Source: EURLEX
Language: en
Format: md

**COMMISSION OF THE EUROPEAN COMMUNITIES**

**Brussels, 23.04.1997**
COM(97) 172 final

**COMMUNICATION FROM THE COMMISSION**

**TO THE COUNCIL AND THE EUROPEAN PARLIAMENT**

## Connecting the Union's transport infrastructure network to its neighbours

#### Towards a cooperative pan-European transport network policy

**Executive summary**

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

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

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

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

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

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

area.

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

  - A common European approach to transport technology, in particular to ensure interoperability;

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

   - Co-operation on research and technology.

**Connecting the Union's transport infrastructure network to its neighbours**

**Towards a cooperative pan-European transport network policy**

**executive summary**

_SIÏL_

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

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

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

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

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

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

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

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

**Connecting the Union's transport infrastructure network to its neighbours**

**Towards a cooperative pan-European transport network policy**

**executive summary** _**A^**_

**Introduction**

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

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

3. On the basis of the Union's various agreements [1] with its neighbours, the Commission has
over the years taken a number of initiatives involving four groups of countries - the Central
European Countries (CEC), the New Independent States (NIS), the EEA States and Switzerland,
and the countries of the Mediterranean basin - aimed at promoting the interconnection of the
Union's Trans-European Transport Network (TEN-Tr) with these countries' networks.

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

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

laments of a transport network strategy

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

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

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

###### **1 4**

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

_The Pan-European transport corridors and areas_

_Pan-European_ _Transport_ _Corridors_

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

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

10. Infrastructure investment requires the identification of viable projects, to be financed from
national budgets, the Community budget, loans from Financial Institutions _and_ possibly from
private investors . In order to select such projects for early implementation a set of criteria v/ere set
out in the report which the Commission presented at the Crete Conference. The criteria [2] are now
more or less accepted for important infrastructure projects in Central and Eastern Europe. This
results from the practice of the last two years in the G24 working groups and in Community fora
dealing with the TEN, and gives a firm basis for future investments. The Commission will promote
these criteria for the selection of all projects where the Community is participating.

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

_Pan-European_ _Transport_ _Areas_

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

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

^ See annex

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

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

_**Extending the**_ _**Trans-European Network approach**_ _**to new**_ _**Union**_ _**members**_

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

16. On 23 July 1996 the European Parliament and Council adopted Community guidelines for
the development of the trans-European transport network [3] (TEN-Tr). These guidelines establish
orientations, up to the year 2010, for the development of a multimodal transport network on the
Union's territory, in particular through promoting the interconnection and interoperability of national
networks and fostering its intelligent use and compatibility with Community environmental
objectives.

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

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

process.

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

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

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

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

_Tovjards_ _a common European approach_ _ire_ _transport technology_
_Interoperability_ _of_ _transport_ _infrastructure,_ _its network and_ _management_

22. Interoperability, amongst other issues [4], relates to the different technically possible solutions
for a transport network and the transport services using it. Usually technical interoperability is
accomplished by developing standards and agreements at the level of economic operators:
suppliers, service providers and transport companies. For safety reasons but aiso since transport
was until recently mainly a public sector domain, the technical specifications were often set by a
regulator/ framework. Due to the increasing market orientation of Europe's transport sector, the
right balance between standardisation en one hand and regulatory measures on the ether must be
developed.

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

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

25. Major work on the network infrastructure for land transport has been carried out by the UNECE In their agreements concerning roads (AGR), railways [5] (AGC), combined transport (AGTC)
and most recently concerning inland waterways (AGN). All these agreements are subject to
ratification by the Member countries of the UN-ECE, but not all havs signed yet. In order tc
streamline Pan-European transport infrastructure development, the Commission urges those
States to ratify the agreements as soon as possible.

