title: TRANS-EUROPEAN NETWORKS - 1996 ANNUAL REPORT - Communication from the Commission to the European Council, the Council and the European Parliament

eurovoc_concepts:
energy grid
report
telecommunications
transmission network
transport network

text: COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 06. 12. 1996 COM(96) 645 final TRANS-EUROPEAN NETWORKS 1996 ANNUAL REPORT Communication from the Commission to the European Council, the Council and the European Parliament INTRODUCTION 1. SUMMARY 2. PROGRESS ACHIEVED ON SPECIFIC PROJECTS A. ENERGY B. TELECOMMUNICATIONS C. TRANSPORT 3. TEN-RELATED LEGISLATION A. GUIDELINES AND RELATED LEGISLATION B. T EN GUIDELINES COMMITTEES C. EDICOM AND IDA LEGAL BASIS 4. FINANCING THE TEN: ACTIVITIES OF THE UNION'S FINANCIAL INSTRUMENTS A. TEN FINANCIAL ASSISTANCE REGULATION B. STRUCTURAL FUNDS B. l Regional Fund B. 2. Cohesion Fund C. EIB AND ECSC LOANS D. EIF F. EVALUATION 5. FINANCING THE TEN: OTHER ISSUES A. TRANS-EUROPEAN TRANSPORT BUDGET B. PUBLIC/PRIVATE PARTNERSHIPS (PPP) General Kinnock High-Level Group Public policy risks consultation C. EIF EQUITY PARTICIPATION 6. EXTERNAL RELATIONS A. CENTRAL AND EASTERN EUROPEAN COUNTRIES (CEEC) TINA (Transport Infrastructure Needs Assessment) Helsinki Pan-European Transport Conference A 1 2 4 4 4 5 7 7 8 8 11 11 15 15 15 17 18 19 20 20 20 20 •. 21 22 22. 23 23 23 23 PHARE Electricity link-ups Natural gas link-ups Energy Charter EU-CEEC Forum on the information society B. MEDITERRANEAN BASIN COUNTRIES Electricity link-ups Natural gas link-ups Euro-Mediterranean forum on energy Euro-Mediterranean forum on the Information Society Transport C. OTHER COUNTRIES 7. POLITICAL AND REGULATORY PROBLEMS A. ENERGY B. TELECOMMUNICATIONS C. TRANSPORT 8. THE TEN AS A SOURCE OF EMPLOYMENT A. CONFIDENCE PACT B. REPORT TO THE EP 9. OTHER UNION POLICIES WITH A TEN DIMENSION A. EUROPEAN COMPANY STATUTE , B. COMPETITION POLICY C. PUBLIC PROCUREMENT D. COMPLEMENTARITY WITH STRUCTURAL POLICIES •. E. TRANSPORT POLICY F. ENVIRONMENT ANNEX I: PROGRESS MADE ON THE ENERGY NETWORKS IN 1996 ANNEX II: PROGRESS MADE ON THE TRANSPORT NETWORKS IN 1996 ANNEX III: LIST OF TENFAC MEETINGS SEPT. 1995 - DEC. 1996 ANNEX IV: ENERGY PROJECTS FINANCED UNDER REGULATION 2236/95 ANNEX V: TELECOMS PROJECTS FINANCED UNDER REGULATION 2236/95 st 23 24 24 24 24 25 25 25 25 25 25 26 27 27 27 27 29 29 29 32 32 32. 32 33 33 33 35 48 52 53 57 ANNEX VI: IDA TELEMATIC PROJECTS FINANCED IN 1996 59 ANNEX VII: TRANSPORT PROJECTS FINANCED FINDER REGULATION 2236/95. 62 ANNEX VIII: MAJOR TEN PROJECTS FINANCED BY THE REGIONAL AND COHESION FUNDS IN 1996 ANNEX IX : EIB LOANS FOR TEN AND TEN-RELATED PROJECTS 70 75 ANNEX X : "THE LIKELY MACROECONOMIC AND EMPLOYMENT IMPACT OF INVESTMENTS IN TRANS-EUROPEAN TRANSPORT NETWORKS" 78 3 INTRODUCTION The European Council requested that the Commission submit to it each year in December, a report on the trans-European networks. Furthermore, article 16 of the TEN Financial assistance regulation requires the Commission to submit an annual report on the activities carried out under this regulation to the European Parliament, the Council, the Economic and Social Committee and to the Committee of the Regions for their appraisal. To avoid duplication, the Commission has combined these two annual reports into this present document. 1. SUMMARY The. year under review saw major efforts to make substantial progress towards the implementation of the TEN: • the adoption at last of the guidelines for the energy and transport TEN and the imminent adoption of those for telecommunications; on the basis of the figures available for the first ten months of the year, Union funding of TEN projects in 1996 will be substantially higher than in 1995; steady if unspectacular advances on many of the TEN projects; recognition, in particular in the Confidence Pact for Employment, of the significant role the TEN can play in stimulating employment; the setting up of a High-level group of government and private sector representatives to propose recommendations on how public/private partnerships could be facilitated in the transport priority projects (henceforth called "specific projects"); valuable preparatory work on connecting the TEN to the Union's neighbours, especially in the applicant central and eastern European countries (with a view to enlargement) and the Mediterranean Basin; first year of normal implementation of TEN-Telecoms after the adoption of the Euro-ISDN guidelines in November 1995; • the IDA programme reached its cruising speed; in addition, the breakthrough as regards the liberalisation of the electricity market, the resumption of negotiations on the liberalisation of the gas sector, the Commission's various Green and White Papers on internalising the external costs of transport infrastructure, the "Citizens" Network" and the revitalisation of the railways all contributed to create a more favourable context for the TEN. But important obstacles remain and call for further significant efforts to overcome them and there have been disappointments: • • the Ecofin Council failed to reach agreement in October on the "topping up" of the budgetary resources for the 14 transport specific projects; in the telecommunication sector, the basic bottleneck is the lack of applications and services in domains of public interest matching the socio-economic needs of citizens and SMEs; in this area, the uncertainty on short term commercial viability, due to the innovative character of the application or service and the difficult organisational requirements can discourage private initiative; too many national administrations still see problems in purely national terms, rather than viewing them in Union-wide terms and in a network perspective and therefore do not give the TEN the priority they deserve; the legal framework at Union level may, in certain cases, not be sufficiently adapted to the specific needs of large scale infrastructure projects of common interest in the transport sector and its application requires early clarification; as regards PPP, problems have been identified in particular relating to transport pricing, public procurement and the European Company Statute; authorization difficulties are holding back some of the electricity priority projects; in particular, France decided unilaterally in February to abandon the planned route for the Cazaril - Aragon link-up. There is therefore an urgent need to: continue the in-depth analysis of the financial situation of the priority transport projects and facilitate private sector involvement (public-private partnerships), especially for those projects where there are limits to traditional public financing; stress the Union benefit of the TEN transport projects (and to develop appropriate methods to quantify this benefit). On this basis, Member States should be persuaded to adapt their national priorities to European priorities; Union financial instruments should support this objective; where necessary, seek appropriate improvements in the legal framework at Union level or clarification regarding the application of the rules, in order to facilitate the implementation of the priority transport projects, and in particular the development of public-private partnerships for these projects. The Kinnock High-level Group will explore the relevant issues. • increase efforts among Member States to co-ordinate, simplify and accelerate procedures for the granting of authorizations while making transparent the environmental and other criteria for approval of projects on their territories; this is particularly necessary in the case of electricity projects, with their higher degree of visibility; to foster the launch of interoperable applications and services which demonstrate the transition towards the information society and demonstrate clear socio-economic benefits for citizens and SMEs. 2. PROGRESS ACHIEVED ON SPECIFIC PROJECTS A. ENERGY As regards the 10 specific projects identified by the Essen European Council, good progress was made in 1996 on the gas projects. Most electricity projects still encounter problems in obtaining authorizations, particularly for environmental reasons (see also chapter 7-A), while for some of them financing has not yet been settled. Progress was made in particular on the following projects with the involvement of the EIB: The construction of the Algeria/Morocco/Iberian Peninsula main gas pipeline is completed. The main pipeline for the Greek natural gas project has been built and the financing of the remaining works for the high pressure gas transmission network has been secured thanks to an EIB loan. As regards the Russia-Belarus-Poland-EU gas pipeline, the connection of Eastern Germany with Western Poland is now complete and work has commenced on other sections in Germany and in Poland. The Northern Portugal-Spain electricity connection is now partly operational though the project is not yet completed. Progress has also been achieved on an additional number of non-priority energy projects included in the Guidelines as adopted by the Council and the European Parliament, together with other projects proposed by the Commission for inclusion in those Guidelines (see Annex I for the state of advancement of these projects). B. TELECOMMUNICATIONS The TEN-Telecoms action in 1996 was based on the Euro-ISDN guidelines already in force. With the adoption of the new set of guidelines in December or in early 1997, the Commission's action will be able to expand to its full extent in 1997. This year, a number of validation and demonstration projects were selected following the call for proposals published on 13 April 1996; they involve 63 partners in 14 Member States. They address a number of areas where there are clear socio-economic interests to use advanced telecommunications applications and services: network of city information highways, tele-medicine, distance education and training, access network to cultural heritage generic services, telework and electronic commerce for SMEs. A detailed list of the projects is to be found in Annex VI. The results of the call have shown that promoters encounter difficulties in organising their partnerships and their business plans for trans-European projects of this kind. Financial institutions also have problems in providing funds for the implementation of projects, where the immaterial part is so important. After its formal adoption by the Council in November 19951, the IDA (Interchange of Data between Administrations) programme reached its cruising speed in 1996. The IDA work programme, after having received unanimous support from the Member States, was adopted by the Commission on 4 July 19962. Among the actions launched are: • Pilot and operational networks for the exchange of data between administrations in key fields such as social security, employment services, customs and indirect taxation, agriculture, fisheries, public procurement, statistics, commercial policy, competition policy, support to a number of European Agencies and the Union decision-making process. • Implementation of e-mail communication facilities for the European Institutions, and the necessary connections with a number of committees. • A number of horizontal measures addressing issues common to all networks and fostering the implementation of common, re-usable solutions, in order to optimise interoperability, streamline network development and ensure value for money. A detailed list of these various projects is to be found in Annex VII The "IDA '96 Conference" in Rome on 20-21 June 1996 served to disseminate up-to- date results and examine the further development of trans-European telematic networks for public administrations. The debate highlighted the strategic role that these networks can play as a catalyst of industrial competitiveness in the Information Society. C. TRANSPORT Steady if unspectacular progress was made in 1996 on the implementation of the 14 specific projects agreed at the Essen European Council in December 1994. Details are to be found in Annex III. Mention should be made here nevertheless of some of the more important and symbolic advances: • A new company was set up to plan the Austrian part (Lower Inn Valley section) of the Brenner axis between Munchen and Verona; • work has started on the construction of the new HST line between Leipzig and Niirnberg; • the UK authorities awarded the operating concession for the HST rail link between London and the Channel to the London & Continental railways consortium; • The "déclaration d'utilité publique" was granted to the French part of the HST East; Council decision 95/468/EC of 6. 11. 95, OJ L 269 of 11. 11. 95, p. 23 SEC(96)1251/4 • An intergovernmental commission was set up to study the legal structure of the future entity responsible for the implementation of the Lyon-Torino project. • For the Torino-Milano and Milano-Venezia sections, concessions have been granted to the Italian High-Speed Rail company TAV. • Two concessions have been granted for sub-projects of the Greek motorway PATHE: the Rio-Antirio fixed link and the Athens bypass. • Work on the Danish access routes to the Ôresund Fixed Link has been progressing well and is expected to be completed next year. • The Cork-Dublin-Belfast-Larne-Stranraer railway link will be completed in 1996 as far as the part in the Irish Republic is concerned; the sections in the UK are expected to be completed in 1997. At the same time, progress has been made on some other projects of common interest identified in the guidelines, notably: the Semmering base tunnel project in Austria, the Berlin-Hannover HST link in Germany, the Milano-Bologna-Firenze-Roma-Napoli HST link in Italy as well as a number of ports projects and projects in the telematics sector. 3. TEN-RELATED LEGISLATION A. GUIDELINES AND RELATED LEGISLATION The year under review saw the long-awaited adoption by the EP and the Council of the guidelines for the energy and transport networks on, respectively, 5 June (the Council had already adopted the decision on the accompanying measures for the energy sector on 28 March)3 and 23 July4. The telecommunications guidelines are expected to be adopted in December 1996 or early 1997. This represents a major step forward. The Council also adopted the directive on HST interoperability5 on 23 July. Following the mandate from the Essen European Council concerning environment networks and the definition in 1995 of criteria for "Joint Environmental Projects" (JEPs), the Environment Policy Review Group, consisting of Directors-General from the Member states's environment ministries, at its meeting in September 1996, decided that each member would by 15 November 1996 indicate whether further exploring the potential of the project examples there was an interest in further defining pre- feasibility terms of reference and future steps. The responses received from the Member States up to 15 November indicate that there is no interest in further pursuing Joint environmental projects within the criteria set for the water and waste sectors. On 24 July the Commission put forward a proposal6 to modify the original list of 43 energy projects of common interest in the guidelines by adding a further 31 projects. This modification was necessary to take account of the enlargement of the Union to Austria, Finland and Sweden, to reflect the rapid evolution of the energy situation in Europe since the Commission first made its proposals in 1994 and to honour commitments made during the negotiation of the initial decision. The European Parliament approved this proposal without amendments (at its first reading, on 12 November 1996). Although not strictly related to the networks as such, mention is made here nevertheless of the major breakthrough in June 1996 on the liberalisation of the electricity market, when an extraordinary Energy Council reached political agreement on a common position on the draft Electricity Directive which was then formalized by the Council in July. Decision no. 1254/96/EC; OJ L 161 of 29 June 1996 Decision no. 1692/96/EC; OJ L 228 of 9 September 1996 Directive 96/48/EC; OJ L235 of 17 September 1996 COM (96) 390 Encouraged by this success the Council pesumed, under the Irish Presidency, the negotiation of the Commission's proposals for implementing the internal market in the gas sector. In parallel, the Presidency and the Commission had an extensive round of consultations with all parties interested in gas market liberalization. The Treaty rules including the competition rules and procedures, are naturally applicable to the energy sector. This means in particular that TEN should not lead to a reinforcement of any dominant position of undertakings which control them. Following the political agreement among Member States to liberalise all telecommunications services and infrastructure by 1st January 1998, with a transition period for certain Member States, the Commission adopted in February 1996 a Directive amending the 90/388/EEC Services Directive. It also specified that restrictions on use of alternative infrastructure for services already liberalised should be lifted by 1 July 1996. B. T EN GUIDELINES COMMITTEES Following the adoption of the various guidelines, three new committees have/will come into existence: - a committee (type III A) for the energy TEN; it met once and gave a favourable opinion on the Commission's proposals to specify the list of projects of common interest; - an advisory committee for the transport TEN for the exchange of information on plans and programmes; it held its first meeting on 18 November and discussed its function and structure and general questions of implementing the guidelines. - a committee (type III A) is expected to be set up for the telecommunications TEN; its initial meeting will take place early in 1997. These committees are of course quite distinct- from the TEN financial assistance committee in its various forms (set up under Council Regulation 2236/95 to assist the Commission in granting financial aid for TEN projects of common interest - see chapter 4A below) and should not be confused with it. C. EDICOM AND I DA LEGAL BASIS The Edicom programme is an inter-administration telematic network for statistics in relation to the trading of goods between Member states. On 26 March the Court of Justice, acting on a complaint lodged by the EP, with the backing of the Commission, ruled that the programme should have been based on article 129 D of Title XII of the Treaty and not on article 235. The Commission promptly presented a modified proposal based on article 129 D, renewing the programme for the period 1996-2000. The European Parliament, supported by the Commission, has also brought a case before the Court of Justice for the repeal of the Council decision adopting the IDA programme, arguing that the legal basis for this decision should have been art. 129D of the EC Treaty (concerning trans-European networks). A judgement is not expected before 1997. Tabic 1: EU FINANCING OF THE TEN (million ECU) Sector Type of assistance Instrument 1993-1994 1995 TRANSPORT Loans Guarantees Grants EIB' 2 EIF l2 ERDF1 ' 4 028 75. 