Commission calls on Member States to push for private/public partnerships for transport networks
The European Commission has called on Member States to accelerate the construction of major trans-European transport networks infrastructure projects by creating public/private partnerships. Mr. Neil Kinnock, Commissioner responsible for transport policy and the TENs, emphasized the importance of the networks for European companies. They are an essential component for assuring long-term competitiveness and growth, and consequently employment, he said. The Commission has endorsed the report on public private partnership financing of transport TENs projects, drawn up earlier in 1997 by a high level group on the request of Commissioner Kinnock. This report agrees that such partnerships are an important means of developing the TENs, and makes a range of recommendations to help achieve them. A major component should be development of existing and new financial instruments, according to the report. In endorsing the report, the Commission notes that public/private partnerships can not only provide impetus to stalled projects, but combining the skills of the public and private sectors will make for better projects. Specific approaches will vary according to individual projects, but of the priority projects identified, the Commission suggests that the Brenner Tunnel and TGV Sud rail routes might be appropriate for the partnership approach. The Commission also welcomes the new instrument for TENs financing developed by the European Investment Bank following the Amsterdam European Council. The Commission has recently allocated the 1997 TENs budget, amounting to some ECU 352 million. Of this, around 60% will go to the 14 priority projects identified in 1994. Of the total, 58% is for rail transport projects, reflecting both the high priority given to rail transport, and the large-scale of the rail projects involved. Around half of the funding is to be used for feasibility studies, with the remainder for direct grants or interest rebates.