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

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

_The intelligent use of transport networks_

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

VTMIS: a vessel traffic management and information system for European waters

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

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

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

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

GNSS Global Navigation Satellite System: of clear significance for future ATM systems and likely
to become of great importance for all kinds of traffic management systems^

ERTMS European Rail Traffic Management System, consisting of a control command system for
the European Railways, developed within the Union's R&D programmes and activities

RTT Road Transport Telematics can help optimise existing infrastructure capacities, link
networks and services, improve safety and reduce the negative effects of transport on the
environment

TEDIM TEDIM (Telematics for Trade Logistics and Delivery Management) operated by Finland,
Russia and Germany in the Baltic sea area; could usefully be extended to other areas in
Europe such as the Black sea or the Adriatic.

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

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

_**Pan-European co-operation in transport research**_

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

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

**Towards a Europe-wide Transport Networks Partnership**

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

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

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

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

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

_Investment_ _costs_ _**and**_ _financing_

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

37. Expenditures of the Member States for infrastructure relevant to the Union amount, on
average, to 1.2% of the EU's GDP [6] : in absolute terms this :s approximately 60 BECU/annum. This
is complemented by Community funds, e.g. for the so-called cohesion countries, from EU
structural funds and a special budget line for the TENs. Compared with Member States' efforts,
these Community contributions are moderate, but can have an important catalytic effect.

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

_Central European countries_

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

40. Potential investment costs for establish.ing the TEN-Tr in the CECs [7] have been estimated at
50 to 90 BECL's for the next 15 years, merely for upgrading roads and railways tc Western
European standards to meet the expected growth in traffic, without considering any new links.
Since national budgets of the CECs are restricted, and there is a huge maintenance backlog,
significant external assistance wii! be required. The ECOFIN Council concluded already with
respect to the involvement of the EIB in the pre-accession process: "... Member States and the
European Commission unanimously declare that they agree to the creation of a sizeable preaccession support facility".

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

Infrastructure 1S9G

7

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

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

_The New Independent Slates_

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

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

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

_Mediterranean_

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

_Overall coherence_

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

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

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

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

_**The regulatory and organisational**_ _**framework**_

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

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

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

  - The ECMT for the CECs and NIS, the BSEC for the Black Sea, and the Conference of Mediterranean
Transport Ministers, which could undertake the necessary political follow up of this strategy.

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

 - For the applicant countries, the structured dialogue, in the context of the pre-accession strategy, which
is appropriate for planning the formal integration of these countries into the TENs;

 - The steering committees of the various corridors and areas set up under MoUs amongst the countries
concerned.

 - Ongoing co-operation with the International Financial Institutions, in particular EBRD, World Bank, EIB
and EIF, which should be intensified, in order to develop a coherent approach in supporting the
realisation of the Pan-European transport corridors and areas.

50. Some of the central principles binding together the partnership should be

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

ii A consistent approach to project identification, based on the criteria developed in the context
of the Crete Corridors and of the Community Guidelines for TEN-Tr;

iii the development of investment instruments which assess and grant support for projects on
the basis of principles and rules which are as similar as possible.

iv the development of the Public Private Partnership concept as an important tool for project
specific investment partnerships, drawing on the results of the Kinnock High level group on
PPPs in the Community, and the importance of organisational structures which allow the
creation of single project entities for large investments.

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

###### **Action plan for a Pan-European transport networks partnership**

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

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

_**A:**_ _**Towards co-ordinated**_ _**transport**_ _**planning:**_ _**five themes for**_ _**action**_

_Pan-European transport_ _corridors_ _and_ _areas:_ _a_ _planning tool and investment focus_

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

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

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

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

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

_Extend the Trans-European Network approach to new Union members_

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

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

**11**

_**A common approach to the use of transport**_ _**technology**_

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

_**The intelligent**_ _**use of transport**_ _**networks**_

8. As priorities in this area, the Commission will:

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

   - promote the idea of an interoperable Control Command system on the Pan-European rail
transport corridors and areas,

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

   - promote the standardisation of road traffic management systems beyond the Union's
borders,

    - support all activities which will lead to a more efficient Air Traffic Management throughout
the European Continent

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

_**Pan-European co-operation in R&D**_

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

11. The Commission will induce and promote the application of strategic environmental
network assessment amongst others through demonstration studies.