9 884. 0 3 310 85. 2 115. 0 1996 to date TOTAL to date 2 229 9 567 303 " 461. 40 2 639 3 638 Cohesion Fund 1887. 5 1 107. 6 1088 4 083. 1 ENERGY Grants, interest, rate subsidies, loan guarantees, co- financing of studies TEN budget line (of which the 14 specific projects) Loans Guarantees Grants EIB1 2 EIF12 ERDF' 3 Co-financing of studies TEN budget line TELECOMMUNICATIONS Loans Guarantees Grants Co-financing of studies EIB12 EIF12 ERDF1 ' 385 180 1 077 207. 7 675. 7 0 3 787. 8 156. 1 294. 7 240 280 905 181,05 211. 23 572. 28 745 11. 90 87. 8 12 506. 6 19. 40 0 22 1 067 240 1 265 [9+7] 2 889 459. 6 2 028. 5 [21+7] 1 063 5 357. 4 9 173 18 184. 5 467. 7 58 TEN budget line 18 TEN and TEN-related projects Signed projects Usually includes appropriations committed, for the 1996-99 period. 4. FINANCING THE TEN: ACTIVITIES OF THE UNION'S FINANCIAL INSTRUMENTS Table 1 on the preceding page gives an overall view of Union financial support for TEN and TEN related projects. Since the figures for 1996 refer in some cases to only the first ten or eleven months of the year it is not possible to compare them exactly with those for 1995; it is clear however that there has been a significant increase of funding in most if not all sectors. This table, and those which follow, deal only with Union funding. It must be remembered, however, that the Member States and the private sector also contribute to the financing of the TEN, in many cases investing much more than the Union. In future reports an effort will be made to include such figures when available. A. T EN FINANCIAL ASSISTANCE REGULATION The TEN financial assistance committee (TENFAC), set up under Council Regulation 2236/954 came into existence formally in September 1995 and held its first meeting on 10 October of the same year. It discussed energy matters at two meetings in 1995 and gave a favourable opinion on 24 feasibility and other studies to which the Commission proposed to grant aid totalling ECU 12. 2 million. These studies concerned 12 projects of common interest from the Guidelines list, of which three were Essen priority projects (the France-Spain and the Spain-Portugal electricity interconnections and the Greek natural gas project). In 1996 the Committee met once to discuss energy questions and approved 36 feasibility and other studies for which the Commission is proposing grant aid totalling ECU 16 million. Further details are to be found in Annex IV. These studies concern 8 projects from the guidelines list, of which two are Essen priority projects (the France-Spain electricity interconnection and the Greek natural gas project), as well as 14 projects from the additional list proposed by the Commission. TABLE 2: ENERGY 1995 1996 [Guidelines + additional list] MECU 6. 5 5. 7 12. 2 % 53% 47% MECU 3. 73 + 3. 88 5. 17 + 3. 59 % 46% 54% 100% 8. 90 + 7. 47 100% ELECTRICITY GAS TOTAL OJ L 228 of 23 September 1995 Under the TEN Regulation, financial assistance for energy projects is normally restricted to feasibility studies, and this was the case in 1995 and 1996. However, given that in some cases projects may be delayed and financing problems thus arise, the Commission would like to keep open the possibility of using some of the resources available as other forms of assistance, on the basis of case-by-case justification. The TENFAC committee discussed telecommunications projects at two of its meetings in 1995 and gave a favourable opinion on 18 ISDN measures for which the Commission proposed financial assistance totalling ECU 11. 4 million. This brought to a total of ECU 22. 6 million the total financial aid granted by the Commission under the TEN-Telecom budget line in 1995. A list of these measures is to be found in Annex V. In 1996 the committee devoted one meeting to telecommunications and approved 11 validation and demonstration projects amounting to ECU 18. 101 million. These projects, unlike those in the energy or transport sectors, do not relate to bearer physical infrastructure, but to telecommunication applications of public interest and generic services. They are specified through a procedure of open call for proposals, on the basis of criteria, priorities and eligible domains of public interest defined in the relevant legislation. TABLE 3: TELECOMMUNICATIONS 1995 MECU 0. 75 2. 81 - - 1. 23 1. 76 % 6. 6 24. 7 - - - 10. 8 15. 5 1996 MECU 0. 51 0. 49 2. 59 5. 00 - 3. 71 % 2. 8 2. 7 14. 3 27. 6 - 20. 6 3. 62 31. 9 2. 83 15. 7 1. 19 11. 37 10. 5 100% 2. 94 18. 10 16. 3 100% Health Education Culture City information Transport Interoperability of generic services Electronic commerce Tele-working TOTAL 12 As regards transport, the TEN financial assistance committee held one meeting in 1995 and gave a favourable opinion on 92 projects and studies for which the Commission proposed financial assistance totalling ECU 240 million. The committee held two meetings in 1996. At its meeting on 8th May it welcomed the Commission 's multiannual indicative programme (MIP) as a framework for granting financial assistance from the TEN-Transport budget line for projects of common interest in the period 1996-99. This framework should facilitate the work of the committee in the transport sector in the years ahead. At its meeting on 25 July the Committee gave a favourable opinion on 107 projects and studies for which the Commission proposed financial assistance totalling ECU 280 million. Further details are to be found in Annex VII. Table 4 gives a break-down of Union financing of transport projects by main sectors. In accordance with the decision of the Cannes European Council, 75%) of the money available was given over to the 14 specific projects in 1995 and 1996. TABLE 4: TRANSPORT (TYPE OF PROJECT) 1995 1996 MECU % MECU % 181. 05 75. 44 211. 23 75. 44 45. 42 18. 92 49. 65 17. 73 13. 53 240 5. 64 100% 19. 12 280 6. 83 100% 14 specific projects (including ERTMS) Traffic management Other TOTAL Table 5 shows the break-down of the Union's financing of transport projects by the various types of intervention. It should be stressed that the predominance of studies as compared to other types of intervention is perfectly normal. The Union's role is to act as a catalyst by facilitating the launching of projects, hence the emphasis on feasibility and other studies, which reduce the level of risk in their development stage. In the Commission's opinion, the co-financing of feasibility studies is the most efficient way of spending the Union's limited budget. The Union's financial resources are not meant to replace funding at the national level but to help mobilize additional, non-traditional funds, in particular in the context of PPP. The financing of the actual construction works is primarily the responsibility of the promoters, helped, if need be, with interest rebates and guarantee premium subsidies, which explains why only a small percentage of Union resources under Regulation 2236/95 is given over to this type of funding. 13 TABLE 5: TRANSPORT (TYPE OF INTERVENTION) 1995 1996 MECU % MECU % 170. 10 70. 88 189. 59 67. 71 24. 41 0 45. 49 240 10. 17 0 18. 95 100% 72. 71 0 17. 70 280 25. 97 0 6. 32 100% Feasibility studies Interest rebates Loan guarantees Direct grants TOTAL As Table 6 shows, by far the greater part of Union spending on transport under Regulation 2236/95 goes to rail projects. This reflects the fact that this mode is given high priority at national and Union level and that great efforts are being made to advance these projects which are, in many cases, characterized by their particularly high cost, large scale and cross-border nature. But it also translates the Commission's political commitment to favour transport modes that are as environment-friendly as possible. TABLE 6: TRANSPORT PROJECTS (MODE) 1995 1996 MECU 165. 16 18. 81 0 0. 52 2. 59 52. 92 % 68. 82 7,83 0 0. 22 1. 08 22. 05 MECU 173. 62 35. 37 1. 50 3. 66 3. 77 62. 08 % 62. 01 12. 63 0. 54 1. 30 1. 35 22. 17 240 100% 280 100% Rail5 Road Inland waterways Sea / ports Air Traffic management TOTAL Includes partially combined transport 14 B. STRUCTURAL FUNDS The Union's Regional (ERDF) and Cohesion Funds are by far the main source of Union grants for TEN projects, as table 1 above clearly brings out. The Regional Fund finances TEN and TEN-related projects in Objective 1 areas while the Cohesion Fund finances TEN projects in the four "Cohesion Member States" (Greece, Ireland, Portugal and Spain). B. l Regional Fund In 1996, the following programmes and projects were the main beneficiaries of commitments for funding; details are to be found in Annex VII: Energy • The introduction of natural gas into Portugal and the interconnection of the Portuguese grid to the Spanish networks under INTERREG II; • The Spanish section of the Algeria-Morocco-EU gas pipelines and extensions to some Andalusian cities; • The introduction of natural gas into new Spanish regions (Western pipeline project and the Valencia-Orihuela-Cartagena project); • Upgrading of the existing LNG terminal at Huelva and Cartagena. Telecommunications: • Improvement of the telecommunications networks in Greece Transport: • PATHE and VIA EGNATIA motorways in Greece; • Athens - Thessaloniki railway; • Trunk roads in Italy; • Trunk roads in Ireland. B. 2. Cohesion Fund Table 7 below gives the annual commitments made by the Cohesion Fund in favour of TENs transport projects since 1993 in each of the beneficiary Member States. These figures include commitments for projects adopted in the year in question as well as new annual instalments for projects adopted previously. 15 Table 7: Cohesion Fund financing of TENs projects - total by Member StateCommitments 1993-1996(MECUS) MEMBER STATES 1993 1994 SPAIN PORTUGAL GREECE IRELAND 606. 4 498. 9 160. 8 200. 2 105. 1 86 134 96 1995 610. 2 240. 5 159. 7 97. 2 19966 711. 2 187. 5 88 101. 3 1993-199 2426. 7 789 486. 8 380. 5 TOTAL 958. 3 929. 1 1107. 6 1088 4083 Table 8 provides a breakdown of amiual commitments by transport sector. This illustrates the continuing predominance of roads in Cohesion Fund financing, reflecting the needs and priorities of the Member States concerned. However, in terms of absolute figures, the financing of other transport modes such as railways and ports is nevertheless important. Table 8: Cohesion Fund financing of TENs projects - by transport sector Commitments 1993-1996 Sector 1993 1994 1995 19967 Total 1993- 1996 Mecu 672. 6 % 70 Mecu % Mecu 619. 6 66 832. 5 % 75 Mecu % Mecu 837. 5 76 2962. 2 % 72 Roads & motorways Railways 162. 2 16 278. 5 29 178. 4 16 218. 8 20 837. 9 20 Ports Airports Vessel Traffic Systems Total 16. 1 91. 7 15. 6 1 9 1 31 0 0 3 0 0 67. 4 23. 7 5. 5 6 2 1 16 15. 7 0 1 1 0 130. 5 131. 1 21. 1 o j o J 0 958. 2 100 929. 1 100 1107. 5 100 1088 100 4082. 8 100 Provisional Provisional 16 A table in Annex VIII gives the latest position regarding assistance from the Cohesion Fund for the five specific projects which directly concern the Cohesion countries, namely : High-speed train south, Greek motorways, Lisbon-Valladolid motorway, Cork-Dublin-Belfast rail link and the Ireland-UK-Benelux road corridor. For a variety of reasons, progress on these projects has been slow this year, with the only additional financial commitments so far being made in favour of the Republic of Ireland section of the Ireland-(UK)-Benelux priority project. C. EIB AND ECSC LOANS The EIB has a long experience in the financing of infrastructure of European interest and has always considered the development of the trans-European networks as one of its priorities. Since the previous report, the EIB has substantially extended its commitments and its lending to the TENs for most of them in conjunction with Community budgetary resources, while developing the utilisation of its TEN window on numerous occasions. Since November 1995, ECU 9 300 million of loans for 41 projects have been approved by the EIB's Board of Directors for transport projects on the TENs. It represents an average of about 30% of their total cost. Loans for these projects and previous ones approved totalling ECU 1 800 million have been signed to date, an increase of more than 50%) on the situation described in the report to the Madrid European Council in December 1995. On the 14 specific projects adopted in Essen, the EIB has already granted loans for 9 of them or their initial phase for an amount of ECU 5 500 million (out of ECU 8 000 million committed for financing). This is an increase of 40% on approvals and 32% on loans contracts over last year's activity, due mainly to new loans for the PBKAL HST, the Ôresund link and the Nordic triangle. Using its TEN window facility, the EIB has extended maturity for several projects and approved ECU 250 000 of subsidies for preparatory studies concerning some Austrian sections of the Brenner axis. During the same period, the EIB's Board has approved loans totalling ECU 1 500 million for 8 projects on gas and electricity TENs, about 27% of their total cost. To date, ECU 2 200 million have been signed. It represents an increase of 126%) on the Madrid report figure. EIB financing has been approved for seven of the ten priority projects adopted at the Essen Council for ECU 2 200 million since 1993 of which loans contracts totalling ECU 1 600 million have been signed, for projects like the Greek gas pipeline, the Algeria/Morocco/Iberian Peninsula project and the Russia-Poland-EU gas pipeline. In parallel with its growing involvement in favour of transport and energy TENs projects, the EIB contributes actively to the development of telecommunication networks of European interest. Since last year, the EIB's Board has approved ECU 2 300 million of loans for telecommunication network projects and loan contracts amounting to ECU 4 700 million have so far been signed mainly for mobile telephony, telecommunication satellite and optical fibre rail network. 17 During the year 1996, the Commission has approved 4 ECSC loans for a total of ECU 329 million for the benefit of TEN projects. The most significant loan approvals concern the Ôresund and Transgas projects for a total of ECU 293 million. These loans have not yet been disbursed. D. EIF As of 31 October 1996 the total EIF portfolio of outstanding signed operations since inception was ECU 1229 million. Of this TEN projects accounted for 90%o (transport 38%o, energy 37%) and telecommunications 15%>). In the course of 1996 the EIF signed loan guarantees of ECU 615 million for 10 projects (transport ECU 303 million, energy ECU 240 million and telecommunications ECU 9 million). The Fund has guaranteed financing in the following specific projects: Malpensa Airport, Natural Gas Network in Portugal, Gas Interconnection Portugal-Spain and the Channel Tunnel Rail Link section of the PBKAL HST. The EIF plans to involve itself in the financing of other specific projects adopted at Essen. Following the decision of its General Meeting in June the EIF will be able to take equity holdings in initiatives linked to TEN projects (See also chapter 5 D). The Fund's activities in this domain will initially be modest. E. IDA In 1996 the Union plans to spend ECU 24 million on the horizontal actions, generic services and 25 specific sectoral projects that compose the IDA programme (the TEN financial regulation does not apply to the IDA programme). The table below gives the main items of expenditure; a detailed list of the projects financed is to be found in Annex VI. Table 11 : IDA spending8 SERVICE TOTAL BUDGET (ECU) D GI DGIII DGIV DG V DG VI DG XIV DGXV DG XXI Eurostat Informatics Directorate AGENCIES Secretariat-General Generic services all sectors GRAND TOTAL F. EVALUATION 850 000 3 710 000 400 000 1. 