken between the start of the
projects evaluated and the final evaluation). The Commission did not consider five
years unusual for a study of this breadth. It was now evaluating the study and would
make it available to Parliament as soon as possible.

6.1.2.

Economic and Social Committee

In general, the 1998 annual report was very well received by the Economic and
Social Committee.

48

Like Parliament, the Committee regretted the delay in the presentation of the annual
report. As it had done to Parliament, the Commission stressed the need for the report
to be complete so that it would be difficult to reduce the time required.

The Committee regretted that work on eligibility had not been completed until 1998,
less than two years before the end of the current Cohesion Fund. The Commission
explained that this delay had been caused by a long process of internal and external
coordination at the Commission (the Member States had had to be consulted on the
eligibility rules at various levels and on several occasions).

The Committee noted that, in some respects, the 1998 report was not up to the
standard of earlier reports because of the excessively brief and not always uniform
presentation of the data by Member State. The Commission replied that, in view of
the large amount of information made available to the public, particularly via the
internet, annual reports should concentrate on the essential features. Details of
implementation could be found on DG Regional Policy’s Internet site (Inforegio).

Although it was satisfied with the average level of implementation of projects, the
Committee drew attention to the disparities between the two areas of assistance from
the Fund (transport and environment).

The main reason for this disparity was the different use by the sectors of the ‘single
instalment’ mechanism, which was more common in the field of the environment.
This meant that the commitment was made only once while the payments were
spread over several years as the project was implemented. In the case of transport,
commitments were more often made in annual
instalments because they were
normally for major projects. That meant that the “payments as a percentage of
commitments” indicator was inevitably higher.

The Committee repeated its concern about the trend of aid in areas such as nature
conservancy and, in particular, combating erosion and afforestation, whose relative
importance had fallen.

The Commission replied that the first priority was operations to implement the
‘acquis communautaire’ as regards drinking water and the treatment of waste water.
Combating desertification was not one of the priorities of the Fund. The beneficiary
Member States might nevertheless submit applications
for consideration by
Commission, as they could for all aspects of nature conservancy.

As regards transport, the Committee reiterated its concern about the breakdown of
resources (1993-98), the bulk of which (64.1%) were being absorbed by roads and
road transport, despite the recent shift towards rail.

The Commission had never ceased asking the beneficiary Member States to submit
other types of projects for part-financing. The share going to rail was rising, mainly
thanks to a clear increase in Spain

The Committee again expressed its concern about the smaller flow of investment in
maritime, port and river projects.

The Commission noted that these activities were normally commercial in nature and
often generated considerable revenue, which reduced the need for aid from the
Community budget correspondingly.

49

The Committee sought more information on the economic model devised by the
London School of Economics to measure the impact of the Cohesion Fund.

The Commission had published the complete LSE study, which was now being
distributed widely.

6.2.

Information to the Member States

The Member States are kept informed of the activities of the Cohesion Fund through
well-established information meetings, which normally take place twice a year.

In 1999 the first meeting was held in Brussels in January and the second in Madrid in
July.

At the first meeting, the activities of the Cohesion Fund in 1998, particularly the
applications for aid, the intermediate monitoring and evaluation, ex-post evaluation
and information on Article H of Annex II to Regulation (EC) No 1164/94, were
presented to the Member States.

At the second annual meeting, the Commission presented the annual Report on the
work of the Cohesion Fund in 1998 and the prospects for the end of 1999. It also
presented the new Cohesion Fund Regulation and a discussion ensued.

6.3.

Other information events

6.3.1.

Information to the social partners

No meetings with the social partners were organised in 1999; they were informed
about the Cohesion Fund at meetings with the Commission on the Structural Funds.

6.3.2. Other

Seminar in Lisbon on multimodal goods platforms (Freight Villages)

On 26 March 1999, the Cohesion Fund Directorate organised a seminar in Lisbon on
multimodal goods platforms (Freight Villages) for specialists on this subject from
different Member States to set out the advantages of investments of this type.

The seminar, intended for transport operators and those responsible for transport
departments in the Portuguese civil service, was attended by the Minister and
Secretary of State for Transport. The aim of the initiative was to make those
concerned more aware of this type of economically attractive project which could
make better use of rail transport and reduce the burden on the roads, which would be
very beneficial for the environment.

Preparations for the next programming period 2000-06

A number of measures to prepare for 2000-06 took place in 1999. They included:

– two round table discussions with the Greek authorities responsible for both areas

(transport and environment) in June 1999,

50

– preparation (June-October 1999) of a brief guide by the department responsible
for the Cohesion Fund to help the Member States through the new Cohesion Fund
Regulation 2000-06, followed by a presentation and discussion of the guide with
the four Member States (30 November 1999).

6.4.

Commission measures on publicity and information

The Cohesion Fund is also the subject of publications by DG Regional Policy on
regional policy and cohesion.

The Annual Report was published in a convenient format and was also summarised
in the Inforegio newsletter edited by DG Regional Policy.

Ad hoc material is produced for specific events such as presentations and conferences
using portable stands, graphic design by computer, audio-visual material and printed
matter.

Under budget heading B2-1600, the Cohesion Fund has produced a number of
studies on the Fund and the environment which are now available.

51

ANNEXES

52

Annex I

Annex II

Annex III

Annex IV

Annex V

:

:

:

:

:

Projects completed in 1999

List of monitoring and quality control missions in 1999

Fund assistance by beneficiary Member State

Ex-post evaluations in the field of the environment

Ex-post evaluations in the field of transport

53

ANNEX I

PROJECTS COMPLETED IN 1999

SPAIN

Environment

Project No 94/11/61/022

Decision :

C(94)3696 of 21/12/1994

Decision :

C(96)2740 of 7/10/1996

Decision :

C(99)1241 of 12/5/1999

Environmental restoration.

Environmental restoration of public works. Series of measures to restore the natural
environment, particularly areas blight by the construction of public road infrastructure.

Total cost:

Assistance granted:

€

€

14 941 777

12 700 510

Project No 95/11/61/010-2 Decision:

C(96)3384/F of 17/12/1996

Group of projects concerning afforestation, the prevention of erosion, desertification and the
regeneration of ecosystems damaged by fire in the catchment area of the Canary Islands.

Total cost:

Assistance granted:

€

€

4 956 751

4 213 238

Project No 95/11/61/021-A Decision:

C(95)3074/F of 8/11/1995

Decision:

C(97) 873/F of 25/3/1997

Decision:

C(98) 390/F of 23/2/1998

Sewerage, Madrid-1995.

Group of projects to deodorise waste water to help improve the quality of the environment
along the Manzanares in Madrid.

Total cost:

Assistance granted:

€

€

2 013 335

1 610 668

Project No 95/11/61/021-E Decision:

C(95)3029/F of 6/12/1995

Decision:

C(97) 511/F of 24/2/1997

Urban environment 1995-Madrid.

