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 : 6 projects proposed by the Commission in 2002 ; 9 projects added by last October 1. –Boost growth ; –Success of the european enlargement.

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.