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Building and Financing European Transport Infrastructures: Challenges and Opportunities

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13 diapositives · 274 Views · Jul 31, 2014

The European Transport Forum held on October 23, 2003, emphasized the necessity of enhancing and financing Europe's transport infrastructures, especially in light of the EU's enlargement. The forum discussed 29 ongoing projects with a projected cost of €220 billion by 2020. Key goals include better utilization of financial instruments and increased private sector involvement. However, significant challenges remain, such as outdated legislation and high transaction costs. The collective pressure for action presents an opportunity for systemic reform and improved investment efficiency.

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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.