Financing, coordination and cooperation, key points in implementing the Danube Strategy

No.10 MP-FZ_LoR_April2013modThe EU Strategy for the Danube Region (EUSDR) was adopted four years ago, period in which several transport projects have been identified and a series of measures has been adopted to accelerate the implementation of the strategy. More than half of the 150 projects have focused on railway transport. However, “the list is open” and can be filled in or updated in order to increase mobility and accessibility. The interview below presents the opinion of Mr. Franc Žepič, M.sc., Secretary – Priority Area Coordinator 1B of the EUSDR Ministry of Infrastructure and Spatial Planning, Slovenia.

THE DANUBE STRATEGY: On December 2010 the EC adopted the EU Strategy for the Danube region (EUSDR) accompanied by the Action Plan. The Strategy was endorsed by the Heads of Government in June 2011 thus enabling the start of the implementation. In the field of transport, issues related to the coordination of rail, road and air links have been entrusted to Slovenia and Serbia, while inland waterways are in the domain of Austria and Romania.

Railway PRO: You have been coordinating priority area 1b since the start of the implementation in 2011. What is your approach towards transport in the Danube region and in particular railways?
Franc Žepič: As a priority area coordinator (PAC) for rail, road and air links (Prio-
rity Area 1b) of the EU Strategy for the Danube Region (EUSDR) I, together with my Serbian colleague Mr. Miodrag  Poledica, pay great attention that all modes are treated on equal basis. I very well understand that at present rail and inland waterways are the most sustainable transport modes. So I agree that efforts to revitalize railways need to be supported but also a lot should be done by railway sector as such. And it should be stressed that while adequate infrastructure is important, in too many cases better exploitation of the existing network is needed i.e. among others, more traffic could be accommodated by better planning of timetables and more capacity created also by introducing latest ICT technologies. I fear that due to the lack of national funds in many Danube region countries and extremely long public decision making processes we will have to wait for removal of railway network bottlenecks and missing links for many years.

Railway PRO: During the Annual Forum of the Danube Strategy in Bucharest, the ministers of foreign affairs signed a joint declaration according to which the consolidation of the strategy implementation requires political orientation and the coordination of efforts and they also agreed on the necessity of a much more coordinated action within the Strategy. As far as you’re concerned, what is the impact of this declaration on accelerating the development of projects for regional development?
Franc Žepič: The joint statement of the Foreign ministers of the Danube region countries of 28 October 2013 is welcomed. It is true that a huge progress have been made in the last year towards embedding the macro-regional strategies into programming period 2014 – 2020. EU wide basis for incorporation of macro-regions in the financing programmes is enabled by the legislative package “European Structural and Investment Funds Regulations 2014-2020” of 17 December 2013 adopted by the Council of the EU and the European Parliament.  It is also true that additional efforts need to be done on political and operational level in order to speed up implementation. At present discussion on these issues are underway, including how to improve governance by all involved parties. I understand that we will see the outcome at 3rd EUSDR Annual Forum to be held in Vienna on 26-27 June this year.

Railway PRO: How should actions be coordinated in a context where the external dimension remains an important problem concerning both EU and non-EU countries?
Franc Žepič: As the priority area 1b coordinators and the Steering group members are concerned there is no distinguish between the EU and non-EU Member States. However – like it not – formally all countries of the region are not equal.  In many cases non-EU countries could formally act only as observers and at the same time have less access to the EU funding. Again when it comes to the Steering Group meetings all members are equal.
In spite the above mentioned differences there is another important aspect linked tightly to the cooperation and coordination of transport issues.  As an example let me stress that a complex history of corridor initiatives in the Region is embedded in e.g. the Danube region’s relatively dense International E-railway network agreed within the UN two agreements: the European Agreement on main international railway lines (AGC) and European Agreement on Important International Combined Transport Lines and Related Installations (AGTC), TER project, Pan-European corridors, TEN-T corridors, including seven out of 30 priority corridors (2004-2013) and 5 Core TEN-T multimodal corridors (2014-2030), SEETO network and transport infrastructure connections with the neighbouring countries within The Eastern Partnership (EaP) which represents part of the European Neighbourhood policy.
How could EUSDR activities contribute to synergy of all ongoing policies and works on projects and at the same time not to add to redundancy of already carried out or ongoing actions is an enormous challenge by itself. As one of the most important challenges, which at the same time give a lot of satisfaction, remain coordinated activities between the EC, EU countries and non-EU countries, as well as all relevant international institutions acting in the Europe.
PA1b is aware of limited influence on cooperation between many institutions and stakeholders but nevertheless are making efforts to exchange information and learn from those that achieved many tangible results already in the past. So far several small signs of improved cooperation with PA1b are noted and we are looking forward to see much more.

