Transport

The Connecting Europe Facility

- Transport Sector -

Lia Potec

Connecting Europe – Infrastructure Investment Strategies

DG MOVE, European Commission

2 June 2016, Split

Transport

An overview

Regulation (EU) 1316/2013

Budget: €24.02bn (2014-2020)

• Including €11.3 bn transferred from the Cohesion Fund

Grants Priorities (Communication of 7/1/2014):

• TEN-T Corridors and core network:

cross-border, missing links, bottlenecks

pre-identified projects

• Horizontal priorities:

interoperability, innovation, ERTMS…

• Sustainable modes of transport

• Innovative financial instruments (10% of total budget)

Transport

• 80 – 85 % of available budget (~€20.5bn) for pre-identified projects listed in Annex I to the CEF Regulation

• 9 core network corridors and important cross-border sections, bottlenecks and missing links

• Horizontal priorities

• 15 – 20 % (~€3.5bn) for

• Other projects on the core network

• Projects on the comprehensive network (max 5%)

• Financial instruments (10%)

Budget allocation

Transport

CEF Annex I : pre-identified projects in Croatia

Mediterranean Corridor

Rhine-Danube Corridor

Other Core Network Section

Rijeka – Zagreb – Budapest Rail

Studies and works (including construction of new track and second track between Rijeka and HU border )

Rijeka Port

Infrastructure upgrading and development, development of multimodal platforms and Interconnections

Ljubljana – Zagreb Rail Studies and works

Slavonski Brod Port

Studies and works

Danube (Kehlheim - Constanța/Midia/Sulina)

IWW

Studies and works on several sections and bottlenecks; inland waterway ports: multimodal interconnections

Sava IWW Studies and works on several sections and bottlenecks (including cross-border bridge)

Dubrovnik – HR/ME border

Cross-Border Road Works

Zagreb – SR border Bottleneck Rail

Studies and works

Transport

The CEF "Cohesion envelope"

• €11.3 bn transferred from the Cohesion Fund to the CEF

• Exclusively for transport projects in Member States eligible for the Cohesion Fund on the core network

• Binding national allocations between 2014 – 2016 (exclusively grants)

– Croatia allocation: €456 million

• CF co-funding rates (up to 85%)

• Technical assistance for capacity building

• Programme Support Actions (direct grants to MS authorities, JASPERS)

Transport

Complementarity CEF – ESI Funds

CEF ESI Funds

• High EU added-value, focus on TEN-T Corridors and other sections of the core network (as pre-identified in Annex I of the CEF Regulation)

• More sustainable modes of transport: rail, IWW

• High EU added-value projects to remove bottlenecks in transport networks, by supporting TEN-T infrastructure on both the core and comprehensive networks

• Regional mobility, through connecting secondary and tertiary nodes to TEN-T infrastructure

• All modes of transport

• Network effect: common project pipeline for Cohesion Fund/ERDF and CEF indicatively included in the Operational Programmes for ESI Funds

6

Transport

CEF grants: co-funding rates

Types of Projects

CEF General Budget

(all MS,

neighbouring

countries)

CEF Cohesion

Envelope

(Cohesion MS)

(a) Studies (all modes) 50% 85%

(b) Works on

Rail

Cross border 40% 85%

Bottleneck 30% 85%

Other projects of common interest 20% 85%

Inland waterways

Cross border 40% 85%

Bottleneck 40% 85%

Other projects of common interest 20% 85%

Inland transport connections to ports and airports (rail and road) 20% 85%

Development of ports 20% 85%

Development of multi-modal platforms 20% 85%

Reduce rail freight noise by retrofitting of existing rolling stock 20% 20%

Freight transport services 20% 20%

Secure parkings on road core network 20% 20%

Motorways of the sea 30% 85%

Traffic management systems SESAR, RIS & VTMIS 50/20% 85%

ERTMS 50% 85%

ITS for road 20% 85%

Cross border road sections 10% 85% (core

network)

New technologies and innovation for all modes of transport 20% 85%

Transport

CEF grants: direct management

Work programme (Annual/AP or

Multiannual/MAP)

Call for proposals

Evaluation (external

and internal)

Grant agreements

• European Commission assisted by Innovation and Networks Executive Agency (INEA)

• Competitive evaluation and selection of projects

AP & MAP 2014 MAP 2015 AP & MAP 2016 Framework, priorities and available funding

Oct 2014 – end Feb 2015

Nov 2015 – mid Feb 2016

Oct 2016 – end Jan 2017

Nov/Dec 2015

Nov/Dec 2016

Nov/Dec 2-17

Mar-Jun 2015

Mar-Jun 2016

Feb/Mar-Jun

2017

Transport

2014 Call for proposals

Results

Transport

2014 CEF Call (1/3)

€13 bn investment in 276 projects

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

681Eligible

proposals452

Proposalsrecommended byexternal experts

276Proposals

recommended byinternal panel

Indicativebudget

13,016.6 (276)

32,656.6 (681)

24,066.9 (452)

11,930.0

Core Network, rail interop, ERTMS Innovation Horizontal priorities Cohesion call Annual call

( ) = Number of proposals

Transport

2014 CEF Call (2/3)

EU funding per transport mode

11

Transport

2014 CEF Call (3/3)

Funding per Corridors

€832.5 M

€1,282.6 M

€2,148.4 M

€610.5 M

€946.1 M

€1,027.4 M

€1,604.2 M

€1,753.2 M

€1,917.3 M

0 500 1,000 1,500 2,000 2,500

Rhine - Alpine

Orient/East-Med

Atlantic

Baltic - Adriatic

Mediterranean

North Sea - Mediterranean

North Sea - Baltic

Scandinavian - Mediterranean

Rhine - Danube

MAP Cohesion AP

Transport

Projects in Croatia

• Eligible proposals submitted:14

• 8 Croatian proposals

• 6 EU proposals with Croatian participation

• Selected proposals: 7

• 3 Croatian proposals (3 cohesion envelope) and

• 4 EU proposals (1 cohesion + 3 general envelope) with participation of Croatian beneficiaries

