1. The EU Trans-European Transport Network Policy & The Connecting Europe Facility
Lia Potec, Policy officer
European Commission
DG Mobility and Transport
Unit B4 Connecting Europe – Infrastructure Investment strategies
19/11/2014

2. The new TEN-T maps
Comprehensive network to ensure accessibility to all regions
Core network focusing on the strategically most important parts
Maps contained in Annex I to the Regulation
List of nodes in Annex II
Indicative comprehensive network maps for the neighbouring countries in Annex III
Standards for all modes
Deadlines 2030/2050
TEN-T Comprehensive and Core Network
Railways (passengers) and airports

3. TEN-T Network Standards (1/3) Railways
Comprehensive Network
Electrification
ERTMS
1435mm gauge
Connection with freight terminals
Core Network
[see Comprehensive network plus]
freight lines (>100 km/h, 750m train length, 22,5t axle load)
TEN-T Comprehensive and Core Network
Railways (freight), ports and rail-road terminals

4. TEN-T Network Standards (2/3) Roads
Comprehensive Network
High quality roads i.e. motorways, expressways, conventional strategic roads
Core Network
[see Comprehensive network plus]
Rest areas on motorways all 100 km, including appropriate parking space for commercial road users
Availability of clean fuels
TEN-T Comprehensive and Core Network
Roads, ports, rail-road terminals and airports

5. TEN-T Network Standards (3/3) Other modes
Comprehensive Network
Implementation and deployment of telematic applications (RIS, VTMIS, e-maritime services, SESAR)
Connection of airports and ports to TEN-T network by 2050
Core Network
[see Comprehensive network plus]
Availability of clean fuels at airports and ports
Connection of ports and airports to TEN-T network by 2030
TEN-T Comprehensive and Core Network
Inland waterways and ports

6. TEN-T Core Network Corridors and European Coordinators
9 multimodal corridors (defined until 2020*)
Implementation tools
Support the core network implementation
Synchronise investments (Corridor Work Plan), including deployment of new technologies and telematic applications
Alignment with the Rail Freight Corridors
Involvement of stakeholders
European Coordinators also for ERTMS and Motorways of the Sea
* Alignment identified in Annex I of the Connecting Europe Facility Regulation

7. Scandinavian-Mediterranean Corridor

8. Sectoral policy frameworks (setting priorities for 2020, 2030, 2050)
Connecting Europe Facility
One instrument – three sectors
Connecting Europe Facility
Transport Guidelines
Energy Guidelines
Telecom Guidelines
The "European Infrastructure Package"
Financing framework
Sectoral policy frameworks
(setting priorities for 2020, 2030, 2050)
€33.2bn to finance projects of EU common interest 8

9. Connecting Europe Facility: budget
Budget: €33.2 billion in current prices
€ billion for transport (including €11.3 billion reserved for Cohesion MS)
€1.141 billion for broadband and digital services
€5.850 billion for energy infrastructure
To be spent via
grants
innovative financial instruments

10. Other EU sources of financing for TEN-T (2014 -2020)
European Structural and Investment Funds
Cohesion Fund and European Regional Development Fund: ~€35bn
Loans from the European Investment Bank
Approximately €6.5bn per year (estimated €45.5 on )
Leftover from Cohesion Fund

11. CEF (tansport): Budget allocation
80 – 85 % of total budget for core network projects pre- identified in Annex I to the CEF Regulation
Horizontal priorities
Sections on the core network corridors
Other important core network cross-border and bottleneck sections
15 – 20 % of total budget for
Other projects on the core network
Projects on comprehensive network (max 5%)
Projects in third countries
Financial instruments (10%)

12. CEF: Priorities Modes Sections Horizontal Geographical
Rail, inland waterways, multimodal platforms (ports, rail-road terminals)
Sections
Missing links, cross-border, bottlenecks, intermodal connections
Horizontal
ERTMS, SESAR, other telematic systems (RIS, ITS, e-Maritime...)
Motorways of the Sea, including alternative fuelling (LNG) deployment
New technologies and innovation focusing on decarbonisation, safe and secure infrastructure, ports and airports
Geographical
Core Network, Corridors on the Core Network
Political priorities: Commission Communication COM(2013)940

13. CEF in Sweden Pre-identified projects in Annex I
Baltic – Adriatic Corridor
Other core network sections
Horizontal priorities (traffic management, new technologies)
Turku/Naantali – Stockholm
Ports, MoS – port interconnections, icebraking capacity
Stockholm - Malmö (Nordic Triangle)
Rail – works ongoing on specific sections
Trelleborg - Malmö – Göteborg – NO
border
Rail, port, MoS – works, multimodal platforms and port hinterland connections
Bothnian Corridor: Lulea – Oulu
Rail cross-border – studies and works
Sundsvall – Umea – Lulea
Rail bottleneck – studies and works
Stockholm – Gävle – Sundsvall
Rail – works
Mjölby – Hallsberg – Gävle
Bothnian – Kiruna – NO border
Rail – studies and works

