Commission Report - Annual Report of the cohesion fund (2001)
Date: 2002-10-15
Institutions: European Commission
Subjects: Cohesion Fund, activity report, dissemination of information, implementation of the budget

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 15.10.2002
COM(2002) 557 final

COMMISSION REPORT

ANNUAL REPORT OF THE COHESION FUND (2001)

TABLE OF CONTENTS

FOREWORD

SUMMARY

1.

1.1.

GENERAL CONTEXT

Convergence and economic development in the beneficiary countries of the
Cohesion Fund

1.1.1

Greece

1.1.2.

Spain

1.1.3.

Ireland

1.1.4.

Portugal

1.2.

Conditionality

2.

IMPLEMENTING PRINCIPLES AND ASSISTANCE GRANTED

2.1.

Coordination with other Community policies

2.1.1.

Public procurement

2.1.2. Competition

2.1.3.

Environment

2.1.4.

Transport

2.2.

Coordination with the Structural Funds: the strategic reference frameworks

2.2.1.

Environment

2.2.2.

Transport

2.3.

Implementation of the budget: commitments and payments

2.3.1. Budget available

2.3.2. Budget implementation

2.3.3.

Implementation of the budget for the previous period (1993-99)

3.

THE PROJECTS AND MEASURES ADOPTED

3.1.

Assistance from the Fund by Member State

3.1.1. Greece

3.1.1.1 Environment

3.1.1.2 Transport

3.1.2.

Spain (including the outermost regions)

3.1.2.1 Environment

2

5

6

8

8

8

8

9

10

10

11

11

11

11

11

12

14

14

16

18

18

19

20

21

21

21

21

23

24

25

3.1.2.2 Transport

3.1.3.

Ireland

3.1.3.1. Environment

3.1.3.2. Transport

3.1.4.

Portugal

3.1.4.1. Environment

3.1.4.2. Transport

3.2.

Technical assistance and studies

3.2.1

General policy of the Fund

3.2.2.

Technical assistance at the initiative of the Commission

4.

MONITORING, ASSESSMENT AND IRREGULARITIES

4.1.

Monitoring: Committees and missions

4.1.1. Greece

4.1.1.1 Monitoring Committees

4.4.4.2. Monitoring missions

4.1.2.

Spain

4.1.2.1. Monitoring Committees

4.1.2.2. Monitoring missions

4.1.3.

Ireland

4.1.3.1. Monitoring Committees

4.1.3.2. Monitoring missions

4.1.4.

Portugal

4.1.4.1. Monitoring Committees

4.1.4.2. Monitoring missions

4.2.

Inspections and conclusions

4.2.1. Greece

4.2.2.

Spain

4.2.3.

Ireland

4.2.4.

Portugal

4.2.5. Conclusions

4.3.

Irregularities and suspension of aid

3

29

30

31

31

32

33

34

35

35

35

36

36

36

36

36

36

36

37

37

37

38

38

38

38

38

39

39

39

39

39

40

5.

5.1.

5.2.

5.3.

5.4.

ASSESSMENT AND EVALUATION

General

Examination and ex-ante appraisal of projects

Cooperation with the EIB when a project is considered

41

41

41

41

Economic and social impact of the Fund in the Member States and on economic and
social cohesion, including employment, in the European Union

42

5.5.

Ex-post evaluation programme

5.5.1.

Environment

5.5.2.

Transport

6.

INTER-INSTITUTIONAL DIALOGUE, INFORMATION AND PUBLICITY

6.1.

Annual report for 2000

6.1.1.

European Parliament

6.2.

6.3.

Information from the Member States

Other events

6.3.1.

Information for the social partners

6.4.

Commission measures on publicity and information

ANNEX I

42

42

42

43

43

43

43

43

43

43

45

4

FOREWORD

This  annual  report  on  the  activities  of  the  Cohesion  Fund  covers  the  calendar  year
2001.  It  provides  information  on  the  second  year  of  the  2000-06  programming
period.

The  reporting format  reflects  the requirements of the Cohesion Fund Regulation.  It
has  been  adapted  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  also  serve  as  a  useful  reference  document  for  everyone
interested in the promotion and furtherance of the economic and social  cohesion of
the European Union.

5

SUMMARY

Economic environment and conditionality

Most of the Member States receiving assistance from the Cohesion Fund continued
to respect the macro-economic criteria; only in Portugal was this not the case.

On  25  July  2002  the  Portuguese  authorities  announced  that  the  public  deficit  for
2001 had reached 4.1% of GDP, well above the reference level of 3%. Following that
announcement, the Commission decided to initiate the excessive deficit procedure, as
laid down in the Council resolution on the Stability and Growth Pact.

This problem did not arise in the other Cohesion Fund countries.

Budget implementation

The final amount, after indexation, of the resources of the Cohesion Fund for  2001
was €2 715 million.

The commitments and payments made were as follows:

Summary table of implementation of the CF for 2001 appropriations (en €)

Commitment appropriations

Initial

Movements

Final resources

Implementation

Cancelled

Budget 2001
Appropriations carried over from
2000 (not implemented)
Appropriations made available
again (decommitted in 2000)
Repayments of advances
(reimbursements)

2 715 000 000

413 546 759

0

0

Totals

3 128 546 759

0

0

0

0

0

2 715 000 000

2 711 685 504

413 546 759

413 546 759

0

0

0

0

3 128 546 759

3 125 232 263

Payment appropriations

Initial

Movements

Final resources

Implementation

Cancelled

Carryovers to
2002

3 314 496

0

0

0

3 314 496

0

0

0

0

0

Carryovers to
2002

Budget 2001
Appropriations carried over from
2000 (not implemented)
Repayments of advances
(reimbursements)

Totals

2 860 000 000

300 000 000

0

3 160 000 000

0

0

0

0

2 860 000 000

1 983 398 232

876 601 768

300 000 000

0

0

0

300 000 000

0

3 160 000 000

1 983 398 232

1 176 601 768

0

0

0

0

COORDINATION  WITH  THE  STRUCTURAL  FUNDS:  THE  STRATEGIC  REFERENCE
FRAMEWORKS

Transport

In  2001,  the  transport  sector  accounted  for  48.5%  of  total  Cohesion  Fund
commitments.  As  in  the  past,  the  Commission  insisted  that  the  work  of  the  Fund
should concentrate on railways.

Environment

The  environment  accounted  for  51.5%  of  total  Cohesion  Fund  commitments  for
2001.  The  priorities  in  this  sector  remained  the  supply  of  drinking  water  and  the
treatment of waste water and solid waste.

6

Information and publicity

An  information  meeting  with  all  15  Member  States  was  held  in  Brussels  on
24 October. At that meeting, the Commission presented the draft Regulation on the
systems  of  management  and  control  and  the  procedure  for  implementing  financial
corrections of assistance granted under the Cohesion  Fund  as well as the Report of
the Cohesion Fund for 2000.

Evaluation

A  programme  of  ex-post  evaluations  extending  over  three  years  was  launched  in
1998.  In  all,  120  projects  were  evaluated,  60  in  the  environment  sector  and  60  in
transport. Implementation of the environment projects raised no major problems and
they achieved their objectives. However, those in the transport sector encountered a
number of problems leading to cost overruns and the postponement of deadlines.

Irregularities and the suspension of assistance

Under  Article 3  of  Commission  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 field,1 the
beneficiary  Member  States  are  obliged  to  notify  the  Commission  of  irregularities
which have been the subject of initial administrative or judicial investigations.

One of the Member States, Greece, notified the Commission of four irregularities in
2001  involving  a  total  of  €2 429 040,  statin g  also  that  the  national  authorities  had
taken  the  steps  required  to  safeguard  the  financial  interests  of  the  Community.  In
three of these cases, proceedings to recover the amounts wrongly paid are in progress
while  in  the  fourth  the  contractor  for  the  project  was  required  to  correct  the
deficiencies, and has already done so.

Under the same Regulation, the other three beneficiary Member States informed the
Commission that they had detected no irregularities during the year in question.

1 OJ L 191, 29.7.1994.

7

                                                
1.

1.1.

GENERAL CONTEXT

Convergence  and  economic  development  in  the  beneficiary  countries  of  the
Cohesion Fund

1.1.1 Greece

Following the Council decision of 19 June 2000, Greece entered the euro zone from
1 January 20012. In 2001, economic policy in Greece followed the guidelines of the
first  stability  programme,  which  was  submitted  in  December 2000  under  the
requirements  of  the  Stability  and  Growth  Pact.  The  first  stability  programme  was
aimed  at  confirming  the  stability  stance  of  macroeconomic  policy  while  improving
the  functioning  of  the  markets  through  structural  reforms.  The  Council  issued  an
opinion on the programme on 12 February 20013.

In  2001,  despite  a  significant  improvement  in  the  budgetary  position  of  general
government  as  compared  with  2000,  the  budgetary  target  of  the  2000  stability
programme was not reached. The government deficit fell from 0.8% of GDP in 2000
to 0.4% of GDP in 2001, or a small surplus of 0.1% of GDP including the receipts of
the UMTS claims. The stability programme projected a surplus of 0.5% of GDP in
2001.  Missing  the  budgetary  objective  was  the  result  of  lower  budget  revenues,  in
particular tax revenues, due to slower than expected growth in real GDP, and to an
overrun in current primary expenditure, partly offset by significantly higher non-tax
revenues,  mainly  non-budgeted  receipts  from  the  sale  of  mobile  phone  licenses
(UMTS),  which  amounted  to  around  0.5%  of  GDP.  The  primary  surplus  reached
6.3% of GDP. The debt-to-GDP ratio fell further, from 102.8% of  GDP in 2000 to
99.7% of GDP in 2001.

In  December 2001,  Greece  submitted  its  first  update  of  the  stability  programme,
covering  the  period  2001-04.  The  programme  was  assessed  by  the  Council  on
12 February 20024. Building  on the  budgetary  results  in  2001  and  on  a  slower  real
GDP  growth  scenario  than  assumed  in  the  initial  programme,  the  updated  stability
programme projects the general government surplus to increase during the period but
at a slower pace; it should reach 0.8% of GDP in 2002 and 1.0% of GDP  in 2003.
The general government debt ratio is projected to decline further to 97.3% of GDP in
2002.  The  budgetary  strategy  of  the  Greek  stability  programme  consists  in
maintaining  high  primary  surpluses  assisted  by  a  significant  reduction  in  interest
payments, resulting from lower interest rates and a declining debt ratio.

1.1.2.

Spain

In 2001, the main economic policy guidelines implemented in Spain were described
in  the  2001-04  Stability  Programme  Update.  The  programme  reaffirmed  the
economic  strategy  followed  in  recent  years  based  on  fiscal  consolidation  and
structural reforms and was considered by the Council as being in accordance with the
Stability and Growth Pact5. Within the international economic downturn, GDP grew

2 OJ L 167, 7.7.2000.
3 OJ C 77, 9.3.2001, p.1.
4 OJ C 51, 26.2.2002, p.5.
5 OJ C 109, 10.4.2001.

8

                                                
by 2.8% in 2001 compared  to 3.6% previously  assumed  in  the  update.  Despite this
weaker  output  growth  and  after  registering  a  deficit  of  0.3%  of  GDP  in  2000,  the
target of a general government balanced budget was met while the debt-to-GDP ratio
envisaged in  the  update  was slightly  overshot.  In contrast price developments were
worse than expected, not only because of price rises among the more volatile items,
but also because core inflation deteriorated.

The  third  Stability  Programme  Update,  covering  2002-05,  was  submitted  to  the
European  Commission  on  9  December  2001  and  was  assessed  by  the  Council  on
12 February  20026.  In  its  Opinion  the  Council  considered  the  update  to  be  in
conformity with the provisions of the Stability and Growth Pact and consistent with
the  broad  economic  policy  guidelines.  The  general  government  balanced  budget
reached in 2001 is extended to 2002 and 2003 and small surpluses of 0.1% and 0.2%
of GDP are expected in 2004 and 2005 respectively. The fiscal strategy outlined in
the  update  remains  unchanged  compared  to  the  previous  programmes.  It  relies  on
primary  current  expenditure  restraint  underpinned  by  falling  interest  payments,
which allows for an increase in public investment. In turn, the programme envisages
a new reform of personal income tax to take effect from 2003, implying a tax burden
reduction  consistent  with  the  maintenance  of  fiscal  consolidation.  An  additional
downturn  in  the  debt-to-GDP  ratio  is  foreseen,  falling  below  56%  in  2002  and
reaching 50% by the end of the programme period.

1.1.3.

Ireland

Ireland’s stability programme for the period 2001-03 was considered by the Council
as being in  conformity with the Stability  and Growth  Pact7.  In contrast  to  previous
years, the  general  government outturn  for 2001 was  far below target,  resulting  in a
surplus  estimated  at  1.7%  of  GDP  rather  than  4.3%  as  planned.  A  large  tax
undershoot  was  chiefly  responsible  for  this  under-performance,  although  some
expenditure  overruns  were  also  recorded.  The  weakness  of  tax  receipts  is  largely
blamed  on  lower  growth,  which  was  probably  some  2  percentage  points  below  the
8.8% assumption underlying the 2001 budget. The government debt to GDP ratio fell
further, to about 36% in 2001.