Group of projects concerning the construction of a centre for acoustic research in Madrid and
restoration of run-down areas and improvement of the environment in the Casa de Campo
park (first phase).

54

Total cost:

Assistance granted:

€

€

4 130 652 euros

3 304 522 euros

Project No 95/11/61/023-A Decision:

C(95)3115/F of 12/12/1995

Decision:

C(98) 390/F of 23/2/1998

Disposal of waste water in the Barcelona metropolitan area -1995.

Group of 23 projects concerning sewerage in the Barcelona metropolitan area (1995).

Total cost:

Assistance granted:

€

€

15 813 813

12 651 050

Project No 95/11/61/024-3 Decision:

C(95)3512/F of 11/1/1996

Decision:

C(97) 349/F of 7/2/1997

Waste-water disposal and treatment 1995 - Gobelas interceptor sewer, Bilbao.

Total cost:

Assistance granted:

€

€

10 300 449

8 240 359

Project No 95/11/61/024-5 Decision:

C(96) 404/F of 19/2/96

Decision:

C(98)1313/F of 13/5/98

Waste-water disposal and treatment in San Sebastian.

Group of seven projects for channelling water and restructuring collectors in various areas of
San Sebastian.

Total cost:

Assistance granted:

€

€

3 237 698

2 590 158

Project No 95/11/61/026-5 Decision:

C(96) 404/F of 19/2/1996

Decision:

C(98)1313/F of 13/5/1998

Urban environment, Zaragoza.

Group of three projects: Las Glorietas Park (phase 2), improvement of the banks of the Canal
Imperial (phase 2) and the Huerva ‘Green Corridor’ (phase 3).
€

Total cost:

3 237 698

Assistance granted:

€

2 590 158

Project No 95/11/61/030

Decision:

C(95)3134/F of 11/12/1995

Jaén waste-water treatment station.

55

Total cost:

Assistance granted:

€

€

11 628 050

9 302 440

Project No 95/11/61/034

Decision:

C(95)3294/F of 18/12/1995

Decision:

C(97) 661/F of 13/03/1997

Collection and treatment of waste water on the Catalan coast.

Group of nine projects comprising a complex of waste-water treatment stations, networks of
sewers and underwater outfalls.
€

Total cost:

73 649 452

Assistance granted:

€

58 919 562

Project No 95/11/61/043-3 Decision:

C(95)3254 of 18/12/1995

Decision:

C(97) 661 of 12/3/1997

Closure and cleaning up of clandestine tips in Extremadura.

Group of 22 projects involving: transport, transfer and compaction of waste and restoration of
natural environment.

Total cost:

Assistance granted:

€

€

9 610 468

7 688 374

Project No 96/11/61/029

Decision:

C(96)2514/F of 13/9/1996

Provision of extra water resources in Palma de Mallorca.

Group of three projects involving: exploitation of run-off water,
recovery of factory
discharges by reverse osmosis and tertiary treatment to reutilize waste water in urban services
in Palma de Mallorca.

Total cost:

Assistance granted:

Transport

€

€

7 088 960

5 671 169

Project No 93/11/65/016

Decision:

C(93)3258/F of 15/11/1993

Decision:

C(94)2796/F of 27/10/1994

Decision:

C(95)3519/F of 11/1/1996

N 234, Gilet-Soneja section.

Total cost:

€

48 845 621

56

Assistance granted:

€

41 518 775

Project No 94/11/65/006

Decision:

C(94)3757/F of 21/12/1994

Decision:

C(96)1375/F of 28/5/1996

Madrid-Alicante and La Encina-Valencia railway lines, phase II (removal of level crossings
and increase in running speeds to 200/220 km/h).

Total cost:

Assistance granted:

€

€

86 102 110

73 186 792

Project No 95/11/65/002

Decision:

C(95)2935/F of 27/11/1995

Decision:

C(97)2566/F of 29/7/1997

Decision:

C(98)4327/F of 21/12/1998

Zaragoza-Huesca expressway.
€

Total cost:

120 070 769

Assistance granted:

€

102 060 153

PORTUGAL

Environment

Project No 95/10/61/028

Decision: C(96)2955 of 24/10/1996

Decision: C(98)432 of 25/2/1998

Improving the supply of drinking water to four municipalities in the greater Lisbon and
middle Tagus system.

Total cost

Assistance granted

Transport

€

€

5 289 470

4 496 050

Project No 93/10/65/010 – 94/10/65/007

Decision: C(98) 2233 of 27/7/98

Modernisation of the Beira Alta railway line – The completion of sections I and III, to
which this project relates, will complete the whole project and improve rail links between
Portugal and Spain and the rest of Europe.

Total cost

Assistance granted

IRELAND

€

€

64 392 000

51 513 600

57

Environment

Project No: 94/07/61/008

Decision: C(96)1696 of 25/6/96,

Decision: C(97)2609 F/4 of 29/7/97

Killarney Sewerage Improvement Scheme

Projects consisted of the enhancement of the capacity of the system and treatment works to
42 000 p/e. and the laying of new sewers in the area close to the lakes. The improvement
included the upgrading of the under-capacity sewers, the provision of new storm and foul
sewer systems, the provision of new sewage pumping stations and the construction of an
extension to the existing waste water treatment plant to a population equivalent of 42 000.
The project also included the planning and design stage of sludge handling facilities designed
to implement the findings of the Irish national sludge strategy in the South Kerry region.
€

Total cost:

12 960 000

Assistance granted:

€

11 019 000

Project No: 94/07/61/009

Decision C(95)3008/4 of 6/12/95

Tralee Main Drainage Scheme

Project involved the provision of a sewerage scheme for Tralee town and surrounding areas,
including the upgrading of under-capacity sewers, the provision of separating chambers for
foul/storm water, the installation of foil and storm pumping stations, the construction of a new
waste water treatment plant and an outfall pipe to Tralee Bay. The treatment plant has a
biological capacity of 40 000 p/e. and includes an ultraviolet disinfection plant.

Total cost:

Assistance granted:

Transport

€

€

10 866 000

9 237 000

Project No: 93/07/65/014

Decision C(95)1641 final/3 of 13/7/95

Dublin Port Lo/Lo

The upgrading of one of the three container terminals in Dublin port.

Project involved refurbishing a proportion of the existing quay wall to allow it to be dredged
to a depth of 7.5 metres and maximise its use for cargo operations by providing the necessary
crane run-off area.