837 000 1 290 000 250 000 1 100 000 5 555 000 3 050 000 1 015 000 225 000 1 200 000 3 518 000 24 000 000 In line with the SEM 2000 programme, the Commission is taking steps, in close collaboration with the Member states, who have a major and central role to play, to reinforce the monitoring and evaluation of projects and policies. The TEN financial assistance committee discussed the matter at its meeting on 25 July 1996. These figures are based upon a budget resulting from the assignment of ECU 6 million to the EDICOM programme and upon the assumption that ECU 7. 5 million presently in reserve will be released by the European Parliament. Furthermore, due to the late adoption of the IDA decision a number of measures were carried forward from 1995 to 1996 for a total value of ECU 15. 798 million. These measures are NOT included in the above table. 19 5. FINANCING THE TEN: OTHER ISSUES A. TRANS-EUROPEAN TRANSPORT BUDGET Following the conclusions of the Essen (December 1994), Cannes (June 1995) and Madrid (December 1995) European Councils with regard to the financing of the priority transport projects, the Commission tabled, in April 1996, a proposal to revise the financial perspectives with a view of increasing the funds available for the TEN-T by ECU 1000 million. This proposal was based on the identification of additional needs for TEN-T assistance of ECU 1700 million during the period 1997-1999; these additional needs were calculated on the basis of preliminary requests submitted by Member States and resulted from thorough analyses, especially of the specific projects identified by the Essen European Council, carried out by Member States, the Commission and the European Investment Bank during workshops, seminars and bilateral discussions. On the occasion of the Florence European Council, President Santer presented a revised proposal. Following this, the ECOFIN Council set up an ad hoc group of Representatives of the Ministers of Finance, presided by Mr. Gallagher. During three meetings, held in July and September, the "Gallagher group" examined the proposal without, however, reaching agreement about a "top-up". In its final report submitted to the ECOFIN Council, this group recommended, however, that: i) ii) iii) iv) projects which are ready should go ahead using the existing resources; the Council should confirm the priority nature of the TENs and current planned budgetary provisions for TENs should be respected; every effort should be made to remove non-finàncial delaying factors; the question of reallocation could be considered within the relevant normal budgetary procedure for the Budgets of 1998 and 1999. On 14 October, the ECOFIN Council endorsed the Gallagher report. B. PUBLIC/PRIVATE PARTNERSHIPS (PPP) General In line with the requests of the European Council, the Commission has, throughout 1996, continued to seek ways of facilitating public-private partnerships as a means of financing the TEN; as in previous years, this analysis was done in a "bottom-up" approach by focusing on the specific transport projects. 20 During the course of 1996, Commission services have been actively involved in informal consultations with a representative group of experts from the private sector in the field of transport construction, with the aim of examining the obstacles to PPPs and finding possible solutions from the construction industry's perspective. However, following the establishment of the High-Level Group on Public-Private Partnership Financing of Trans-European Network Transport Projects ("Kinnock Group": see below), it was agreed by all concerned to continue these discussions within the larger framework of the High-Level Group. The preliminary findings drawn from these consultations, together with the outcome of analysis done previously on various other issues related to PPP, formed the basis for a discussion paper tabled to the Kinnock Group. In its report on "The Impact and Effectiveness of the Single Market9" the Commission stressed that "overcoming the barriers to PPP should be a priority for the Union in order to make sure that priority investment plans are executed in time". This is potentially important for transport where most of the financing difficulties are encountered. Regrettably, for the same reasons as explained in the 1995 report to the Madrid European Council10 (paras. 28-34), progress in some Member States towards PPPs has not been encouraging. It should be noted, however, that several PPP-type transport projects are proceeding, notably in Greece, the UK, Italy, Germany, Austria, Denmark and Sweden. In the telecommunications sector, the financing of trans-European networks projects is primarily a matter for the private sector and market forces. However public support in the framework of Public Private Partnerships has also a role to play in stimulating the launch of projects whose socio-economic viability is recognised but whose short term commercial profitability is not high enough to mobilise private investment. Kinnock High-Level Group At the informal Transport Council in Rome on 12-13 April Commissioner Kinnock suggested that a High-Level Group, comprising personal representatives of the Ministers of Transport and/or Finance and members of the private sector and the EIB, could be set up to find ways of accelerating the implementation of public-private partnerships; especially as regards TEN specific transport projects. This proposal received broad support from the Transport Ministers and was strongly backed by President Santer in the context of his initiative for a Confidence Pact on employment. The High-Level Group on Public-Private Partnership Financing of Trans-European Network Transport Projects (the "Kinnock Group") held three plenary meetings on 23 September, 11 October and 28 November, establishing five sub-groups: two on the "HST East-European" and the "HST South" projects, and three on more horizontal issues, namely "New Public-Private Partnerships in the Railway Sector", "Legal and 9 COM(96) 520 final 10 CSE (95) 571 21 Administrative Issues" and "Economie and Financial Issues". The HLG and its sub groups will examine problems identified at Union level and thoroughly explore possible solutions with regard to the establishment of public-private partnerships. The final report, to be submitted to the European Council in June 1997, is expected to draw conclusions with respect to various issues currently affecting the progress of transport infrastructure projects. The negative decision with regard to the top-up of the transport TEN budget line is expected to affect the progress of several projects, in particular the large cross-border rail projects. In a number of these cases, additional transport TEN funding would have helped facilitate private-sector involvement (reduction of risk through co-financing of trial bores for expensive tunnels, contributions to settling financing plans, etc. ). In the face of this, the Kinnock Group is challenged to seek solutions to advance projects as much as possible, despite being limited in the funds available for the transport TEN. The Group's work should also provide a solid basis for a possible re-consideration of budgetary issues as set out in the recommendations of the Gallagher Group. Public policy risks consultation In its report to the Madrid European Council (para. 32) the Commission announced that it was examining ways of reducing public policy risks, since these had been identified by the private sector as a particular obstacle to its involvement in PPPs. In the first half of 1996 the Commission services drafted a working paper which identified various options in this respect. The issues are being considered within the framework the Kinnock High-Level Group, with a view to reaching conclusions on the scope for action at Union level. C. EIF EQUITY PARTICIPATION On 18 June the EIF General Meeting in Lisbon voted to allow the Funds, as provided in its Statutes, to undertake equity operations, thus allowing the EIF henceforth to invest directly in individual TEN projects. The Commission welcomes this step whilst acknowledging that initially the resources available for this purpose will be limited. 22 6. EXTERNAL RELATIONS A. CENTRAL AND EASTERN EUROPEAN COUNTRIES (CEEC) TINA (Transport Infrastructure Needs Assessment) Following the decision taken by the Transport ministers at the September 1995 structured dialogue meeting, a working group, made up of senior officials from the 15 Union Member states and the ten applicant central and eastern European countries, was set up to undertake jointly a transport infrastructure needs assessment (TINA) of the enlarged Union based on the transport TEN guidelines for the present Union adopted recently. It held two plenary sessions in May and July, adopted its terms of reference and had a discussion on financing problems. It established three geographically orientated sub-groups which met in October to begin a review of the national transport infrastructure plans of the acceding countries in the light of the guideline requirements. The TINA group will report to the transport TEN Network Committee. The outline plans for an enlarged transport TEN are scheduled for discussion with a wider audience at the end of 1998. Helsinki Pan-European Transport Conference The Commission, the EIB and the Member states together with the ECMT and the UN-ECE have been busy preparing for the June 1997 Third Pan-European Transport Conference at Helsinki, in particular on adjustments to the "Crete" corridors to take into account changes in the political environment since 1994, such as the peace process in former Yugoslavia. In addition, memoranda of understanding on the development of the Via Baltica and of "Crete" Corridors I and III were signed in the course of the year and that on Corridor V has advanced almost to the point of signature. PHARE The Commission has continued to support actively through the Phare programme actions aimed at connecting Central European Countries with the Union's TENs. Around ECU 280 million have been earmarked in 1996 for assistance programmes to the transport sector. The bulk of these funds aims at developing the "Crete Corridors". Phare has provided assistance for all the nine Corridors, ranging from pre-investment and feasibility studies to the actual co-financing of physical infrastructure projects, with a special focus on the transit facilitation at border crossings situated on the Corridors. Electricity link-ups As regards the development of energy TEN between the Union and its neighbours, a major step forward was taken in December 1995 when the CENTREL electricity grid, involving Poland, Czech Republic, Slovakia and Hungary, was linked up with the UCPTE grid, which covers Western Europe outside of Scandinavia. The extension of the expanded UCPTE grid to the Balkan countries and the establishment of connections and interfaces with the CIS countries are currently being studied; these studies are being funded under the PHARE, TACIS and TEN programmes. In September the Commission set up a task force, within the Black Sea regional energy centre, to draw up a list of priority energy interconnections in the Balkans; this list will cover both electricity and gas. Another important development is the Baltic Ring electricity study, co-financed by the Union and covering all the countries in the Baltic area. Natural gas link-ups Of particular importance this year has been the completion of the first section of the Russia-Belarus-Poland-EU gas pipeline and the improvement of the gas transport network in Bulgaria to ensure the transport of Russian gas to the new Greek gas network. An important feasibility study has also been launched on the construction of a new pipeline to deliver Russian gas to Italy via Ukraine-Slovakia-Hungary-Slovenia. The year under review has also seen a study of the Nordic gas grid and of many other projects, such as Austria-Hungary, Austria-Slovakia and Germany-Czech Republic- Austria-Italy. Further details on all these projects are to be found in Annex I. Finally, studies of further East-West gas interconnections and of regional projects of interest to central and eastern European countries and/or Union Member states have been or are currently being financed under the PHARE programme, including a study of the Baltic area just completed. Energy Charter Following the signature of the Energy Charter Treaty and the Energy Charter Protocol on energy efficiency and related environmental aspects on 17 December 1994, the process of ratification by the European Union is ongoing: Member States (at least a majority of them) are expected to finalise their ratification process by the end of the year. Ratification by at least 30 countries is necessary for the Treaty to enter into force; meanwhile, the Treaty will be applied by most of the contracting parties on a provisional basis. EU-CEEC Forum on the information society. Ministers from the central and eastern European countries met with Commissioner Bangemann and with representatives of the industry, research organisations and financial institutions of the Union in Prague in September 1996. The Forum provided a platform for information exchange and discussion on the various aspects of the Information Society including strategy and policy formulation and implementation of 24 demonstrations and pilot projects. These projects were further discussed on 8 October in the framework of the "structured dialogue" between the EU "Industry" Council and the ministers from the CEEC; four working groups were set up. B. MEDITERRANEAN BASIN COUNTRIES Electricity link-ups The Mediterranean Basin countries are not connected to the UCPTE network, but a project to link up Spain and Morocco is under way and work has begun on the first stage of a connection between Greece and Turkey. Natural gas link-ups This year saw the [near] completion of the gas pipeline which will transport Algerian natural gas, via Morocco, to Spain and Portugal initially and to other Union countries at a later stage. This project was one of the specific projects identified by the Essen European Council. Work is also well-advanced on a second pipeline between Algeria and Italy via Tunisia. Euro-Mediterranean forum on energy As a follow up to the Euro-Mediterranean Conference in Barcelona in December 1995, the Italian Presidency organised a Euro-Mediterranean ministerial conference on energy questions in Trieste on 7-9 June 1996. The Commission adopted on 3 April a communication on "A Euro-Mediterranean partnership in the energy sector"11. This document sketches out the main lines of action the Commission intends to pursue in the follow-up to the Barcelona Euro-Mediterranean Conference as regards energy and highlights energy TEN as one of the main areas of cooperation between the Union and the countries of the Mediterranean Basin. The Trieste Conference approved a work programme and agreed to set up a Euro-Mediterranean energy forum to oversee its implementation. Euro-Mediterranean forum on the Information Society The Italian presidency also organised a Euro-Mediterranean forum on the Information Society in Rome on 30-31 May 1996. This conference brought together some 300 top- level participants and laid the foundations for increased cooperation between the two sides of the Mediterranean particularly in the fields of infrastructures and norms. Transport Discussions on linking-up the Union's transport TEN with the countries of the western Mediterranean Basin took place in the context of the meetings of the Western COM (96) 149 25 Mediterranean Transport Ministers (particularly at their second meeting in Rabat on 22 September 1995). Only preliminary work has yet been undertaken in the eastern part of the Mediterranean although a meeting on regional integration in the transport sector in the Eastern Mediterranean will be organised by Cyprus in spring 1997. Maritime transport is of paramount importance in linking the countries of the Mediterranean Basin to the Union and at a meeting in Cyprus on 14-16 October the EU and its Mediterranean partners examined ways to implement a multi-annual rolling work programme for maritime transport in the Mediterranean, including the identification of possible projects of mutual interest suitable for Community financing. The Union held bilateral discussions in October with Malta and Cyprus concerning their participation in the TEN. C. OTHER COUNTRIES Several electricity and natural gas projects linking the Union and Switzerland and Norway are currently under way or planned (see Annex I for details). The Commission services launched a tender in July 1996 for a comparative study of surface transport routes between Europe and Asia (following up on an independent initiative foreseen pre-ASEM). Work is to start in March 1997, with the final report due in September 1997. 