The new update of the stability programme, covering 2002-04, was assessed by the
Council on 12 February 20028. In 2002, the Irish authorities expect a small surplus,
but  thereafter  the  balance  is  projected  to  slide  into  (minor)  deficit.  However,  the
budget  projections  for  2003-04  incorporate  large  contingency  provisions  (against
unforeseen developments), without which a small surplus would be recorded in each
year.  The  Council  therefore  concluded  that,  provided  these  contingency  provisions
are not used, the close-to-balance objective of the Stability and Growth Pact would
the  programme  period.  Regarding  debt
be  broadly 
developments, the stability programme envisages a near-stabilisation of the debt ratio
over the period to 2004 at the very low level of 34% of GDP.

throughout 

respected 

As  a  result  of  its  spectacular  growth  performance  over  the  past  decade,  Ireland's
unemployment rate has declined rapidly, to 3.8% in 2001  from a peak of  15.6% in

6 OJ C 51, 26.2.2002, p. 8.
7 OJ C 77, 9.3.2001.
8 OJ C 51, 26.2.2002.

9

                                                
1993. However, the international and domestic slowdown in 2001 led to a moderate
rise from about mid-2001, to  4.3% in February 2002.  Ireland has made  remarkable
progress in achieving nominal convergence.  From 77% of the EU average in 1991,
nominal GDP per capita is estimated to have risen to 121% in 2001. In GNP terms,
which may be a better gauge of Irish performance given a significant degree of profit
expatriation, the increase is from 71% to an estimated 102%.

1.1.4.

Portugal

In  2001,  budgetary  developments  took  place  under  the  strategy  of  the  Stability
Programme  Update  (2001-04),  which  was  assessed  by  the  Council  on  12 March
20019. The programme set a general government deficit target of 1.1% of GDP. The
deficit  outcome  estimated  by  the  Portuguese  authorities  in  the  February  2002
notification  is  2¼%  of  GDP.  Slower  economic  growth  than  expected  was  an
important  factor  behind  this  considerably  worse  than  targeted  budget  outcome  in
2001. However, other factors are also behind this, notably an underestimation of the
revenue losses implied by the reform of direct taxes implemented in 2001, and lower
than  projected  efficiency  gains  in  tax  collection  and  administration.  Moreover,
despite a restrictive package adopted in June, current primary expenditure exceeded
the target.

The  third  Stability  Programme  Update,  covering  2001-05,  was  adopted  by  the
Portuguese  government  on  13 December  2001  and  assessed  by  the  Council  on
12 February 2002. Despite budgetary slippage in 2001, it maintains the objective of
balancing  general  government  accounts  by  2004,  implying  a  considerably  more
demanding path of fiscal consolidation in 2002-04. The Council considered that once
economic  recovery  is  established,  the  Portuguese  government  should  strengthen  its
efforts to move rapidly towards its medium-term objective of a zero deficit in 2004.
This  calls  for,  as  a  minimum,  strict  respect  of  the  rule  of  capping  at  4%  nominal
current  primary  expenditure  growth  in  central  government  for  the  years  2003  and
2004, and may also require additional discretionary measures.

On  25  July  2002  the  Portuguese  authorities  announced  that  the  public  deficit  for
2001 had reached 4.1% of GDP, well above the reference level of 3%. Following that
announcement, the Commission decided to initiate the excessive deficit procedure, as
laid down in the Council resolution on the Stability and Growth Pact.

1.2.

Conditionality

Most of the Member States receiving assistance from the Cohesion Fund continued
to respect the macro-economic criteria; only in Portugal was this not the case.

Following  the  announcement  by  the  Portuguese  authorities  on  25 July  2002  of  a
public deficit of 4.1% of GDP (see 1.1.4 above), the Commission decided to prepare
a report to the Economic and Financial Committee for its opinion. The Commission
may subsequently make a recommendation to the Council, which will decide on the
action to be taken.

This  problem  has  not  arisen  with  the  other  countries  eligible  under  the  Cohesion
Fund.

9 OJ C 109, 10.4.2001, p.4.

10

                                                
2.

IMPLEMENTING PRINCIPLES AND ASSISTANCE GRANTED

2.1.

Coordination with other Community policies

2.1.1.

Public procurement

The Commission pays particular attention to ensuring that Community legislation on
public  procurement  is  rigorously  applied  to  projects  part-financed  by  the  Cohesion
Fund.

When  an  application  is  submitted,  the  form  used  to  request  assistance  requires
applicants  to  send  copies  of  published  calls  for  tenders  and  other  information
confirming correct observance of the procedure for  awarding  contracts.  If  contracts
have  not  yet  been  awarded  when  an  application  is  made,  the  beneficiary  Member
State is required to provide information on compliance with the rules on the award of
public contracts when interim payments are made or the final report presented.

In its inspection missions, the Commission undertakes routine checks on compliance
with the relevant Community directives on public procurement and the correctness of
the tender selection procedures.

2.1.2. Competition

Council  Regulation  (EC)  No  1164/94  establishing  a  Cohesion  Fund  states  that
assistance from the Fund must, in particular, be in keeping with competition policy.
In  this  regard,  consideration  of  applications  for  finance  concerns  mainly  an
assessment of the compatibility with the Treaty of the measures part-financed by the
Fund  in  order  to  ensure  that  assistance  complies  fully  with  the  Community
competition rules, and in particular those on State aids.

As  it  has  in  the  past,  the  Commission  finds  that  these  aids  do  not  generally  raise
problems of incompatibility with competition law, in that they are directed towards
infrastructure  projects  for  transport  or  the  protection  of  the  environment  which,
unless  they  infringe  the  rules  on  public  procurement,  do  not  provide  specific  firms
with  any  special  advantage.  Accordingly,  from  the  competition  point  of  view,
Community  monitoring  continues  to  concern  mainly  the  aspects  regarding  free
access  to  infrastructure  by  all  operators  meeting  the  technical  and  legal  conditions
required.

2.1.3. Environment

The  annual  report  for  2000  described  the  principles  of  environmental  policy  as
defined in Article 174 of the Treaty and the directives most closely concerned with
the implementation of projects part-financed by the Cohesion Fund.

It  also  stressed  both  the  importance  of  the  contribution  of  the  Cohesion  Fund  to
achieving  the  objectives  of  the  Treaty,  and  in  particular  to  resolving  specific
problems  such  as  reducing  water  pollution  and  implementing  appropriate  waste
management, and the need to incorporate the environmental dimension into transport
infrastructure so as to reduce and monitor its undesirable secondary effects.

11

In  2001,  the  Commission  continued  its  efforts  to  implement  environmental
legislation both through the direct financing of infrastructure to treat waste water and
waste  and  by  ensuring  the  correct  application  of  certain  directives  as  a  prior
condition for granting finance. This concerns both the subject-based directives with a
large  spatial  component  (e.g.  those  on  nature  conservation  and  the  management  of
waste  and  waste  water)  and  the  directive  on  environmental  impact  assessments
(EIA).

Drawing  up  the  lists  of  Community  sites  for  the  Natura  2000  network  remains  a
priority for the Commission. The first Community list of such sites was approved on
28 December 2001 for the region of Macaronesia (Canary Islands, Madeira and the
Azores).

The initiative taken by the Commission to link the granting of Community finance to
submission of the  lists  of  Natura 2000  sites,  which  should  have  been  sent  in  1995,
has considerably speeded up the process.

Where  appropriate,  the  Commission  has  assessed  whether  applications  for  part-
finance  under  the  Cohesion  Fund  are  compatible  with  Article  6  of  Directive
92/43/EC (the “Habitats” Directive).

The  Commission  has  assessed  applications  for  finance  for  the  treatment  of  urban
waste in the light of the policy and legislation applicable in this sector.

Projects  for  the  treatment  of  urban  waste  water10  can  be  financed  only  at  the
appropriate level depending on the designation of the zones (primary in the case of
less sensitive zones, secondary in the case of normal zones and tertiary in the case of
sensitive zones) as provided for by Directive 91/271/EEC.

When assessing applications for part-finance, the Commission has also had regard to
the inclusion of projects in integrated operational systems and their incorporation in
plans for the water basin.

The  projects  financed  by  the  Cohesion  Fund  have  permitted  application  of  the
polluter pays principle by using different levels of aid11. Application of the polluter-
pays  principle  will  soon  be  strengthened  by  application  of  the  framework  directive
on water12.

2.1.4. Transport

While  TENs  transport  projects  of  common  interest  are  financed  from  the  trans-
European  transport  networks  budget  line,  the  Cohesion  Fund  provides  funds
specifically for TENs transport infrastructure.

Coordination between the TENs budget and the Cohesion Fund is important because
these Community financial instruments take into account the need for links between
the  central  regions  of  the  Community  and  those  structurally  handicapped  by  their
insular, landlocked or peripheral status.

10 Directive 91/271/EEC.
11 Working document No 1, application by DG REGIO of the polluter-pays principle.
12 Directive 2000/60/EC.

12

                                                
The  TENs  Regulation  does  not  allow  the  same  phase  of  a  single  project  to  be
financed both by the TENs budget and from other Community sources but, in some
cases,  feasibility  studies  financed  through  the  TENs  budget  may  be  followed  by
support from the Cohesion Fund and the EIB for the construction works of the actual
investment.

The  TENs  Financial  Regulation  ((EC)  No  2236/95)  was  amended  by  Regulation
(EC)  No  1655/99  to  provide  for  medium-term  planning  via  indicative  multi-annual
programmes  for  Community  funding  (MIP)  and  for  the  encouragement  of  public-
private partnerships, together with the use of a small amount of the budget line (1%-
2%) to support projects involving risk capital.

The MIP proposal 2001-06 that was adopted by the Commission in September 2001
provides  a  total  of  some  €2.8  billion  for  11  priority  projects  (Essen  projects),  the
Global Navigation Satellite Systems project (‘Galileo’) and four groups of projects of
“common interest”.

In 2001 a total of €563 million in commitment  appropriations was allocated to TENs
transport projects under the MIP, the Galileo project and projects of common interest
outside the MIP.

As regards the distribution of support in 2001 by mode, by far the greatest part of the
Union spending on transport under the TENs-T budget went to rail projects (almost
55%), followed by Galileo (20.6%) and roads (12%).

On 12 September the Commission adopted a White Paper on transport which makes
improving transport conditions one of its main points for reflection, based on:

– 

– 

– 

reducing congestion;

installing new infrastructure, particularly railways;

charging  as  a  way  of  restoring  balance  between  modes  and  financing
infrastructure.

To achieve these ambitious objectives, the Commission will use the finance available
under  the  TENs-T  budget,  the  Cohesion  Fund  and  the  European  Regional
Development  Fund  (ERDF)  and  the  Instrument  for  Structural  Policies  for
Preaccession (ISPA) in the future member countries.

13

2.2.

COORDINATION  WITH  THE  STRUCTURAL  FUNDS:  THE  STRATEGIC  REFERENCE
FRAMEWORKS

2.2.1. Environment

Greece

The strategic reference framework (SRF) for the environment sector is described as a
separate  Chapter  of  the  operational  programme  for  the  environment  in  the  Greek
CSF for 2000-06. This Operational Programme was approved by the Commission on
24 July  2001  (Decision  C(2001)  1357).  The  SRF  is  a  tool  in  an  overall  assistance
package  whose  aim  is  to  enable  Greece  to  comply  more  fully  with  its  obligations
under EU environmental legislation and to contribute to sustainable development.

The  financial  contribution  of  the  Cohesion  Fund  to  this  environmental  plan  cannot
meet  all  Greece’s  major  infrastructure  needs  in  the  field  of  drinking  water,  urban
waste-water  and  solid  waste  management.  However,  it  is  expected  to  facilitate
substantial progress in the right direction.

As  regards  solid  waste  management,  the  overall  plan  of  action  is  based  on  the
National  Solid  Waste  Management  Plan  prepared  by  the  Ministry  of  the
Environment, Planning and Public Works and submitted to the European Union.

Using management plans agreed at national, regional and local level, the general goal
is the correct management of all categories of solid waste and where appropriate the
restoration of the environment where it has been degraded and polluted by waste.

Similar  plans  have  also  been  made  for  the  urban  waste-water  management  sector
throughout  the  country  in  accordance  with  Directive  91/271/EEC.  The  Cohesion
Fund and funds from the ERDF will help the Greek authorities to comply with this
Directive.

Spain

The priority sectors for assistance to be financed through the Cohesion Fund for the
2000-06 programming period are:

– 

– 

– 

management of municipal, industrial and hazardous waste;

sewerage and waste-water treatment

water supply.

