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European Transport Forum Brussels - october, 23 th 2003

European Transport Forum Brussels - october, 23 th 2003. BUILDING AND FINANCING EUROPEAN TRANSPORT INFRASTRUCTURES SEFI. TEN - T’s REVISION. A key factor for the future of the economy and the enlargement to the AC ; From the 14 Essen ’s projects to the actual 29 thanks to :

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European Transport Forum Brussels - october, 23 th 2003

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  1. European Transport ForumBrussels - october, 23th 2003 • BUILDING AND FINANCING • EUROPEAN • TRANSPORT INFRASTRUCTURES • SEFI

  2. TEN - T’s REVISION • A key factor for the future of the economy and the enlargement to the AC ; • From the 14 Essen ’s projects to the actual 29 thanks to : • 6 projects proposed by the Commission in 2002 ; • 9 projects added by last October 1. • Boost growth ; • Success of the european enlargement .

  3. THE NEEDS • The 29 projects amount € 22O Bn by 2020, € 160 Bn have to be completed by 2010 ; • An annual investment effort equal to 0,16% of the enlarged Union GDP ; • For an approximately total needs of € 600Bn.

  4. EUROPEAN CONTRIBUTION • High Level Group Report on the TEN - T Van MIERT Group ; • Starting point of a large and deep reflection from DG TREN, European Commission and EIB trough: • Various communications ; • Modification draft of Directives ; • EIB memorandum to Ecofin.

  5. GOALS • The Ideas, concepts and proposal are meant to fulfil two main goals : • A better use and reinforcement of the existing financial instruments ; • Increase industry’s involvement and private capital in the realisation of the transport projects.

  6. FIRST GOAL I • Better use of the financial instruments • Strengthening and amendments of the legislative frameworks and setting up of European structures: • Transnational legal entity for cross-border projects ; • Coordinating entity for each main European route ; • Electronic toll committee and electronic toll collection entity ; • Price fixed in a stable and predictable framework.

  7. FIRST GOAL II • Improvement of the financing • Increase of the volume and the length of EIB loan ; • Award of larger guarantees ; • Creation of a Structure Finance Facility (SFF) ; • Possible securitisation by EIB of the outstanding balance of loans awarded by national financial institutions ; • Possible increase of the TEN - T budget contribution from 10% to 20% or 30% of the project.

  8. SECOND GOAL • Favour the private sector ’s participation • Key factor for success: Green Paper Book ; • Guarantees protecting the private sector against public policy changes ; • Unification of evaluation methods and use of the externalities concept ; • Direct allocation, without transfer trough the State budget, of revenue generated by the transport sector ; • Expertise and technical support from EIB.

  9. ARE THE PROPOSED EFFORTS IMPORTANT ENOUGH? • Current expenses of the Member States: € 15 to 20 Bn per year, falling down in few years from 1,5% to less than 1% of the GDP ; • TEN - T budget to day: € 600 M per year, i.e € 4,2 Bn between 2000-2006 period ; • Overall EU investments during the same period: € 20 Bn ; • EIB : € 100 Bn up to 2010 equally shared between transport and R§D, SFF from € 1,3 Bn to € 2,3 Bn.

  10. ADDITIONAL FINANCING NEEDS • A better knowledge of the needs ; • Tolls contribution: only € 40 Bn on € 220 Bn needs; • The imposed constraints by ECOFIN and the former European Council: • Aims of the Stability Pact have to be achieved ; • A higher participation rate for some projects • Member States remain committed to provide financing.

  11. RENEWAL OF THE FINANCING ENGEENERIE • Setting up of new concepts and structures ; • To wait for an economic recovery: a passive attitude ; • States haven’t drawn all the conclusion of their economic role: • Outdated budgetary rules ; • Inadapted public accounting rules ; • An insufficient use of social-economic benefits concept.

  12. THE PROBLEMS OF THE PRIVATE SECTOR • Too many names and acronyms are confusing; • An unadapted legal, accounting, fiscal framework • Pre selection and tender procedures to be updated ; • Too high level of transaction costs ; • A poor knowledge of the public hidden costs and lack of proper evaluation tools ; • Limits of the risks transfer to the private sector.

  13. THE REASONS TO HOPE • Pressure of needs: a powerful motor for action ; • News ideas are forthcoming, statutory reform of the state is the most important tool ; • A significant saving waiting to be use ; • The adoption of common rules facilitates the realisation of complex and transborder projects.

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