Mr. Dejan Lasica, SEETO General Manager DEVELOPMENT OF INDICATIVE EXTENSION OF TEN-T NETWORKS IN WESTERN BALKANS TIL 2018, BELGRADE Mr. Dejan Lasica, SEETO General Manager

SEETO Regional Cooperation SEETO is established by the Memorandum of Understanding (MoU), signed on 11th June 2004 between European Commission and 7 of the Western Balkans participant, and upon accession of Croatia to the European Union on 1 July 2013, its formal participation as a party to the MoU seized, and SEETO now has 6 regional participants. The main purpose of the MoU is to co-operate on the development of the main and ancillary infrastructure on the multimodal South East Europe Core Regional Transport Network and to enhance policies in this area which facilitate such development. The main focus of the activities carried out under the umbrella of SEETO cooperation is to foster a regional rather than national approach when analyzing the regional transport system, as transport is not limited by national boundaries. During 13 years of cooperation, SEETO has collaborated with ministries in charge of transport, other regional organisations like RCC etc, European Commissions has always been there to assist and guide, all the other IFIs that have supported the development of network. As transport is there to facilitate movement of goods and people, listening to the private sector needs and challenges has also been in focus of SEETO activities and cooperation. The major breakthroughs in 2017 was the signing of the Transport Community Treaty by the European Union and five partners of the Western Balkans on the Trieste Summit, while the sixth - Bosnia and Herzegovina - signed on 18 September 2017. The essence of the Transport Community is to bring the Western Balkans closer to the EU by creating a fully integrated transport network among the Western Balkans themselves, as well as between the region and the EU, and to reach convergence with the transport operating standards and policies of the EU. MoU 11th June 2004 TCT 12th July 2017

Indicative Extension of TEN-T to WB Signature of Transport Community Treaty 2017 Connectivity Reform Measures TEN-T Guidelines - Core and Comprehensive Networks 2016 TEN-T Guidelines- inclusion of Comprehensive Networks in maps 2013 Multi Annual Plans MoU- Definition of Network 2004 Compr. : 5.463 km Core : 3.522 km Compr. : 3.857 km Core : 2.602 km

Multi-annual Plan (MAP) 2018 Provides pertinent information and analyses on the whole transport system 1. Updated data on traffic flows, regulative and infrastructure developments 2. Regional Priority Projects and infrastructure investments and 3. Connectivity Reform Measures and Transport policy MAP encompasses three main pillars as shown in the chart. During these 13 years, it became the main reference document for IFIs in relation to investment opportunities in the WB and it is an example of the collaboration between all the regional participants and SEETO Secretariat. Enhanced role of the MAP as a main regional transport planning document!

Infrastructure Investment Overview €13.5 billion From 2004 until today, a total amount of €13.5 billion has been invested in the Indicative Extension of the TEN-T Comprehensive and Core Network to the Western Balkans. This is almost €1 billion more than in the previous year. 52% of this amount or €6.87 billion goes to disbursed investments, 39% or €5.13 billion goes to committed investments while 9% or €1.2 billion goes to secured investments. With a total share of 81%, investments in road projects are in first place even though environmentally friendly transport modes are being promoted at European levels for their major benefits, especially since the period of launching the Connectivity Agenda/Berlin Process. Analysing each regional participant separately we come upon the same results - the road mode is in lead position. An encouraging 15% goes to railway projects which is a significant rise comparing to the period before 2013. This is the mode with the highest share within secured investments (79%). However, years of neglecting railway infrastructure in the region resulted in its very poor conditions compared to the market needs, and as a basic condition for the development of the industry and intermodal transport.   Airport, Seaport and IWW projects are respectively taking a share of 3%, 1%, less than 1%. A similar situation is in each of the SEETO regional participants, which leads to a conclusion that in the past for more than decade long period, the region was investing in the development of road infrastructure, while in the recent period, there is a tendency of investing in rail projects When observing investments by source of funding, IFI loans (38%) and national budgets (29%) take the highest share. Comparing to the share from the previous year, level of EU grants recorded growth mostly due to the signed WBIF agreements which also affected the rise of IFI loans. Shares between different IFIs stayed approximately the same. European Investment Bank (EIB) with 61.3% or EUR 2.8 billion, European Bank for Reconstruction and Development (EBRD) with 33.2% or EUR 1.5 billion and World Bank (WB) with a share of 5.5% or EUR 250 million.