Total cost:

Assistance granted:

€

€

4 169 000

3 543 650

Project No: 93/07/65/029

Decision C(95)1641/4 of 13/7/1995,

Decision C(96)1111/2 of 3/5/1996,

58

Decision C(97) 2606/5 of 28/7/1997,

Decision C(98)2085 final/1 of 22/7/1998

Balbriggan by-pass (stage 2)

involved a dual

The project
two-lane motorway by-pass of Balbriggan from south of
Balrothery to the North of Gormanstown and the construction of three interchanges. It will
eventually form part of a new motorway from Dublin to the border. It will form part of the
EO1 route linking Rosslare to Larne and will form part of the M1 from Dublin to Belfast.

Total cost:

Assistance granted:

€

€

40 370 000

34 314 000

Project No: 93/07/65/034

Decision C(95)1867/1N4 of 24/7/1995,

Decision C(96)1111/final/2 of 3/5/1996

Curlows by-pass

This project on the N4 Dublin-Sligo route provided essential infrastructure support for
economic (particularly industrial and tourism) development by improving access to ports,
airports and the main domestic markets. It also helped improve access to sub-regions
(particularly North West and West), thereby enhancing their attractiveness as locations for
investment and economic development.

Total cost:

Assistance granted:

€

€

21 794 000

18 525 000

Project No: 93/07/65/042

Decision C(94)2684/9 of 14/10/94,

Decision C(95)1874/4 of 25/7/95,

Decision C(96)1111/2 of 3/5/1996,

Decision C(97)2606 final/5 of 28/07/97,

Decision C(98)2085 final/1 of 22/07/98

Arklow by-pass

Project involved 12 km of dual carriageway by-pass of Arklow town in south Co Wicklow,
including two railway bridges, one river crossing, six bridges over existing roads, two
interchanges and two bridges providing access.

Total cost:

Assistance granted:

€

€

47 247 000

40 159 000

Project No: 94/07/65/006

Decision: C(96)3690/1 of 9/12/96,

Decision: C(97)2606/1 of 28/7/97

59

Rathcoole Interchange

Project involved improvements on the N7 Dublin to Cork/Limerick road, 15 km south-west of
Dublin city to eliminate traffic movements across the N7 and the traffic signals at Rathcoole.
It involved replacing 800 m of the existing dual carriageway, the construction of a bridge,
three new roundabouts and new and upgraded connecting roads.

Total cost:

Assistance granted:

€

€

22 119 500

18 801 575

60

ANNEX II

LIST OF MONITORING AND QUALITY CONTROL MISSIONS IN 1999

Spain

Inspection missions

3 and 4 February - Catalonia

Project No 98/11/61/022 - Disposal and treatment of waste-water from Prat de Llobregat

Project No 95/11/61/022E - Environmental renovation in Ciutat Vella – Casc Antic,
Barcelona

1-2 June - Andalusia

Project No 98/11/61/050 - Restoration of the Riotinto mining area (Huelva)

14 December – Basque Country

Project No 95/11/61/043-7 - Restoration of polluted soil in the Basque Country. HCH safety
cell.

Greece

Other monitoring missions

(1)

(2)

(3)

(4)

(5)

projects in the ports sector: port of Piraeus, (project No 93/09/65/005 port of Piraeus
ring road, project No 94/09/65/005 Ikonio-II container terminal in the port of Piraeus,
project No 99/09/65/001, Palataki, construction of quays for cruise ships in the port of
Piraeus), port of Iraklio (project No 93/09/65/032, linking of quays IV and V for the
loading and unloading of goods in the port of Iraklio), port of Igoumenitsa, (project No
93/09/65/004, construction of new port at Igoumenitsa);

projects in the rail sector: Evaluation of the contract of the project manager,
presentation of the new master plan for the Thriassio rail complex, examination of
contracts and supplements for the purchase of supplies and the construction of the rail
projects, monitoring of the rail projects: project No 94/09/65/004 electrification of the
Piraeus-Athens-Thessaloniki
93/94/09/65/009 Evangelismos-
project No
Leptokarya, projects Nos 94/09/65/011, 95/09/65/034 rail complex at Thriassio and
lines linking Thriassio with the network and with Piraeus;

line,

projects for studies on the Chios/Lesvos freight village at Kilkis;

EYDAP projects, all the projects being carried out by that body were checked;

airport projects: the Corfu airport project (projects Nos 93/09/65/003 and 94/09/65/014
extension of the terminal and construction of a fire station),

(6)

motorway projects: Pathe and Egnatia

61

During the year the Cohesion Fund had a study carried out by the consultant “KAMPSAX”
on the operation of the project management for EYDE/PATHE. The most important points
were:

(1)

(2)

(3)

(4)

EYDE/PATHE is not adequately staffed to undertake effective supervision of the
various contracts;

the final designs of structures are prepared by the contractors, which permits cost
increases;

insufficient emphasis is being placed upon safety issues on works along the motorway;

the know-how transfer from the Project Managers is weak. A system to monitor it
should be established;

(5)

progress reporting is also weak. It is repetitive and not regularly presented.

Quality control inspections

Inspections to check the quality of the work done by ESPEL at the request of the Greek
authorities.

Category i means that projects have almost no failures and no corrective measures need to be
taken. Category ii means that the projects have failures which do not affect the stability of the
constructions. Corrective measures are needed.

– Information concerning controls on PATHE.

Section: “Patras by-pass, K1-K4:

category ii

EYDE/PATHE says that it has proved to ESPEL that none of the remarks made is valid and
has asked for a fresh inspection of the project. It has stated that the project manager and the
service took samples simultaneously with ESPEL and the results were within the
specifications.

– Although the tender documents form one volume, ESPEL reports that the document “study

budget” is missing from the tender documents.

Section: “Patras by-pass, K5-K6-K7-A:

EYDE/PATHE has not received the technical report and an indication of category for this
project.

Section: “Skotina-Litohoro”: category i

Section: “Litohoro-Dion”:

category i

– Information concerning checks on the Via Egnatia.

16 contracts have been checked, including four financed by the Cohesion Fund, at the Kavala
by-pass.

10 out of the 16 are of category i.

62

5 out of 16 are of category ii. The necessary measures to correct the failures have already
been taken by the construction managers.

For the “Kavala by-pass six viaducts” project the checks were carried out by a group of
administrators from the General State Account Department, Ministry of National Economy
and Unit for Monitoring and Organisation (M.O.U.) who looked at the progress of the project,
the procedures applied by the agency, compliance with national and Community provisions
during work on the project, the completeness and legality of the supporting and other
documents concerning the declaration of expenditure and the on-site verification of the
achievement of the physical objectives. The results of the control were very positive.

Ireland

Inspection visits

21-25 June

Project No 94/07/61/019 Lough Mask Regional Water Supply Scheme. Financial control visit
by DG Regional Policy.

26 November

Project No 95/07/61010 Dublin Regional Waste Water treatment scheme, Stage I & II, site
monitoring visit to interim sludge treatment works - The plant was in the process of being
commissioned.