26 7. POLITICAL AND REGULATORY PROBLEMS A. ENERGY Several priority projects in the electricity sector are continuing to be confronted with difficulties of an administrative nature, due primarily to delays in the granting of building authorizations. These delays arise generally from the opposition of local environment protection bodies, which is reflected in the attitude of local and, to some extent, the national administrations. This is true in particular of the electricity interconnection projects between France and Italy, France and Spain (the French authorities announced unilaterally on 1 February that they were abandoning the planned route and looking for another), Italy and Greece (opposition by the municipalities concerned to the planned route) and, to a lesser extent, Spain and Portugal. B. TELECOMMUNICATIONS In the telecommunications sector, the term "infrastructure" covers the three layers of a network: bearer physical infrastructure, generic services and applications. In this sector, the bottleneck is mainly the availability of applications and services matching the socio-economic needs of the citizens and of the SMEs. In this domain, the uncertainty on short term commercial viability, due to the innovative character of the application or service or difficult organisational requirements can discourage the private initiative. The Union intervention will be used to reduce the financial risk created by these uncertainties and allow an interesting application or service of public interest to be launched on a trans-European basis in the framework of a public - private partnership. C. TRANSPORT Diverging priorities among Member States involved in the specific projects constitutes, in some cases, a delaying factor in the preparatory phase. It seems therefore crucial to underline further the Union benefit of the transport TEN projects (and to develop appropriate methods to quantify this benefit). On this basis, Member States should take account of the guidelines decided at Union level and adapt their national priorities to European priorities; Union financial instruments should support this objective. The legal framework may, in certain cases, not be sufficiently adapted to the specific needs of large-scale transport infrastructure projects in the transport sector, or the application of existing rules requires early clarification. As regards the development of public-private partnerships, problems have in particular been identidfied with respect to transport pricing, public procurement and the European Company Statute. The High-Level Group on public-private partnership is analysing these problems; no conclusions, however, can be drawn at this stage. 27 As far as the competition rules are concerned, the Commission has adopted guidelines in its 1995 report on TENs, in particular to speed up the procedures. Once a specific agreement has been notified, and provided that the parties have contacted the Commission, the Commission will take the final decision within 6 months. 8. THE TEN AS A SOURCE OF EMPLOYMENT A. CONFIDENCE PACT In the "Confidence Pact" which he unveiled on 5 June, President Santer stressed that the implementation of the TEN and the construction of the 14 specific projects could contribute substantially to creating employment, directly and indirectly (the Confidence pact" covers of course a much wider field than just the TEN). This echoed the ideas underlying Title XII of the Treaty and the arguments put forward in the Commission's 1993 White Paper on "Growth, competitiveness, employment". The TEN, in addition to their immediate benefits for the energy, telecommunications, transport (and environment) sectors, will also have a broader positive impact on social and economic cohesion, on the implementation of the internal market and on growth, competitiveness and employment. B. REPORT TO THE EP In a resolution on the 1997 budget voted at the end of its March session in Brussels the EP asked the Commission to submit to it a report on the employment creation potential of the TEN. The Commission plans to submit its report presenting a first tentative assessment ("The likely macroeconomic and employment impact of investments in trans-European transport networks") to the Parliament in November. The executive summary of this report is to be found in annex X; its main points are : - The economic effects of the completion of the 14 specific projects identified by the Essen European Council are highly positive: the cumulative gain in GDP would exceed 560 billion ECU by the year 2030. This represents a socio-economic return of some 11%. - The completion of the 14 specific projects identified by the Essen European Council would create additional employment of 700,000 man years during the first decade (1998-2007). The construction of the full transport TEN as set out in the Community guidelines would lead to an increase in employment of some 3,200,000 man years. - Based on a set of cautious assumptions, the range of estimates for long term permanent employment effects in the economy as a whole is between 130,000 and 230,000 extra jobs for the 14 Essen projects and between 594,000 and 1,030,000 extra jobs for all the projects in the T-TEN guidelines. However, if workers could be persuaded to take the productivity increases resulting from TEN investment in additional employment rather than higher real wages, then the increases in jobs would be dramatically higher: from at least 570,000 in the case of the 14 Essen projects, to as much as 4,700,000 for the whole network. 29 - It is important to point out that the above-mentioned estimations are based on the assumption that there is no significant overcapacity in the economy and that, therefore, T-TEN investments tend, in the short-term, to crowd out some alternative investment projects that would otherwise be undertaken. However, the present macroeconomic environment in the European Union with high unemployment and low interest rates indicates that significant spare capacity seems to be available. Accordingly, it can be expected that a political push for quick T-TEN implementation would generate even more jobs than estimated on the basis of the conservative assumptions used in this report. - Macroeconomic and structural policies are particularly important for likely employment effects. This is especially true for those policies that influence the functioning of goods, capital and labour markets by enhancing competition, reducing rigidities and facilitating structural adjustment. - Transport infrastructure investments on their own will clearly not solve Europe's unemployment problem and T-TENs should not be judged solely on their ability to create jobs. Other important benefits are likely to accrue. At the same time DG XIII and DG XVII undertook more limited studies of the employment creation potential of TENs in the telecommunications and energy sectors respectively. It is important to note that the methodologies used in these two studies are not the same as that used in the report for the EP and therefore the results cannot be compared. The DG XIII desk study reviews the results of the most recent studies which have attempted to investigate the impact of investment in telecommunications and the development of the information society on employment, and to derive from the fragmented views which they offer the likely impact of the ECU 2 000 million expected to be generated by Community action. Using relatively optimistic assumptions, it estimates that a pro-active scenario of ICT investments such as the 150 -billion ECU mentioned in the Commission's White Paper on Growth, Competitiveness and Employment over a 15 year period (1993-2008), would result in a long term 1. 3% incremental increase in job creation. For each million ECU of TEN investment induced by the Community contribution there would be a long term increase of 12 jobs. On the other hand, studies made at national level indicate that the number of jobs created for every ECU 1 million invested in the information infrastructure lies in the range of 2. 5 and 37. 5 jobs. In a different context, a recent study of the impact of telecommunications liberalisation on employment in Europe indicates that the combined effects of liberalisation and technology diffusion spearheaded by infrastructure investments, notably in alternative infrastructures and interactive multimedia applications, could, according to one of the scenarios, create 900,000 jobs by 2005. The report stresses that "these numbers have to be treated with extreme caution as there are based on extrapolations from different countries, which themselves are subject to considerable methodological and practical difficulties and uncertainties. In particular, considerable difficulties exist in trying to accurately quantify the multiplier 30 effects of investments in telecommunications infrastructures that can "spill over" onto almost every other sector of the economy. " According to the DG XVII study, "available figures on temporary employment show that approximately 20,000 man-years can be expected during the building phase of a sample of electricity networks (corresponding investments: 1,300 MECU) and approximately 15,000 man-years in the building of a sample of gas networks (for investments of 2,600 MECU). Taking into account the (small) differences in projects, - and adjusting for the extent of inaccuracy in the figures provided, lead to rough estimates of 65,000 man-years for a total (actual blown) investment of 4,000 MECU on electricity networks and 35,000 man-years for a total (actual known) investment of 11,500 MECU on gas networks. This predicted total of 100,000 man-years should be spread over the duration for building the energy TEN (between 5 and 10 years: average of 10,000 to 20,000 man-years a year). " 31 9. OTHER UNION POLICIES WITH A TEN DIMENSION A. EUROPEAN COMPANY STATUTE The Commission takes the view that "project authorities" should be created - at least temporarily - to organise and implement major infrastructure projects. The development of such authorities would be facilitated if a European Company Status existed, which would allow their development into profit-making bodies once construction starts. At present no suitable legal vehicle exists at Union level, thus unnecessarily increasing project costs and hampering development. The "Confidence Pact" which the Commission submitted to the Florence European Council stressed the need for the Council to adopt the ECS as quickly as possible. In the absence of progress on the ECS the Commission is studying the possibility of proposing a limited form of ECS tailor-made for TEN projects. B. COMPETITION POLICY Evolution of the situation since the last report In the course of 1996 the Commission pursued its efforts to provide parties involved in the financing of TEN with all the necessary information on the competition rules that would allow them to qualify for exemptions decisions. As announced in the 1995 TEN annual report, the Commission set up a one-stop help desk (fax+32-2/295 65 04) to advise project managers and other interested parties as regards Union legislation on competition policy and public procurement. Few requests for information were made. Those that were made were dealt with promptly and to the satisfaction of the inquirers. C. PUBLIC PROCUREMENT In order to avoid delays in projects as a result of misunderstandings related to the Union's public procurement rules, the Commission also recommended in its 1995 annual report on the TEN that project managers of the 14 specific projects should consult the Commission before the publication of tender documents. For this purpose a One-Stop Help Desk (fax +32-2/295 65 04) was established in the Commission to channel such requests. The number of consultations made in 1996 was small. To inform all interested parties about the possibilities for public/private sector cooperation offered by the Union's public procurement rules and allow them to express and discuss their project needs, a Green Paper on public procurement in the EU will be issued in the course of the following months. 32 D. COMPLEMENTARITY WITH STRUCTURAL POLICIES As the figures in Table 1 of Chapter 4 show, the Structural Funds are by far the main source of Union funding for the TEN. It is vital therefore that the Member states ensure continuing horizontal and vertical coordination between on the one hand their departments dealing with transport, energy, telecommunications, and, on the other hand, the various levels of national, regional and local administration involved in channelling financial assistance from the Structural Funds. In practical terms it is essential that officials whose primary concern is regional development should be adequately informed and kept up-to-date as regards the Union's TEN policy. E. TRANSPORT POLICY The Commission made in the course of the last twelve months two transport pricing proposals which are directly relevant to the development of TENs tlirough PPPs and to ensuring fair competition among the different modes of transport. In its Green Paper "Towards fair and efficient pricing in transport"14 the Commission devotes one of the chapters to the question of infrastructure costs and congestion, pleading for cost recovery through user charges and pointing out the importance of efficient infrastructure pricing to facilitate the introduction of PPPs. The second proposal12 aims at renewing the "Eurovignette" 93/89/EEC directive with a view, further to the general objective of furthering the development of the internal market in road transport, to ensuring a better recovery of costs associated with road use, including infrastructure recovery plus externalities. This would allow for a greater differentiation in charges in line with costs, and would be a step towards the principle of territoriality in charging for road use. The various green and white papers which the Commission adopted in the course of the last 12 months on "A citizens network13", "Towards fair and efficient pricing in transport"14 and "The revitalisation of Europe's railways"15 have contributed in a broad way to create a more favourable context for TEN. F. ENVIRONMENT The green and white papers mentioned above have also helped create a greater awareness of the need to ensure that the development of the TEN should be compatible with the Union's environment protection and sustainable development policies. The Commission has on several occasions expressed its intention to study further the environmental consequences of the trans-European transport network. The Decision of the European Parliament and the Council of 23 July on Community guidelines for the development of the transport TEN requires the Commission to develop methods for the strategic environmental assessment of the whole network and COM (96) 331. 24 July 1996 COM (95) 601 of 21 November 1995 COM (95) 691 of 20 December 1995 COM(96) 421 of 23 July 1996 33 for corridor assessments. The results of this work shall, where appropriate, be taken into account by the Commission in its report on the revision of the guidelines, which is due on 1 July 1999. The Commission services have started technical work with a view to responding to this requirement. 34 ANNEX I: PROGRESS MADE ON THE ENERGY NETWORKS IN 1996 • Projects of common interest included in the Guidelines (Decision no 1254/96 EC of 5 June 1996 O. J. no L 161) and • Projects proposed by the Commission for inclusion in the Guidelines (COM (96) 390 of 24 July 1996). (in italic) (Short indication of the stage reached by these projects by end 1996) ELECTRICITY NETWORK PROJECTS PROJECT STAGE REACHED AND E. U. FINANCIAL INTERVENTION al UNITED KINGDOM Connection by submarine cable of Northern Ireland to Scotland. * Island Magee-Coylton a4 GREECE - ITALY Connection by submarine cable of Greek network to Italian network through north-western Greece and south-eastern Italy. * Ipiros-Puglia u7 UNITED KINGDOM Connection by submarine cable of the Isle of Man. Authorisation procedures ongoing. Expected commissioning: 1997. EU financial intervention CSF: 81 MECU. Project declared as "priority project" at the Essen Summit (December 1994). Study completed but construction delayed by authorisation procedures. EU financial intervention REGEN: INTERREG: EIB loan: 35 MECU 78,5 MECU 100 MECU Pre-feasibility studies ongoing. Commissioning Autumn 1999. EU financial intervention TEN line: co-jinancing of studies (under appraisal) bl GERMANY - DENMARK Connection by submarine cable between the German network (UCPTE) and Denmark's eastern network (NORDEL). This project became operational in 1996. * Bjawerskov-Bentwisch _ I 35 b4 FRANCE - BELGIUM Completion of connection between the two countries' networks through north-eastern France and southern Belgium. Authorisation procedures ongoing, Commissioning: 1999. * Moulaine-Aubange. b5 FRANCE- GERMANY Strengthening of the connections between the two countries. Authorisation procedures ongoing. Commissioning in 1999 b6 FRANCE - ITALY Connection between the two countries' networks through south- eastern France and north-western Italy. * Grand île-Piossasco b7 FRANCE - SPAIN Land connection between the two countries' networks through south-western France and northern Spain. ' * Cazaril-Aragon or alternative route/layout. Project declared as "priority project" at the Essen Summit (December 1994). Authorisation procedures ongoing, Expected beginning of works: 1998. Commissioning: 2000. EU financial intervention TEN line: co-financing of studies in 1995. Project declared as "priority project" at the Essen Summit (December 1994). Project suspended. 