Railway PRO: There are almost three years since the launch of the Danube Strategy. What have these years meant for the priority area PA 1B: To improve Mobility and Multimodality – Rail, Road and Air Links?
Franc Žepič: Since the implementation of the Strategy a lot of stress has been put on establishing a good and efficient governance structure, focus is on selection of projects in particular those that have an added value to the whole macro-region, roadmaps for PA1b seven actions are prepared, initial maps of transport infrastructure merging non-EU and EU Member States transport systems are made, a lot of work is done on awareness rising with stakeholders and promotion of the Strategy. In addition in the last year efforts are concentrated also on finding an enthusiastic and capable stakeholders that are able to take over ownership and leadership of a certain measure, such as urban mobility or ITS.
All three years coordinators are working hard to fulfil our tasks. Almost alone, with limited external occasional help, PACs organized 19 events (including 8 Steering Group meetings) with 20 to over 300 participants. Active participation of PACs at invited conferences or other events is also part of our work. I delivered a speech or presentation more than 20 times. Due to many tasks and travelling it is becoming harder and harder to cope with everyday office work.

Railway PRO: What are the challenges in developing the projects that the Danube Strategy includes in the transport infrastructure segment?
Franc Žepič: In the first three years of implementation the coordination is permanently challenged by historical, cultural, political, economic and geographical differences between countries of the region. While the Danube river, with its tributaries is crossing this region for centuries it is now for the first time that the region has been also politically/regionally united.
The Priority area 1b (road, rail and air links) coordination and activities are concentrated on actions as described in the Strategy’s Action plan and transport project ideas and many projects with added value to the macro-region. Among others issues that influence coordination in the transport field are represented by complex history of corridor initiatives in the region, importance of linking EU and non-EU Member States transport systems and in particular need for a common comprehensive vision on sustainable transport infrastructure and transport services. Countries of the Danube region recognise the importance of transport system that would enable mobi-lity, accessibility and connectivity all over the Danube macro-region and beyond. Yet progress is in many parts of the Region slow or preparation of appropriate transport policies is hanging behind.
All above have of course influence on selection of key projects, including railways that have the greatest added value for the Region.  Of particular challenge is finding synergies with other relevant institutions that are working on railway network, trying to prioritize projects. An excellent cooperation in this regard has been established with SEETO and EIB. Good relations were established also with CER, RNE, RCC, WBIF, Universities in Serbia, Slovenia and Romania and many others.
The main challenge for many projects in the Danube region remains exchange of information on planning and coordinated approach to implementation of individual project. Financing is an issue that requires coordinated efforts and particularly for project ideas that are directed to transport studies of the Region’s transport potential more understanding from the decision makers and financial institutions is expected. The Strategy envisaged alignment of funding which, at least, for transport projects is not being successful.
To bring all important policy makers together  PA1b plans for some time a joint meeting between all involved in transport infrastructure studies, planning and implementation in order not to duplicate work, to avoid redundancy, to join forces and act in synergy.  Invited to this meeting will be PA1b SG members, DG REGIO,  DG MOVE, EU coordinators of five Core TEN-T corridors that cross the Danube region, TER and TEM, FERRMED, RNE, CER, PA1a PACs and other stakeholders. Pending on workload a joint meeting “on transport infrastructure development in the Danube region” could be organized before end of this year or in the beginning of 2015.

