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 16th 2017) 1

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. A high-level political driver
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 the highest level (i.e. Prime Ministers)

5. 2. Connectivity Agenda Regional 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: using the '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
Content of presentation

6. 3. Connectivity Agenda National 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
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7. Connectivity Reform Measures monitoring
4. Connectivity Agenda The 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 for a 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).
Content of presentation
Connectivity Reform Measures monitoring
Progress Report  
December 2016

8. 5. Connectivity Agenda Funding
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
Content of presentation