This assistance should be governed by a coordinated strategic approach, designed for
each of the  sectors selected  and organised  within programmes  identifying  the  main
priorities in the different sectors; it should also be coordinated with assistance in the
same sectors financed by the Structural  Funds. The contents of each of the sectoral
strategic  frameworks  were  already  described  in  the  Annual  Report  2000  for  the
Cohesion Fund.

Once the managing authority adopted the programme complements in 2001 and the
programming period for the Structural Funds for 2000-06 for the Spanish Objective 1

14

and Objective 2 areas was finalised, the financing of the different forms of assistance
by  the  Structural  Funds  was  established.  For  the  measures  concerning  sectors
selected  as  priorities  for  financing  by  the  Cohesion  Fund,  this  also  required
coordination among the authorities responsible for managing the relevant Funds and
projects.

Ireland

The  Irish  authorities  presented  their  strategic  reference  framework  for  the
environment  sector  in  2000  and  it  continues  to  form  the  basis  for  considering
assistance  to  individual  projects  in  the  waste  water  and  solid  waste  sub-sectors.
Coherence between Structural Fund programmes and the Cohesion Fund priorities is
relatively easily to ensure because of the concentration of Cohesion Fund assistance
on  a  small  number  of  major  construction  projects.  Acceptable  projects  in  the  solid
waste area, a sub-sector requiring significant investment, have still to be presented.

The reference framework was described in more detail in the annual report for 2000.

Portugal

The  environment  strategic  framework  for  Portugal  for  2000-06  includes  the
following priorities:

– 

– 

further development and completion of the basic environment infrastructure;

providing  the  conditions  needed  for  sustainable  development,  environmental
protection and the management of natural resources.

Cohesion Fund assistance will be provided for the larger water supply, urban waste-
water drainage and treatment, and urban solid waste treatment infrastructure projects.

The main objectives for water supply and waste-water drainage and treatment are to
increase significantly the population served and, in the case of water supply, improve
the quality of drinking water in line with Community directives and increase supply
reliability.

Supply of drinking water
Waste-water drainage and treatment
Solid waste treatment

% population served by the systems in 2006
(mainland Portugal)
95
90
98

For  water  supply  and  urban  waste-water  drainage  and  treatment  an  integrated
systems approach, with an intermunicipal system covering the complete water cycle
and managed by a single entity, has generally been adopted.

These intermunicipal systems usually cover major parts of one or more river basins.
This is a departure from the previous situation in which most municipalities managed
their own individual systems.

The  entity  managing these systems is  either  a  public  sector  company,  in  which  the
municipalities now hold an important  stake, or  an intermunicipal  association  which
has  a  specific  status  under  law.  In  either  case,  the  transfer  and  sharing  of

15

management  responsibilities  for 
negotiations and the drafting of service agreements between the parties.

integrated  systems  required  complex

these 

Cohesion Fund assistance is being supplemented with ERDF funding to help build or
renovate  the  smaller  local  components  of  these  systems.  This  two-tier  assistance
mechanism required and will continue to require a close coordination of the overall
project  development  schedule  and  prioritisation  in  order  to  ensure  the  proper
deployment  of  the  overall  systems,  i.e.  the  Cohesion  Fund  ‘backbones’  and  the
smaller  projects  at  the  level  of  the  regional  programmes  (Norte,  Centro,  Alentejo,
Lisboa e Vale do Tejo, Algarve, Madeira and the Azores).

During 2001 the Environment Thematic Group was created under the authority of the
Community  support framework  Monitoring  Committee.  One  of  its  main  tasks  is  to
monitor  and  report  on  the  implementation  of  the  strategic  framework  for  the
environment in Portugal.

2.2.2. Transport

Greece

a)

b)

c)

d)

The  strategic  reference  framework  (SRF)  for  the  transport  sector  in  Greece  was
approved under the operational programmes “Roads, ports and urban development”
and “Railways, airports and urban transport” in March and April 2001 respectively.
The  SRF  provides  for  assistance  together  with  part-financing  by  the  ERDF  aimed
mainly at:

completing the TENs  priority  road  routes  in  Greece  (the  Pathe,  Egnatia  and  Ionian
highways and the Corinth—Tripolis—Kalamata/Sparta motorway;

completing the Pathe  rail route and  its  electrification  from  Athens  to  the  Bulgarian
border;

completing and modernising infrastructure in two ports (Igoumenitsa and Heraklion);

completing the modernisation of the air traffic control system in Greece.

The priorities for the transport sector for the current period under the agreed strategy
are motorways, railways and ports.

Their  main  aim  is  to  implement  the  trans-European  networks  by  constructing  the
Pathe and Egnatia priority key routes.

As regards railways,  further  efforts  are needed  to  properly  and fully  implement  the
Pathe rail route and electrify the Athens—Thessaloniki—Promachon line.

Spain

As  part  of  discussions  between  the  Commission  and  Spain,  the  Spanish  authorities
submitted  a  document  on  investment  in  the  trans-European  transport  networks
(TENs),  setting  out  the  general  strategy  in  this  area  in  the  2000-06  programming
period. As a complement to this document, the Spanish authorities defined a strategy
for using the Structural Funds and the Cohesion Fund to improve the coherence and
complementarity of these two instruments.

16

This  strategy  of  using  the  Funds  to  finance  investments  in  the  trans-European
transport networks is relatively clear and simple and may be summarised as follows:

– 

– 

– 

– 

– 

The  high-speed  rail  lines  in  the  strategic  framework  (Madrid—Barcelona—
French  border,  Madrid—Valladolid,  Madrid—Valencia  and  Córdoba—
Málaga) are the main routes which will  help improve  intermodal balance  and
secure more rational and environmentally-friendly distribution. These projects
are  the  major  priority  for  the  period  2000-06  and  this,  together  with  the  fact
that, apart from the Córdoba—Málaga line, they are interregional,  means that
the  Cohesion  Fund  is  the  main  source  of  finance  for  three  of  the  four.  The
exception, the Córdoba—Málaga line, will be part-financed by the ERDF.

The  part-financing  of  these  major  rail  lines  solely  by  the  Community  Funds
should  not  obscure  the  search  for  a  better  multiplier  effect  from  these  Funds
through use of public-private partnership formulas. However, in the case of rail
this  can  become  a  possibility  only  through  the  introduction  of  a  competitive
charging  system  which  will  attract  traffic  from  other  competing  forms  of
transport  (road,  air),  while  also  achieving  the  aim  of  rebalancing  the  various
modes of transport.

Investment in the high-speed lines will achieve its goals only if it is supported
by  the  development  of  conventional  lines  so  that  the  benefits  are  felt
throughout the country. Since the Cohesion Fund cannot contribute to that aim,
use  of  ERDF  resources  appears  the  main  way  of  extending  benefits  to  the
Objective 1 regions.

High-capacity  road  routes  may  be  divided  into  two  categories:  those  which
complement  the  existing  network  or  link  the  main  transport  routes  and  those
whose main role is to reduce existing congestion in certain developed areas. In
the first case, use of the Community Funds (ERDF) is essential. In the second,
private sector participation may be attracted through toll systems.

important  forms  of 

Ports  and  airports  are  also  extremely 
transport
infrastructure. However, because they occupy limited amounts of space, rather
than  constituting  networks  as  terrestrial  infrastructure  does,  they  can  be
financed  relatively  easily  from  the  charges  levied  on  sea  or  air  transport.  In
Spain, this is the reason why specific public bodies are set up for that purpose.
However, the investment required to reduce the deficit on infrastructure of this
type does not exclude a certain contribution from the Community Funds.

Ireland

The  Irish authorities presented their  strategic  reference  framework  for  the  transport
sector in 2000. This reference framework continues to form the basis for considering
assistance to individual projects in the road and rail sub-sectors. Coherence between
the  relevant  Structural  Funds  programmes  and  the  Cohesion  Fund  priorities  is
relatively easily ensured in view of the concentration of Cohesion Fund assistance on
a small number of major construction projects. The major priority projects have been
selected in both sub-sectors.

The reference framework was described in more detail in the annual report for 2000.

17

Portugal

The  strategic  guidelines  for  the  Cohesion  Fund  in  the  field  of  transport  did  not
undergo any major changes in 2001.

However, Cohesion Fund assistance was highly concentrated on the rail sub-sector:
the effective start of modernisation work on two vital sections of the Norte line and
approval  of  two  applications  concerning  the  last  section  of  the  direct  rail  link
between Lisbon and the Alentejo and the Algarve.

This means that all the projects concerning the modernisation of the north/south link
are now under way (apart from a small section around Lisbon). This, together with
other investments to modernise the Algarve line, will reduce the journey time from
Lisbon to Faro to 2 hours 45 minutes in 2004.

It  has  not  proved  possible  in  the  past  to  make  the  rail  sector  substantially  more
competitive than road transport for passengers and goods. Hence the rail sub-sector
was given greater importance in 2001 in order to help improve the balance between
transport modes throughout the system in Portugal.

Assistance  from  the  Fund  to  investment  on  the  Lisbon—Faro  route  has  already
improved access to the port of Sines in response to growing goods traffic to and from
that port. This should give that line a fresh boost and increase its ability to compete
with the roads in transport to the Algarve.

The bulk of this investment concerns the renovation and complete electrification of
the  line  in  order  to  increase  its  speed,  reliability  and  safety.  It  will  also  permit  the
introduction of new passenger services employing tilting trains.

A  section  of  the  Lisbon  underground  network  was  also  adopted  in  2001.  This  will
help  improve  connections  between  the  network  as  a  whole  and  the  international
Oriente station and will have undoubted benefits for the environment.

2.3.

IMPLEMENTATION OF THE BUDGET: COMMITMENTS AND PAYMENTS

2.3.1. Budget available

In  accordance  with  Article 4  of  Regulation  (EC)  No 1164/94,  as  amended  by
Regulation  (EC)  No 1264/1999  (the  Cohesion  Fund  Regulation),  Cohesion  Fund
resources  available  for  commitment  for  2001  amounted  to  €2 615  million  at  1999
prices. The final amount entered in the budget after indexation was €2 715 million.

In accordance with the brackets for the allocation of resources by Member State laid
down in Annex I to the Cohesion Fund Regulation, the indicative allocation of these
appropriations by country is as follows:

Country

Spain
Greece
Ireland
Portugal
Technical assistance

Lower limit

€ mill

1655
434
54
434
2

Upper limit
€ mill

%

1723
488
163
488
2

63.5%
18.0%
6.0%
18.0%

%
61.0%
16.0%
2.0%
16.0%

18

The  budgetary  authority  also  decided  to  enter 
appropriations for the Cohesion Fund.

€2 860  million  in  payment

Under Article 7 of the  Financial Regulation, the  Commission decided to permit  the
carryover of  €413.5  million in  commitment appr opriations,  the balance available at
the end of 2000, and the carryover of €300  million in  payment appropriations. The
decommitments totalling €10.9 milli on in 2001 were cancelled.

2.3.2. Budget implementation

The  tables  showing  the  budgetary  implementation  of  Cohesion  Fund  resources  in
2001 and carryovers to 2002 are as follows:

Commitment appropriations

Initial

Movements

Final resources

Implementation

Cancelled

Summary table of implementation of the CF for 2001 appropriations (en €)

Budget 2001
Appropriations carried over from 2000
(not implemented)
Appropriations made available again
(decommitted in 2000)
Repayments of advances
(reimbursements)

2 715 000 000

413 546 759

0

0

Totals

3 128 546 759

0

0

0

0

0

2 715 000 000

2 711 685 504

413 546 759

413 546 759

0

0

0

0

3 128 546 759

3 125 232 263

Payment appropriations

Initial

Movements

Final resources

Implementation

Cancelled

0

0

0

0

0

Carryovers to
2002

3 314 496

0

0

0

3 314 496

Carryovers to
2002

Budget 2001
Appropriations carried over from 2000
(not implemented)
Repayments of advances
(reimbursements)

Totals

2 860 000 000

300 000 000

0

3 160 000 000

0

0

0

0

2 860 000 000

1 983 398 232

876 601 768

300 000 000

0

0

0

300 000 000

0

3 160 000 000

1 983 398 232

1 176 601 768

0

0

0

0

Under Article  7  of the  Financial  Regulation, appropriations not  implemented at  the
end  of  the  year  are  cancelled,  unless  the  Commission  adopts  a  specific  decision  to
carry  them  over.  All  the  commitment  appropriations  carried  over  were  used  by
31 March 2001. No payment appropriations were carried over to 2002.