_**B:**_ _**Financial Aspects**_

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

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

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

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

**12**

Annex 1 : Maps: The nine Pan-European transport corridors and their connection to the

**TEN-Tr**

**status February** 1997

Connecting the Union's transport infrastructure network to its neighbours

Towards a cooperative pan-European transport natwork policy

Annex - page I

_**4\**_

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

The Treaty establishing the European Community speaks
about

projects of common interest:

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

projects of mutual interest:

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

The International Financial Institutions restrict themselves
to what they define as

bankable projects:

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

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

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

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

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

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

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

_Selection_ _**criteria for layer 3**_

_The suggested_ **three layer concept** _as supported by the_
_declaration of the second Pan-European Transport_
_Conference, Crete_ _14-16_ _March 1994, can broadly be_
_described as follows:_

_Layer_ _1:_ _**The**_ **long term perspective for Pan-European**
**infrastructure** **development** **of** **common**
**interest,** _as reflected in the international_
_instruments AGR, AGC, AGTC developed_
_under the auspices of the_ _UN/ECE._ _No time_
_horizon is set for the achievement of the_
_networks laid down in those instruments._

_Layer 2:_ **The** **medium term priorities of common**
**interest up to 2010.** _For the European Union_
_this is the Trans-European Transport Network_
_as_ _adopted_ _by_ _Council_ _and_ _European_
_Parliament in July 1996._ _For Central and_
_Eastern Europe, these are a number of priority_
_corridors covering all modes of transport,_
_including mainly the TEM and TER_ _networks,_ _at_
_present 9 corridors are considered as listed at_
_the Crete_ _conference,_ _to be revised on the next_
_conference at_ _Helsinki,_ _June 1997_

_Layer_ _3:_ **The short term priorities of common interest**
( up **to** five **years).** _Projects must be located_
_on corridors as defined under layer 2 or be_
_identified in the Community guidelines as_
_projects of common interest. For Central and_
_Eastern_ _Europe,_ _on the basis of_ _a_ _list of specific_
_projects presented, these priorities should be_
_determined through the application of agreed_
_operational criteria for the selection of priorities._
_European Union_ _priorities_ _are set out in the_
_Community guidelines; additional are to be_
_determined in accordance with its internal_
_procedures._

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

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

the necessary infrastructure for the intelligent use of transport systems

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

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

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

**Connecting the Union's transport infrastructure network to its neighbours**

**Towards a cooperative pan-European transport network policy**

**Annex- page 2**
_**S)ù**_

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

Investment projects to be selected must meet the following criteria:

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

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

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

finalisation of financial arrangements; compliance with possible financing conditions
coherence with relevant environmental law and policy, including environmental impact
assessment and its following legal steps
land acquisition, expropriations and following legal steps
necessary procurement
full project feasibility study according to international state of the art
this in particular means, that negotiations between the central government and local
governments concerned have been finalised
environmentally sustainable - be selected with a view to contributing to strike an appropriate
modal balance and minimising environmental impact: The direct, indirect, induced and cumulative
effects of the project and its alternatives should be studied. This should, amongst others, include
the effects on alternate modes of transport resulting from diversion caused by the project, the
induced traffic effects and potential network effects of the project as well as the contribution of the
project to a balanced infrastructure, allowing for sustainable mobility, causing the least negative
environmental effects possible.

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

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

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

**Connecting the Union's transport infrastructure network to its neighbours**

**Towards a cooperative pan-European transport network policy**

**Annex- page 3**

_/fr_

###### **ISSN 0254-1475**

### COM(97) 172 final

# **DOCUMENTS**

##### EN 07 11 01 Catalogue number : CB-CO-97-173-EN-C ISBN 92-78-19003-9

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