The Investment Plan for Europe: What it Means for the Transport Sector Connecting Europe Infrastructure Investment Strategies DG MOVE

Transcription

1 The Investment Plan for Europe: What it Means for the Sector Connecting Europe Infrastructure Investment Strategies DG MOVE

2 Prof. Carlo Secchi

3 The issues driving infrastructure policy From patchwork to network

4 Policy solutions: TEN T to deliver an Connecting networks: Crossborder & Missing links (CEF Annex I) efficient EU transport area Single EU Area: Internal Market GHG Connecting modes: platforms, terminals, nodes: "multimodal layer' Connecting operations: Interoperability, Homogenous standards, Seamless Information flow, Administrative simplification

5 TEN T Core Network Corridors An implementation instrument: To facilitate coordinated and resource-efficient realisation of projects of common interest European Coordinators Corridor platforms (bringing together relevant stakeholders) Work Plans (submitted by Coordinators in December 2014 and approved by the Member States) 5

6 TEN T Core Network Corridors

7 EU transport objectives and the "Juncker Plan" (IPE) In the transport sector, the Investment Plan for Europe will operate in the following context: Clear EU policy priorities Huge investment needs Existing initiatives, but with limited budget Risks/challenges to private sector financing in some priority areas Expectation: IPE to augment and enhance existing initiatives to deliver substantial investment in the transport sector

8 Investment Plan for Europe EFSI Project pipeline Strategic Infra (Tr, En, ICT) Edu, RTDI RES, EE SMEs AdvisoryHub (EIAH) ProjectsPortal (EIPP) Invest. Friendly Environm. Capital market, Solvency 2 EUROSTAT: PPPs Permitting & procurement: cuttting the red tape State Aid: predictable

9 Blending & pooling: synergies between financial instruments (IPE) and traditional Horizon 2020 ESIF (Cohesion policy) CEF Grant Support Grants to projects with EU Network effects Direct technical assistance administrative capacity EFSI Financial Instruments EU-EIB Risk- Sharing schemes to implement PPP projects

10 Third pillar: Regulatory reform One-stop-shop to facilitate transport infrastructure projects facilitate ad hoc advice on projects (State aids, etc.) Study on permitting and facilitating the preparation and implementation of the TEN-T core network. Coordination on financial programmes to be strengthened, notably between CEF and ESIF. PPP pipeline: clarify and train on on/off balance sheet Solvency 2: infrastr. investment more attractive to instit. investors

11 Third pillar: Barriers to private finance investment in transport infrastructure Bottlenecks in procurements and permitting Sectoral, industry, and Member State inertia Tight fiscal environment Size and complexity of transport projects Financial return of transport projects Weak PPP market DG MOVE is working to address these barriers. EFSI should be part of the solution...

12 Addendum: highlights for project financing Important revision of State Aid rules proposed - on-going consultation : exempt investments identified in the corridor work plans to focus on problematic aid. The Draft GBER (Gen. Block Exemption Regulation) on 07/03/16: ew/index_en.html In addition, on EUROSTAT the new rules to appraise if a PPP is on/off balance-sheet (on public deficit / debt) have been published (following Member States consultations):

13 CEF and EFSI state of play and looking to the future Ian Conlon

14 Budget: 24.02bn Connecting Europe Facility (transport sector) Including 11.3 bn transferred from the Cohesion Fund Grants Priorities (Communication of 7/1/2014): TEN-T Corridors and core network: cross-border, missing links, bottlenecks, pre-identified projects Horizontal priorities: interoperability, innovation, ERTMS Sustainable modes of transport Financial instruments (<10% of budget)

15 2014 call: Record 13 bln grants towards 28.3 bln total investment in 263 projects

16 Connecting Europe Facility (Spain) For the first CEF call 2014 there were 39 grant agreements signed with Spanish participants: Leading to the allocation of over 820 million grants...triggering over 2.25 billion investment

17 Applicability of Financial instruments Grant funding process is efficient but limited available: e.g CEF 24bn to cover > 500bn! Limited eligibility of grants Greater policy focus on private finance Leverage effect of financial instruments which makes them a highly efficient use of budgetary resources Financial instruments have proven effective in encouraging long term competitive external financing Financial Instruments may also be blended with grants to optimise public sector support

18 EFSI: progress to date

19 EFSI: transport projects Autovie Venete A4 widening Beatrix lock D4R7 Slovakia PPP Trenitalia Regional Rolling Stock Grand Contournement Ouest de Strasbourg (A355) Balearia green fleet renewal Accessibility ports infrastructure ICO Infrastructure risk sharing loan EUROMED RORO Project A6 WIESLOCH-RAUENBERG TO WEINSBERG PPP Project A6 Almere PPP Project Quaero European Infrastructure Fund Nearly 5 billion total investment

20 Supporting EU transport priorities.. Highest priority: Core or comprehensive network, especially cross-border Investment platforms: smart cities, logistics Sustainable transport: alternative fuels, green shipping, charging infrastructure Promotion of interoperability: SESAR, ERTMS, traffic management/its innovation Lower priority: non-core or comprehensive road networks, large airports

21 ..scaling up tailored financial instruments and focussing on new sectors Scaling up piloted instruments : PBI, LGTT Working alongside CEF financial instruments: CEF concentrated on innovative, demonstrator and pilot products and initiatives New products currently being developed: SESAR, Green Shipping, Alternative Fuels EFSI to scale

22 blending EU grants with EFSI.. Catalytic establishes a financial case for economically sound but financially weak projects, allowing private finance to invest. Additional the grant component/first loss piece enables creation of new structures, for example investment platforms. Proven - the approach has been successfully used in a number of projects: Ports of Calais and Dublin. Impactful - EUR 1 billion of grants dedicated to blending could potentially increase the EFSI transport pipeline by 20%.

23 European Investment Project Portal What can the European Investment Project Portal (EIPP) do for you? Registration on the EIPP will boost the visibility of your project Opportunity to find investors from all over the world looking for investment opportunities in Europe Access to a large network of investors, consultants and advisory services that can help you to structure it and finance it Is my project eligible for the European Investment Project Portal? In order to qualify, projects must be: Worth at least 10 million Expected to start within three years of their submission to EIPP Promoted by a public or private legal entity established in an EU Member State Compatible with applicable EU and national laws Publication of a project can be denied on legal, reputational or other grounds. 23