The  tables  of  implementation  by  country  and  by  type  of  project,  (environment,
transport or mixed) are as follows:

Budget implementation of appropriations for 2001 including appropriations carried over to 2002

Commitment appropriations for 2001 (including appropriations carried over to 2002)

Country

Environment

Transport

Amount

% Envir

Amount

% Transp

Mixed

Amount

Total

Amount

%

Spain

Greece

Ireland

Portugal

Technical assistance

865 912 007

253 138 698

39 734 066

237 919 087

0

51.7%

54.2%

34.6%

52.2%

0.0%

810 332 029

214 261 684

75 265 934

217 780 043

0

Total

1 396 703 858

51.5% 1 317 639 690

48.3%

45.8%

65.4%

47.8%

0.0%

48.5%

0

0

0

0

1 676 244 036

467 400 382

115 000 000

455 699 130

61.8%

17.2%

4.3%

16.8%

656 452

656 452

656 452

2 715 000 000

100.0%

Payment appropriations for 2001

Country

Environment

Transport

Amount

% Envir

Amount

% Transp

Mixed

Amount

Total

Amount

%

Spain

Greece

Ireland

Portugal

Technical assistance

647 308 574

161 587 555

203 731 649

201 503 013

0

66.1%

63.4%

65.5%

46.5%

0.0%

332 222 094

93 393 201

107 313 707

232 134 366

0

Total

1 214 130 792

61.3%

765 063 368

33.9%

36.6%

34.5%

53.5%

0.0%

38.7%

0

0

0

0

979 530 668

254 980 756

311 045 356

433 637 379

49.5%

12.9%

15.7%

21.9%

4 204 073

4 204 073

4 204 073

1 983 398 233

100.0%

19

To  reflect implementation of  the  commitment  appropriations  allocated  in  2001,  the
appropriations carried over to 2002 are included in the above table but those carried
over from 2000 to 2001 are not included.

Implementation  in  2001  enabled  the  allocations  of  appropriations  among  the
Cohesion  Fund  countries  to  be  rebalanced  where  implementation  in  2000  had
deviated slightly from the indicative breakdowns adopted by the Commission. Those
countries which had exceeded their allocation in 2000, such as Ireland, received  an
under-allocation in 2001 and vice-versa, e.g. Greece).

The  following  table  shows  total  implementation  in  2000-01  for  each  country
(excluding technical assistance):

Total implementation of commitment appropriations 2000-01 (including carryovers to n+1)

Country

Av. percentage

2000

2001

Total (in € million)

Spain
Greece
Ireland
Portugal
Total

61.02%
16.81%
5.30%
16.87%
100.0%

1601.3
435.6
169.6
450.8
2657.3

1676.9
467.4
115.0
455.7
2715.0

3278,.2
903.0
284.6
906.5
5372.3

2.3.3.

Implementation of the budget for the previous period (1993-99)

The  1993-99  budget  was  fully  committed  as  planned  by  31 December  1999.  The
outstanding amount to be settled for the period 1993-99 was dealt with as follows in
2001.

Settlement in 2001 of commitments for the period 1993-99

Country

Initial amount to be
settled

Decommitments

Payments

Final amount to be
settled

Spain

Greece

Ireland

Portugal

Technical assistance

Total

2 060 532 662

749 668 182

251 821 464

320 356 542

1 393 518

7 125 100

769 818

0

2 414 493

561 659

622 003 948

168 696 947

99 415 024

162 610 592

521 698

1 431 403 614

580 201 417

152 406 440

155 331 457

310 161

3 383 772 368

10 871 070

1 053 248 209

2 319 653 089

The size of the amount to be settled for 1993-99 at the end of 2000 was less than the
Cohesion Fund budget for one year.

A  large  part  of  this  outstanding  amount  relates  to  projects  continuing  into  the  new
period 2000-06. This means that the amount to be settled will be dealt with through
interim payments rather than closures.

20

3.

THE PROJECTS AND MEASURES ADOPTED

3.1.

Assistance from the Fund by Member State

3.1.1. Greece

During  2001  the  Commission  approved  Cohesion  Fund  assistance  totalling  €797.8
million, of which €398.2 million was committed in that year’s budget.

Including commitments made as a result of decisions taken in previous years (€69.2
million) brought the total amount committed during 2001 to €467.4 million.

The following table shows the Cohesion  Fund  assistance approved in 2001  and the
total amount committed in that year.

Environment
Transport
Total CF
% Environment
% Transport

Total eligible cost
374 627 934
919 635 445
1 294 263 379
29%
71%

Total CF assistance
298 827 349
499 036 159
797 863 508
37%
63%

Commitments 2001*
253 138 698
214 261 684
467 400 382
54%
46%

*

including commitments based on decisions taken in 2001 and in previous years

3.1.1.1 Environment

In  2001  the  Cohesion  Fund  concentrated  its  financial  support  on  the  following
priority sectors: waste water and waste-water treatment, management of solid waste,
water supply and flood protection. The aim was to complete the cycle of assistance,
filling  the  gaps  in  the  existing  systems  so  as  to  implement  the  agreed  strategic
reference framework.

During  2001,  the  Commission  approved  Cohesion  Fund  assistance  totalling  €298.8
million,  of  which  €242.8  million  was  committed  from  that  year’s  budget.  The
assistance approved and appropriations committed break down as follows:

– 

In  2001  21  new  projects  were  approved  for  a  total  of  €280.2  million  in
Cohesion  Fund  assistance,  of  which  €224.2  million  was  committed  from  that
year’s budget. The following table shows the projects adopted in 2001:

21

Project No

Name

Total cost

Cohesion
Fund
assistance

Commitment
2001

CCI2001GR16CP
E 014

CCI2001GR16CP
E013

CCI2001GR16CP
E 030
CCI2001GR16CP
E 016
CCI2001GR16CP
E 002
CCI2001GR16CP
E 003

CCI2001GR16CP
E 004
CCI2001GR16CP
E 005
CCI2001GR16CP
E 006
CCI2001GR16CP
E 001

CCI2001GR16CP
E 007
CCI2000GR16CP
E 007
CCI2000GR16CP
E 002
CCI2000GR16CP
E 003
CCI 2001GR1-
CPE-024
CCI2000GR16CP
E023
CCI2001GR16CP
E022
2001-GR-16-C-
PE-026

2001-GR-16-C-
PE-009
2001-GR-16-C-
PE-025
2001-GR-16-C-
PE-008

Construction and improvement of the water supply and
drainage networks and extension of the waste-water
treatment station in the municipality of Larissa
Construction and improvement of the water supply and
drainage networks and extension of the waste-water
treatment station in the municipality of Karditsa
Improvements on the river Xirias

Construction and improvement of the water supply, rain
water and waste-water networks in Nafplio
Integrated waste-management system in the region of
Western Macedonia (Phase A)
Internal and external water supply networks in and
around the municipality of Kozani, remote control –
remote management of leaks
Construction of an outfall (section II) in Western Attica

Rain and waste-water drainage pipes in the remaining
area of the municipality of Preveza
Water supply and drainage in the municipality of
Igoumenitsa
Extension – improvement and modernisation of water
supply systems - waste-water drainage in the municipality
of Ioannina
Waste-water network and treatment station in the town of
Grevena
Waste- and rain-water drainage in the town of Patras

Supplies to Patras from the rivers Piros and Parapiros:
studies and compulsory purchase
Supplies to the greater Corfu and Paxi Region: first
phase studies and compulsory purchase
Waste-water network and treatment station in Chalastra

25 000 000

18 750 000

15 000 000

20 000 000

15 000 000

12 000 000

40 194 000

29 443 500

23 554 800

11 372 000

8 529 000

6 823 200

12 974 868

9 731 151

7 784 921

27 940 000

20 955 000

16 764 000

21 300 000

15 975 000

12 780 000

10 271 460

7 703 595

6 162 876

10 564 930

7 923 698

6 338 958

10 270 924

7 703 193

6 162 554

15 115 518

11 336 639

9 069 311

14 271 500

10 703 625

8 562 900

14 600 000

10 950 000

8 760 000

10 271 460

7 703 595

6 162 876

19 515 000

14 636 250

11 709 000

Waste- and rain-water drainage in Kilkis

15 800 000

11 850 000

9 480 000

Extension and improvement of water supply and drainage
networks in Serres
Construction  of  waste-  and  rain-water  networks  in
Heraklion  and  Alikarnassos  and  improvement  of  the
treatment station in Heraklion-Crete
Construction of drainage networks for four urban areas of
Chania - Crete
Water  supply  and  evacuation  of  waste-  and  rain-water  -
Corfu
Networks for water supply and the drainage of waste- and
rain-water in Ermoupolis on Syros

11 000 000

8 250 000

6 600 000

21.302.274

15.976.706

12.781.365

19.000.000

14.250.000

11.400.000

20.000.000

15.000.000

12.000.000

23.864.000

17.898.000

14.318.400

Total

374 627 934 280 268 952

224 215 161

– 

The  Commission  approved  seven  requests  to  amend  decisions  taken  in
previous years in 2001. Cohesion Fund assistance amounts to €18.5 million, all
of which was committed in that year’s budget.

22

€
€
The following table shows the amended decisions adopted in 2001:

Project No

Name

Total cost Cohesion Fund

CCI 1994GR16CPE
003 94/09/61/029-3
CCI 1995GR16CPE
001 95/09/61/011-
10
CCI 1994GR16CPE
001 94/09/61/027-3,
078

CCI 1994GR16CPE
087 94/09/61/024
CCI 1994GR16CPE
076 94/09/61/034
CCI
1994GR16CPE055
CCI
1994GR16CPE074

Waste-water drainage and treatment plants in
Pyrgos
Evinos dam: Electro-mechanical plant

Waste-water drainage and extension of water
treatment plants in Markopoulo. Waste-water
drainage in Kalyvia. Waste-water drainage in
Kouvaras
Waste-water drainage and water treatment
plants in Parga
Renovation of a waste tip in Ano Liossia

Drainage network and waste-water treatment
plant in Soufli
Drainage network and waste-water treatment
plant in Didymoteiho

assistance
(€)

(€)

1 230 618

984 494

 984 494

Commitments
2001

 990 500

742 875

 742 875

10 867 161

8 145 814

8 145 814

2 680 000

2 144 000

2 144 000

6 670 000

5 336 000

5 336 000

 440 518

 352 414

 352 414

1 066 000

 852 800

 852 800

Total

23 944 797

18 558 397

18 558 397

– 

– 

In  addition,  based on decisions taken in the  previous  year,  €10.4  million  was
committed under that year’s budget (water supply to Thessaloniki-Aliakmon).

Finally,  54  requests  to  amend  decisions  with  no  financial  impact  were
submitted  by  Greece  and  approved  by  the  Commission.  The  amendments
concern minor changes in the physical works, reallocations in the financial plan
and extensions of contracts.

3.1.1.2 Transport

Under  the  aid  decisions  approved  in  2001  by  the  Commission,  the  Cohesion  Fund
assistance  for  the  transport  sector  amounts  to  €499  million,  of  which  €214  million
was committed from that year’s budget.

The approved grants and total committed appropriations break down as follows:

– 

Six  new  projects  receiving  €400.5  million 
in  Cohesion  Fund  assistance  were
approved in 2001; €120.5 million was committed from that year’s budget. The
following table shows the new projects adopted in 2001.

23

TITLE
2000GR16CPT004
Construction of a new railway
in Limena Ikoniou
2001GR16CPT003
Egnatia  section  Nymfopetra-
Rentina-Asprovalta
2001GR16CPT001
Corinth-Tripolis-Megalopolis-
Kalamata road
2001GR16CPT004
Via Egnatia, Metsovo Panagia
interchange
2000GR16CPT005
Arta-Filippiada bypass
2000GR16CPT006
Agrinio bypass

Commitments

31 823 091

Rail
31 823 091

Motorway

Total cost CF assistance
143 000 000

71 495 710

17 905 500

17 905 500 160 580 675

88 428 566

3 520 000

3 520 000

8 000 000

4 400 000

32 070 941

32 070 941 255 710 613

140 814 720

21 336 120

13 829 985

21 336 120

48 500 000

26 670 150

13 829 985 125 000 000

68 737 500

Total

120 485 637

31 823 091

88 662 546 740 791 288

400 546 646

–  The  Commission  approved  three  requests  to  amend  decisions  taken  in  previous  years.
Cohesion Fund assistance amounts to €98.5 million, of which €35 million was committed
from  that  year’s  budget.  The  following  table  shows  the  amended  decisions  adopted  in
2001.

TITLE

1994GR16CPT941
Pathe - Raches to Agroinvest inst. section (km
240 to km 244)
1994GR16CPT942 "
Pathe, Skotina-Litohoro-Dion-Katerini section
940833036 940965016-k
Cohesion - Via Egnatia Dodoni Tunnel section
Total

Commitments Motorway

3 651 817

3 651 817

Total cost CF assistance
8 591 372

15 601 387

6 586 212

6 586 212

28 537 050

15 714 783

24 709 462

24 709 462

134 705 720

74 183 358

34 947 491

34 947 491

178 844 157

98 489 513

– 

– 

In addition, based on decisions taken in the previous years, an amount of €58.8
million was committed from the 2001 budget.

Finally, the Commission approved eleven requests for amended decisions with
no  financial  impact  submitted  by  Greece.  The  amended  decisions  relate  to
minor  changes  in  the  physical  works,  reallocations  in  the  financial  plan  and
extensions to contracts.