Portugal

Inspection visits

Four projects concerning the Inter-municipal water supply system for the ‘Barlavento
Algarvio’. The inspection was carried out with assistance from external consultants engaged
by DG Regional Policy-E in the drinking water sector.

Meeting on the progress of a study on preparation of the national water plan and the plans for
each catchment area.

Two projects on the treatment system for solid urban waste in the Litoral Centro.

Three projects on the treatment system for solid urban waste in the Margem Sul.

Thirteen projects on the drainage system in the Algarve.

Project for the Port of Lisbon (Sta. Apolónia)

Meetings with BRISA (the motorway concession holder) on implementing the
public/private partnership.

Meeting with the authorities responsible for transport to assess the compatibility of the
projects already financed on the Norte line with the new strategy being prepared for the rail
sector.

63

ANNEX III COHESION FUND ASSISTANCE BY BENEFICIARY MEMBER STATE

GREECE

GREECE - ENVIRONMENT

PROJECTS ADOPTED OR AMENDED OR INSTALMENTS OF PROJECTS CONTINUED IN 1999

No of project

Name of project

Type of commitment

CF contribution,
€
million

26

21.1

0.4

2.8

3.3

1.6

2.5

27.5

0.8

0.4

17.4

94/09/61/005

94/09/61/010

Water
Aliakmon

supply

to

Thessaloniki,

Annual commitments

Extension
station at Thessaloniki

of

biological

treatment

Annual commitments

94/09/61/029-1

Waste-water treatment, Patras

Annual commitments

94/09/61/034

Renovation outfall, Ano Liossia

Annual commitments

94/09/61/041-1

Waste-water treatment, Iraklio

Annual commitments

94/09/61/046-1

Drainage, Rhodes

Annual commitments

94/09/61/078,027

Markopoulo, Kalyvia, Kouvaras

Annual commitments

94/09/61/004

Psyttalia, waste-water treatment

Annual commitments

96/09/61/085

Drainage, Larissa

Annual commitments

Eydap

94/09/61/011-6

94/09/61/011-9

Safety
Taxiarchis

of Mornos

aqueduct

at

Single commitment

Increasing capacity and raising of
Mornos aqueduct

Annual commitments

64

94/09/61/070

95/09/61/063

GAIA Centre for research and training
the environment

Single commitment

Mytilene, water supply, sewers and
treatment station

Single commitment

94/09/61/034-1

Schisto, tip

Single commitment

94/09/61/046

Rhodes, waste water

Single commitment

94/09/61/055-2

Serres, waste water

Single commitment

94/09/61/055-3

Yannitsa, waste water

Single commitment

94/09/61/015-2

Krya – Vrissi, waste water

Single commitment

94/09/61/017

P.Kavala, waste water

Single commitment

94/09/61/019-1

Villia, waste water

Single commitment

94/09/61/022&041-2

Chania, waste water

Single commitment

94/09/61/031-1

Xylokastro, waste water

Single commitment

94/09/61/050

Metsovo, waste water and treatment
station

Single commitment

94/09/61/053-1,059

Argos, water and waste water

Single commitment

94/09/61/055-4,

Alexandria, waste water

Single commitment

94/09/61/056

Florina, waste water

Single commitment

94/09/61/060

Rethymno, water and waste water

Single commitment

94/09/61/064-1

Lamia, water and waste water

Single commitment

94/09/61/067

Didymoticho, waste water

Single commitment

94/09/61/076

Katerini, tip

Single commitment

94/09/61/080

Aposselemi dam

Single commitment

97/09/61/002

Messolonghi,
treatment station

waste

water

and

Single commitment

97/09/61/004

Zakynthos, water and waste water

Single commitment

97/09/61/005

Alexandroipolis water

Single commitment

97/09/61/006

Messini, waste water

Single commitment

97/09/61/007

Kalymnos, waste water

Single commitment

97/09/61/009

Mantoudi-Prokopi, waste water

Single commitment

97/09/61/012

Plomari, water and waste water

Single commitment

98/09/61/003

Archanes, waste water

Single commitment

65

0.5

4.8

0.9

0.9

2.4

0.7

0.9

1.1

0.7

2.7

0.4

0.4

3.1

0.3

2.6

2.3

0.6

0.4

0.6

8.3

5.4

6.1

13.0

1.0

3.4

4.0

3.5

2.6

98/09/61/005

Sarantapotamos, torrent

Single commitment

98/09/61/008

Elassona, waste water

Single commitment

98/09/61/010

Corinth, rain water

Single commitment

98/09/61/012

Kalamata, waste water, rain water

Single commitment

99/09/61/001

Rhodes, tip

Single commitment

99/09/61/002

Messolonghi, tip

Single commitment

99/09/61/003

Komotini, tip

99/09/61/004

Corfu, tip

Single commitment

Single commitment

99/09/61/005

Aridea – Pella, tip

Single commitment

99/09/61/008

Lake Koronia, restoration

Single commitment

2.5

4.7

5.0

1.8

2.2

2.3

2.0

2.2

1.8

2.5

99/09/61/009

Santorini, coordinated measure

Single commitment

1.6

Total

206

GREECE - ROAD PROJECTS

ADOPTED OR AMENDED AND INSTALMENTS OF PROJECTS CONTINUED IN 1999

No of project

Name of project

Type of commitment

assistance,

CF
€
million

EGNATIA

94/09/65/019

Asprovalta-Strymonas

Single commitment

45.9

66

PATHE

94/09/65/012-c,d,f

Martino-Atalanti-Arkitsa-Ag.
Konstantinos, Yliki Viaduct

Single commitment

94/09/65/028-d

Katerini underpass

Single commitment

94/09/65/028-a,b,c,

Skotina-Litohoro-Dion-Katerini

Single commitment

94/09/65/013-a,b

Rashes-Agroinnvest Pelasgia tolls
-Ag. Theodori

Single commitment

94/09/65/015-f

Patras by-pass

Single commitment

0

11.0

13.2

8.3

4.1

Other
Corridor

access

roads

94/09/65/023

Corinth-Tripolis-Kalamata

Single commitment

10.0

GREECE - AIRPORT PROJECT CONTINUED IN 1999

No of project

Name of project

Type of commitment

assistance,

CF
€
million

AIRPORT

95/09/65/040

Athens
Spata

international airport at

Annual commitments

99,9

GREECE - RAIL PROJECTS CONTINUED IN 1999

No of project

Name of project

Type of commitment

assistance,

CF
€
million

RAIL

94/09/65/004

Electrification of the PATHE line

Annual commitments

94/09/65/009

Evangelismos-Leptokarya

Annual commitments

94/09/65/010

Elefsina-Corinth

Annual commitments

94/09/65/011

Complex of works at Thriassio

Annual commitments

98/09/65/001

Bridging the river Axios

Single commitment

94/09/65/006

Paleofarsalos-Kalambaka

Single commitment

94/09/65/008

Thessaloniki-Alexandroupolis

Single commitment

3.9

90.2

16.0

0.9

15.2

2.7

12.8

67

GREECE - SEA TRANSPORT - PROJECT ADOPTED IN 1999

No of project

Name of project

Type of commitment

assistance,

CF
€
million

99/09/65/001

Palataki, moorings for cruiseships in the
port of Piraeus

Single commitment

9.7

68

SPAIN

SPAIN - PROJECTS ADOPTED EN 1999

WATER SUPPLY

Name of project

Type of project

CF assistance

in 1999

CF

Total
assistance
€

million

- Raising water
Fenollar (98/11/61/010)