Railway PRO: During the Annual Forum in 2013, you said you were confronted with many challenges which slowed down projects. What are the solutions found or to be found for eliminating this situation and initiating projects?
Franc Žepič: Indeed there are many challenges. I like to distinguish two types of them. Horizontal challenges are in relation to coordination of activities between the ministries of transport and the EC. Even after almost three years of the implementation two countries of the Region do not cooperate with PACs and SG although PACs are making great efforts to explain how important it is that all countries take part in the implementation process. The EC, DG REGIO and DG MOVE are supporting our work and whenever possible participate at events organized by PA1b. For the work of PA1b it is also very important that Memorandum of Understanding between the DG MOVE and the DG REGIO on the cooperation in the implementation of EU support for transport was signed on 18th March 2014. PACs believe that political support continues by incorporating of existing macro-regional strategies into Multiannual Financial Framework 2014-2020 and for the cohesion countries also into Partnership Agreements and Operational programmes.
On vertical level, which links political and operational tasks, the need is to change from debate to concrete work bringing the concrete results in projects implementation.  This could be achieved only by stronger involvement of stakeholders.  Without support of stakeholders we could not properly tackle common trans-national and cross-border transport problems and contribute to mobility, accessibility and cooperation. In addition project lead partners should not come only from “the Upper Danube” but also from “the Lower Danube” countries.
Third challenge is funding opportunities. I regret to say that on alignment of funds in the period 2007 – 2013 did not bring satisfactory results for transport projects and that no solutions were found by PA1b PACs so far.
Regardless of obstacles PA1b PACs will continue to support railways sector as an important transport mode by coordination of activities of various actors and their projects in order to avoid redundancy, by giving full support to infrastructure improvements (upgrading, modernisation and construction), in particular cross-border sections, missing links, bottlenecks),by advocating for interoperability, in terms to improve/enable technical (e.g. ERTMS) and operative solutions (cross-border acceptance of locomotives) as well as removal of administrative obstacles that would increase the competitiveness of the rail freight transport and efficiency of operations in relation to other modes, in EU and non-EU countries of the Region and by advocating opening of the rail transport market to competition, regardless of administrative borders. Necessity for more active participation of the private sector, local and civil society stakeholders, also through projects to be funded under the programmes for the period 2014-2020 remains high on PA1b agenda.

Railway PRO: 7 actions were established in 2010 for PA1B. What is the phase of the project implementation? Is there progress?
Franc Žepič: Actions enshrined in the Danube strategy’s Action plan embrace wide range of important activities that should contribute to mobility and better efficiency of transport in the macro-region. For each of the action PA1b Steering group prepared a roadmap. Each roadmap has milestones, responsible to carry out the task, deadlines and expected results. Roadmaps are “rolling ones” and PA1b SG tend to update them on annual basis.
In spite great efforts made by both PACs to initiate work on all seven actions not all were adequately tackled so far. The valuable discussion between stakeholders started on action (1) merging the transport infrastructure systems of the EU and non-EU Member States (TEN-T, SEETO network and ENP infrastructure), action (2) on rail freight corridors, action (3) on air transport regional connectivity, action (4) on urban transport systems and mobility and action (7) on ITS deployment, including ERTMS development and implementation.  There is still work to start on action (5) improvement of regional/local cross-border infrastructure, including access to rural areas and action (6) nodal planning for multimodality.
It is clear that priority area coordinators and Steering group members could not carry out all the work so that we are constantly searching for stakeholders to take over the lead, as I like to say to become “a locomotive” of certain action.

Railway PRO: 150 projects have been submitted for the transport segment, more than half of which on railway transport. Is the dimension of railway projects national or regional (cross-border)?
Franc Žepič: Indeed over 150 projects from 10 countries of the Danube region have been received to be put on our “open list”. It’s called “open” because new projects could be added at any time and those already on the list updated according to the progress.  Projects received are of different stage and most of them are infrastructure projects. They are grouped as follows: project ideas, planned projects, prepared projects without financing, prepared projects that have financing secured and on-going projects. To my understanding all of the projects contribute to the mobi-lity within the Danube region and beyond. However we have to be honest and sincerely admit that many of these projects are primarily national by nature and that we did little contribution to the on-going projects as most of them have been initiated several years before the Strategy started, such as a new cross-border combined (railway and road) Vidin – Calafat bridge over Danube (Bulgaria-Romania) or cable-stayed Ada Ciganlija bridge over Sava river in Belgrade (Serbia). However one could justly say that many on-going projects and prepared projects got new momentum since the start of Strategy implementation.
As for the railway projects most are along main trans-national corridors, yet the support is sought for national sections (bottlenecks or missing links) in order to establish same standards along entire corridor.

Railway PRO: How many railway projects have been considered eligible and what can you tell us about their financing?
Franc Žepič: As already mentioned we understand that almost all projects are eligible to enter our list of projects. There is also an instrument to support projects of particular added value for the region and which have not assured financing by “Letter of Recommendation” (LoR) approved by the PA1b Steering group and signed by PACs. So far 34 LoRs have been granted, out of which 17 are for railway projects, the rest are road, aviation and ITS related. Here I like to say that PACs believe many more projects are of utmost importance for the improved railway efficiency in the Danube region, yet proposals from the one or more countries of the Region for issuing the LoR were not received. The reason might be that not all relevant authorities are aware of the LoR or due to the fact that EU financing institutions are not taking the LoR yet as one of the criteria for funding. We sincerely believe this will change in the programming period 2014 – 2020.

[ by Pamela Luică ]
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