3.1.2.

Spain (including the outermost regions)

The  Commission  approved  Cohesion  Fund  assistance  totalling  €2  213  million,  of
which €1 677 million was committed from the 2001 budget. Of these commitments,
51.7%  went  to  the  environment  and  48.3%  to  transport  infrastructure.  They  reflect
new  decisions  adopted  that  year  and  amendments  to  and  annual  instalments  of
decisions adopted earlier. The following table shows the amount for each sector.

24

Total eligible cost *
(€ million)
1 400
1 621
3 020

Total assistance*
(€ million)
1 092
1 121
2 213

Commitments 2001*
(€ million)
 867
 810
1 677

50.5 %
49.5 %

49.3 %
50.7 %

51.7 %
48.3 %

Environment
Transport
Total CF

% Environment
% Transport

*

rounded figures

3.1.2.1 Environment

The  Cohesion  Fund  continued  to  concentrate  its  financial  support  on  the  three
priority  sectors,  water  supply,  drainage  and  waste-water  treatment,  and  the
management  of  solid  urban,  industrial  and  hazardous  waste.  Exceptionally,  during
the  year  three  urban  environment  projects  were  approved  to  complete  the  second
phase of projects adopted earlier. The aim was to help the municipalities and regions
to improve drinking water supplies and waste-water networks and the collection and
treatment of waste.

The  contribution  of  the  Cohesion  Fund  by  sectors  shows  that  the  drainage  and
treatment  of  waste  water  continued  to  receive  the  bulk  of  resources  for  the
environment, followed this year by solid waste.

Sector

Total eligible cost
(€ million)

Total assistance
(€ million)

% of
assistance

Commitments
2001 (€ million)

Water supply
Drainage and sewage treatment
Management of solid waste
Urban environment
Technical assistance

Total

267.13
575.99
550.63
41.23
0.95
1 456.24

218.19
464.94
403.75
32.98
0.81
1 137.94

19.99
42.59
34.33
3.02
0.07
100.00

162.66
375.50
301.37
26.38
0.65
866.56

Water supply

During 2001, Community  assistance for  measures to improve  water supply  totalled
€218.2 million, 20% of the amount allocated  to the environment sector.

The  projects  financed  in  this  sector  are  intended  primarily  to  ensure  adequate
supplies  of  drinking  water  of  sufficient  quality  to  consumers  in  conformity  with
Community directives. They will improve the quality of drinking water in a number
of  towns,  such  as  the  Granada  metropolitan  area,  the  provinces  of  Murcia  and
Alicante  (through  construction  of  a  tunnel  to  supply  high-quality  water  to  those
areas) and solve the problems of drought in the provinces of Córdoba (Colada dam)
and Huelva (Andévalo region).

25

WATER SUPPLY -Projects adopted in 2001

No of project

Name of project

Total cost (€
million)

CF assistance
(€ million)

2000 ES 16 C PE 008 Water supply in the Guadiana basin: Colada dam
2000 ES 16 C PE 010 Water supply in the Segura basin
2000 ES 16 C PE 011 Water supply in the Ebro basin
2000 ES 16 C PE 074 Water  supply  measures  in  the  Canary  Islands.

2001 - Group I
2000 ES 16 C PE 078 Water supply in the Duero basin - 2001
2000 ES 16 C PE 094 Water supply in the Tagus basin - 2001
2000 ES 16 C PE 113 Water  supply  projects  in  the  Ebro  basin  -  2001  -

17 516 490
77 957 530
10 789 700
18 030 380

5 389 000
12 578 895
7 301 580

13 137 367
66 263 900
9 171 245
14 424 304

4 311 200
10 063 116
5 841 264

Group 1

2000 ES 16 C PE 115 Water  supply  in  the  Guadiana  basin  -  2001  -

19 474 109

15 579 287

Group 1

2000 ES 16 C PE 121 Water supply in the north basin - group 2001
2000 ES 16 C PE 133 Water  supply  in  the  Guadiana  basin:  Andévalo

13 639 823
14 274 020

10 911 858
11 419 216

area

2001 ES 16 C PE 002 Water supply to Lorca and Puerto Lumbreras
2001 ES 16 C PE 020 Water supply projects on the Canary Islands. 2001

10 691 899
5 201 930

- Group II

2001 ES 16 C PE 023 Water supply in the north basin: Asturias, 2001
2001 ES 16 C PE 039 Water  supply  in  the  north-east  area  of  the

8 187 144
9 991 826

9 088 114
4 161 544

6 549 715
7 993 461

2001 ES 16 C PE 040

Montejurra association of municipalities
Supply of drinking water to the metropolitan area
of Granada

28 170 639

22 536 511

Waste-water treatment

This  sector  absorbed  €465  million  in  2001,  43%  of  the  amount  allocated  to  the
environment by the Cohesion Fund and the largest portion of the resources available
for  this  sector.  Once  again,  efforts  concentrated  on  compliance  with  Directive
91/271/EEC and setting up the national drainage and water treatment plan.

32  decisions  were  adopted  for  projects  and  groups  of  projects  in  the  main  water
basins  and  one  to  amend  a  project  already  adopted.  These  projects  concern
improvements to treatment networks, collectors and treatment stations.

26

No of project

Name of project

WASTE-WATER TREATMENT - Projects adopted in 2001

2000ES16CPE005
2000ES16CPE026

2000ES16CPE040

2000ES16CPE067

2000ES16CPE068

2000ES16CPE070
2000ES16CPE073
2000ES16CPE075

2000ES16CPE077

2000ES16CPE079

2000ES16CPE080

2000ES16CPE082

2000ES16CPE085

2000ES16CPE086

2000ES16CPE090

2000ES16CPE096
2000ES16CPE097
2000ES16CPE104
2000ES16CPE105

2000ES16CPE129
2001ES16CPE015
2001ES16CPE016
2001ES16CPE018

2001ES16CPE022
2001ES16CPE032
2001ES16CPE034
2001ES16CPE036
2001ES16CPE048
2001ES16CPE049
2001ES16CPE051
2001ES16CPE056

2001ES16CPE061

Drainage and water treatment in the Segura basin
Drainage and water treatment in the Guadalquivir basin:
Doñana area
Drainage and water treatment in the Basque Country – North
basin - III
Drainage and water treatment in the Guadiana basin: Campiña
Sur, Guadajira river and Vegas Bajas
Drainage and water treatment in the Júcar basin: Alzira
treatment station
Drainage and water treatment in the Duero basin 2001
Drainage and water treatment projects in the Canary Islands
Drainage and water treatment projects in the Guadiana basin -
(Group 2001)
Drainage and water treatment in the south and Guadalquivir
basins
Drainage and water treatment in the Duero basin 2001 - Group
1
Drainage and water treatment in the Júcar basin - 2001 - Group
1
Drainage and water treatment in local communities in
Catalonia. Ebro basin - Group 2000
Drainage projects in the north III basin: Basque Country -
2001- Group 2
General project for water management in the River Ripoll basin
- Sabadell
Drainage and water treatment projects in the Guadalquivir
basin - 2001 - Group 1
Drainage projects in the north basin: Galicia - Group 2001
Drainage projects in the north basin: Asturias - Group 2001
Project to restore urban sewerage network in Terrasa
Drainage and water treatment projects in the Guadalquivir
basin -2001 - Group 2
Drainage in the Balearic Islands basin - 2001 - Group 1
Drainage in the Duero basin 2001 - Group 2
Drainage in the Guadiana basin - 2001 - Group 2
Drainage in the Ebro basin: inland basins in Catalonia 2001-
Groupe 3
Drainage and water supply in the north basin - Galicia -2001
Drainage in the north basin: Galicia - 2001 - Group 2
Drainage measures in the Ebro basin - 2001 - Group 2
Drainage in the north basin: Galicia - 2001 -Group 3
Drainage in the north basin: Asturias - 2001 - Group 2
Drainage in the north basin: Basque Country - 2001 - Group 1
Drainage in the Canary Islands basin - 2001 - Group 2
Drainage and water treatment in the Tagus basin - 2001 - Group
2
Drainage in the Tagus basin - 2001 - Group 3

Solid waste

Total cost
(€ million)

CF assistance
(€ million)

35 812 000
5 051 000

28 649 600
4 293 350

18 288 000

14 630 400

55 593 000

47 254 050

22 291 000

18 947 350

8 765 589
14 311 412
7 947 582

7 012 471
11 449 130
6 358 065

16 740 149

13 392 119

12 389 685

9 911 748

9 573 982

7 659 186

25 831 026

20 664 821

24 392 387

19 513 910

11 665 762

9 332 610

17 256 819

13 805 455

20 013 023
7 999 745
10 453 800
17 465 354

4 818 960
18 858 662
8 791 770
24 707 273

8 589 716
10 605 737
7 632 857
24 446 167
15 379 899
27 456 928
6 521 500
35 472 793

16 010 418
6 399 796
8 363 040
13 972 283

3 855 176
15 086 930
7 033 416
19 765 818

6 871 773
8 483 790
6 106 286
19 556 934
12 303 919
21 965 542
5 217 200
28 378 234

18 703 718

14 962 974

In  order  to  implement  the  National  Plan  for  solid  waste  approved  in  2000,  the
Spanish authorities submitted a large number of projects in this sector.

In  2001,  23  decisions  were  adopted  on  waste  management  and  one  to  amend  a
project  adopted  earlier.  Most  concerned  projects  from  municipalities  either
individual or grouped by Autonomous Community. Assistance totalling €375 million
was granted, 34% of the total for the environment.

27

Priority was given to solid urban waste projects involving pre-sorting for collection,
composting  and  recycling  plants,  the  production  of  methane,  pneumatic  collection
and  the  closure  of  tips,  such  as  that  at  Valdemingómez  in  Madrid,  with  use  of  the
gases produced for energy.

No of project

2000ES16CPE002

2000ES16CPE014
2000ES16CPE018
2000ES16CPE020

2000ES16CPE029
2000ES16CPE069

2000ES16CPE132

2000ES16CPE138
2000ES16CPE140
2000ES16CPE141
2000ES16CPE146
2001ES16CPE005

2001ES16CPE007
2001ES16CPE009
2001ES16CPE010
2001ES16CPE011
2001ES16CPE012
2001ES16CPE014
2001ES16CPE026
2001ES16CPE030

2001ES16CPE045
2001ES16CPE046

WASTE - Projects adopted in 2001

Name of project

Complex for the industrial exploitation of solid urban and non-
special industrial waste in Cantabria
Waste management measures in Asturias 2001 - Group I
Waste management measures in Castile-La Mancha
Waste management measures in Extremadura (2nd phase of the
master plan)
Waste management measures in Murcia
Construction of a plant to produce methane and compost the
biodegradable fraction of solid urban waste, including the use for
energy of the gases from the Pinto tip
System of pneumatic collection of solid urban waste in the
historic centre of Palma de Majorca
Waste management in Andalusia - 2001- Group 1
Waste management in Castile-La Mancha - 2001- Group 1
Waste management in Castile-León - 2001
Waste management in Melilla
Selective collection in Zarzaquemada Sur and development of a
selective collection system in Zarzaquemada Norte
Waste management in Andalusia - 2001 -Group 2
Waste management in Asturias - 2001
Waste management in Catalonia - 2001
Waste management in Galicia - 2001 - Group I
Waste management in Madrid - 2001 - Group 2
Underground containers for solid urban waste in Cantabria
Waste management in Valencia - 2001 - Group 2
Plant for the treatment, recycling and exploitation of solid urban
waste in La Rioja
Waste management in Galicia - 2001 - Group 2
Plan to generate methane by the association of municipalities for
the management of solid urban waste in La Ribera - Navarre

Total cost
(€ million)

CF assistance
(€ million)

65 194 920

15 405 578

8 668 100
20 709 900
16 972 500

11 083 500
45 580 758

1 134 000
16 567 920
13 578 000

8 866 800
36 464 606

15 311 600

12 249 280

31 636 559
16 564 736
35 517 017
3 792 471
10 930 910

16 348 755
12 899 865
16 088 089
10 070 843
76 785 683
3 355 297
39 256 200
9 766 446

26 270 031
4 577 603

25 309 247
13 251 789
28 413 614
3 033 977
8 744 728

13 079 004
10 319 892
12 870 471
8 056 674
61 428 546
2 684 238
31 404 960
7 813 157

21 016 025
3 662 082

Urban environment

Exceptionally,  three  decisions  were  adopted  in  this  sector.  These  projects  are  the
second  phase  of  projects  approved  earlier,  which  they  complete.  Assistance  in  this
sector in 2001 totalled €33 million, 3% of  the total for the environment.