• Awarded funding:€44.462 million

• €41 million cohesion envelope (of total €456 national allocation)

• €4 million general envelope

Transport

Remaining national allocations under the "Cohesion envelope"

Member State

Remaining national allocation (December 2015) (€)

BG 264,827,632

CZ 860,093,004

EE 13,527,195

EL 79,960,324

HR 412,376,893

CY 48,186,926

LV 509,773

LT 196,660,624

HU 809,596,493

MT 0

PL 2,184,808,092

PT 508,920,174

RO 518,200,014

SI 120,261,126

SK 688,997,003

Transport

Transport

What’s next?

Transport

Next steps for CEF 2015 calls (indicative)

Indicative timetable

External and Internal Evaluation March 2016 – June 2016

Vote in CEF Committee 8 July 2016

Adoption of Selection Decision July/September 2016

Preparation and Signature of

Grant Agreements

October 2016- December 2016

Transport

CEF 2016 calls 2016 Annual and Multi-Annual Work Programme

Indicative timetable

Adoption of AP and MAP 2016 March 2016

Publication of Call 1 October 2016

Call Deadline 31 January 2017

External & Internal Evaluation March 2017 – April 2017

Vote in CEF Committee May 2017

Adoption of Selection Decision July 2017

Preparation and Signature of Grant Agreements

September 2017- December 2017

Transport

Objective 1: Priority open only to the Cohesion

Member States

Cohesion

envelope

Railways, inland waterways and roads projects on the Core

Network including connections to inland and maritime ports and

airports

50 mio€

Objective 2: Priority open to all Member States General

envelope

Freight Transport Services 20 mio€

Actions to reduce rail freight noise, including by retrofitting of

existing rolling stock 20 mio€

TOTAL 90 mio€

Annual Work Programme 2016 Priorities (1/2)

Transport

Cohesion envelope

• Core network projects not included in Annex I of CEF Regulation

• Cross border projects for railways, inland waterways and roads

• Removal of bottlenecks for railway, inland waterway and maritime infrastructure

• Other infrastructure projects for railways and inland waterways

• Coordinated development and management of rail and inland waterway infrastructure

• Technical, legal, financial or feasibility studies to assess the potential for PPP or other project finance schemes, preparation of tender documentation and permission procedures

General envelope

• Deployment of innovative, efficient and sustainable freight transport services on both Core and Comprehensive Network sections

• Reduce rail freight noise, including by retrofitting of existing rolling stock

Annual Work Programme 2016 Priorities (2/2)

Transport

Technical assistance (TA) under CEF

Transport

Eligibility, Purpose and Form

Eligibility:

• MS eligible to the Cohesion Fund (financial support deducted from the CEF cohesion national envelope)

Purpose:

• Strengthen the institutional capacity and administrative efficiency in eligible MS as regards the preparation and implementation of projects listed in Annex I to CEF Regulation

Form:

• Grants directly awarded to the MS

• Support within the framework of the JASPERS initiative

Transport

CEF TA in Croatia

Direct grant:

• Awarded grant: €134.413 to the Ministry of Maritime Affairs and Transport Infrastructure (MMATI)

• Duration: 24 months (1/07/2015 till 30/06/2017)

• Activities:

• Trainings & education

• Advice and assistance from external experts

JASPERS support:

• Targeted primarily at CEF project beneficiaries for project preparation (including grant application) but also implementation stages

• Also advice on horizontal issues to the administration

Transport

Financial instruments CEF EFSI

- An alternative to grant support -

Transport

Innovative financing for transport - context

High level of investment needs in transport

• Expected growth in world trade and passenger traffic

• Investments for the greening of transport

Level of infrastructure investment low in EU

• Adverse impact on growth, job creation and long-term competitiveness

Private investors looking for investments opportunities

• High level of liquidity on the capital markets

• Very low interest rates on sovereign bonds

• Interest in infrastructure investments

• But risks and uncertainties

Tools available at EU level:

• CEF & EFSI financial instruments:

• Standard EIB lending

• WBIF

Transport

CEF financial instruments

Budget • Up to €1.5bn available for a wide array of instruments

Eligibility • All transport modes

• All TEN-T sections core & comprehensive (including indicative extension

in neighbouring countries)

• All projects eligible under TEN-T Guidelines

Types of instruments

• Existing: Project Bonds, LGTT

• possibility of other Debt or Equity instruments, dedicated investment

funds for specific policies

Implementation

• European Investment Bank (EIB) – Delegation Agreement

Transport

European Fund for Strategic Investments

• New Fund set up within EIB • €16bn EU guarantee budget

• for loans or guarantees with higher risk-profile

• targeted leverage: €315bn of additional investments in the next 3 years

• Eligibility

– transport infrastructure and equipment

– TEN-T projects, but also beyond TEN-T

– projects for smart and sustainable urban mobility

• + the European Investment Advisory Hub • regrouped and expanded EIB Technical Assistance services

• aims to help administrations and project promoters prepare projects and use financial instruments

• + the European Investment Projects Portal • to provide governments and investors with a transparent project pipeline

to encourage investment.

Transport

European Fund for Strategic Investments

Transport

Thank you for your attention! &

Keep up the good work!

lia.potec@ec.europa.eu