75% of the Spanish line built, Feasibility studies on new routes ongoing. EU financial intervention TEN line: co-financing of studies in 1995 [and in 1996]. b9 BELGIUM - LUXEMBOURG Connection between the two countries' networks. * Aubange-Bertrange Authorisation procedures ongoing. Commissioning: 2000. 36 blO SPAIN - PORTUGAL Strengthening and completion of connections between the two countries through the regions of northern Portugal and north- western Spain. Project declared as "priority project" at the Essen Summit (December 1994). * Aldeadavila-Douro International. * Mesôn-Lindoso Pre-feasibility studies. Expected beginning of works: 2002. Commissioning: 2004. In operation since December 1995 through a longer circuit. The complete project will be operational in the beginning of 1997. EU financial intervention CSF (Spain) EIB loan: 3 MECU 26 MECU blO(a) SPAIN - PORTUGAL New connection between the two countries through the Southern region of Portugal and the South-West of Spain Prefeasibility studies, Commissioning: after 2000. b ll FINLAND - SWEDEN Strengthening interconnections north of the Gulf of Bothnia. Project decided. EU financial intervention TEN line: co-financing of studies in 1995 [and in 1996]. bl2 AUSTRIA - ITALY Strengthening connections between the North of Italy and the Austrian network. * Lienz-Cordignano. Authorisation procedures ongoing. Commissioning: 2002. EU financial intervention TEN line: co-financing of studies in 1995. bl3 IRELAND - UNITED KINGDOM (N. IRELAND) Strengthening of connections between Ireland and Northern Ireland. Pre-feasibility studies ongoing. EU financial intervention TEN line: co-financing of studies (under appraisal) bl4 AUSTRIA - GERMANY Strengthening of the connections between the two countries. Commissioning: after 2000. 37 bl5 THE NETHERLANDS- UNITED KINGDOM Connection by submarine cable between south-eastern England and central Netherlands. c2 DENMARK Connections by submarine cable between the country's western (UCPTE) and eastern (NORDEL) networks. Pre-feasibility studies ongoing, EU financial intervention TEN line: co-financing of studies (under appraisal) Project declared as "priority project" at the Essen Summit (December 1994). Project decided. Discussions on the financing of the project are taking place. The initial date for commissioning (1997) has been postponed. c3 THE NETHERLANDS Strengthening connections in the North-East of the country. Under construction. * Zwolle-Meeden-Eemshaven. c4 FRANCE Strengthening connections in the North-East of the country. Authorisation procedures ongoing. Commissioning: 1999. * Sierrentz-Mulbach. c5 ITALY Strengthening and developing connections on the East-West axes in the North of the country and on the North-South axis. * 15 sub-projects. c5(a) ITALY Some sections are under construction and others in the authorisation procedure phase. Commissioning from 2001 to 2004. EU financial intervention TEN line: co-financing of studies in 1995. Strengthening and development of connections on the East-West axis in the North-West of the country and on the North-South axis in the centre of the country. Feasibility studies ongoing. Commissioning: from 2000 to 2002. EU financial intervention TEN line: co-financing of studies (under appraisal) c6 SPAIN Strengthening and developing connections in the regions in the North of the country and in the regions along the Mediterranean axis. North axis: two out of three sections are under construction, the other in the feasibility study phase. Commissioning will vary from 1996 to 2000. Mediterranean axis: the sections of the South are under construction and the expected commissioning date is 1997. The section that will connect with France is in the feasibility study phase and commis sioning is expected for the year 2004. EU financial intervention: EIB loan (25,1 MECU) for the line Pinar-Tajo. TEN line: co-financing of studies in 1995 [and in 1996]. c7 PORTUGAL Strengthening connections necessary for interconnections with Spain in the North and Centre of the country. * Recarei-Douro International Feasibility studies. Commissioning: June 2001. Pego-Rio Maior II. c8 GREECE Authorisation procedures ongoing. Commissioning: September 98. EU financial intervention: TEN line: co-financing of studies for the Recarei-Douro International line in 1995. Strengthening connections on the East-West axis in the North of the country. Prefeasibility studies. Commissioning : 2000-2002. c9 IRELAND Strengthening of connections in the North-West of the country. Feasibility studies ongoing. clO SPAIN Strengthening and development of connections in the North-East and West of the country, in particular to connect to the network production capacities of electricity generated from wind-power. Pre-feasibility studies ongoing, Feasibility studies and Environmental Impact Assessments in 1997 and 1998. EU financial intervention TEN line: co-financing of studies (under appraisal) 39 ell SWEDEN Strengthening and development of internal connections. Feasibility study in 1997. cl2 GERMANY Development of connections in the North of the country. d2 GERMANY- POLAND Strengthening of the connections between the two countries. Some sections under construction. Other sections: authorisation procedures ongoing. Planned commissioning of the complete project: 1998. Hagenwerder (DE) - Mikulowa (POL): commissioning 1998. Neuenhagen - Vierraden (DE) - Krajnik (POL): commissioning after 2000. d3 GERMANY- NORWAY Connection by submarine cable between northern Germany (UCPTE) and southern Norway (NORDEL). Feasibility studies. Commissioning: 2003. d5 ITALY - SWITZERLAND Strengthening connections between northern Italy and Switzerland. Under construction. Commissioning: 1997 or 1998. * Gorlago-Robbia. (18 GREECE- BALKAN COUNTRIES Strengthening of connections between Greece and, respectively, Albania, Bulgaria and former-Yugoslavia, including the restoration of the connections with the North of former- Yugoslavia and the UCPTE network. • Feasibility studies: ongoing. EU financial intervention TEN line: co-financing of studies (under appraisal) <\9 GREECE - TURKEY Connections between the two countries through north-eastern Greece. * Thessaloniki-Hamitabat. Section from Thessaloniki (GR) to Philippi (GR): under construction. Section from Philippi (GR) to Hamitabat (TU): planned. 40 dlO UNITED KINGDOM - NORWA Y Connection by submarine cable between the NorthJeaster/eastern England and southern Norway (NORDEL). d ll THE NETHERLANDS- NORWAY Connection by submarine cable between the north-eastern Netherlands (UCPTE) and southern Norway (NORDEL). dl3 SPAIN - MOROCCO Connection by submarine cable between southern Spain and the Moroccan network. * Pinar-Melloussa. dl4 BALTIC RING: GERMANY - POLAND - RUSSIA - ESTONIA - LATVIA - LITHUANIA - SWEDEN - FINLAND - DENMARK - BELARUS. Strengthening and developing connections between these countries' networks by overground and/or submarine cables. (115 SWEDEN - NORWAY Strengthening of the connections between the two countries. Pre-feasibility studies completed. Feasibility studies and seabed survey in 1997 and 1998. Commissioning: 2004. EU financial intervention TEN line: co-financing of studies (under appraisal). Project decided. Commissioning: 2001. EU financial intervention : TEN line : co-financing of studies [in 1996]. Under construction. Commissioning: 1997. EU financial intervention: Co-financing of studies from the 1995 TEN budget. INTERREG: 12. 5 MECU. Pre-feasibility studies, EU financial intervention : TEN line: co-financing of studies in 1995 [and in 1996]. Some sections are in the authorisation procedure phase. Others are in the feasibility or pre- feasibility stage. EU financial intervention TEN line: co-financing of studies (under appraisal) (116 EU - BELARUS - RUSSIA - UKRAINE Development of connections and interface between the (extended) UCPTE network and the networks of third countries in Eastern Europe, including the relocation of the HVDC conversion stations operating previously between Austria and Hungary, Austria and the Czech Republic and Germany and the Czech Republic. Some technical studies have been/will be undertaken. EU financial intervention Interface study supported by PHARE/TACIS TEN line: co-financing of studies (under appraisal) 41 NATURAL GAS NETWORK PROJECTS PROJECT STAGE REACHED AND E. U. FINANCIAL INTERVENTION e4 SPAIN Setting up gas networks in the regions of Galicia, Extremadura, Andalusia, Valencia-South, Murcia, including an LNG terminal in Galicia. e5 PORTUGAL Setting up in the country, in particular along the Atlantic coastline, of a gas network. * Setubal-Braga. e5(a) PORTUGAL Construction of an LNG terminal on the Atlantic coast. 42 Galicia: project decided. Commissioning: June 1998. Extremadura: under construction. Commissioning: June 1998. Andalusia: under construction. Commissioning: 1997. Valencia South: under construction. Commissioning: September 1997. Murcia: under construction. Commissioning: September 1997. Enlargement LNG terminal Cartagena: project planned. Commissioning: 2000. LNG Galicia: project postponed. EU financial intervention: INTERREG II: 80 MECU committed for interconnections with Portugal (through Galicia and through Andalucia and Extremadura). CSF: Valencia-Cartagena: 107 MECU under appraisal. Upgrading LNG terminal at Huelva (Andalucia): 7 MECU committed. Western pipeline (Castilla y Leôn, Extremadura and Asturias): 95 MECU under appraisal. Oviedo-Ribadeo (Asturias): 10 MECU under appraisal. Project declared as "priority project" at the Essen Summit (December 1994). Under construction. Commissioning: beginning of 1997. EU financial intervention REG EN: 82 INTERREG II: 70 CSF: EIB loan (354 MECU) and ECSC loan (102 MECU) for this project and its interconnec tions with Spain (see project f6). 21 Planning phase. Possible date of operation: 2002 PROJECT STAGE REACHED AND E. U. FINANCIAL INTERVENTION e6 GREECE Setting up a gas network in the country, in particular along the Aegean coastline, including an LNG terminal in Attica and storage facilities. * Bulgaria-Athens LNG at Revithoussa. fl IRELAND - UNITED KINGDOM (N. IRELAND) Connection between the gas networks of Ireland and the United Kingdom (Northern Ireland). Project declared as "priority project" at the Essen Summit (December 1994). Main North-South pipeline: construction completed and commissioning : end 1996. High pressure branches and LNG terminal: under construction. EU financial intervention REGEN: INTERREG II: CSF: EIB loan: ECSC loan: 87 180 262 300 83 (+ 97 requested). TEN line: In 1995, co-financing of studies for storage facilities and extensions of the network. [In 1996], co-financing of a study for the introduction of gas in Crete. Prefeasibility studies. Possible commissioning: 2000. EU financial intervention: TEN line: co-financing of studies in 1995. f2 UNITED KINGDOM - CONTINENT Submarine connection between the gas networks of the United Kingdom and the continent through Belgium. Construction works began in October 1996. Authorisation procedures ongoing. Expected commissioning: October 1998. * Bacton-Zeebrugge. f3 LUXEMBOURG - GERMANY Establishing a connection to supply Luxembourg from the German networks. Prefeasibility studies. fS FRANCE-SPAIN Strengthening of transport capacity between the two countries. For a new line: feasibility studies ongoing; probable commissioning in 2001. For a new compressor station : authorisation procedures and beginning of the work are expected in 1997; commissioning probably in 1999. 43 PROJECT STAGE REACHED AND E. U. FINANCIAL INTERVENTION f6 PORTUGAL - SPAIN Constructing gas pipelines to supply Portugal through southern Spain and to supply Galicia and Asturias through Portugal. Project declared as "priority project" at the Essen Summit (December 1994). * Leiria-Cordoba Braga-Tuy-Oviedo. P FRANCE Connection through Southern Spain: under construction. Commissioning: beginning of 1997. Connection to Galicia: work about to begin. Commissioning: end 1997. EU financial intervention INTERREG: Portuguese CSF: EIB and ECSC loans: (see project e5). 150 6 Connection of the networks of the South-West and of the South of the country. Authorisation procedures ongoing, Commissioning by July 1997. f8 AUSTRIA - GERMANY Strengthening of transport capacity between Austria and Bavaria. Authorisation procedures ongoing. Expected commissioning: 1998. f9 AUSTRIA - HUNGARY Connection between the networks of the two countries. The line Baumgarten (A) - Gyôr (H) has been completed. Gas deliveries began in October 1996. For the line Wiener Neustadt (A) - Sopron (H) a feasibility study is under way. flO AUSTRIA - SLOVAKIA Connection of Austria to underground storage in Slovakia. Under construction. Expected commissioning date: 1997. fll AUSTRIA Connection between gas pipelines linking Austria to, respectively, Germany and Italy. Authorisation procedures ongoing, Beginning of the work expected in 1997. Commissioning by Autumn 1998. 44 PROJECT STAGE REACHED AND E. U. FINANCIAL INTERVENTION fl2 GREECE - ALBANIA Connection between the networks of the two countries. Preliminary data collection ongoing. EU financial intervention : TEN line : co-financing of studies (under appraisal) gl IRELAND Developing natural gas storage facilites to supply the Irish network. Prefeasibility studies, EU financial intervention TEN line: co-financing of studies [in 1996]. g3 FRANCE Extending capacity of existing LNG terminal in western France. * LNG of Montoir. g4 ITALY Prefeasibility studies. Construction of new LNG terminal to allow diversification of supplies, in particular for electricity generation. Authorisation procedure phase, Expected commissioning date: 2001. * LNG terminal at Montalto di Castro. g7 FRANCE Extension of underground storage capacities in the South-West of the country. Authorisation procedures ongoing, g8 SPAIN Development of underground storage capacity on the country's North-South axis. * Storage at Huete. Storage at Nueva Carteya. g8(a) SPAIN Development of underground storage capacities on the Mediterranean axis. Feasibility studies. EU financial intervention TEN line: co-financing of studies in 1995 [and in 1996]. Feasibility studies ongoing. Commissioning between 1998 and 2005. EU financial intervention TEN line: co-financing of studies (under appraisal) 45 PROJECT STAGE REACHED AND E. U. FINANCIAL INTERVENTION g9 PORTUGAL Constructing an underground storage facility. Prefeasibility studies. EU financial intervention: Portuguese CSF : 52 MECU. g ll BELGIUM Extending existing underground storage capacity in northern Belgium. * Storage at Loenhout. Project decided. gl2 DENMARK Extending underground storage capacity by increasing capacity Feasibility study phase, on existing sites or creating a new site close to the frontier with Commissioning: 2000. Germany. EU financial intervention TEN line: co-financing of studies in 1995 [and in 1996]. gl3 AUSTRIA Extension and development of underground storage capacities. Puchkirchen: feasibility studies and authorisation procedures ongoing. Expected commissioning in 1999. Eurostorage Baumgarten: feasibility studies ongoing. EU financial intervention TEN line : co-financing of studies for Eurostorage Baumgarten under appraisal. hi NORWAY- FRANCE Construction of a 4th gas pipeline from Norwegian resources (North Sea) to the Continent. Authorisation procedures ongoing. Works will start early 1997. Commissioning 1998. h3 NOR WA Y - DENMARK - SWEDEN - FINLAND - R USSIA - BA L TIC ST A TES Creation and development of connections between the networks of these countries with a view to setting up an integrated gas network, Feasibility study phase, Works are expected to start in 1998 foi- commissioning between 2002 and 2005 for the several stages of the projects. EU financial intervention TEN line: co-financing of studies (under appraisal) 46 PROJECT STAGE REACHED AND E. U. FINANCIAL INTERVENTION h4 ALGERIA - SPAIN - PORTUGAL - FRANCE Construction of new gas pipelines to allow Spain and Portugal initially, and subsequently France, to be supplied from Algeria via Morocco. Project declared as "priority project" at the Essen Summit (December 1994). 1st phase (up to Cordoba): commercial operational began in November 1996. 