URBAN ENVIRONMENT– Projects adopted in 2001

No of project

Name of project

2000ES16CPE043 Plan to restore the rivers of Pamplona: Arga (2nd phase),

Elorz and Sadar

Total cost
(€ million)
10 800 638

CF assistance
(€ million)
8 640 510

2000ES16CPE061 Environmental restoration of the lower part of the River

16 275 417

13 020 333

Besos. Phase II

2001ES16CPE060 Restoration of the urban environment in municipalities in

14 149 877

11 319 901

the Autonomous Community of Catalonia

Technical assistance

Assistance worth €812 268 was provided to s upport the management of the Cohesion
Fund during the period by improving the quality of applications for assistance to the
projects  submitted,  improving  the  evaluation  and  monitoring  of  projects,  managing

28

inspection visits and facilitating the management of Cohesion Fund resources by the
Autonomous Communities and municipalities.

Outermost regions

Operations continue to take account of the  importance attached to the development
of the outermost regions (Canary Islands), as stressed in the Commission’s Report on
the  measures  to  implement  Article  299(2)  of  the  Treaty  (COM(2000) 147  final).
Community assistance totalled €35 million.

Supply of drinking water

The  Cohesion  Fund  regards  this  sector  as  of  particular  importance  in  the  Canary
Islands because of its specific difficulties. The measures presented in 2001 continue
to stress water-supply networks in medium-sized localities.

Waste-water treatment

The  Canary  Islands  are  lagging  behind  in  this  regard  and  substantial  efforts  are
continuing  to  improve  water  quality  considerably.  The  measures  presented  in  2001
stress improvements to plant in treatment networks.

Solid waste

Because of their island nature, the options open to the Canary Islands for solid-waste
treatment  are  very  limited.  The  Cohesion  Fund  has  sought  to  remedy  this  situation
and provide basic infrastructure. The schemes already begun for the construction of
environmental centres are continuing.

3.1.2.2 Transport

Under  the  aid  decisions  approved  in  2001  by  the  Commission,  the  transport  sector
took 51% of total assistance and 48.3% of the commitments made.

During 2001, the Commission adopted a total of 12 decisions to finance projects in
the transport sector concerning investment there totalling €1 621 million. Assistance
approved totalled €1 121 million.

The breakdown by mode of transport is as follows:.

Mode of transport

Roads
Railways
Ports
Total

Total eligible
cost (€ million)
183.5
1 055.9
381.6
1 621.0

CF assistance
(€ million)
156.0
762.7
202.2
1 120.9

% of assistance Commitments 2001

13.9
68.0
18.1
100.0

(€ million)
91.6
651.7
67.0
810.3

Road network

For this mode of transport, the priority continued to be progress on links with France
and  the  development  of  links  between  road  networks  forming  part  of  the  trans-
European networks.

29

In  2001,  the  Commission  approved  assistance  for  both  projects  submitted  by  the
Spanish authorities. These concerned the Zaragoza ring road, an important means of
linking  the  various  trunk  roads  which  meet  there,  and  part  of  the  trans-Catalonia
highway between Cervera and Santa María del Camí. This link completes this major
route.

The following table shows the projects adopted in 2001 in the roads sub-sector.

ROADS - Projects adopted in 2001

No of project

Name of project

2001.ES.16.C.PT.011
2001.ES.16.C.PT.013

Cervera – S.M. Camí expressway
Southern ring road, Zaragoza

TOTAL

Eligible cost
(€ million)

CF assistance
(€ million)

128.2
55.3
183.5

108.9
47.0
155.9

Rail network

In 2001 the investment effort for the high-speed line from Madrid to Barcelona and
the French border continued. This is one of the major projects identified as priorities
by the European Council in Essen (9-10 December 1994). The decisions approved in
2001 concerned mainly the construction of this line in the Autonomous Community
of Catalonia in preparation for extending the work to Barcelona.

RAILWAYS - Projects adopted in 2001

No of project

Name of project

98.11.65.002 Amendment
Miscellaneous projects

TGV (Madrid – Lleida)
TGV (Lleida – Tarragona – Martorell)

Total

Eligible cost (€
million)

141.1
914.8
1 055.9

CF assistance
(€ million)
101.7
660.9
762.6

Ports

During 2001 the Cohesion Fund provided financial support for the project to enlarge
the Port of Barcelona. This part-financing concerns only certain phases of the whole
plan, specifically two breakwaters (East and South) and some corrective measures to
offset the environmental impact of the works. These form part of the master plan for
the Port of Barcelona, which includes all the operations related to the enlargement.

The master plan seeks to eliminate the main structural bottlenecks in the port caused
by lack of space and the European-gauge rail connections.

Enlargement  of  the  Port  of  Barcelona  is  a  project  of  common  interest  within  the
meaning  of  Article 7  of  Decision  1692/96/EC  on  Community  guidelines  for  the
development  of  the  trans-European  transport  networks  (TENs-T).  The  Cohesion
Fund is making a decisive contribution to the overall viability of the project.

Its financial contribution amounts to €202 million. The European Investment Bank is
providing a further €250 million to finan ce other phases of the master plan.

3.1.3.

Ireland

During 2001 the Commission approved only one new Cohesion Fund grant to Ireland
totalling €87.1 million, of which €37.8 million was committed from the 2001 budget.
Four other commitments were made during the year amounting to €77.2 million and

30

involving either the first or subsequent instalments of projects already adopted. This
pattern of commitments is influenced by the size of the allocation available to Ireland
and  the  trend  initiated  in  recent  years  of  moving  away  from  support  for  small
projects to support for large projects with multi-annual budgets.

In terms of commitments, the balance between transport and environment projects is
improving over the period 2000-06 with the ratio rising from 19.3%/80.7% in 2000
to 38.0%/62.0%  in  2000-01  respectively.  With  a  small  group  of  large  projects  it  is
relatively  difficult  to  ensure  balance  each  year.  However  the  objective  is  still  to
ensure a 50:50 balance over the whole programme period.

Nine projects from 1993-99 were closed and the final reports for five other projects
were  considered  in  2001.  In  addition,  amendments  were  made  to  22  projects  on
which decisions had been taken in 1994-99.

IRELAND - PROJECTS ASSISTED IN 2001-WASTE-WATER TREATMENT

CCI N°

Project Name

Type of project/commitment

2000 IE 16 C PE 001

1999 IE 16 C PE 002

Dublin Region Waste-
water Treatment (Stage V)
Limerick Main Drainage
(Stage III)

Second annual instalment

Second annual instalment

CCI N°

Project Name

Type of project/commitment

IRELAND - PROJECTS ASSISTED IN 2001 ROADS

TOTAL

2000 IE 16 C PT 001 M50 South Eastern
Motorway (Stage II)

First annual instalment

2000 IE 16 C PT 002 M1 Cloghran - Lissenhall

Second annual instalment

(Stage II)

2000 IE 16 C PT 003 M1 Lissenhall -

Balbriggan

First annual instalment (1)

TOTAL

(1) The grant was adopted in December 2000.

2001 Commitment
(€ million)
16.27

23.46

39.73

2001 Commitment
(€ million)
37.88

19.40

17.98

75.26

3.1.3.1. Environment

The two priorities for the environment sector for the current period are the collection
and treatment of waste water and the management of solid urban waste.

Waste-water collection and treatment

No new project was assisted in 2001.

Solid waste

No new project was assisted in 2001.

3.1.3.2. Transport

As in the environment sector, there are only two priority sectors for this period, roads
and public transport.

31

Roads

During  2001 one  grant  decision  was  made.  It  related  to  the  construction  stage  of  a
previously  supported  motorway  project.  This  project  is  situated  on  the  M50,  a
priority route under the trans-European networks - transport initiative.

Roads
Projects adopted in 2001

Project reference

Name

2000/IE/16/C/PE/001

M50 South Eastern
Motorway (Stage II)

Total eligible cost
(€ million)

CF assistance
(€ million)

87.1

74.0

The objectives of the M50 project can be summarised as follows:

The  M50  South  Eastern  Motorway  (Stage  II):  the  M50  South-eastern  Motorway  is
part of the M50 Dublin Ring Road, which is itself part of the E01 between the ports
of Larne and Rosslare. The project is the ‘missing link’ in the chain of projects which
will  provide  a  complete  C-ring  motorway  around  Dublin.  The  planning  and  pre-
construction phase of the project including detailed design, site investigation and the
EIA  was  assisted  by  the  Cohesion  Fund  under  Stage  I.  The  Commission  is
contributing  to  the  building  and  construction  costs  of  approximately  8.6  km  of  the
main motorway, the provision of related structures and three interchanges.

As with previous priority road projects funded by the Cohesion Fund, and in view of
the  volume  of  construction  work  involved  compared  to  the  limited  volume  of
Cohesion  Fund  support  available,  the  Commission  and  the  Irish  authorities  have
agreed  that  the  relevant  grant  decision  will  target  funding  towards  selected
construction costs of this project.

Rail

No new project was supported in 2001.

3.1.4.

Portugal

During 2001 the Commission approved 16 new projects for which finance totalling
€566.7 million was provided; of this, 
budget.

€327.7 million was committed from the 2001

Following  these  commitments  and  including  projects  adopted  in  previous  years
which  have  an  impact  on  the  budget  for  2001,  the  total  commitments  for  the  year
were as follows:

Environment 2001
Transport 2001
Environment previous years
Transport previous years
Total

Total eligible costs
(€ million)

Total CF assistance
(€ million)

Commitments 2001
(€ million)

457
354.7
116.8
649.4
1 577.9

302.3
264.4
64.6
504.5
1 135.8

231.7
96
6.3
121.8
455.8

32

3.1.4.1. Environment

As in the previous period, the main priorities for assistance from the Fund in 2000-06
are  waste-water treatment,  the  supply  of  drinking  water  and  the  treatment  of  urban
waste.  In  accordance  with  the  guidelines  in  the  framework  directive  on  water,
Portugal has adopted a new approach to water management. The projects submitted
are  drawn  up  by  water  basin  and  cover  the  whole  cycle,  i.e.  the  capture,  treatment
and distribution of drinking water and also the appropriate treatment of waste water
(drains).  Accordingly,  the  following  breakdown  shows  only  the  integrated  water
sector and urban waste.

During  2001  the  Commission  adopted  12  new  projects  in  the  field  of  the
environment, seven in the water sector and five in the urban waste sector.

Total eligible
costs
(€ million)
301
156
-
457

Financial
assistance
(€ million)
185.2
117.1
-
302.3

% of total
environment
assistance
61.3 %
38.7 %
-
100 %

Commitments 2001
(€ million)

148.2
83.4
6.3
237.9

Integrated water sector
Urban waste sector
Projects from previous years
Total

Water

In  the  previous  programming  period  assistance  from  the  Fund  was  concentrated  in
the most densely populated regions. During the new period, as was noted last year,
assistance is now being provided also to less densely populated regions, including the
Autonomous Region of Madeira, in line with the strategy adopted for the sector.

The  management  model  adopted,  based  on  intermunicipal  systems,  allows  for  the
implementation of large-scale projects which achieve substantial economies of scale
and make it easier to monitor the strategy.

The seven projects approved represent an investment of €301 million, of which the
Cohesion  Fund  will  provide  €185.2  million.  This   is  about  61.3%  of  the  assistance
granted in 2001 to environmental projects in Portugal.

No of project

Title

Water sector Projects adopted in 2001

1998/PT/16/C/PE/002

2000/PT/16/C/PE/005-
010
2000/PT/16/C/PE/009
2000/PT/16/C/PE/007
2001/PT/16/C/PE/002

2001/PT/16/C/PE/007

2000/PT/16/C/PE/004

Treatment of waste water from Lisbon –
Alcântara treatment station
Grouped studies, technical projects and technical
assistance – 1st phase
Minho Lima intermunicipal system
Zêzere Côa intermunicipal system
Optimal water management in the Autonomous
Region of Madeira – 1st phase
Zêzere Nabão intermunicipal system
Treatment of waste water from Greater Oporto
south – Sobreiras treatment station

Total eligible cost
(€ million)
33.4

CF assistance
(€ million)
10

36.6

39.1
54.9
39.7

63.7
33.6

31.1

25.4
34.6
29

44.6
10.5

Urban waste

As they did in the previous period (1993-99), the Commission and Portugal continue
to pay great attention to the management of urban waste in order to meet the targets
set in the Strategic Plan for solid urban waste (PERSU) adopted in 1996.

33

During  the  year,  the  Cohesion  Fund  approved  five  new  projects  to  implement
strategies defined in the PERSU, including the construction of a national network of
primary  infrastructure  for  the  collection,  treatment  and  disposal  of  waste  and  the
closure  of  uncontrolled  tips  (lixeiras)  where  most  urban  waste  was  disposed  of  in
environmentally unacceptable conditions.

While  in  the  past  such  infrastructure  was  built  mainly  in  the  coastal  regions  of
Portugal - the most densely populated -, as in the previous year, the Cohesion Fund is
now providing assistance in inland areas of Portugal so that soon the whole country
will be covered.

