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BackAccording to the Commission, within seven years from 2014 onwards, €50 billion will flow into the so-called Trans-European networks. These funds will be used to develop the transport, energy and digital infrastructure within the European Union. In order to drive the plans of the EU forward, the Commission also proposes to include private and institutional investors by means of EU Project Bond Initiatives. More growth through further the upgrading and revamping of Trans-European Networks
The Commission plans to invest €31.7 billion between 2014 and 2020 to improve the transport infrastructure; in addition, €9.1 billion will be made available for the energy sector and about €9.2 billion for information and communication technologies. The Koralm Tunnel too has made it to the Commission’s list of priorities; although according to the Commission nothing has been set in stone yet. The Commission has identified 10 priority network corridors in the transport sector. Austria is part of a number of rail projects. For example within the Baltic-Adriatic Corridor, where the cross-border railway lines are to be completed from Katowice (Poland) via Czechia and Slovakia to Vienna. However, the axis Vienna-Klagenfurt-Graz to Ravenna in Italy is also part of this corridor. The Brenner Base Tunnel is part of the corridor from Helsinki to Valletta (Malta), whereby a cross-border feeder line to the Brenner via Munich and Wörgl is also included; however, this is still in its study phase. Four rail sections with Austrian participation are planned for the Strasbourg-Danube Corridor. Hence, there is a project study concerning the section from Salzburg to Wels or a study on a high-speed access link from Vienna to Budapest. The connection between Wels and Vienna should be completed by 2017. The connection between Nuremberg, Regensburg, Passau and Wels has been partly implemented. A rail corridor has also been planned from Graz via Maribor to Pragersko in Slovenia.
EU Project Bond Initiative shall provide incentives for the participation of private and institutional investors
According to the European Commission, the new financing instrument of EU Project Bonds has been created to encourage private and institutional investors to invest in European infrastructure projects. During a pilot phase, which will run from 2012 to 2013, the Commission plans to grant guarantees of €230 million via the European Investment Bank (EIB). The aim is to create multiplier effects, which are to result in an investment volume of ca. €4 billion. This will be demonstrated on the basis of a small number of about 5-10 projects. Commissioner Rehn and Commission President Barroso regard this as an additional opportunity for project operators to obtain funds from the capital market and from banks.
The European Investment Bank (EIB) is in charge of implementing the pilot phase. The Commission will amend the Trans-European Networks (TEN) Regulation and the Competitiveness and Innovation Framework Programme (CIP). However, Transport Commissioner Kallas was right in pointing out that the Project Bonds would not be a miracle weapon, but only the opportunity to raise private funds. This is an important insight, as infrastructure projects are always projects which are in the public interest and whose profits should also benefit the public overall.
It is still completely unclear to which extent the Project Bonds will be funded from 2014-2020. However, Energy Commissioner Öttinger insisted that these instruments would only represent additional funding of TEN projects. Overall, this initiative still appears to be very immature.
Further information:
“Connecting Europe Facility“: Commission adopts plan for €50 billion boost to European networks and starts pilot phase for Project Bonds”
The Commission plans to invest €31.7 billion between 2014 and 2020 to improve the transport infrastructure; in addition, €9.1 billion will be made available for the energy sector and about €9.2 billion for information and communication technologies. The Koralm Tunnel too has made it to the Commission’s list of priorities; although according to the Commission nothing has been set in stone yet. The Commission has identified 10 priority network corridors in the transport sector. Austria is part of a number of rail projects. For example within the Baltic-Adriatic Corridor, where the cross-border railway lines are to be completed from Katowice (Poland) via Czechia and Slovakia to Vienna. However, the axis Vienna-Klagenfurt-Graz to Ravenna in Italy is also part of this corridor. The Brenner Base Tunnel is part of the corridor from Helsinki to Valletta (Malta), whereby a cross-border feeder line to the Brenner via Munich and Wörgl is also included; however, this is still in its study phase. Four rail sections with Austrian participation are planned for the Strasbourg-Danube Corridor. Hence, there is a project study concerning the section from Salzburg to Wels or a study on a high-speed access link from Vienna to Budapest. The connection between Wels and Vienna should be completed by 2017. The connection between Nuremberg, Regensburg, Passau and Wels has been partly implemented. A rail corridor has also been planned from Graz via Maribor to Pragersko in Slovenia.
EU Project Bond Initiative shall provide incentives for the participation of private and institutional investors
According to the European Commission, the new financing instrument of EU Project Bonds has been created to encourage private and institutional investors to invest in European infrastructure projects. During a pilot phase, which will run from 2012 to 2013, the Commission plans to grant guarantees of €230 million via the European Investment Bank (EIB). The aim is to create multiplier effects, which are to result in an investment volume of ca. €4 billion. This will be demonstrated on the basis of a small number of about 5-10 projects. Commissioner Rehn and Commission President Barroso regard this as an additional opportunity for project operators to obtain funds from the capital market and from banks.
The European Investment Bank (EIB) is in charge of implementing the pilot phase. The Commission will amend the Trans-European Networks (TEN) Regulation and the Competitiveness and Innovation Framework Programme (CIP). However, Transport Commissioner Kallas was right in pointing out that the Project Bonds would not be a miracle weapon, but only the opportunity to raise private funds. This is an important insight, as infrastructure projects are always projects which are in the public interest and whose profits should also benefit the public overall.
It is still completely unclear to which extent the Project Bonds will be funded from 2014-2020. However, Energy Commissioner Öttinger insisted that these instruments would only represent additional funding of TEN projects. Overall, this initiative still appears to be very immature.
Further information:
“Connecting Europe Facility“: Commission adopts plan for €50 billion boost to European networks and starts pilot phase for Project Bonds”