2nd phase (to connect with France): prefeasibility studies. Commissioning: after 2000. EU financial intervention: EIB loans: 641 MECU for works from Algeria to Tarifa. Spanish CSF: 99 MECU. h5 ALGERIA - TUNISIA - ITALY Increasing the transport capacity of the trans-Mediterranean gas Work well advanced, pipeline to Italy from Algerian resources. Commissioning: 1997. h6 RUSSIA - UKRAINE - EU Increasing transport capacity to the European Union from Russian resources via the main existing axis through the Ukraine, Slovakia and the Czech Republic. Prefeasibility studies. h7 RUSSIA - BELARUS - POLAND - EU Creation of a second transport axis from Russian resources to the European Union via Belarus and Poland. Project declared as "priority project" at the Essen Summit (December 1994). Section in Poland : under construction (a first phase, including the Oder crossing, has been completed). Sections in Germany : authorisation procedures ongoing/completed, some sections under construction. h ll BULGARIA - GREECE Improvements to the gas transportation network in Bulgaria to ensure supplies from Russian resources to the new gas network in Greece. First phase : construction near completion. Link to project e6. EU financial intervention PHARE (Interreg): 4 MECU. hl2 BELGIUM - GERMANY Connecting gas pipeline between the Belgian and the German networks. Authorisation procedures ongoing, Commissioning 1998. * Including the Berneau-Eynatten connection. 47 PROJECT STAGE REACHED AND E. U. FINANCIAL INTERVENTION hl3 GERMANY- CZECH REPUBLIC - AUSTRIA - ITALY Construction of a system of connecting pipelines between the German, Czech, Austrian and Italian gas networks. h 14 RUSSIA - UKRAINE- SLOVAKIA - HUNGARY- SLOVENIA - ITALY Construction of a new gas pipeline, from Russian resources, to Italy. First phase (20 km from Mauerkirchen (A) to Burghausen (DE) just completed. Other phases are at the planning feasibility study stage. Commissioning will vary from 1996 to 2001. EU financial intervention TEN line: co-financing of studies (under appraisal) technical First phase:environmental and feasibility studies ongoing. Work is expected to start in 1997 with commissionning expected in 1999/2000. Second phase: 2003-2005: several possibilities are open. EU financial intervention TEN line: co-financing of studies (under appraisal) Specification of the project (Commission Decision 96/537/EC of 30 July 1996 O. J. no L 230). ANNEX II: PROGRESS MADE ON THE TRANSPORT NETWORKS IN 1996 A. The 14 Specific projects PROJECT PROGRESS MADE IN 1996 HST North-South For the Austrian part of the Brenner [Inn Valley section], a new company was created in January which is responsible for the preparatory phase prior to the authorization to build. Detailed technical, financial, legal and economic studies for the entire Miinchen-Verona axis, launched by the German, Austrian, Italian governments and the Commission are making good progress and will be finished in December. 48 HST PBKAL With regard to the northern part of the project (Berlin- Nurnberg), new construction work was begun on the Leipzig-Erfurt and Erfurt-Nurnberg sections while work has progressed as planned between Berlin and Leipzig / Halle (upgrading). In July, the British government granted to the London & Continental Railways consortium the concession to run the HST rail link between the Chunnel and London. An investment contract was concluded early in the year between the German government and the Deutsche Bahn AG for the construction of the new HST line Cologne-Frankfort. Work on the Brussels-Lille and Brussels-Netherlands border axes progressed as anticipated; a new financing structure was set up in Belgium which should make it possible to fill at least a part of the financing. In the Netherlands, an agreement was concluded finally on the route of the Amsterdam-Belgian border axis. HST South The Figueras-Perpignan international section : a trial bore for a 8 km tunnel was begun in the autumn. HST East The "déclaration d'utilité publique" was granted. HST France-Italy An intergovernmental Commission, to study the possible legal structure for the entity in charge of carrying out the international section of Montmelian-Torino was set up. For the Torino-Milano and Milano-Venezia sections, a concession, including the preparation, construction and the upkeep, was granted tov the TAV company; the state contributions to improve the project's profitability were ensured; the private contributions, however, still remain to be supplemented. Betuwe line Greek motorways For the Betuwe line, legislative progress was made even if the solution results in a considerable increase in the cost, which still remains to be covered. Concessions were granted for specific sections of the Motorways in Greece: the Rio-Antirio fixed link and the ring-road around Athens. 49 Lisbon-Valladolid motorway In June, the Florence European Council formally took note of the proposal by the Portuguese and Spanish governments to modify priority project n°8 of the Essen list A and thus to create a multimodal link between Portugal and Spain on the one hand and the rest of Europe on the other. A seminar was organized in October where the project in its extended scope was analyzed. The Commission welcomed the multimodal Portuguese approach and its coherence with the objectives of the TEN guidelines and confirmed that all the sub-projects were already identified in their annexes I and II. Cork-Dublin-Belfast- Larne-Stranraer The railway project in Ireland is likely to be completed considerably before the date envisaged, thanks to major contributions from the Cohesion Fund. Malpensa airport Ôresund fixed link Nordic Triangle Work is proceeding according to schedule (completion of the entire project expected in 2000). The Italian Ministry of Transport has issued the decree laying down the rules for moving air traffic from Linate to Malpensa. The construction of the tunnel and the bridge foundations are advancing well, as is the preparation of the access routes. A significant number of railway and road projects are under construction; in the maritime and port sectors, studies are in hand. Ireland/UK/Benelux road link The Irish part of the IRL/UK/Benelux road project is progressing well, thanks to ERDF and Cohesion Fund interventions. West Coast Line A decision concerning the finalisation of the financing plan is expected shortly. B. OTHER PROJECTS PROJECT PROGRESS MADE IN 1996 Semmering base tunnel, Austria The pre-qualification tender in view of a BOT concession for a 42 km long section of the Pontebbana axis (Vienna-Tarvisio/Ljubljana), including the 21 km long Semmering base tunnel, was concluded and the final tender has been launched; the tendering procedure is planned to be finalized in early 1997. The execution of a trial bore (to be included as a service tunnel in the ultimate tunnel system) has been started in I 1996. I 50 Berlin-Hannover HST Milano-Bologna-Firenze- Roma-Napoli HST Procedures have been completed and work started on the 270 km long line reducing, after completion, the travelling time between Berlin and Hannover to lh45. Milano-Bologna : planning procedures are on going and are expected to be completed in 1997 (granting of building permission). Bologna-Firenze : work has been started in 1996. Roma-Napoli : work is progressing. 51 ANNEX III: LIST OF TENFAC MEETINGS SEPT. 1995 - DEC. 1996 1995 10 October (morning) horizontal affairs 10 October (afternoon) telecommunications 11 October 12 October 9 November energy transport energy 20 November telecommunications 1996 26 March 8 May 25 July horizontal affairs transport transport 13 September telecommunications 25 October energy 12 November horizontal questions 52 ANNEX IV: ENERGY PROJECTS FINANCED UNDER REGULATION 2236/95 A. COMMUNITY FINANCIAL SUPPORT IN 1995 Registration number of the study Identification of the projects subject of the study E2/95 (b11)* FINLAND-SWEDEN Increased electricity transmission capacity Maximum Eligible Cost of the study (in ECU '000) 150 Maximum Amount of the Community financial support (in ECU '000) Community Financial support as percentage of the eligible cost (in %) 75 50 E5/95 (b11) SWEDEN-FINLAND 150 75 Increased electricity transmission capacity E6/95 (d14) SWEDEN-POLAND 1600 800 Electricity interconnection E21-22/95 (d14) BALTIC RING 5000 2500 Electricity interconnection E34/95 (d14) BALTIC RING 395 150 50 50 50 38 50 274 137 175 87. 5 50 200 100 50 1475 737. 5 165 82. 5 50 50 160 80 50 300 150 50 E7/95 (c5) E14/95 (c5) E15/95 (c5) Peak power exchange ITALY Vado-Ligure-Morigallo electricity line ITALY Santa Barbara-Tavarnuzze electricity line ITALY Pietrafitta-Santa Barbara electricity line E16/95 (c5) ITALY Piedilago pumped storage E11/95 (d6) E19/95 (b6) E23/95 (c6) ITALY- AUSTRIA Cordignato- Austrian border electricity line ITALY- FRANCE Piossasco-Moncenisio electricity line SPAIN Cantabrian Sea : Penagos- Guenes electricity line 53 E24/95 (c6) E25/95 (c6) E27/95 (b7) E28/95 (b7) SPAIN Cantabrian Sea : Guenes-ltxaso electricity line SPAIN Cantabrian Sea : Soto-Penagos electricity line SPAIN-FRANCE Pirineo connection substation electricity line SPAIN-FRANCE Aragôn-Cazaril electricity line 250 125 50 180 90 50 280 140 50 400 200 E3/95 (d13) SPAIN-MOROCCO 1275 637. 5 E30/95 (c7) New cable route for the electricity interconnection PORTUGAL-SPAIN Reinforcement of the electricity interconnection 634 317 G1/95 (f1) IRELAND-N. IRELAND Natural gas interconnector 300 150 G2/95 (g12) DENMARK 2975 1487. 5 Toender natural gas storage G3/95 (gS) (h4) SPAIN Natural gas underground storage at Nueva Carteya 1884 942 50 50 50 50 50 50 G4/95 (g8) SPAIN Natural gas underground storage at Huete 2665 1332. 5 50 G5/95 (eS) GREECE Natural gas underground storage 2000 1000 G6/95 (e6) GREECE Extension of main natural gas transmission system 1540 770 50 50 TOTAL 24427 12166 Same reference as in guidelines (O. J. N° C216. 21/08/1995). 54 B. [a list of studies approved for 1996] Registration number of the study MEMBER STATE - COMPANY Identification of the project* subject of the study and main scope of the study E35/96 (c6) E38/96 (b7) E40/96 (dl4) E46/96 (dl4) SPAIN - Red Eléctrica de Espana Electricity interconnections (at 400 K. V) Sentmenat - Bescano and Bescano - Line Vic/Baixas (Mediteranean axis). Environmental impact and basic engineering studies for both lines. Economic and technical feasibility study for the second line. SPAIN - Red Eléctrica de Espana Alternative routes for the France-Spain electricity interconnection through the Central Pyrenees. Economic feasibility, environmental impact and basic engineering studies: Spanish share. FINLAND - IVO Transmission Services Ltd Increased utilisation of. the existing HVDC electricity interconnection (submarine cable) Finland-Sweden. Feasibility and technical studies, including laboratory tests : Finnish share. SWEDEN - Svenska Kraftnat Increased utilisation of the existing HVDC electricity interconnection (submarine cable) Finland - Sweden. Feasibility and technical studies, including laboratory tests : Swedish share. Maximum eligible cost of the study Community financial support as percentage of the eligible cost Maximum amount of the Community financial support (in ECU '000) (in %) (in ECU '000) 440 50 220 710 50 355 450 50 225 650 50 325 E52/96 ( d l l) NETHERLANDS - N. V. Samenwerkende 3,000 50 1,500 elektriciteits-produktiebedrijven (Sep) Electricity interconnection (submarine cable) Netherlands - Norway. Studies for electrode design and evaluation of reliability and availability, including submarine cable tests. FINLAND - Teollisuuden Voimansiirto Oy Increasing electricity transmission capacity between South of Finland and Russia (St Petersburg area). Preparatory, feasibility and technical studies, including the follow-up of environmental aspects. FRANCE - Electricité de France Alternative routes for the France-Spain electricity interconnection through the Central Pyrenees. Economic feasibility, environmental impact and basic engineering studies : French share. E55/96 (dl4) E62/96 (b7) :>:> 480 50 240 300 50 150 Registration number of the study MEMBER STATE - COMPANY Identification of the project* subject of the study and main scope of the study Maximum eligible cost of the study Community financial support as percentage of the eligible cost Maximum amount of the Community financial support (in ECU '000) (in %) (in ECU '000) E63/96 (dl4) GERMANY - PreussenElectra 1,430 50 715 G12/96 (g8) G13/96 (g8) Gi4/96 (g8) G15/96 (g8) East-West High Power Electricity Transmission System - Baltic route. Study of the technical, economic, financial, legal and environmental aspects. SPAIN - ENAGAS Natural gas underground storage at Val le del Ebro (North-South axis). Preliminary seismic survey. SPAIN - ENAGAS Natural gas underground storage at Cuenca de Cantabria (North-South axis). Preliminary seismic survey. SPAIN - ENAGAS Natural gas underground storage at Brihuega (North- South axis). Drilling of one exploration well. SPAIN - ENAGAS Natural gas underground storage at Cerro Gordo (North-South axis). Preliminary seismic survey. 1,008 50 504 1,008 50 504 1,943 50 971. 5 394 50 197 G16/96 (gl) IRELAND - Marathon International Petroleum Ireland Limited (MIPIL) 636 50 318 G17/96 (e6) G18/96 (gl2) Natural gas underground storage in "Kinsale Area". Feasibility and technical studies. GREECE - DEPA S. A. (Public Gas Corporation) Natural gas network on the island of Crete, including a LNG terminal. Feasibility, environmental and other studies. DENMARK - Dansk Naturgas A/S Extension of the natural gas underground storage at Stenlille. Tri-dimensional seismic survey. TOTAL 1,940 50 970 3,424 50 1,712 17,813 50 8,906. 5 * Same reference as in the guidelines Decision (OJ N° L 161, 29. 06. 1996) 56 A N N EX V: T E L E C O MS P R O J E C TS FINANCED UNDER R E G U L A T I ON 2236/95 A. 1995 ISDN Ref. I Title I Maximum EU Contribution (in ECU) TI1. 1 TI. 1. 2 TI. 1. 3 TI. 1. 6 TI. 2. 1 TI. 2. 2 TI. 2. 3 TI. 2. 3 TI. 2. 3 TI. 2. 5 TI2. 5 TI. 2. 6 TI. 2. 6 TI. 2. 6 TI. 2. 6 TI. 2. 7 TI. 2. 7 TI. 2. 8 Euro-label profiles: Desk-Top Multimedia Conferencing Migration strategies from Euro-ISDN onwards Euro-ISDN Bulletin Board Development of Euro-services: Euro Green Line, Euro Kiosk Euro-ISDN for an integrated public health care network Euro-ISDN to interconnect traffic information centres. European Tiertiary Education network (I) European Tiertiary Education network (II) European Tiertiary Education network (III) Euro-ISDN as a platform for teleworking (I). Euro-ISDN as a platform for teleworking (II) Electronic trading for SMEs using Euro-ISDN (I) Electronic trading for SMEs using Euro-ISDN (H) Electronic trading for SMEs using Euro-ISDN (HI) Electronic trading for SMEs using Euro-ISDN (iv) Trans-regional learning using Euro-ISDN (I) ; Trans-regional learning using Euro-ISDN (II) 740,150 491,100 208,250 320,500 750,000 1,231,314 678,000 590,000 630,000 165,000 1029,000 264,898 984,250 764,450 485,462 397,492 488,400 Euro-ISDN awareness for SMEs T Q T AL 1,125,563 11,371,929 57 B. 1996 ISDN Réf. Acronym Title Maximum EU Contribution (in ECU '000) 41. 02 61. 01 TELEPOLIS INFOCITIES City information network 71. 03 TEN-TREND 21. 03 31. 02 PAIDEIA MOSAIC 51. 01 TAGIS 11. 03 MEDSALUS 51. 02 NOPROBLEMS 31. 01 DCC 51. 03 GTS Income for content through billing and clearing T e l e w o r k i ng E n t e r p r i se development R e m o te N e t w o rk PAIDEIA in TEN-Telecom Methods and tools to create and maintain virtual museums access Trans-European to Generic ISDN-based services Euro-ISDN Professional tele- t he c o l l a b o r a t i o n; mediterranean network for health care knowledge sharing reliable proprietary Non electronic mail systems Common digital platform for cultural content Global Telecommunication Services 61. 05 DYP Dynamic Yellow Pages 5 000 1 530 2 948 495 918 1 700 513 1 573 1 680 440 1 304 TOTAL 18 101 58 ANNEX VI: IDA TELEMATIC PROJECTS FINANCED IN 199616 Project SIGL - exchange of product and license information total budget 850 000 Service DG I DG I Total DG VI DG VI DG VI DG VI DG VI Total ANIMO - animal movements PHYSAN - phyto sanitary control SHIFT - veterinary controls FIS - IDES (under Horizontal Generic Services) DG XV SIMAP - electronic public procurement DG XV Horizontal Activities - Legal, Contractual & QC (under Horizontal Generic Services) DG XV Total DG XXI VIES - vat information exchange system DG XXI CCN/CSI (under Horizontal Generic Services) DG XXI EXCISE CONTROL DG XXI QUOTA DG XXI DG XXI SCENT CIS/FISCAL - Customs and indirect taxation, agriculture TARIC - Customs and indirect taxation, third country import/export DG XXI EBTI - european binding tariff information DG XXI TRANSIT - goods traffic DG XXI Total Eurostat EDICOM - electronic data interchanges on commerce 850 000 150 000 940 000 200 000 0 1 290 000 800 000 300 000 1 100 000 2 100 000 35 000 20 000 300 000 1 000 000 850 000 850 000 400 000 5 555 000 0 16 These figures are based upon a budget resulting from the assignment of ECU 6 million to the EDICOM programme and upon the assumption that ECU 7. 5 million presently in reserve will be released by the European Parliament. Furthermore, due to the late adoption of the IDA decision a number of measures were carried forward from 1995 to 1996 for a total value of ECU 15. 798 million. These measures are NOT included in the above table. The TEN financial regulation does not apply to the IDA programme. 