from Rabasa to

Water supply to Marina Baja de
Alicante

5 898 817

5.9

supply

- Water
–
Pardo/Fuencarral and NIII sections
(98/11/61/037 and /051)

to Madrid

- Water supply to Madrid - Work to
connect
areas
(98/11/61/042)

catchment

Inter-municipal water scheme at
(98/1161/035,

-
Sorbe-Guadalajara
/043 and /044)

- Water supply to Lleida and its
region from the Santa Ana dam
(98/11/61/039)

Interconnection of
water to supply Madrid

sources of

28 885 063

28.9

Interconnection
areas supplying water to Madrid

catchment

of

253 793 336

25.8

Water supply to Madrid

31 419 440

31.4

Water supply

7.798.649

7.7

- Water supply to Albacete from the
Tagus-Segura
aqueduct
(98/11/61/052)

Regularisation of the water supply
to Albacete

20.434.412

20.4

- Ibiur dam (97/11/61/056-1)

Water supply from the Tolosa
area

12.901.710

12.9

- Joint supply to the urban areas of
the Lower Ebro (98/11/61/045)

Water supply

7.795.025

7.8

- Protection and refilling of aquifers
west of Almería (99/11/61/003)

Nature conservation

28 190 820

28.1

- Main pipelines and equalising
reservoir
for Calvia and Andratx
(99/11/61/004)

Water
Islands

supply on the Balearic

9 088 203

- Special plan to develop Cartagena
(99/11/61/002)

Work to supply water to the area
of Cartagena

7 709 191

9.0

7.7

- Catchment and supply of water to
Salamanca (99/11/61/006)

Water supply to Salamanca

17 710 600

17.7

69

SPAIN - PROJECTS IN PROGRESS AND APPROVED IN PREVIOUS YEARS (1993-99)

WATER SUPPLY

Name of project

Type of project

Desalination

-
94/11/61/014)

units

(M

to obtain drinking water in a

Plant
number of catchment areas

Supply of drinking water

CF assistance in 1999
€

million

CF

Total
assistance
€

million

5.9

13.1

35.0

43.6

Plant to obtain drinking water

1.4

26.4

- Water supply to Madrid -
CASRAMA
system
(96/11/61/001)

- Desalination
Canary
96/11/61/004)

unit
Islands

in

the
(M

-
SAIH
(M96/11/61/005)

Tagus

basin

Warning system to prevent catchment
areas emptying

de
- Desalination
Majorca Bay (M 96/11/61/007)

Palma

Plant to obtain drinking water

- Desalination Las Palmas- Tele
– Canaries (M 97/11/61/057

Plant to obtain drinking water

- Improvements downstream of
Guadalhorce (M 97/11/61/062)

Regularisation of water course. Flood
prevention

1.8

1.9

7.1

29.3

30.7

33.3

41.8

58.6

SPAIN - PROJECTS ADOPTED IN 1999

DRAINAGE-WATER TREATMENT

Name of project

Type of project

CF assistance in 1999 Total

CF

of

the waste-water
Extension
treatment station for Santa Cruz
and Las Palmas. Canary Islands.
98/11/61/003

Work to improve and extend waste-
water treatment stations.

Waste-water
Arroyo Culebro
Madrid. 98/11/61/004

treatment station at
(Fuenlabrada).

Construction of the infrastructure
required
and
collect,
to
discharge waste water

treat

and
Waste-water
treatment station at Vélez Málaga.
Andalusia/.98/11/61/005

collectors

Construction of the infrastructure
required for
and
treatment of waste water.

the drainage

70

assistance
€

million

14.8

14.8

36.9

36.9

17.9

17.9

Waste-water
Benalmédena
Torremuelle
Andalusia. 98/11/61/006

treatment station at
at
(Benalmédena).

and collectors

treatment station at
Waste-water
Aranda del Duero, Béjar
and
Medina del Campo. Castille-Leon.
98/11/61/007

adjustment

Construction,
and
operational testing of the treatment
station and measures to improve
drainage infrastructure.

Construction of the infrastructure
required for
and
treatment of waste water.

the drainage

Collectors
waste-water
and
treatment station at Rincón de la
Victoria. Andalusia. 98/11/61/017

Construction
treatment
of
station and equalising reservoir to
store the treated water

the

Waste-water treatment station at La
Gavia. Madrid. 98/11/61/018

Construction of the infrastructure
required for
and
treatment of waste water.

the drainage

Waste-water
Benidorm.
Villajoyosa
98/11/61/019

treatment station at
and
collectors.

Benidorm

Collection works and extension and
improvement
treatment
of
stations.

the

Waste-water
treatment station in
southern Gran Canaria. Canary
Islands. 98/11/61/021

Installation
pumping
discharge
collector.

of
plant,
and

screening

and
canalisation,
of

replacement

Waste-water
Prat
98/11/61/022

treatment station at
Catalonia.

Llobregat.

Treatment station, undersea outfall,
including
and
network of collectors to the system.

pumping

station

Waste-water
Palma
Islands. 98/11/61/026

treatment station at
de Mallorca. Balearic

Construction,
operational
waste-water treatment station.

testing of

adjustment

and
the new

at

Drainage
Saja-Besaya,
Sorravides-Maps and Reocín Valle
del
Cantabria.
98/11/61/049

Buelna.

sewerage

General
several
sections of the catchment area of
the river system.

in

Environmental work around the
Ebro
and
dam. Castille-León
Cantabria. 98/11/61/054

Water treatment and management,
interpretation of
the environment
and environmental improvements.

22.4

22.4

25.4

25.4

12.9

12.9

25.7

25.7

19.1

19.1

3.7

10.3

204.3

204.3

19.1

19.1

19.4

19.4

13.7

13.7

SPAIN – PROJECTS IN PROGRESS AND APPROVED IN PREVIOUS YEARS (1993-99)

DRAINAGE-WATER TREATMENT

Name of project

Type of project

CF assistance

in 1999

CF

Total
assistance
€

million

treatment Huesca
Water
Teruel. Aragon. 95/11/61/031

and

Waste-water treatment stations.

