Transport Financing transport infrastructure with the Connecting Europe Facility Next steps after the negotiations Matthieu Bertrand DG MOVE, Unit B4 Connecting Europe - Infrastructure Investment Strategies

Transport Connecting Europe Facility One instrument – three sectors Connecting Europe Facility Transport Guidelines Energy Guidelines Telecom Guidelines Financing framework Sectoral policy frameworks (setting priorities for 2020, 2030, 2050) The "European Infrastructure Package" (European Commission proposal, October 2011)

Transport Update on the Connecting Europe Facility Conclusive informal trilogue : 27/06 Vote in the TRAN/ITRE EP Committee : 7/10 Next steps Debate and Vote in the EP Plenary : 22 & 23/10 Adoption by Council : end October/early Nov Signing of the text by EP President: week of 18/11 Publication at the Official Journal: end November? Entry into force : one day after publication Entry into application : 01/01/2014 BUT: the First work programmes can be adopted only after the adoption of a delegated act…

Transport CEF budget €23.1 billion for TEN-T (-40% vs EC) (€26bn in current prices) European Council agreement 7-8 February 2013 EP resolution backed the agreement. Vote on the MFF Regulation in Autumn expected to be positive. €13.1bn available to all Member States (€14.8n in current prices) €10bn to be transferred from the Cohesion Fund (€11.3bn in current prices) To be allocated exclusively to projects in Cohesion Fund eligible Member States Respect of National allocations under the Cohesion Fund until end 2016 Specific Programme support actions for MS experiencing difficulties in proposing projects To be spent via: Grants (estimated €21.1 billion) Innovative financial instruments ( €2 billion estimated market uptake)

Transport 80 – 85 % of available budget through MAPs for pre-identified projects listed in Annex 1 4 horizontal priorities (addition of innovation and new technologies, MoS, Safe and secure infrastructure) 9 core network corridors (addition of new projects and changes in the alignment) and other important cross-border and bottleneck sections (many sections added) 15 – 20 % for other projects of the core and comprehensive networks (new addition, up to 5% of the CEF envelope) and for financial instruments Main results of the negotiations: Enlarged eligibility

Transport Revised Co-funding rates Types of Projects All Member States Member States eligible for Cohesion Fund (a) Studies (all modes)50%85% (b)Works on RailCross border40%85% Bottleneck30%85% Other projects of common interest20%85% Inland waterwaysCross border40%85% Bottleneck40%85% Other projects of common interest20%85% Inland transport connections to ports and airports (rail and road)20%85% Development of ports20%85% Development of multi-modal platforms20%85% Reduce rail freight noise by retrofitting of existing rolling stock20% Freight transport services20% Secure parkings on road core network20% Motorways of the sea 30%85% Traffic management systems SESAR, RIS, VTMIS (ground/onboard)50/20%85% ERTMS50%85% ITS for road20%85% Cross border road sections10%85% New technologies and innovation for all modes of transport20%85%

Transport Other changes in eligibility Eligibility of VAT VAT to be eligible when not recoverable under national law and by a beneficiary other than a non-taxable person Rules of the Cohesion Fund for the €10bn Purchase of land Is an eligible costs under the €10bn in line with rules of the Cohesion Fund Timing Apart for 2014, costs eligible for financing shall not have been incurred prior to the date of submission of the grant application. Cancellation possible for studies which have not been started within one year following the start date and two years for works

Transport Constraints for the implementation (1) Split of the available budget per objective EP and Council added an annex IV setting percentages for the 3 transport specific objectives of the CEF (i) removing bottlenecks, enhancing rail interoperability, bridging missing links, and, in particular, improving cross-border sections - 80%; (ii) ensuring sustainable and efficient transport systems in the long run, with a view to preparing for expected future transport flows as well as enabling the decarbonisation of all modes of transport through transition to innovative low- carbon and energy efficient transport technologies, while optimising safety - 5%; (iii) optimising the integration and interconnection of transport modes and enhancing interoperability of transport services, while ensuring the accessibility of transport infrastructures, and taking into account the ceiling for on-board components of SESAR, RIS, VTMIS and of ITS for the road sector referred to in article 10(2)c(iv) - 15 %.

Transport Constraints for the implementation(2) Numerous caps and limits: EP and Council added additional caps and limits for certain eligible actions: capping for on-board components of traffic management systems, including SESAR but excluding ERTMS, of 5% of the transport envelope of CEF. a maximum of €1.3bn can be spend via grants on on-board components of SESAR, RIS, VTMIS and ITS for road. capping of 5% for the comprehensive network Limiting the funding to €1.3bn capping of 1% for freight noise (retrofitting of rolling- stock), limiting the funding to €260m

Transport Constraints for the implementation(3) Numerous caps and limits: EP and Council added additional caps and limits for certain eligible actions (2): 1% Capping for programme support actions consisting of technical and administrative assistance expenses incurred by the Commission for the management of the CEF It includes the cost of the Executive Agency several caps for financial instruments: 10% overall capping for all financial instruments + limit of €230m for Project Bonds until 2015.

Transport Constraints for the implementation(4) EP and Council adopted a list of general orientations be taken into account when setting the award criteria: maturity of the action in the project development; soundness of the implementation plan proposed; stimulating effect of Union support on public and private investment; need to overcome financial obstacles such as the lack of market finance; when applicable, economic, social, climate and environmental impact, and accessibility; cross-border dimension

Transport The delegated act on funding priorities Result of difficult negotiations EP wanted MAP to be adopted as delegated acts, with € allocated to each of the priorities during MAP to be adopted as implementing acts but Commission to adopt delegated acts to detail the funding priorities to be reflected in the work programmes, without indicative amounts. Commission has to adopt the delegated act on funding priorities before the 1 st work programmes can be adopted.

Transport Next steps for the delegated act Target date: adoption of the delegated act and the Communication just after the entry into force of the CEF and TEN-T Guidelines Regulations Provisional planning Meeting with the consultative Expert group for preparation of the DA on 26/09 & 7/11 Inter-service consultation early November CEF and Guidelines to enter into force after publication at the Official Journal Adoption of the DA by College early December

Transport Impact for the 2014 work programmes and calls Scrutiny period: After the DA is tabled by EC, EP and Council have a 2- month scrutiny period to reject the act. This period could be extended by 2 months WP cannot be adopted before DA is adopted Entry into force of CEF1/12 DA proposal by EC5/12 Scrutiny until…5 Feb April 2014 Adoption of 2014 Work Programme FebruaryApril Publication of callsFeb- MarchApril-May

Transport Main features of the 2014 Work programmes and calls 1 MAP for the €10bn transferred from Cohesion Fund, only for Cohesion MS (total budget: ~€11.2bn in current prices) 1 MAP for the 28 EU MS 1 AP for the 28 EU MS total budget for CEF without the transferred from Cohesion fund: ~€14.8bn in current prices) The size of the calls will be evaluated on the basis of MS project pipelines Will be done in cooperation with MS authorities and DG REGIO, especially for Cohesion MS No plan to have an AP for the €10bn All key projects on the Core Network are in included in the Annex, covered by the MAP No plan to adopt in 2014 the multi-sectoral call for proposals for actions with synergies One joint multi-sectoral call will have to be adopted between

Transport Any questions? Thank you for your attention