59 Eurostat DSIS - distributed statistical information services 1 800 000 Eurostat EXTRACOM - exchange of foreign trade statistics 450 000 Eurostat SERT - company statistics Eurostat Horizontal Activities (under Horizontal Generic Services) Eurostat Total All sectors Horizontal Generic Services, including legal & security aspects All sectors Total DI DI Total Implements support of horizontal actions at EC level AGENCY European Medicine Evaluation Agency AGENCY European Monitoring Centre on Drugs AGENCY Translation Centre AGENCY European Environment Agency AGENCY RESMA - Trademarks AGENCIES Total DG IV FOURCOM DG IV Total DG V DG V DG V DG V Total TESS (SOSENET) - telematics for social security EURES - employment database CARE - disease control and monitoring DG X Illegal Traffic of Cultural Goods DG X Total DG XIV FIDES -fisheries data exchange DG XIV Total SG SG SG Total Communication & Mgmt. of Official Documents (Trilogue) REITOX - Drugs and Drug Addiction 600 000 200 000 3 050 000 3 518 000 3 518 000 1 015 000 1 015 000 0 225 000 0 0 0 225 000 400 000 400 000 700 000 737 000 400 000 1 837 000 0 0 250 000 250 000 1 200 000 0 1 200 000 60 DG III/B/6 Awareness & Promotion DG III/B/6 Coordination & Support DG III/B/6 Practical Intro, of Electronic Mail based on X. 400 DG III/B/6 Horizontal Activities - Generic Services 260 000 200 000 150 000 0 DG III/B/6 Horizontal Activities - Architecture. TESTA 3 100 000 DG III/B/6 Horizontal Activities - Legal, Contractual & QC 0 DG III/B/6 Total Grand Total 3 710 000 24 000 000 61 ANNEX VII: TRANSPORT PROJECTS FINANCED UNDER REGULATION 2236/95 A. 1995 Title of supported project/study mm m Mode™ Support i4> 1995 I. TEN SPECIFIC PROJECTS 1. HST/Combined transport Berlin-Verona Studies on the Brenner axis for the improvement of the economic and financial feasibility of the Miinchen-Verona link Feasibility studies on the Brenner axis for new access routes to the Brenner base tunnel (in Italy) Planning and design studies for the Brenner axis: Lower Inn Valley section Brenner axis (project): Lower Inn Valley section, construction of 3rd and 4th track between Kufstein and Baumkirchen Upgrading of the Berlin - Halle/Leipzig railway line Total for PP N°1 2. HST PBKAL TGV - PBKAL-Belgium (interest rebates) Technical and design studies for the PBKAL-NL Feasibility study on the Channel Tunnel Rail Link Total for PP Nb2 3. HST South Study on the TGV Madrid-Barcelona-Perpignan-Montpellier: section Madrid-Barcelona-French border Study on the TGV South: railway line Spain- France Atlantic side (Vitoria -Dax) Study on the TGV South: railway line Languedoc-Roussillon 4. HST East Technical studies APS for the HST-EST European Total for PP N°3 Total for PP N°4 5. Betuweline Technical and design studies for the Betuwe line Total for PP N°5 6. HST/Combined Transport France-Italy Studies for the HST/Combined transport line Turin-Milan- Verona-Venice Study on the international transalpine connection between Lyon and Turin. Total for PP N°6 S S S P p P(IR) S S s s s s s s s R R R R R R R R R R R 0. 800 1. 730 6. 500 0. 500 24. 900 $4. 430 20. 000 6. ÔÔÔ 17. 000 45. ÔÔÙ 4. 950 0. 500 0. 500 5. 950 R 22. 000 R R R 22. 000 7. 000 7. ÔÔÔ 10. 179 6. 000 16. 179 ' P = projet; S = Study 18 R = Rail; C = Combined transport; M = roads; A = Airports; S = Sea/ports; T = Traffic management; V = Vessels; G = Satellites. MECU 62 7. Greek Motorways Road study "Makri - Industrial area of Alexandroupolis" (EGNATIA) Studies for the Maliakos fixed link (Consultant Services for the preparation of the future concession - PATHE) Road Study "Tempi Valley Exit - Skotina Intersection" (PATHE) Road study "Girtoni - Tempi Valley entrance" (PATHE) S § § S Total for PP N°7 M M M M 10. Malpensa Airport Malpensa 2000 Total for PP N*10 P(lft) A 1. 750 2. 5ÔÔ 1. ÔÔÔ Ô. 75Ô 6. 000 1. 800 1. 800 11. Oresund link (rail/road) Denmark-Sweden Studies for the Danish access routes to the Oresund fixed link Design studies and environmental studies and monitoring Studies for the Oresund fixed link Total for PP N''11 12. Nordic Triangle Financial, socio-economic and environmental studies on the Nordic Triangle in Finland Studies on rail infrastructure of the Nordic Triangle in Finland Studies on the road part of the Nordic Triangle in Finland (E 18) Construction and improvement of railway link of the Nordic Triangle in Finland Construction and improvement of road sections (E 18) of the Nordic Triangle in Finland Study on the development of Finland's Sea Infrastructure Study on the traffic management system on TERN in Finland Feasibility Study for upgrading/re-alignment of sub-sections of Stockholm-Malmô railway line (Planning phase) Studies on Gôteborg-Mellerud-Kornsjô railway line (upgrading of three sub-sections) Upgrading of Malmô-Gôteborg railway line for high-speed, including doubling of track (project) Total for PPN°12 13. Ireland-UK-Benelux road link Studies in England and Northern Ireland on the Ireland-UK- Benelux road link. Total for PP N°13 14. West Coast main line • Feasibility study and associated design work for the modernisation of the West Coast MainLine, and consideration of the implications of interoperability and inter-modal freight operations Total for PP N°14 Command Control pilot project for HST network Feasibility study on ERTMS (European Rail Traffic Management System) for harmonisation at the European level of safety and rail traffic management. S s s S s P(|R) P(|R) S s s s p s s s R/M 5. 000 R/M 10. 000 15. 000 M,R,P Ô. Ô53 R M ft M S TM R R R M 1. 260 1. 928 0. 680 0. 965 0. 210 0. 454 0. 665W 0. 555 5. 280 12. 050 2. ÔÔ0 2. 000 R 8. 600 8. 600 T,R 7. 500 Total for Control command project TOTAL SPECIFIC PROJECTS 7. 500 181. 509 II. TRAFFIC MANAGEMENT AND OTHER PROJECTS 1. Air traffic management New North West Monopulse Secondary Surveillance Radar Data and Transmission Facilities Replacement /Upgrading Radar systems Replacements of Shanwick High Frequency Transmitters/Receivers p P(IR) P(IR) P T,A TA T,A T,A 0. 190 Ô. 23Ô 0. 240 0. 330 63 Installation of Monopulse Secondary Surveillance Radar (MSSR) at Porto Santo Installation of Monopulse Secondary Surveillance Radar (MSSR) Porto Improvement of data networks to fulfil EUROCONTROL Standards Transmission and Receiving systems Conventional Secondary Surveillance Radar Upgrading to Monopulse (MSSR) Radar 2000 Upgrade of Radar Coverage Study for a North European Automatic Dependant Surveillance Broadcast (ADS-B) Network Study for Pre-Operational Mode-S station Total for Air traffic management 2. Road traffic management Traffic Management Centre in Ludwigsburg Study for Traffic Management on the TERN in the Netherlands Traffic Management on the TERN in the Netherlands Study for the integrated Control and Information System for traffic on the motorway network of the Grand Duche of Luxembourg Study on the national integration of the European guidelines for traffic monitoring Study for the control and information road traffic system on the Portuguese trans European Road network Demonstration of RDS/TMC on accesses to Madrid Study for the demonstration of the RDS/TMC service in the area of Madrid Study for the implementation of RDS-TMC service in the Spanish part of the TERN Feasibility study on the European Data Exchange Network between traffic information centres on the trans-European road network Study for the Central European Road Telematics Implementation Concertation Study for the South Europe Road Telematics Implementation Study for the national RDS-TMC implementation in the United Kingdom and its interconnexion across national frontiers Study for the creation of a traffic information and control center in the Walloon Region Study for transport telematics implementation project in • Flanders Study on harmonisation of levels of services and organisational measures (Road Traffic Management) Study for the creation on an European Centre for electronic fee collection qualification Study for the completion of the traffic information centres network in Spain Completing the network of the Traffic Management Centers Study on the RDS/TMC Information Service on TERN in Italy Installation of advanced signalling and management systems in the M-40 ring motorway around Madrid Study for the implementation of advanced signalling and management systems in the M-40 Implementation of the National Traffic Management Master Plan Study on the European coordination for the implementation of the RDS-TMC traffic information services Study for the adaptation of RDS - TMC in Germany (Road Traffic Management) Total for Road traffic management 3. Maritime traffic management P P P w p p p s s p s p s s s p s s s s s s s s s s s p s p s p s s T,A ",A T,A TA T. A TA T,A T,A T,A T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M T,M Ô. 31Ô Ô. 3Ô0 0. 500 Ô. 5ÔÔ Ô. 65Ô Ô. 85Ô 2. 0ÔO 2. ÔÔÔ 8. ÔÔÔ 16. 100 Ô. 26Ô 0. 050 0. 268 0. 300 Ô. 47Ô Ô. 35Ô 0. 410 0. 135 0. 185 Ô. 4ÔÔ 0. 400 Ô. 4ÔÔ 0. 450 0. 500 0. 500 0. 500 Ô. 1ÔÔ 0. 180 Ô. 74Ô 0. 930 1. 7ÔÔ 0. 600 2. 480 3. 680 0. 110 16. 098 Study for the ship reporting and information system Northsea 1 S 1 T,V 1 0. 120 64 Ship reporting and information system Northsea (implementation) Study for the Ship Reporting System 93/75/EEC Ship Reporting System 93/75/EEC (implementation) Study for the implementation of the VTMIS in Greece VTS - improvements (Midlife conversion of VTS Rotterdam) Etude de mise à niveau des CROSS et des VTS portuaires pour l'intégration dans le réseau transeuropéen VTMIS Etude préalable à la mise à niveau des systèmes de traitment des informations radar et de gestion des radiocommunication des CROSS VTS System implementation in the Messina Strait (TRITON) Studies for the TEDIM (Baltic Sea Telematic Platform) Total for Maritime traffic management 4. GNSS Feasibility study for the provision of navigation and positioning services through the use of INMARSAT III navigation transponders Total for GNSS 5. Other Projects Luxembourg Airport Motor Testing Platform (project) Feasibility Study on the multimodal system Adriatic Corridor Study on modernization of Northern line Improvement of the railway link Groningen-Leer Study (first phase) of the Milano-Ventimiglia line, section S. Lorenzo-Finale Preliminary studies for the design for the connection of the railway line with the Gottard (Milano - Chiasso) Feasibility Study on the Fehmarn Belt fixed link Feasibility Study on the Fehmarn Belt fixed link Total for Other Projects TOTAL FOR TRAFFIC MANAGEMENT AND OTHER PROJECTS GRAND TOTAL P S P S P S S P S T,V T. V T,V T. V T,V T,V T,V TV T,V 0. 040 Ô. Ô64 0. 038 0. 400 0. 450 0. 205 0. 415 1. 001 0. 530 3. 263 S T. G 9. 500 P S S P S S S S 9. 500 Ô. 79Ô 1. 000 1. 640 1. 500 2. 000 A R/M/P R R R R 2. 600 R/M R/M 2. 000 2. 000 13. 530 58. 491 240. 000 The Commission will adopt the list of projects by the end of the year. B. 1996 Brenner: Inn Valley section. studies Legal and financial studies on Munchen-Verona axis: AU,D,I; (AU coordinates) HST North-South Berlin-Nurnberg-Munchen-Verona; Sections:Arnstadt-Erfurt and Grobers-Leipzig Feasibility studies on the Brenner axis for new access routes to the Brenner base tunnel Total Project N°1 2. HST PBKAL HST PBKAL; Section Raunheim-Frankfurt Feasibility study on the Channel Tunnel Rail Link Total Project N°2 3. HST SOUTH Study on the HST South: Madrid-Vitoria-Dax, section Y Vasca Study on the HST South: feasibility and executive study Catayud- Ricla; executive study for Lleida-Barcelona and rest of Madrid- Zaragoza S S p s p s s s R R R R R R R R 8. 5000 MECU 1. 5ÛÛÔMECU 15. 5000 MECU 1. 5ÔÔ0MECU 27. 0000 MECU 2Ô. 0ÔÔÔ MECU 25. 0000 MECU 45. 0000 MECU 0. 3235 MECU 1. 7265 MECU 65 Studies on HST South - Languedoc-Roussillon:Perpignan-Spanish border Studies on HST South - Languedoc-Roussillon: Montpellier- Perpignan Total Project N°3 4. HST EAST HST EastSaarbrucken-Mannheim and Kehl-Appenweier HST East -Etudes techniques d'avant projet détaillé 5. Betuweline Betuweline Study 1996 6. HST/Combined Transport France-Italy Total Project N°4 Total Project N°5 Studies on the HST/ Combined Transport Lyon-Torino:Lyon- Montmélian Studies on the HST/ Combined Transport Lyon-Torino:Montmélian- Turin Studies for the HST Lyon-Trieste:section Torino-Milano-Verona- Venezia-Trieste Studies on the international transalpine connections between Torino- Lyon Total Project N"6 7. Greek Motorways PATHE:Elefsina -Stavros-Spata airport motorway and Imittos Western peripheral motorway Road studies of Patras by pass; road links with the new port and the city of Patras (techn. studies-PATHE) Access to Via Egnatia: Road study "Siatista-Kristallopigi" Study for electronic toll collection on toll motorways in Greece (PATHE / EGNATIA) Total Project N°7 8. Lisbon-Valladolid Studies on the road axis Lisbon-Vilar Formoso Studies on the modernisation of the Northern Line Total Project N°8 S S P S s s s s s p s s s s s R R R R R R R R R M M M M M R 3. 7000 MECU Ô. 52ÔÔ MËCU 6. 3500 MÉCU 5. ÔÔÔ0 MECU 11. 4Ù00MËCU 16. 4000 MECU lo. ooûo MECU 10. 0000 MECU 4. 0000 MECU 8. 8ÔÔÔ MECU 22. 00Û0 MECU 2. 0000 MECU 36. 8000 MECU 7. 9100 MECU 0. 1000 MECU 0. 2500 MECU 0. 1500 MECU 8. 4700 MECU 2. 2500 MECU 1. 1000 MECU 3. 3500 MECU 10. Malpensa Airport Malpensa 2000 Airport 11. Oresund link (rail/road) DK-SW P(IR) A 2. 0000 MECU Total Project N°10 2. 0000 MECU 0resund fixed link: all works P(IR) R/M 9. ÔÔÔÔ MECU Danish access routes P(IR) R/M 4. 2000 MECU Studies for Traffic Management on the motorway link to Oresund Studies for Swedish access routes to Oresund Total Project N°11 S s 12. Nordic Triangle Studies on road sections (E18) in the Nordic Triangle in Finland Construction and improvement of road E18 (Finland) Implementation of Traffic Management systems for TERN in Finland Studies for Traffic Management systems for TERN S P(IR) P S M,T R/M M M M,T M,T Ô. 5ÔÔÔ MECU 3. 5000 MECU 17. 2000 MECU 1. 2000 MECU 2. 5000 MECU 0. 2080 MECU 0. 5ÔÛÙ MECU 66 Construction and improvement of railways in the Nordic Triangle in Finland Studies on railways in the Nordic Triangle in Finland Vessel traffic service networks in Finland Studies on the development of Finland's Sea Infrastructure Development of Port Infrastructure in the Nordic Triangle Study on Stockholm Arlanda Airport (runway) Nordic Triangle Feasibility study for upgrading and tunnel covering of E6 Môlndal (Nordic Triangle) Feasibility study for upgrading of railway section: Sodra-Stambanen (Nordic Triangle) Feasibility study for upgrading of the railway line Gôteborg-Kornsjo (Nordic Triangle) Study on the Nordic Triangle: Trelleborg intermodal terminal Study on the Nordic Triangle: Port of Stockholm and Norvik development project Study on the Nordic Triangle: Gôteborg ferry lines terminal Total Project N°12 13. Ireland-UK-Benelux road link Study on the Newry-Dundalk cross border road link Three English studies on the IRL-UK-Benelux road link:Bridge Assessment study; A14 route strategy study;M6/M11 capacity studies Study on ROADLINK Network - Real Time Traffic Information Total Project N"13 14. West Coast main line West Coast Main Line-Works West Coast Main Line-Studies ERTMS Total Project N°14 P S P S S S S s s s s s s s s p s R R V,T s p A M R R P P P M M M,T R R 5. 0250 MECU 0. 475Ô MECU 0. 70ÛO MECU 0. 3Û7Ô MECU 0. 1050 MECU 1. 125Ô MECU 0. 2070 MECU 4. 503Û MËCU 1. 6500 MECU 0. 0500 MECU 0. 0050 MECU 0. 1750 MECU 18. 9750 MECU 0. 3250 MECU 1. 7000 MECU 0. 3000 MECU 2. 3250 MECU 4. 8000 MECU 2. 4ÔÛÔ MECU 7. 2000 MECU ERTMS (European Rail Traffic Management System) Feasibility study Total Project ERTMS s TR Total Priority Projects + ERTMS 10. 2250 MECU 10. 2250 MECU 211. 2350 MECU II. Traffic Management and other projects 1. Air traffic management Radarsystems - upgrade ATN Trials Infrastructure in Germany SACTA Phase III Study for ATN Trials Infrastructure Study for the development of Air Situation Display Study on the technical and operational problems related to the implementation of the 8. 33 KHZ VHF (ATM) Study on the Installation of ARTEMIS Implementation of the National aeronautical data network Automatic Dependant Surveillance/Controller Pilot Data Link Communications study Enhancement and replacement of radar systems New Lisbon ATM and Voice communications control systems- G ETAL IS ATN Implementation feasibility studies 2. GNSS Total ATM Projects GNSS, phase 2, Experimental programme Braunschweig studies GNSS, phase 2, SATNAV Differential Station Frankfurt a. M. study p s p s s s s p s p p s s s A,T A,T A,T A,T AT A,T A,T A,T A,T A,T A,T AT 0. 7400 MECU 3. 8ÔÔÔ MECU 1. 0000 MECU 5. 4ÔÔÔ MECU 3. 1500 MECU Ô. 1ÔÔÔMECU 1. 3000 MECU Ô. 55ÔÛ MECU 0. 1560 MECU Û. 83ÛÔ MECU 1. 2000 MECU Ô. 745Û MECU 18. 9710 MECU G,T G,T Ô. 7ÔÔÔ MECU 0. 