0.6

15.3

71

Treatment of discharges
Valencia region. 97/11/61/028

in the

Treatment of effluent discharged
the
into water
Mediterranean

courses

and

Waste-water
Andalusia. 97/11/61/030

treatment

in

Various treatment stations.

Collectors
in the Oviedo south
Basin and San Claudio. Asturias.
98/11/61/020

Rain-water catchment conduits for
various
and waste-water
pipes.

rivers

Mar Menor
Murcia. M94/11/61/018

south

collectors.

Installation
conduits,
stations, waste-water discharges.

of
collectors,

waste-water
pumping

Murcia east waste-water treatment
station. Murcia. M95/11/61/015

Modifications needed in the waste-
water treatment plant.

Drainage Costa del Sol (Mortil, La
Línea, Almuñecar). Andalusia.
M95/11/61/013

Collection of water discharged from
urban centres and conveyance to
waste-water treatment stations.

Drainage Campo
Andalusia. M95/11/61/014

de Dalías.

Tertiary
microfilters
stations.

treatment
two
in

using
treatment

41.2

75.0

3.0

23.7

53.3

24.6

11.8

34.7

4.1

23.1

23.9

40.0

3.8

46.0

SPAIN - PROJECTS ADOPTED IN 1999

WASTE MANAGEMENT

Project Title

Type of Project

1999 commitment

grant

Total
approved
(million
Euro)

Waste management
zones
2
Andalusia). 98/11/61/046

and

3

recovery of
(Córdoba,

complex

Environmental
for
recycling and recovery of urban
solid waste in the Campo de
Gibraltar
Andalusia).
98/11/61/047

(Cádiz,

Waste management

9 281 244

9.3

Waste management

13 302 802

13.3

SPAIN - PROJECTS ADOPTED IN PREVIOUS YEARS WITH COMMITMENTS IN 1999

WASTE MANAGEMENT

Project Title

Type of Project

1999 commitment

grant

Total
approved
€
million)
(

Urban Solid Waste (Barcelona.
Catalonia) 95/11/61/022D

Urban waste management

7 868 139

19.2

72

Plan for the management of special
waste to be incinerated (Tarragona.
Catalonia) 97/11/61/001

Incinerator

1 596 3154

31.9

Management of urban solid waste
(Galicia) 97/11/61/047

Urban waste management

38 285 694

71.8

SPAIN - PROJECTS ADOPTED IN 1999

AFFORESTATION/COMBATING EROSION

Name of project

Type of project

CF assistance in 1999 Total

CF

Improvements to water courses

19 517 310

19.5

assistance
€

million

Adjustments
courses
98/11/61/012

to
in Valencia

natural water
(Valencia)

Work on banks and water courses
(Aragon) Ebro Basin 98/11/61/053

Improvements to water courses

14 199 822

14.2

SPAIN - PROJECTS IN PROGRESS AND APPROVED IN PREVIOUS YEARS

ROADS

Name of project

Type of project

CF assistance in 1999 Total

CF

assistance
€

million

Somport
94/11/65/005

tunnel

Baix
M95/11/65/001

Llobregat

(phase

II).

Road widening

15 843 114

80.8

expressway

New road

33 645 286

171.0

Madrid-Valencia
Atalaya-Motilla. 96/11/65/007

expressway:

New road

5 379 976

101.9

Madrid-Valencia
Minglanilla-Caudete.
96/11/65/008

expressway:

New road

3 892 088

102.9

By-pass Las Palmas de Gran
Canarias 97/65/11/001

New road

Bajas

Rías
expressway:
Benavente-Camarzana de Tera
96/11/65/009

New road

TOTAL

43.6

47.1

10 430 035

9 991 868

79 192 367

73

SPAIN - PROJECTS ADOPTED IN 1999

RAIL

Name of project

Type of project

CF assistance in 1999 Total

CF

Madrid-Barcelona HST Access at
Lleida 99/11/65/001

New line

assistance
€

million

22 862 540

22.9

SPAIN - PROJECTS IN PROGRESS AND APPROVED IN PREVIOUS YEARS (1993-99)

RAIL

Name of project

Type of project

CF assistance in 1999 Total

CF

assistance
€

million

Mediterranean corridor
-raising
speed to 200/220 km/h (3rd
phase)
Catalonia)
95/11/65/005

(Valencia,

Modernisation of railway line

12 790 458

172.7

Madrid-Barcelona
(Calatayud-Ricla-Zaragoza-
Lleida). 95/11/65/007

HST

New railway line

347 896 663

411.8

Madrid
Access
M97/11/65/002-003

underground
Barajas
to

-
line
airport.

New underground line

58 442 425

139.9

Madrid-Barcelona
(Chiloeches-Calatayud).
98/11/65/004

HST

New railway line

260 557 485

339.6

Madrid-Barcelona HST (Madrid-
Chiloeches). 98/11/65/002

New railway line

Madrid-Barcelona HST (Ricla-
Zaragoza section). 98/11/65/003

New railway line

101 780 273

132.4

125 871 417

164.0

TOTAL

725 136 586

SPAIN - PROJECTS ADOPTED IN 1999

PORTS

Name of project

Type of project

CF assistance in 1999 Total

CF

Port of Ibiza (Balearic Islands).
98/11/65/005

Port improvements

74

assistance
€

million

28 158 006

28.2

IRELAND

IRELAND - PROJECTS ASSISTED IN 1999

WASTE-WATER TREATMENT

Project Name

Type of project/commitment

Aid granted in
1999

€

(

million)

Dublin Region Waste
Water
Treatment
(Stage I & II)

Final annual instalment

1.7

93/07/61/007

93/07/61/013

93/07/61/014

93/07/61/033

95/07/61/010

93/07/61/020

Dundalk (Stage I & II)

Final annual instalment

95/07/61/015

96/07/61/010

Cork (Stage I & II)

Final annual instalment

93/07/61/031

Wexford (Stage I & II)

Final annual instalment

94/07/61/022

93/07/61/018

96/07/61/003

Drogheda (Stage I &
II)

Final annual instalment

15.8

50.7

8.3

13.5

94/07/61/021

Lough Ree

94/07/61/014

River Suir

98/07/61/004

Dublin Region Waste
Water
Treatment
(Stage IV)

TOTAL

instalment

Final
projects

instalment

Final
projects

to existing group of

4.0

to existing group of

4.4

New stage of project (construction stage)

23.0

121.4

IRELAND - PROJECTS ASSISTED IN 1999

WATER SUPPLY

75

Project name

Type of project/commitment

96/07/61/001

Dublin
Conservation

Water

Final annual instalment

96/07/61/007

Dublin Region Water
Supply (Stage III)

Final annual instalment

TOTAL

IRELAND - PROJECTS ASSISTED IN 1999
ROADS

Aid granted in
1999

€

(

million)