14. CEF in Finalnd Pre-identified projects in Annex I North Sea – Baltic
Scandinavian – Mediterranean
Other core network sections
Bothnian Corridor: Lulea – Oulu Cross-Border Rail studies and works
Helsinki – Oulu Rail upgrading of sections
Horizontal priorities (traffic management, new technologies)
Helsinki - Tallinn
Ports, MoS - port interconnections, (further) development of
multimodal platforms and their interconnections,
icebreaking capacity, MoS
Hamina Kotka – Helsinki
Port, rail - port interconnections, rail upgrading, icebreaking
capacities
Helsinki
Rail - airport-rail connection
RU border – Helsinki
Rail - works ongoing
Helsinki – Turku
Rail - upgrading
Turku/Naantali – Stockholm
Ports, MoS - port interconnections, icebraking capacity

15. CEF grants: co-funding rates
Types of Projects
CEF General Budget
CEF Cohesion Envelope
(a) Studies (all modes)
50%
85%
(b)Works on
Rail
Cross border
40%
Bottleneck
30%
Other projects of common interest
20%
Inland waterways
Inland transport connections to ports and airports (rail and road)
Development of ports
Development of multi-modal platforms
Reduce rail freight noise by retrofitting of existing rolling stock
Freight transport services
Secure parkings on road core network
Motorways of the sea
Traffic management systems
SESAR, RIS & VTMIS
50/20%
ERTMS
ITS for road
Cross border road sections
10%
85% (core network)
New technologies and innovation for all modes of transport 15

16. Complementarity CEF – ESI Funds (1)
High EU added-value on TEN-T Corridors and core network (as pre-identified in Annex I of the CEF Regulation)
More sustainable modes of transport: rail, IWW
High EU added-value projects to remove bottlenecks in transport networks, by supporting TEN-T infrastructure on both the core and comprehensive networks
All modes of transport
Regional mobility, through connecting secondary and tertiary nodes to TEN-T infrastructure
Network effect: strong coordination of investments in TEN-T needed
Common project pipeline for ESI Funds and CEF, to be included in the Operational Programmes
Corridors Work Plans
National Transport Master Plans

17. CEF grants: direct management
Work Programme
On basis of CEF & TEN-T eligibility
AP & MAP
Adopted by MS in CEF Committee
Call for proposals
Open from 11 September 2014 to 26 February 2015
European and National info days
Evaluation
External evaluation, organised by INEA
Internal evaluation by Commission
Approval of list of selected projects by CEF Committee
March to July 2015
Financing Decisions
Negotiated between INEA and project promoters
Conclusion before end 2015

18. CEF: 2014 calls for proposals (GRANTS)
The Multi-annual Work Programme (MAP)
€ 11 billion total, including €4bn from the Cohesion envelope
Only for projects pre-identified in Annex I of CEF
(Corridors, other sections on the core network, horizontal priorities)
The Annual Work Programme (AP)
€ 930 million
Other projects on the core network
Comprehensive network
Connections with neighbouring countries
Specific priorities which complement actions under the MAP
(e.g.: Freight Transport Services, Actions to reduce rail freight noise) 18 18

19. CEF: Programme Support Actions
Support to participation in the core network corridors of (all) Member States
Strengthening administrative capacity of the Member States eligible for the Cohesion Fund
Technical assistance services for the development and implementation of projects implementing the TEN-T core network in the MS eligible to the Cohesion Fund
Technical assistance to improve capacity building for Railway Infrastructure Managers eligible to the Cohesion envelope

20. CEF: Financial instruments (1)
Added Value
Attract private investors to support the deployment of transport infrastructure projects of common European interest.
Obtain the best possible deal for the European tax-payer
Give access to finance to projects that would not be able to do it or only at very high price
Financial Instruments = 10% of the CEF envelope
Between EUR 1,300 and 2,400 million foreseen
Possible increase up to 20% of the CEF envelope, is set in the legal base
The estimated leverage effect is expected to range between 6 to 15; i.e. 1 EUR CEF to generate up to 15 EUR project finance

22. CEF: Financial instruments (2)
Full eligibility
TEN-T core & comprehensive, all modes
Projects with identifiable revenue streams or commercial benefits and long-term repayment
high speed rail, ports and airports development, motorways, locks, rail connection to airport...
support to rail infra managers, equipment of fleet with clean fuels or with on-board traffic management systems...
deployment of clean fuels or traffic management systems on ground and on-board, joint procurement for clean urban transport or road electrification...
Partnership with financial institutions, such as EIB 22 22

23. Financial instruments (3)
Type of Financial instruments
Equity intruments
Risk-capital, e.g. Marguerite Fund
Investing in equity reduces the need for debt and reduces the level of risks
Debt instruments
Guarantees and risk-sharing instruments, e.g. LGTT and Project Bonds
- LGTT to support bank lending
- Project Bonds made to support investment from Capital Market investors (Pension funds, insurance companies)
CEF can contribute to the RSFF (Risk-Sharing Finance Facility under FP7/Horizon 2020).
- RSFF can provide loans or guarantee for projects with innovation, research or technological risks, up to 50% of the eligible costs.

24. CEF: Financial instruments (4) € 1 million from the EU Budget can generate € 20+ million in investments (leverage effect)
Senior Debt in forms of loans or bonds
Project Company,
- paying investment costs, interests, operational costs…
Receiving revenues (from users, authorities…)
Reimbursing debt
Banks providing loans or Bonds bought by Pension Funds and insurance company)
€600m
Sub-debt (funded or unfunded) provided by financial partner
Financial partner (EIB or national investment banks)
Funds from CEF
€30m
€100m
Equity
Total cost: €700m
Funds from project sponsors or infrastructure owners
€100m
European Investment Bank

25. Thank you for your attention! lia.potec@ec.europa.eu