5120 MECU 67 Feasibility study tor the implementation of a navigation by satellite network Installation of Differential GNSS network in NL S P Total GNSS Projects 3. Road traffic management Cross Border Route Guidance System Nuremberg - Prague / Linz - Prague study Completing the network of Traffic Managment Centres in Spain Implementation of the National Traffic Management Master Plan : Dynamic signalling and RDS-TMC in the TERN in Spain Study on traffic management and information services in the Central European area (CENTRICO) (B. NL. D. F) Implementation of traffic management and information services in the Central European area (CENTRICO) (B,NL,D,F) Study on traffic management and information services on the TERN in the SERTI area (D, F, 1, E) Implementation of traffic management and information services on the TERN in the SERTI area (D, F, 1, E) VIKING-Study for coordinated road traffic management implementation in Northern Europe (D, DK, SW, SU) CORVETTE-Study for the coordination and validation of the deployment of advanced transport telematic systems in alpine areas (D, A, 1) Study on ITS City Pioneers (Ertico) Implementation of the National Traffic Management Master Plan (SDER) Demonstration and installation of RDS-TMC information services on the TERN in the Northern part of Italy. Study of National RDS-TMC implementation in the UK and its inconnexion across national frontiers Total Road TM Projects 4. Maritime traffic management Study on Traffic monitoring horizon 2005 (France) Renewal of the radar data processing equipment of VTS centres in the Channel Midlife conversion of Rotterdam VTS Ship reporting system study: NL coordinates (NL, B, D, SF, E, F) European Coastal VHF DSC Infrastructure GMDSS Total Maritime TM Projects 5. Other projects Pontebbana axis: Semmering base tunnel Seine - Schelde (Escaut) inland waterways based combined transport study Socio-economic study of the maritime accessibility of the ports of Ghent and Terneuzen Feasibility study-Tunnel under the Warnow (Hansestadt Rostock) Feasibility study on the Nordlandkai Lubeck Feasibility study for the HST Copenhagen-Aalborg-Rodby Aalborg East Harbour Environmental assessment for the extension of the Port of Aarhus Study on the Med. motorway: Nerja-Motril Study on the Lleida-Barcelona motorway:Cervera Study on the M50 Madrid Ring Study on the Albacete-Murcia motorway Feasibility study for extension and development in the port of Valencia EU study for RADEF (Road Administration Exchange) (B coordinates) Studies for the Port 2000 Le Havre Study for the Saint Malo Port s p p s p s p s s s P p s s p P s p p s s s s s s s s s s s s s s s 68 G,T G. T M,T M,T M. T M,T M,T M,T M,T M,T M. T M,T M,T M,T M,T V,T V,T V,T V,T V,T R 1 P M P R P P M M M M P M P P Ô. 5000 MECU Ô. Ô91Ô MECU 10. 8030 MEÛU 0. 4500 MECU 0. Ô550 MECU Ô. 9Ô00 MECU 5. 2855 MECU 2. 161ÛMECU 3. 2625 MECU 0. 22Û5 MÊCU 0. 8750 MECU 0. 6000 MËCU Ô. 5Û00 MËCU 2. 5000 MECU 0. 5000 MECU Ô. 3ÔÛ0 MECU 18. 4295 MECU 0. 0175 MECU 0. 1390 MECU Ô. 76ÔÔ MECU 0. 40Ô0 MËCU 0. 1250 MECU 14475 MECU 1. 0ÔÔÛMECU 1. 5000 MECU Ô. 5ÔÔÔ MECU 2. 0000 MECU 0. 0500 MECU Ô. 4ÔÔÔ MECU Ô. 25ÔÔ MECU 0. 1000 MECU 4. 0000 MECU 1. 0000 MECU 2. 2500 MECU 2. 0000 MECU Ô. 5ÛÛÔ MECU Ô. 415ÙMECU 0. 4000 MECU 0. 1ÛÛÛ MECU Feasibility study for the multimodal transport system Adriatic corridor (3 main ports: Igoumenitsa, Patra. lraklion) Bologna Airport: 2 studies Studies for the reorganization of the road access to the Marghera/Venice port area Luxembourg Airport terminal Scandinavia Logi-link extension studies, Port of Terneuzen Studies for TEDIM (Baltic Sea telematic platform) Studies for the modernisation of the Great Western lines - route strategy Total Traffic Management and Other Projects Total Other Projects 0. 3400 MECU Ô. 4ÙÔÙ MECU 0. 1400 MECU 0. 2560 MECU 0. 2250 MECU Û. 5Ô0Û MECU Ô. 8Û0Ô MECU 19. 1200 MËÙU 68. 7650 MECU RTF ~~R" GRAND TOTAL 280 MECU 69 ANNEX VIII: M A J OR TEN PROJECTS FINANCED BY THE REGIONAL AND COHESION FUNDS IN 1996 A. Essen specific projects - Cohesion Fund financing Commitments and applications for grant PROJECT No 3. High Speed Train South Madrid-Barcelona-Perpignan Madrid-Vitoria-Dax Total project No 3. No 7. Greek Motorways Commitments 1993-1996 Grant applied for20 1993 1994 1995 1996 total 93-96 Mecu Mecu Mecu Mecu Mecu Mecu 8. 02 0. 00 8. 02 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 8. 02 0. 00 8. 02 337. 04 0. 00 337. 04 Patras-Athens-Thessaloniki 45. 35 13. 06 0. 00 0. 00 58. 41 354. 07 Via Egnatia 26. 42 9. 21 40. 74 0. 00 76. 36 506. 46 Total project No 7. 71. 77 22. 27 40. 74 0. 00 134. 7 860. 53 No 8. Lisbon-Valladolid motorway Portuguese section Spanish section 23. 82 28. 80 0. 00 0. 00 0. 00 0. 00 Total project No 8. 23. 82 28. 80 0. 00 0. 00 0. 00 0. 00 52. 62 0. 00 52. 62 0. 00 0. 00 0. 00 No 9. Cork-Dublin-Belfast-Larne rail link Line upgrading 11. 87 20. 60 21. 47 0. 00 53. 94 0. 00 No 13. Ireland/UK/Benelux N1/N7 road corridor in Ireland 8. 50 40. 19 30. 83 27. 07 106. 5 40. 00 TOTAL SPECIFIC PROJECTS 123. 9 111. 8 93. 04 27. 07 355. 9 1237. 56 20 Grant requested by Member State authorities in applications received up to September 1996 (includes total amount of assistance from Cohesion Fund foreseen over the period to 1999). 70 B. l. The Regional Fund Energy: eligible cost (MECU) 525. 24 ERDF grants (MECU) 208. 88 325. 24 128. 88 Period Ref 224. 52 89. 91 94-97 23. 00 9. 20 94-97 18. 20 7. 28 94-96 59. 52 22. 49 94-96 200. 00 80. 00 94-99 1275. 40 534. 60 1275. 40 534. 60 Gas SPAIN: CSF: "Estrecho Gibraltar- Tarifa-Cordoba" Network Campo Gibraltar and Jerez Instalaciones GNL Huelvà Gasoduct Valencia- Cartagena (1st phase) INTERREG II B (Interconnection with Portugal) GREECE: Introduction of natural gas in Greece21, from Russia and Algeria, of which: CSF 1994-1999 825. 40 354. 60 94-99 Initiative INTERREG II B 450. 00 • 180. 00 94-99 PORTUGAL: 565. 16 237. 00 Natural gas network: INTERREG II B CSF UK: 348. 16 217. 00 140. 00 94-99 97. 00 94-99 TOTAL: 2624. 80 1071. 18 21 • including low pressure distribution systems in Greece 71 Electricity GREECE eligible cost (MECU) ERDF grants (MECU) Period Ref REGEN-Cable 50. 00 20. 00 94-99 ITALY. REGEN INTERREG II B UK: CSF Sub-programme - electricity interconnector N. Ireland - Scotland 288. 48 86. 77 149. 05 139. 43 31. 00 55. 77 92-96 94-99 252. 72 86. 48 94-99 TOTAL: 591. 20 193. 25 Telecommunications: eligible cost (MECU) ERDF grants (MECU) Period Ref Public networks GREECE: OP Telecom CCA II 322. 00 173. 00 94-99 Roads Transport: ERDF grants (MECU) eligible cost (MECU) Period Ref SPAIN: 666. 77 433. 40 O. P. Castilla y Leôn of which : Motorway Lisboa- Valladolid PP8 666. 77 433. 40 94-99 179. 37 116. 59 94-99 N° 94. 11. 09. 006 c(94)3043/3 du 25/11/94 GREECE: 1426. 00 847. 00 PATHE (Patra-Korinth- Athens-Thessaloniki) PP7 VIA EGNATIA PP7 600. 00 352. 00 94-99 826. 00 495. 00 94-99 72 IRELAND: 120. 20 90. 00 Cork - Portlaoise (N8) PP13 Cork - Wexford (N24) Limerick -Portlaoise- Dublin ITALY: 15. 60 11. 70 95-99 28. 70 75. 90 21. 50 94-96 56. 80 94-96 OP Road infrastructure: 490. 00 245. 00 94-99 ERDF 940509016 Messina-Palermo Salerno-Reggio Calabria Cagliari-Sassari Bari-Otranto Brindisi-Lametia Terme UK: 100. 00 155. 00 84. 50 42. 50 108. 00 50. 00 77. 50 42. 25 21. 25 54. 00 OP Road infrastructure: - 37. 23 94-99 Dublin-Belfast Other Northern Ireland 24. 81 94-99 12. 42 94-99 TOTAL: 2702. 97 1652. 63 Conventional Rail GREECE: ERDF grants (MECU) eligible cost (MECU) Period Ref Athens-Thessaloniki 293. 00 176. 00 94-99 ITALY OP Rail Transport UK: Total Rail: Belfast-Dublin Other Northern Ireland TOTAL: 2049. 00 1756. 00 704. 00 94-99 - 53. 92 46. 53 94-99 7. 39 933. 92 97-99 73 Airports IRELAND: Global upgrading Dublin-Cork-Shannon Ports GREECE: Port of Patras Port of Volos Port of Rhodes Port of Souda IRELAND: Dublin (Bulk storage facility) Ringaskiddy (idem) TOTAL: ERDF grants (MECU) eligible cost (MECU) Period Ref 14. 80 7. 40 95-97 C(94) 1971/3 ERDF grants (MECU) eligible cost (MECU) Period Ref 69. 00 44. 00 13. 00 8. 00 4. 00 7. 40 3. 70 3. 70 76. 4 41. 00 26. 00 8. 00 5. 00 2. 00 3. 80 94-99 94-99 94-99 94-99 1. 90 96-97 C(94) 1771/3 1. 90 44:80 96-97 C(94) 1771/3 TOTAL TRANSPORTS 4843. 17. 2638. 75 74 ANNEX IX : EIB LOANS FOR TEN AND T E N - R E L A T ED PROJECTS EIB PROJECTS (ECLlni) Loans approved Finance contracts signed 94 93 <93 Total 95 96 1. PRIORITY PROJECTS (Essen European Council) 8 079 642 1180 1137 1603 924 5485 HIGH SPEED TRAIN/COMBINED TRANSPORT NORTH SOUTH (DE/AT/IT) HIGH SPEED TRAIN PBKAL (FR/BE/DE/NL/UK) HIGH SPEED TRAIN SOUTH (ES/FR) HIGH SPEED TRAIN EAST (FR/DE/LX) BETUWE LINE / COMBINED TRANSPORT (NL/DE) HIGH SPEED TRAIN/COMBINED TRANSPORT FRANCE-ITALY (FR/IT) GREEK MOTORWAYS (GR) PORTUGAL-SPAIN MOTORWAY (PT/ES) - wider project RAIL LINK CORK-DUBLIN-BELFAST-[LARNE-STRANRAER] (IE/UK) MALPENSA AIRPORT (IT) FIXED RAIL/ROAD LINK BETWEEN DENMARK AND SWEDEN (DK/SE) NORDIC TRJANGLE (NO/SE/F1) IRELAND - UNITED KINGDOM - BENELUX ROAD LINK (UK/IE) WEST COAST MAIN LINE (UK) 2. FURTHER PROJECTS OF IMPORTANCE (Essen European Council) 2. 1 Projects in the European Union 2. 2 Projects with neighbouring countries 3. OTHER TRANS-EUROPEAN NETWORKS PROJECTS 3. 1 Trans-European road network 3. 2 Trans-European rail network 3. 3 Trans-European port network 3. 4 Trans-European airport network 4. PROJECTS IN CENTRAL AND EASTERN EUROPE 4. 1 Road corridors 4. 2 Rail corridors 4. 3 Ports 4. 4 Airports and ATC TOTAL 384 1 786 477 370 286 350 230 119 350 1481 1 389 2 060 44 295 688 1 332 131 3 458 2 958 500 7 783 3 168 3 096 460 1 059 1 292 812 216 69 195 61 104 109 701 143 534 104 60 11 34 598 44 20 128 149 50 10 66 312 417 357 2003 44 124 440 626 61 425 314 274 250 1263 176 247 176 138 234 40 250 838 425 347 626 1434 1055 3462 100 23 224 260 182 32 152 413 583 299 139 633 417 5 1406 1182 359 515 222 259 230 261 972 168 153 54 15 91 245 16 176 54 742 16 69 145 20 612 642 2174 2336 3541 2490 11182 75 FIB PROJECTS (IX'UM) Loans approved Finance contracts signed <93 93 94 95 96 Total 1. PRIORITY PROJECTS (Essen European Council) 1. 1 Projects in the European Union ELECTRICAL INTERCONNECTION GREECE - ITALY ELECTRICAL INTERCONNECTION FRANCE - ITALY ELECTRICAL INTERCONNECTION FRANCE - SPAIN ELECTRICAL INTERCONNECTION SPAIN - PORTUGAL EAST - WEST ELECTRICAL INTERCONNECTION DENMARK NATURAL GAS NETWORK GREECE NATURAL GAS NETWORK PORTUGAL GAS INTERCONNECTION PORTUGAL - SPAIN 1. 2 Projects with neighbouring countries GAS PIPELINE ALGERIA - MOROCCO - EUROPEAN UNION GAS PIPELINE RUSSIA - POLAND - EUROPEAN UNION 2. FURTHER PROJECTS OF IMPORTANCE (Essen European Council) 2. 1 Projects in the European Union 2. 2 Projects with neighbouring countries 3. OTHER TRANS-EUROPEAN NETWORKS PROJECTS 3. 1 Trans-European electricity network 3. 2 Trans-European gas network 2 248 1 261 100 57 526 354 224 987 641 346 2 195 811 1 384 200 315 523 593 1 638 153 333 250 744 50 56 200 207 255 224 153 102 224 200 161 190 343 894 200 162 190 343 552 343 160 402 222 474 1 258 160 142 260 91 131 49 425 442 816 4 443 360 716 745 1 067 2 896 76 EIB PROJECTS (ECUM) Loans approved Finance contracts signed <93 93 94 95 96 TOTAL 1. PROJECTS IN THE EUROPEAN UNION 1. 1 Networks and Trunk Exchanges 1. 2 Mobile Telephony 1. 3 Satellites and Stations 2. PROJECTS WITH NEIGHBOURING COUNTRIES 2. 1 Networks and Trunk Exchanges 2. 2 Mobile Telephony 2. 3 Satellites and Stations 6 462 5 136 1 005 321 695 680 15 666 2 100 839 1 063 4 668 615 2 006 786 368 3 775 51 72 22 53 395 300 110 300 130 110 300 130 571 322 540 540 TOTAL 7 157 776 2 400 969 1 063 5 208 77 ANNEX X : "THE LIKELY MACROECONOMIC AND EMPLOYMENT IMPACT OF INVESTMENTS IN TRANS-EUROPEAN TRANSPORT NETWORKS" Executive Summary There has been increasing interest recently in the likely economic and employment effects of investments in Trans-European Infrastructure Networks. This report attempts a first tentative assessment of these impacts of the construction of one component of the networks, namely the Trans-European Transport Network (T-TEN) In order to clarify the issues involved, two cases were analysed: firstly, the completion of the 14 projects agreed at the Essen European Council, constituting an estimated remaining investment volume of about 90 billion ECU; secondly, the realisation of the transport TENs as outlined in the Community guidelines (COM(94)106 final), for an estimated 400 billion ECU. The following points emerge from this analysis: • The macroeconomic effects of the completion of the Essen projects are highly positive: the cumulative gain in GDP would exceed 560 billion ECU by the year 2030. Tins represents a socio-economic return of about 11%. There are very few public expenditures that give such a consistently high rate of return over such a long period of time. The rapid completion of the Essen projects would thus give an important boost to the competitiveness of the European economy. • The employment effects can be separated temporary employment gains during the construction period, and permanent increases in employment during the operation period. into two distinct aspects: • According to the tentative estimates presented in this report, the completion of the Essen T -TENs would create additional employment of 700,000 mail years during the first decade (1998-2007). The construction of the full T-TENs as set out in the Community guidelines would lead to an increase in employment of some 3,200,000 man years. • Permanent jobs derive from the increased economic activity resulting from the use of the completed network. As pointed out already, this increase is likely to be very significant. The extent to which jobs are created, however, very much depends on the degree to which productivity gains flow into either higher wages or job creation. On the assumption that most of the productivity gains are taken in real wages - a cautious hypothesis which is based on historical trends - the range of estimates for long term employment effects in the economy as a whole is between 130,000 and 230,000 extra jobs for the 14 Essen projects and between 594,000 and 1,030,000 extra jobs for all the projects in the T-TEN guidelines. However, if workers could be persuaded to take the productivity increases resulting from TEN investments in additional employment rather than higher real wages, then the increase in jobs would be dramatically higher: from at least 570,000 in the case of the 14 Essen projects, to as much as 4,700,000 for the whole network. These net figures mask potentially significant changes at the sectoral and regional levels which have not, however, been analysed in the present study. They nevertheless confirm the significant potential of T-TEN implementation for improving the Union's employment performance. 78 • • It is important to point out that the above-mentioned estimations are based on the assumption that there is no significant overcapacity in the economy and that, therefore, T-TEN investments tend, in the short-term, to crowd out some alternative investment projects that would otherwise be undertaken. However, the present macroeconomic environment in the European Union with high unemployment and low interest rates indicates that significant spare capacity seems to be available. Accordingly, it can be expected that a political push for quick T-TEN implementation would generate even more jobs than estimated on the basis of the conservative assumptions used in this report. It is worth emphasising in this context that the relationship between T-TEN construction and increased employment is not automatic. Whether the improved business opportunities are taken advantage of depends on accompanying polices. Transport policy could provide an important impetus through the implementation of fair and efficient pricing. Additional impact could come from a well-designed process of liberalisation in the transport sector. Macroeconomic and structural policies are particularly important for likely employment effects. This is especially true for those policies that influence the functioning of goods, capital and labour markets by enhancing competition, reducing rigidities and facilitating It can be expected, for instance, that there would be a positive structural adjustment. inter-relationship between the economic benefits, in terms of improved productivity and international competitiveness, of the completion of the Single Market Programme as well as Economic and Monetary Union, the globalisation of the world economy and the development of the Trans-European Networks. In conclusion, the initial analysis presented in this report indicates that the completion of the Trans-European Transport Network will make a positive contribution to employment creation - but will not solve the unemployment problem - in Europe. However, T-TENs should not be judged solely on their ability to create jobs. Other important benefits are likely to accrue. First, the T-TENs will significantly raise output in the EU. Furthermore, the T-TENs also bring Europe closer together. This dimension of economic and social cohesion is particularly important for the more peripheral regions. Under certain circumstances there should also be environmental benefits due to a shift of traffic from roads towards other modes of transport. It has not been possible, however, to analyse these aspects in the present study. In view of the above, further and complementary analysis of the likely economic, employment and environmental effects of T-TEN investments would clearly be desirable. Output and employment effects of the completion of the Essen T-TEN projects (central case) compared to the base case 35. 0 20. 0 = 15. 0 180000 160000 140000 20000 1-9 ISSN 0254-1475 COM(96) 645 final DOCUMENTS EN 15 07 11 12 Catalogue number : CB-CO-96-648-EN-C ISBN 92-78-13086-9 Office for Official Publications of the European Communities L-2985 Luxembourg