With this end in mind, in 2001 the Commission approved two new projects (see table
below) establishing systems for the treatment of waste produced in inland regions of
continental Portugal, approved new phases for  two  projects adopted previously and
approved a project on the implementation of measures to raise the level of treatment
in some systems already in operation.

The  five  projects  approved  represent  an  investment  of  €156  million,  of  which  the
Cohesion  Fund  will  provide  €117.1  million.  This   is  about  38.7%  of  the  assistance
granted in 2001 to environmental projects in Portugal.

Treatment of URBAN WASTE Projects adopted in 2001

No of project

Name of project

2001/PT/16/C/PE/001
97/10/61/015

2000/PT/16/C/PE/002
2000/PT/16/C/PE/015
2001/PT/16/C/PE/003

Baixo Alentejo waste treatment system
West regional waste treatment system –
increased assistance
Incineration centre on Madeira – 2nd phase
Cova da Beira waste treatment system
Supplementary measures for waste treatment

Total cost
(€ million)
22.1
31.3

CF assistance
(€ million)
18.9
26.6

68
16.4
18.2

45.4
13.9
13.6

3.1.4.2. Transport

The  financial  volume  of  the  projects  adopted  in  the  rail  sector  in  2000  meant  that
there  was  little  scope  for  adopting  new  transport  projects  since  the  commitment
instalments to be charged to the budget for 2001 for those projects already accounted
for  a  large  part  of  the  quota  allocated  to  Portugal.  The  table  below  shows  the
amounts for new projects and the amount of commitments for the 2001 instalments
of projects adopted  in  2000.  It  also  shows  that  in  2001  virtually  all  (92.6%)  of  the
funds allocated to transport were spent on the rail sector.

As  it  had  done  in  2000,  the  Cohesion  Fund  made  a  substantial  effort  to  support
investment in the Portuguese rail system. This continued to be concentrated on two
lines of major strategic importance (Norte and Algarve) which form part of priority
project 8.

Rail sector
Ports sector
Projects from
previous years
Total

Total eligible
costs (€ million
315.6
39.1

Financial assistance
(€ million)
244.8
19.6

% of total transport
assistance
92.6%
7.4%

Commitments
2001 (€ million)
80.3
15.7
121.8

354.7

264.4

100%

217.8

34

The Commission adopted four new projects (see table below), two forming part of a
broad  programme  to  modernise  the  Algarve  line,  one  to  extend  the  Lisbon
underground  railway  by  constructing  a  section  to  allow  intermodal  links  and  a
project to improve access to the port of Aveiro.

The four projects approved represent an investment of €354.7 million, of which the
Cohesion Fund will provide €264.4 million.

No of project

Name of project

Rail sector Projects adopted in 2001

2001/PT/16/C/PT/001 Modernisation of the Algarve line – Section IV
2001/PT/16/C/PT/002

Lisbon  underground  –  S.Sebastião  –Alameda
section

Total cost
(€ million)
9.5
132.1

CF assistance
(€ million)
7.6
98

2001/PT/16/C/PT/003 Modernisation of the Algarve line – Section V
2000/PT/16/C/PT/010

Port of Aveiro – road and rail access

174
39.1

139.2
19.6

3.2.

Technical assistance and studies

3.2.1 General policy of the Fund

3.2.2. Technical assistance at the initiative of the Commission

Spain

Technical  assistance  at  the  initiative  of  the  Commission  was  used  for  the  ex-ante
evaluation of a project for the environmental restoration of mining waste in the Rio
Tinto region of Andalusia. The aim of the mission was to assess the development of
the Aguzadera basin.

35

4.

MONITORING, ASSESSMENT AND IRREGULARITIES

4.1.

Monitoring: Committees and missions

4.1.1. Greece

4.1.1.1 Monitoring Committees

Environment

Meetings  of  the  Monitoring  Committee  and  of  the  special  Committees  for  the
Psyttalia, Evinos and EYDAP major projects were held in Athens in May 2001. The
work of these Monitoring Committees is recorded in the relevant minutes.

Transport

A meeting of the Monitoring Committee was held in Athens in May 2001. The work
of this Monitoring Committee is recorded in the relevant minutes.

4.1.1.2. Monitoring missions

A number of project visits were undertaken in 2001. The objective was twofold: to
verify  progress  in  the  completion  of  the  relevant  projects  and  to  clarify  the
difficulties with certain projects.

The project visits are listed in Annex 1.

4.1.2.

Spain

4.1.2.1. Monitoring Committees

In  2001  a  Monitoring  Committee  met  in  Madrid  on  26  and  27  April.  This  was  the
fifteenth meeting of the Cohesion Fund Monitoring Committee.

The  Committee  is  subdivided  into  seven  specific  Committees  by  sectors  and  by
managing authority:

– 

– 

– 

– 

– 

– 

– 

Committee for projects submitted by the Autonomous Communities

Committee for reafforestation projects

Committee for projects submitted by local authorities

Committee for transport projects submitted by the national government

Committee for the HST South project: Madrid—Barcelona line

Committee for public-private partnership projects

Committee  for  environmental  (including  water)  projects  submitted  by  the
national government

36

Each  session  of  the  Committee  looked  at  the  situation  at  31  December  2000  for
certain  projects  and  groups  of  projects  (63  decisions  in  all)  previously  selected  in
partnership  by  officials  from  the  Ministry  of  Finance  and  the  Commission.  Figures
on the projects not selected were also sent to the Committee and to the Commission
for information.

Discussions  covered  strategic  issues  in  the  transport  sector  and  the  problems  of
certain  environmental  projects.  At  the  same  time,  the  Commission  set  out  the  new
guidelines to be introduced for the amendment of decisions.

The Spanish authorities announced to this Committee the dispatch of applications to
amend  the  financing  plan  and  the  dates  for  the  end  of  work  on  a  large  number  of
projects.  They  also  announced  the  closure  of  certain  projects,  stating  that
administrative  matters  relating  to  the  reception  of  the  works  could  delay  the
submission of the final reports.

Applications  for  payment  of  the  balance  for  reafforestation  projects  had  been
submitted as planned.

In 2001, 19 decisions were closed and the balances paid.

4.1.2.2. Monitoring missions

The  missions  were  carried  out  to  assess  and  check  the  progress  of  projects  being
implemented and to clarify the difficulties encountered in their implementation (see
Annex I).

4.1.3.

Ireland

4.1.3.1. Monitoring Committees

In 2001 there were two meetings of the Monitoring Committee, on 18 May  and 18
October. In general, the Commission was satisfied with the quality of the information
the  Irish  authorities  supplied  on  the  management  of  projects  and  outstanding
questions were addressed adequately.

At these meetings the Committee examined written progress reports on up to 41 open
projects from the period 1993-99 and on 7 projects from the period 2000-06.

There was also progress with the successful completion of 9 further projects in 2001.
The  outstanding  projects  from  the  period  1993-99  to  be  completed  at  end-2001
represent around 30% of the projects supported in that period.

In respect of project amendment and/or extension requests in 2001, the Commission
informed the Irish authorities that it was reviewing its policy towards  extensions of
the end-date  for  Cohesion  Fund  projects  and  that  new  guidance  would  be  prepared
for  the  Member  States  on  project  amendments  to  reflect  the  Commission’s  more
restrictive policy. In advance of this guidance, the Commission has started to include
a  clause  restricting  the  possibility  of  amending  decisions  which  have  already  been
amended several times.

37

4.1.3.2. Monitoring missions

The project visits undertaken in 2001 had the following objectives:

– 

– 

to check progress in the completion of the relevant projects, and

to  clarify  the  difficulties  with  certain  projects  reported  to  the  Monitoring
Committee previously and to approve project amendments.

The project visits undertaken are listed in Annex I.

4.1.4.

Portugal

4.1.4.1. Monitoring Committees

As required by the Fund Regulation, the Monitoring Committee meets twice a year.

In 2001 these meetings took place on 15 and 16 May and 11 and 12 December. They
considered each project individually and provided an opportunity to discuss general
topics such as publicity, inspections, public procurement, the implementing rules and
miscellaneous information.

In Portugal there is a specific Committee to monitor the extension of Madeira airport
and  one  for  solid  waste  projects.  The  project  for  the  construction  of  the  Alqueva
hydroelectric station is monitored by the general Committee and also in the broader
forum  of  the  Structural  Funds  Monitoring  Committee  for  the  specific  integrated
development programme for the Alqueva (PEDIZA).

4.1.4.2. Monitoring missions

Besides attending meetings of the Monitoring Committee, in 2001 the Portugal unit
of the Regional Policy DG carried out a number of monitoring missions to check on
the  progress  of  projects,  to  acquire  on-the-spot  knowledge  of  the  problems
encountered  in  implementation  and  to  find  the  best  solutions  for  the  normal
implementation of the projects.

From 5 to 7 November that unit also took part in an inspection by the relevant unit of
DG  REGIO  of  Cohesion  Fund  assistance  to  projects  95/10/61/026  –  Valorsul  and
95/10/65/002 – Port of Lisbon – Sta. Apolónia.

Other technical missions relating to consideration of certain applications were carried
out during the year, in particular on the West region, Simtejo and Simlis integrated
intermunicipal water systems on 14 December with Águas de Portugal.

The monitoring missions carried out by the Portugal unit of the Regional Policy DG
are listed in the Annex.

4.2.

Inspections and conclusions

In  2001,  the  Commission  carried  out  six  inspections  regarding  the  Cohesion  Fund.
These  were  designed  to  look  at  the  management  and  inspection  system  established
by the Member States in that sector and check on a number of projects.

38

4.2.1. Greece

Inspection by DG REGIO :

During 2001, DG  REGIO undertook  an inspection  in  Greece to  audit the  Cohesion
Fund systems and a major project. The main findings concerned the very substantial
overrun in the costs of the works incurred without complying with the Directive on
public  procurement,  particularly  when  work  that  had  not  been  anticipated  was
ordered.  This  situation  was  generally  due  to  a  lack  of  preparation  in  the  projects
submitted to the Commission.

4.2.2.

Spain

Inspection by DG REGIO:

During  2001  there  were  three  audit  missions  to  Spain,  one  to  the  national
administration  and two  to Autonomous Communities. The situation in Spain varies
because the decentralised organisation of administration gives greater responsibility
for the management and inspection of projects to the Autonomous Communities. The
initial results of the inspections nevertheless reveal a general problem of inadequate
inspection of systems and projects by the local authorities. In the case of one group
of  projects,  it  appears  at  this  stage  that  the  rules  on  public  procurement  were  not
complied with.

4.2.3.

Ireland

Inspection by DG REGIO: No audit mission was carried out in Ireland during 2001.

4.2.4.

Portugal

Inspection by DG REGIO:

Two audit missions were carried out in Portugal during 2001 to look at the Cohesion
Fund  systems  there  and  four  specific  projects.  It  was  found  that  checks  were
inadequate  (lack  of  1st  and  2nd  level  checks)  and  there  were,  inter  alia,  staff
shortages.  In  the  case  of  the  four  Cohesion  Fund  projects  inspected,  the  1996
decision on publicity had not been complied with.

The  evaluation of  a  revenue-generating  project  had  been  done  very  inaccurately  so
that  actual  revenue  was  very  much  higher  than  that  taken  in  account  when  the
application for finance was submitted to the Commission.

4.2.5. Conclusions

The limited audit work carried out by Regional Policy DG on the Cohesion Fund in
2001 permits some  matters  of concern  to  be  highlighted.  These  include  the  lack  of
publicity of EU finance (Decision of 1996), the existence of  ineligible  expenditure,
the  not  always  satisfactory  implementation  of  tendering  procedures,  failing  to  take
revenue  into  account,  insufficient  project  preparation  and  the  absence  of  a  division
between the payment and the inspection function.

The  checks  which  began  in  2001  were  intensified  throughout  2002.  They  entailed
detailed  analysis  of  the  management  and  inspection  systems  in  the  four  Member

39

States  eligible  under  the  Cohesion  Fund  and  the  audit  of  a  significant  number  of
major projects in this sector.

The  draft  Regulation  laying  down  implementing  rules  for  Regulation  (EC)  No
1164/94  as  regards  management  and  inspection  systems  and  the  procedure  for
implementing  financial  corrections  concerning  the  Cohesion  Fund  was  finalised.  It
should be adopted by the Commission in the first half of 2002.

4.3.

Irregularities and suspension of aid

Article 3 of Regulation (EC) No 1831/9413 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 field requires the beneficiary Member
States  to  notify  the  Commission  of  irregularities  as  soon  as  a  preliminary
administrative or judicial finding has been made.

In  2001,  one  Member  State,  Greece,  notified  the  Commission  of  four  cases  of
irregularities  involving  a  total  of  €2  429 040.  These  concerned  payment  for
expenditure  not  planned  when  projects  were  approved.  The  case  was  detected  as  a
result  of  inspections  carried  out  by  the  appropriate  departments  of  the  Ministry  of
Finance. In the course of these communications, the Greek authorities informed the
Commission  of  the  measures  required  to  safeguard  the  financial  interests  of  the
Community. In three of the four cases proceedings to recover the amounts wrongly
paid  are  under  way  and  in  the  fourth  the  contractor  was  required  to  correct  the
shortcomings in the project, which has been done.