23.7

5.0

28.7

Project Name

Type of commitment Aid granted

in 1999
€

(

million)

Dublin-

98/07/65/001

Drigheda Bypass (II)

Single instalment

95/07/65/007

Dunleer-Dundalk (II)

Final instalment

Ring

94/07/65/010

Southern Cross

Final instalment

Decommitments

N1
Belfast

Dublin
Road

Various

TOTAL

52.2

33.3

13.4

2.2

96.7

IRELAND - PROJECTS ASSISTED IN 1999
RAIL

Railway Line

Type of Project and commitment

Aid granted
in 1999
€

(

million)

96/07/65/002-

Dublin – Galway

96/07/65/006

Dublin -Waterford
Dublin-Sligo
Mallow-Tralee

Network signalling

Final instalment for projects to upgrade
parts of the TENs rail network

17.2

96/07/65/001

DART extension

Final instalment

TOTAL

5.7

22.9

In the two tables above, "final instalment" identifies multi-annual projects where aid is committed each year until
completion. The two final instalments listed below complete the Commission's support to these projects.

76

PORTUGAL

PORTUGAL - Projets adoptés en 1999

Traitement des eaux usées

N° du Projet

Titre du projet

Type engagement

Concours FC

97/10/61/021

Dépollution Intégrée de Lis et Seiça

Engagement unique

11.045.750

99/10/61/004

Etude - Inventaire des zones contaminées

Engagement unique

123.802

Divers

Renfort du concours de 6 projets

Engagement unique

31.186.089

PORTUGAL - Projets adoptés en 1999

Traitement des déchets urbains

96/10/61/017

Traitement des déchets de l'île de Madère

Engagement unique

30.953.086

PORTUGAL - Tranche de 1999 relative aux projets adoptés précédemment

Traitement des eaux usées

N° du Projet

Titre du projet

Concours

Tranche 1999

93/10/61/014-96/018

Assainissement Costa do Estoril

52.048.900

8.925.852

94/10/61/006-007

Dépollution du fleuve Trancão

49.816.223

5.415.270

95/10/61/004-013

Assainissement de Ria de Aveiro

59.252.362

27.078.472

95/10/61/027

ETAR de Chelas

21.862.256

9.174.256

96/10/61/020

ETAR de Beirolas

19.096.950

4.709.910

97/10/61/002

Assain.G.Porto-Bassin Douro este

30.555.885

9.902.061

97/10/61/004

Assain.G.Porto-Bassin Douro nordest

18.045.976

6.097.849

97/10/61/018

Traitement eaux usées de Setúbal

18.302.200

14.028.400

97/10/61/020

Assainissement Caldas da Rainha/Obidos
II

13.744.901

8.444.513

77

PORTUGAL - Tranche de 1999 relative aux projets adoptés précédemment

Approvisionnement en eau

93/10/61/006-015-
96/016

Approvi.en eau au Barlavento Algarvio

61.211.878

6.171.188

93/10/61/017

Barrage de Enxoé

21.698.045

140.598

94/10/61/028

Alqueva I

95/10/61/009-96/015

Approvisionnement eau Région Porto
Nord

64.553.443

6.314.221

86.099.310

17.219.862

95/10/61/010

95/10/61/008

Approvisionnement
Algarve

Approvisionnement
Sud

eau

Sotavento

41.367.095

8.273.419

eau Région.Porto

112.142.514

32.444.514

PORTUGAL - Tranche de 1999 relative aux projets adoptés précédemment

Traitement des déchets urbains

93/10/61/016-94/026-
95/023

LIPOR

95/10/61/024-96/013-
013A

Déchets Algarve

87.735.976

25.620.482

46.800.186

13.047.670

95/10/61/026

VALORSUL

96.930.476

16.550.223

96/10/61/009

Déchets Litoral Centro

36.805.000

7.361.000

96/10/61/010

Déchets Feira/Gaia

18.467.950

3.693.590

96/10/61/011

Déchets Litoral Noroeste

31.319.100

6.263.820

96/10/61/012

Déchets Margem Sul

24.043.950

14.024.000

PORTUGAL - Tranche de 1999 relative aux projets adoptés
précédemment

Projets routiers

94/10/65/005

Pont sur le Tage

311.211.212

29.286.595

96/10/65/002-97/004

A3 Braga/Ponte de Lima/Valença

128.300.670

41.560.134

97/10/65/003

A6 Montemor/Evora

34.064.000

5.695.704

78

PORTUGAL - Tranche de 1999 relative aux projets adoptés précédemment

Projets ferroviaires

96/10/65/001

Ligne du Nord II

104.929.607

10.492.961

97/10/65/001

Ligne du Nord III - Pampilhosa/Quintãs

66.087.548

24.911.808

97/10/65/002

Ligne du Nord IV-Albergaria/Alfarelos

74.256.310

32.441.195

PORTUGAL - Tranche de 1999 relative aux projets adoptés précédemment

Projets portuaires

95/10/65/002

Port de Lisbonne - Staz Apolónia

29.892.885

19.715.820

95/10/65/004

Port de Leixõesq - Accès routier

24.504.800

16.518.210

PORTUGAL - Tranche de 1999 relative aux projets adoptés précédemment

Projets aéroportuaires

96/10/65/003

Aéroport de Madère

159.981.983

44.917.692

79

ANNEX IV EX-POST EVALUATIONS IN THE FIELD OF THE ENVIRONMENT

SPAIN

95/11/61/041, Recycling of batteries and fluorescent lamps, Vilomara Plant.

The project concerns the construction of a recycling plant for batteries and fluorescent lamps
in Catalonia, to recover mercury and heavy metals. The plant was completed in July 1998.
The investment cost was

8.4 million.

€

95/11/61/036, Construction of sewer lines and waste-water treatment plant, Turia II.

The implementation of phase II included the construction of the Turia waste-water treatment
plant and two main sewer lines. The project still needs complementary implementation by the
municipalities before providing its full benefit, but it has already reduced the quantity of
pollution previously discharged into the river. The project was completed in November 1997.
The investment cost was

11.7 million.

€

93/11/61/026, Park and civil works on the River Ter in Girona.

The project has improved environmental and social living conditions in a district of Girona. It
removed an unauthorised landfill, implemented a green area in town, constructed a pedestrian
bridge and most importantly linked the urban with the natural environment. The project was
completed on April 1998 and its investment cost was

3.9 million.

€

95/11/61/024-3, Gobela Interceptor System – Greater Bilbao, Spain.

Construction of the Gobela main sewer line in Greater Bilbao. The project is part of a large
sanitation system serving more than one million inhabitants. It has improved bathing water
and the quality of the River Nervión. The project was completed in February 1998. Its
investment cost was

10.9 million.

€

93/11/61/055, Regeneration of Gros Beach - Zurriola.