Connectivity agenda - Co-financed projects Vienna Summit August 2015 Construction of Svilaj – Odzak and Svilaj Bridge, 87 ml € Completion of Banja Luka - Gradiska,27 ml € Railway Route 10, Fushë Kosovë – MKD border, 38.5 ml € Railway Route 4, Bar - Vrsac, 20 ml € Railway Corridor X, Serbia – MKD, 47 ml € Intermodal Terminal in Belgrade, 18 ml € TOTAL 238 ml € Paris Summit July 2016 Rehabilitation of Tirana – Durres railway line, 35 ml € Railway Route 10, Fushe Kosove – Mitrovica, 17 ml € Railway line Nis – Bulgarian border, 44 ml € TOTAL 96 ml € Trieste Summit July 2017 Corridor Vc, section I Ponirak - Vraca, 15.9 ml € Corridor Vc, section II Tunnel Zenica – Donja Gracanica, 11.8 ml € Corridor Vc, section III Johovac Interchange – Rudanka Interchange, 15.3 ml € Rhine Danube Corridor, Port of Brcko, 3.1ml € Railway Corridor VIII, Beljakovce – Kriva Palanka, 70 ml € Railway Corridor Xc, Nis-Dimitrovgrad-Border with Bulgaria, 28.4 ml € TOTAL 194.1 ml €

Multi Annual Plan 2018 Mature Priority Projects 16 road project 5 rail project 4 IWW project 1 airport total amount 3.6 Bn€ 942 M€ 87 M€ 25 M€ Priority projects eligible for funding – advanced projects for which a comprehensive evaluation is available, based on a completed feasibility study and, if available, all of the project documentation.   Priority projects for preparation – projects which require full project preparation and project evaluation to determine their feasibility. These projects are not ready for implementation, but funding is required to carry out the necessary preparatory work. The estimates presented on the preparatory project list were derived from pre-feasibility studies and preliminary designs while funding is required for the preparation of feasibility studies and detailed designs TOTAL NEEDS: 4.6 billion €

Road Mature Priority Projects Corridor Vc Priority projects eligible for funding – advanced projects for which a comprehensive evaluation is available, based on a completed feasibility study and, if available, all of the project documentation.   Priority projects for preparation – projects which require full project preparation and project evaluation to determine their feasibility. These projects are not ready for implementation, but funding is required to carry out the necessary preparatory work. The estimates presented on the preparatory project list were derived from pre-feasibility studies and preliminary designs while funding is required for the preparation of feasibility studies and detailed designs NEEDS: €2.7 billion

Rail Mature Priority Projects Priority projects eligible for funding – advanced projects for which a comprehensive evaluation is available, based on a completed feasibility study and, if available, all of the project documentation.   Priority projects for preparation – projects which require full project preparation and project evaluation to determine their feasibility. These projects are not ready for implementation, but funding is required to carry out the necessary preparatory work. The estimates presented on the preparatory project list were derived from pre-feasibility studies and preliminary designs while funding is required for the preparation of feasibility studies and detailed designs NEEDS: €942 million

IWW Mature Priority Projects Priority projects eligible for funding – advanced projects for which a comprehensive evaluation is available, based on a completed feasibility study and, if available, all of the project documentation.   Priority projects for preparation – projects which require full project preparation and project evaluation to determine their feasibility. These projects are not ready for implementation, but funding is required to carry out the necessary preparatory work. The estimates presented on the preparatory project list were derived from pre-feasibility studies and preliminary designs while funding is required for the preparation of feasibility studies and detailed designs NEEDS: €87 million

Multi Annual Plan 2018 Priority Projects for preparation 19 road project 13 rail project 1 project 4 airport projects 2 port projects total estimated amount 6.3 Bn€ 2.6 Bn€ 343 M€ 55 M€ 9.1 M€ TOTAL ESTIMATED NEEDS: 9.3 billion €

Road Projects for Preparation ESTIMATED NEEDS: €6.3 billion Main priorities: Adriatic – Ionian Motorway, estimated cost € 1.6bn Route 4, estimated cost € 1.2 bn Route 7, estimated cost € 855 ml

Rail Projects for Preparation ESTIMATED NEEDS: €2.6 billion Main priorities: Corridor X and branches, estimated cost € 1.9bn Corridor VIII, estimated cost € 362 ml

Connectivity Measures Progress Railway market open for domestic carries In Albania, Kosovo, Serbia Road safety inspections, ITS deployment, Road/rail maintenance and road border crossing facilitation Connecta started in January 2017 National Connectivity Reform Measures Joint operation in Tuz started between Albania and Montenegro Construction works started in Merdare

Commitments and challenges ahead Transport Community structures to be established as a legal successor of SEETO Continued commitment towards development of multimodal Core/Comprehensive Network Regional Participants to work together towards the aligning of the transport system with the EU, for enabling market rules and EU standards Real benefits expected when the measures will become operational (BC agreements, laws, strategies, action plans etc.)

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