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Regional Connectivity Agenda: state of play and way forward Nicholas Cendrowicz

Regional Connectivity Agenda: state of play and way forward Nicholas Cendrowicz Deputy Head of Unit, D5, Western Balkans Regional Co-operation & Programmes (DG NEAR). Third Meeting on Donor Coordination in the Western Balkans (March 16 th 2017). 1. What is Connectivity?.

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Regional Connectivity Agenda: state of play and way forward Nicholas Cendrowicz

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  1. Regional Connectivity Agenda: state of play and way forward Nicholas Cendrowicz Deputy Head of Unit, D5, Western Balkans Regional Co-operation & Programmes (DG NEAR) Third Meeting on Donor Coordination in the Western Balkans (March 16th2017)

  2. 1. What is Connectivity? • Key idea: Connectivity is not necessarily about building new infrastructure (roads, railways, power and gas transmission lines) • It's about getting the best use of infrastructure • Improving the framework in which transport and energy services operate • Sometimes that involves working on the legal and regulatory framework • Upgrading existing infrastructure or improving maintenance • In certain key parts of the network, new infrastructure will be necessary

  3. Connectivity Agenda Key elements • High-level political driver • Regional work to define common priorities • National work to put investments in a sound economic context • The link between infrastructure investments and legal and regulatory reforms • EU assistance

  4. 1. Connectivity Agenda A high-level political driver • The Berlin Process and the Western Balkans 6 • A framework initiated by the countries themselves, with the support of key EU Member States • Last year's summit in Paris, This year’s will take place in Trieste • Need for push at thehighest level (i.e. Prime Ministers)

  5. 2. Connectivity AgendaRegional work to define common priorities • Transport: • Defining a ’core transport network'– in road, railways and inland waterways, according to EU methodology • Defining 3 'transport corridors' in the region • Energy: • Defining energy priorities in the region: usingthe 'Projects of Energy Community Interest' (latest list adopted in October 2016) • Linked to creation of a regional electricity market • Networks approved by all countries • This allows all parties to focus attention on a limited number of projects

  6. 3. Connectivity AgendaNational work to put investments in a sound economic context • Investments in energy and transport should be part of national energy and transport strategies • Countries should define a 'single project pipeline': a multi-annual programme of important investments to prioritise large energy and transport projects alongside other investments (schools, hospitals, water treatment plants, flood defences…) • This SPP should be endorsed by a National Investment Committee • Investment projects need to take account of work on countries' limited fiscal space

  7. 4. Connectivity AgendaThe link between infrastructure investments and legal and regulatory reforms • EU investments should take place in an optimal policy framework (for construction and operation) • Reforms will add value to investments and will also help attract further investments • The reforms are in line with countries' EU obligations • Funding decisions linked to progress on these reforms • In energy the countries have adopted a Roadmap fora regional electricity market, based on EU rules. • In Paris, confirmation of the Vienna transport reform measures (linked to rail market opening, road safety, maintenance plans, border crossings). Connectivity Reform Measures monitoring Progress Report   December 2016

  8. 5. Connectivity AgendaFunding • Connectivity exercise: €1 billion in multi-country funding over 6 years • Projects to be funded through the Western Balkans Investment Framework: blending financing with the IFIs • EU funding rate: not limited to 20% • Projects selected on the basis of their maturity and regional benefits • Key criteria for selection: progress on legal and regulatory reforms • In Paris: 3 railway projects were selected, no energy infrastructure projects • Instead invested in energy efficiency • Increased focus on project preparation through various instruments to ensure that we have a steady pipeline of projects

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