The  other  three  beneficiary  Member  States  notified  the  Commission  under  the
Regulation that they had detected no irregularities during the year.

13 OJ L 191, 29.7.1994.

40

                                                
5.

ASSESSMENT AND EVALUATION

5.1.

General

As  required  by  the  Fund  Regulation,  the  Commission  and  the  beneficiary  Member
States assess and evaluate Cohesion Fund projects in order to ensure that Community
aid is effective.

Every application for assistance must be accompanied by an ex-ante appraisal of the
project  by  the  Member  State,  showing  that  the  medium-term  socio-economic
advantages  are  in  keeping  with  the  resources  deployed.  The  Commission  then
considers this evaluation, possibly with the assistance of experts from the European
Investment  Bank  or  outside  consultants.  On  that  basis,  it  approves  the  project  if
appropriate and decides on the rate of Community part-finance.

Once  a  project  is  operational,  the  Commission's  ex-post  evaluation  shows  whether
the  goals  originally  planned  have  been  or  will  be  achieved  and  what  impact  the
project has had on the environment.

5.2.

Examination and ex-ante appraisal of projects

As  part  of its  updating  of the Guide  for  the  cost/benefit  analysis  of  major  projects,
during  2001  the  Commission  carried  out  substantial  internal  work  to  make  the  ex-
ante  financial  analysis  of  the  various  projects  more  coherent.  This  included
consideration  of  the  discounting  rate  used,  the  arrangements  for  applying  the
polluter-pays  principle  to  water  management  projects,  taking  account  of  historic
costs prior to the submission of a project to the Commission in calculating financial
profitability  and  the  possible  accounting  for  financial  costs.  The  results  of  these
considerations should be presented to the Member States for discussion during 2002.

5.3.

Cooperation with the EIB when a project is considered

Under a framework contract signed by the two institutions in 2000 and valid until the
end of 2006, the Commission may ask the European Investment Bank for technical
assistance  in  appraising  Cohesion  Fund  projects,  major  projects  supported  by  the
ERDF and projects financed by ISPA. It also receives regular information from the
EIB about projects submitted to one of these three Funds to which the Bank has itself
decided to grant assistance.

In  2001,  the  Commission  asked  the  EIB  for  over  a  score  of  analyses  of  Cohesion
Fund projects, mainly located in Spain and mostly in the transport sector. Following
the  reports, the Commission  asked  the  Member  States  to  amend  certain  projects  or
undertake  further  preliminary  studies.  These  discussions  meant  that  some  transport
projects  could  be  reduced  in  scale  in  order  to  reduce  investment  costs  without
jeopardising  achievement  of  the  goals  and  to  avoid  possible  technical  or
administrative problems relating to the implementation of drainage projects.

41

5.4.

Economic and social impact of the Fund in the Member States and on economic
and social cohesion, including employment, in the European Union

The Regulation establishing a Cohesion Fund requires the Commission to assess the
economic  impact  of  the  Fund,  both  in  terms  of  each  project  and  in  terms  of
Community assistance as a whole.

The work carried out in 2001 on updating the Guide for the cost/benefit analysis of
major  projects  will  improve  appraisal  of  the  socio-economic  impact  at  the  level  of
each  project  during  the  ex-ante  and  ex-post  evaluations.  The  new  Guide,  which  is
expected  to  appear  in  spring  2002,  will  contain  practical  examples  of  cost/benefit
analyses  of  transport  and  environment  projects  illustrating  the  Commission’s
requirements as regards the analysis of the projects submitted to it. More consistent
analysis will also help estimate the overall effect of Community assistance.

5.5.

Ex-post evaluation programme

An ex-post evaluation programme was established for a three-year period starting in
1998.  A total  of 120 projects have been  evaluated, 60 in each  of the two  fields  for
which the Cohesion Fund is responsible.

5.5.1. Environment

Implementation  of  the  environment  projects  raised  no  major  problems  and  the
projects  achieved  their  goals.  Design,  construction  and  operation  were  generally
satisfactory,  although  certain  treatment  plants  required  further  works  and  the  time
required  to  bring  certain  waste-management  projects  on  stream  had  to  be  extended
because of the unexpected reluctance of users to comply with the obligations of pre-
sorted collection.

The  environmental  impact  of  the  projects  was  very  satisfactory,  particularly  in  the
case  of  drainage  projects,  where  the  impact  was  immediate.  By  improving  living
conditions  and  creating  jobs,  the  projects  had  a  very  positive  social  impact
measurable  through  increased  land  values  and  the  expansion  of  tourism  and  the
economy in the areas served by the new infrastructure.

5.5.2. Transport

By  contrast,  in  the  transport  sector,  project  implementation  met  a  number  of
difficulties  which  took  the  form  of  cost  overruns  of  varying  extent  and  delays  in
completion, higher than expected compulsory purchase costs, price increases during
construction,  changes  to  the  original  project,  administrative  and  institutional
problems and so on.

However the overall socio-economic impact of the projects was very positive and the
achievement  of  the  policy  objectives  of  economic  and  social  convergence  between
the regions exceeded expectations. The time savings and greater safety provided by
the  new  infrastructure  are  frequently  remarkable.  Traffic  expansion  on  the  trans-
European  network  exceeded  estimates  and  the  projects  greatly  improved  access  to
certain  areas  of  the  Community,  reduced  the  economic  isolation  of  the  outermost
regions,  mitigated  the  impact  of  borders  and  substantially  alleviated  congestion  in
urban  areas  provided  with  new  infrastructure.  The  impact  of  implementing  the
projects  on  job-creation  was  limited.  The  environment  received  a  great  deal  of
attention:  applications  were  accompanied  by  an  environmental  impact  assessment
and many measures were taken to offset any negative impact of the projects.

42

6.

INTER-INSTITUTIONAL DIALOGUE, INFORMATION AND PUBLICITY

6.1.

Annual report for 2000

6.1.1. European Parliament

In its own report14, Parliament welcomed the 2000 annual report, which it regarded
as a vital tool for assessing the work of the Fund.

However,  it  noted  that  the  Commission  was  dissatisfied  with  the  quality  of  the  ex-
ante  evaluations.  Parliament  also  drew  attention  to  what  it  regarded  as  the
insufficient  number  of  inspections  carried  out  by  the  Commission  in  2000,  which
was smaller than in previous years.

The  inspections  which  began  in  2001  continued  in  much  more  intensive  fashion
throughout 2002.

Parliament  also  noted  that  the  Commission  needs  to  be  more  strict  in  ensuring
compliance with the rules on transparency in the awarding of public contracts.

6.2.

Information from the Member States

An  information  meeting  with  the  15  Member  States  was  held  in  Brussels  on  24
October 2001.

At that meeting, the Commission presented the Annual Report of the Cohesion Fund
for 2000. It also distributed the draft Regulation on management and control systems
and the financial corrections applied under the Cohesion Fund. Some articles of that
draft Regulation were then discussed.

6.3.

Other events

6.3.1.

Information for the social partners

A meeting with the social partners was held on 14 March 2001 at which the work of
the Cohesion Fund during 2000 was presented.

6.4.

Commission measures on publicity and information

The  Commission produced a  particularly  large number of  publications in  2001  and
restructured its series of  brochures  (success  stories  by  country  and topic;  brochures
on different types of areas). All these new brochures featured examples of successful
projects part-financed by the Cohesion Fund.

The  annual  report  was  published  in  an  appropriate  format  and  summarised  in  the
Inforegio information bulletins published by the Regional Policy DG.

14 Turco report.

43

                                                
Special  material  was  produced  for  specific  events  such  as  information  meetings,
conferences  and  exhibitions  (portable  stand,  computer-designed  slide  shows  and
graphics,  audio-visual  material  and  printed  matter).  Some  of  this  information
material  may  be  accessed  directly  via  the  Inforegio  web  site  on  the  Commission’s
Europa server.

The Commission also organised meetings with the authorities in Portugal and Greece
to discuss information and publicity for regional and cohesion policy. Information on
the Cohesion Fund was also discussed at these meetings.

44

ANNEX I

List of monitoring and quality-control missions carried out in 2001 

Greece

–  March Waste-water treatment station at Kozani.

–  March Technical meeting on road, railway and port projects.

– 

April Technical  meeting  on  the  amendments  requested  to  Cohesion  Fund
environment projects.

–  May Meeting of the Monitoring Committee for Cohesion Fund projects.

–  May Meeting  with  the  Ministry  of  National  Economy  relating  to  road  and

railway projects.

– 

– 

– 

Inauguration  of  a  Cohesion  Fund  project  in  Athens,  and  training

June
seminar on Cohesion Fund projects.

July Meeting on Cohesion Fund projects at the Ministry of the environment.

October

Meeting on Cohesion Fund projects in the Epirus region.

Spain

The monitoring missions carried out by the geographical unit were as follows:

– 

– 

January:  HST  project.  Madrid—Barcelona—French  border.  Visit  with  EIB
representatives to update the evaluation report.

July: Barcelona. Project 2000.ES.16.CPE.061. Environmental restoration of the
final  section  of  the  River  Besos.  2nd  phase.  On-the-spot  visit  as  part  of  the
examination of the project to secure information on the environmental goal to
be achieved from the authorities responsible for the project.

Ireland

25-27 March – Dublin

Project No 96/07/61/011 - Publicity and Information: The Commission was informed
about progress being made and the reasons for extending the date for the completion
of  the  project.  It  assessed  the  extent  to  which  the  project  had  a  measurable  impact
beyond complying with Decision 94/455/EC.

The  Three  Rivers  project:  No  94/07/61/014  (River  Suir  catchment  water  quality
management scheme), No 95/07/61/001 («TITLE»), No 94/07/61/015 (River Liffey
catchment  plan):  The  Commission  inquired  about  the  reasons  for  integrating
elements of the three decisions  in a catchment monitoring and  management project
and requested full and transparent financial accounts of the elements of each of the
projects.

45

Project No 95/07/61/013 - Dublin Water Supply III: The purpose of the visit was to
verify the progress with project planning elements requiring an extension of the end-
date  (Stillorgan  reservoirs)  and  to  verify  the  changes  made  to  the  works  required
under the CF grant decision (Dun Laoghaire/Killiney).

Project No 96/07/61/001 - Dublin Water Conservation: The purpose of the visit was
to verify  the  delivery  of  the  Dublin  water  conservation  strategy  and  to  validate  the
need  for  an  end-date  extension  and  that  the  required  volume  of  work  was  being
completed to meet the physical description of the grant decision.

Project  No  99/07/61/003  -  Dublin  Region  waste-water  supply  (treatment  works)
Stage V: The purpose of the visit was to verify the physical progress in construction
of  the  treatment  works  at  Ringsend,  Dublin.  The  visit  to  the  treatment  plant
comprised  a  short  presentation  of  the  project  at  the  site  office  and  a  tour  of  the
extensive works in progress. Recent information/publicity material and photos of the
works were provided by the Corporation.

Project  No  98/07/61/004  -  Dublin  Region  waste-water  supply  (submarine  pipeline,
Dublin). The visit, which was also part of a tour of the Ringsend works, comprised a
short  tour of  the pipeline works site at  Ringsend and an inspection  of  the  publicity
boards on display at the nature reserve and along the sea front which has been fenced
along the pipe trench.

Project No  99/07/65/002 - Heuston Station  and SW rail  corridor  development:  The
purpose  of  the  visit  was  to  make  a  first  inspection  of  the  recently  agreed  project
Heuston Station and SW corridor development.

17 May - Dublin

Project No 96/07/65/010 - M50 Southern Cross Motorway: The purpose of the visit
was  to  check  progress  towards  completion  with  a  view  to  opening  to  traffic  in
summer 2001 and the information and publicity arrangements to date.

Portugal

Monitoring missions

– 

4 May - Setúbal

Project No 97.10.61.018 –  Drainage system in Setúbal including interceptors and a
waste-water treatment station.

– 

5 and 6 June - Vila Nova de Gaia, Esposende and Vila do Conde

Project No 94/10/61/010-011; 97/10/61/004 - Drainage system in Vila Nova de Gaia
and waste-water treatment stations.

Project No 95/10/61/015 - Drainage system in Esposende and waste-water treatment
stations

Project No 96/10/61/019 – Southern interceptor at Vila do Conde.

– 

26/11/2001 – Madeira (Funchal)

46

Project  No  2001/PT/16C/PE/002  –  Optimal  water  management  in  the  Madeira
archipelago

– 

22/6/2001 – Madeira (Funchal)

Projects  Nos  96/10/61/007  and  2000/PT/16/C/PE/002  –  1st  and  2nd  phases  of  the
waste treatment centre on the Madeira archipelago.

47