The aim of the project was to protect the northern coast from erosion and to regenerate
Zuriola beach, so improving living conditions in the Gros district of San Sebastián. The
project was completed in March 1995 and its investment cost was

9.8 million.

€

95/11/61/043-2, Recuperation of contaminated soils in Boecillo, Valladolid.

The project concerns the removal and correct disposal of toxic waste, rehabilitating 3 ha of
land. The project was completed in March 1997 at a cost of

1.7 million.

€

95/11/61/028-2, Urgent infrastructure against drought, Segura catchment area, Mula waste-
water treatment plant.

Extension of the Mula waste-water treatment plant by lagoons and sand filtration. The project
was completed in December 1995. The investment cost was

2.1 million.

€

95/11/61/028-2, Urgent infrastructure against drought, Segura catchment area, La Pedrera
water treatment plant.

80

Construction of a reverse osmosis water treatment plant to use effluent as drinking water. The
project was completed in December 1995. The investment cost was

4.4 million.

€

95/11/61/025-4, Recycling of packaging waste in Tudela.

Construction of a recycling plant to recover plastic and metals from packaging waste, serving
an estimated population of 350 000 inhabitants. The project was completed in June 1998. The
investment cost was

4.4 million.

€

95/11/61/039-1, Construction of Alcudia waste-water treatment plants on Majorca.

Extension of the Alcudia waste-water treatment plant to absorb the tourist pollution peaks and
allow the extension of residential areas. The project was completed in March 1995. The
investment cost was

1.1 million.

€

GREECE

94/09/61/043, Completion of the sewage treatment plant in the tourist area of Thessaloniki.

Completion of the Ainia wastewater treatment plant south of Thessaloniki. The project is part
of a sanitation system under construction, serving a population equivalent of 90 000 p.e. The
project was completed in October 1997. The investment cost was

3.3 million.

€

94/09/061/037-2, Sewerage, drainage and water supply networks for Xanthi.

The project concerns the extension of Xanthi sewerage and drainage network and the partial
refurbishment of the water supply system. The project was completed in November 1995. The
investment cost was

2 million.

€

IRELAND

93/07/61/015 - 94/07/61/001, Dublin Region Water Supply (Stage I).

Improvements to two water treatment plants and water mains in two districts. The project is
part of the Greater Dublin water supply scheme extension and improvement. The project was
completed on January 1999 and its investment cost was

65.8 million.

€

94/07/61//008, Killarney sewerage improvement scheme.

Extension of Killarney wastewater treatment plant and sewer network to accommodate the
extension of tourist, industrial and residential areas. The project was completed in June 1999.
The investment cost was

15.3 million.

€

93/07/61//038 and 94/07/61/019, Lough Mask Regional water supply scheme.

Extension of the existing water supply scheme constructing new trunk mains, distribution
lines and one reservoir. The project was completed in March 1997. The investment cost was
€

25.8 million.

PORTUGAL

93/10/61/002, Extension of Asseiceira water treatment plant.

81

Extension of the water treatment plant to supply the Greater Lisbon and Middle Tagus
regions. The extension consisted of eight new rapid gravity filters and one sludge thickener.
The project was completed in September 1996. The investment cost was

4.9 million.

€

94/10/61/016, Castelo de Bode conveyor.

Extension of the Castelo do Bode pipeline to supply the Greater Lisbon and Middle Tagus
regions. The project was completed on July 1996. The investment cost was

27.1 million.

€

94/10/61/015, Odeleite Beliche water system.

Construction of Odeleite dam, trunk main, pumping station and first phase of Tavira water
treatment plant. The project was completed in July 1998. The investment cost was
101
million.

€

82

ANNEX V

EX-POST EVALUATIONS IN THE FIELD OF TRANSPORT

SPAIN

93/11/65/012, Valladolid eastern ring road - Cohesion Fund contribution

€

93/11/65/018, Trinidad-Montgat motorway - Cohesion Fund contribution
€

93/11/65/003, Bailén-Granada first phase - Cohesion Fund contribution

26.2 million.
€

37.1 million.

7.9 million.

94/11/65/003, Bailén-Granada motorway second phase - Cohesion Fund contribution
million.

€

309.3

93/11/65/023, Ribadesella-Luarca motorway - Cohesion Fund contribution

€

16.5 million.

93/11/65/024, Madrid-Valencia-Xátiva Railway - Cohesion Fund contribution

€

64.2 million.

93/11/65/027, Northern Atlantic VTS Finisterre-Coruña - Cohesion Fund contribution
million.

€

18.4

93/11/65/029, Southern Atlantic VTS Sta. Cruz de Tenerife - Cohesion Fund contribution
€

18.4 million.

94/11/65/001, A-6 motorway Madrid - Cohesion Fund contribution

€

75.6 million.

94/11/65/004, Lleida by-pass - Cohesion Fund contribution

€

83.1 million.

94/11/65/008, Costa del Sol-San Roque motorway - Cohesion Fund contribution
million.

94/11/65/009, Luarca by-pass - Cohesion Fund contribution

94/11/65/010, Gijon ring road - Cohesion Fund contribution

€

24.6 million.
€

50.7 million.

94/11/65.011, Novellana-Cadavedo road - Cohesion Fund contribution

€

28.3 million.

95/11/65/008, Trans-Catalonia route: Lleida-Gerona - Cohesion Fund contribution
million.

€

34.7

€

53.9

96/11/65/002, Trans-Catalonia route: Artés-Sta.Maria d’Oló - Cohesion Fund contribution
€

19.3 million.

94/11/65/009-011 and 93/11/65/023, Cantabrian motorway. Novellana-Cadavedo-Luarca-
Ribadesella.

IRELAND

93/07/65/026, Waterford port. Belview quay - Cohesion Fund contribution

€

4.0 million.

93/07/65/015, Cork Ringaskiddy ferry port terminal - Cohesion Fund contribution
million.

93/07/65/008, N1 Balbriggan road by-pass - Cohesion Fund contribution

€

3.1 million.

€

7.5

83

€

27.2

€

32.1

€

7.7

93/07/65/014, Galway Eastern A. road - Cohesion Fund contribution

€

8.4 million.

95/07/65/003, N-25 Dunkettle-Carrightowill by-pass - Cohesion Fund contribution
million.

PORTUGAL

93/10/65/001, Improvements to Norte railway line - Cohesion Fund contribution
million.

93/10/65/005, Palmela-Marateca road - Cohesion Fund contribution

€

93/10/65/032, Marateca-Montemor road - Cohesion Fund contribution

15.5 million.
€

46.6 million.
€

93/10/65/033, Atalaia-Abrantes motorway - Cohesion Fund contribution

33.8 million.

95/10/65/001, Rocha-Conde de Óbidos Quay (port) - Cohesion Fund contribution
million.

84