Multi Annual Development Plan

Transcription

1 Multi Annual Development Plan Common problems Shared solutions Five Year Multi Annual Plan 2016

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3 Multi Annual Development Plan Common problems Shared solutions Five Year Multi-Annual Plan 2016

4 Comprehensive and Core Network Development Plan Foreword It is with great pleasure and satisfaction to see the publication of the SEETO Multiannual Plan The process of regional transport cooperation carried out under SEETO umbrella and the MAP as main document in that process, have entered into a new era of implementation after one decade is behind us since that process had started. By completely concentrating and with a maximum engagement from the political authorities in the region and the European Commission on the Western Balkans six process and the Connectivity agenda for the Western Balkans, the MAP 2016 naturally reflects all these political developments in the transport sector. The definition of the TEN-T Core Network for the Western Balkans, along with the extension of the Core Corridors to the Western Balkans, represents a historic decision and greatest milestone in the regional transport cooperation. For the first time, the regional transport network will be integrated with the Trans-European transport Core Network and the Western Balkans states will equally participate to the corridors management mechanisms, thus becoming part of the big European family in the transport field. This great achievement brings also a great deal of responsibility and work that we all have to undertake in the following period, in order we implement the pre-identified infrastructure projects and complete the Core Network by Moreover, we have adopted and committed to a set of soft (policy) measures for which fast progress can bring higher added value to the infrastructure investments, and on a medium term (until 2020) their implementation should result in opening the transport markets, establishment of competitive, reliable and safe transport system, and increase of the effectiveness of border crossing procedures. In that respect, the MAP 2016 gives us clear priorities and policy guidelines, as well as all necessary technical information needed for investors and transport planners. I use this opportunity to congratulate to all SEETO members and SEETO Secretariat for their contributions to the MAP 2016 and in the same time I call upon all national authorities, European Commission and IFIs to actively engage in its realization. Tatjana Jovanovic, SEETO Chairperson 4

5 Executive summary The WB6 initiative provided further support to transport development as the economic generator of the region. Establishment of the Core Network and modification of the Comprehensive Network in the Western Balkans provided a structure for more concentrated development of infrastructure in the region with the aim of enhancing connectivity and mobility and joining WB with the EU TEN-T network. The two network approach is reflected throughout this year s MAP 2016, where both the TEN T Comprehensive and the Core Network were presented. Accordingly, the main goal of MAP 2016 became to assess infrastructure and horizontal needs together with planned priority investments on both the TEN-T Comprehensive and the Core Network. Its purpose is to provide Regional Participants, the European Commission and the IFI`s and other possible financiers with a basis for defining their strategic transport development orientation and actions in the South East European region. In order to better identify regional needs and also to further support political processes, SEETO cooperation previously focused on the gradual realization of several very important projects and initiatives: the Flagship Axes Initiative, the South East Europe 2020 Strategy, Updating the Regional Balkans Infrastructure Study (REBIS update), Western Balkan Intermodal study and the EC Technical Assistance project Support for the Implementation of the SEETO Strategic Work Programme The results derived from these initiatives formed a basis for future interventions and investments reflected in the Vienna summit conclusions and this year MAP 2016 as the main strategic directions for transport system development in South East Europe in the next 10 to 15 years. The first chapter provides an in-depth overview of activities within SEETO cooperation, in relation to their impact on transport development in South East Europe. In the second chapter, the latest key developments and trends in the transport sector for each SEETO Regional Participant, including the key economic indicators are presented. Furthermore, a detailed description of the indicative extension of the TEN-T Comprehensive and Core Network to the Western Balkans is given. The third chapter presents an investment review of projects executed in the indicative extension of the TEN-T Comprehensive Network to the Western Balkans from This chapter presents an overview of investments per corridor/route, mode of transport and source of financing. The fourth chapter presents a prioritization of proposed priority projects for the next five years with their detailed description. Priority projects are ranked according to the SEETO rating methodology. In the final chapter, future directions for Transport policy development are provided, supported by the findings from OECD, REBIS study and Flagship axes initiative. Within this chapter special emphasis was given to the Vienna Summit conclusions and soft measures. 5

6 Comprehensive and Core Network Development Plan Contents Foreword 4 Executive summary 5 Table of contents 8 List of figures 8 List of tables 9 Abbreviations 10 Introduction Introduction Regional participants profile Overview TEN-T Comprehensive and Core Network in Western Balkans Regional participants at a glance Infastructure investment overview Investments in the indicative extension of the TEN-T Comprehensive Network to the Western Balkans from Road infrastructure Rail Infrastructure Airport Infrastructure Inland Waterway Infrastructure Seaport Infrastructure Investments in the TEN-T Comprehensive Network to the Western Balkans by source of funding from SEETO Priority Projects Presentation of road network projects per Corridor/Route Road - Corridor Vc Road - Corridor VIII Road - Corridor X Corridor Xd Road Route 1/Route 2b/ Corridor VIII/Route Road Route Road Route 2a Road Route 2b Road - Route 2c Road Route Road Route Road Route Road - Route 6b Road - Route

7 4.2 Presentation of rail network projects per Corridor/Route Rail - Corridor Vc Rail - Corridor VIII Rail - Corridor X Rail - Corridor Xb Rail- Route Rail- Route Rail - Route Presentation of IWW network and river port projects IWW - River Sava IWW - River Danube Presentation of seaports and airport priority projects Transport policy outlook Overview of general developments Regional strategies and other EU project initiatives Facilitation of transport related soft measures 78 Annex 83 Annex 1 TEN-T Comprehensive and Core Network to the Western Balkans description 84 Annex 1.1 TEN-T Comprehensive and Core Road Network description 84 Annex 1.2 TEN-T Comprehensive and Core Rail Network to the Western Balkans description 86 Annex 1.3 TEN-T Comprehensive and Core nodes description 88 Annex 1.4 TEN-T Comprehensive and Core Inland Waterway Network to the Western Balkans description 89 Annex 2 Project Fiches - Priority projects eligible for funding 90 Annex 3 Traffic and infrastructure data 110 Annex 3.1 TEN-T Comprehensive Network and Core Road Network in Western Balkans- data 110 Annex 3.2 TEN-T Comprehensive and Core Rail Network in Western Balkan 114 Annex 3.3 TEN-T Comprehensive and Core Network in Western Balkans Seaports 115 Annex 3.4 TEN-T Comprehensive and Core Airport Network in Western Balkans 116 Annex 3.5 TEN-T Comprehensive and Core Inland Waterway Network in Western Balkans 117 Annex 4 Priority soft measures 118 Annex 5 Regional participants economic overview 120 7

8 Comprehensive and Core Network Development Plan Table of contents List of figures Figure 2.1: TEN-T Comprehensive and Core Network in Albania Figure 2.2: TEN-T Comprehensive and Core Network in Bosnia and Herzegovina Figure 2.3: TEN-T Comprehensive and Core Network in Kosovo Figure 2.4: TEN-T Comprehensive and Core Network in the former Yugoslav Republic of Macedonia Figure 2.5: TEN-T Comprehensive and Core Network in Montenegro Figure 2.6: TEN-T Comprehensive and Core Network in Serbia Figure 3.2: GDP percentage change Figure 3.1: Total Investments in the indicative extension of TEN-T Comprehensive Network to the Western Balkan from 2004 Figure 3.2: Disbursed investments in TEN-T Comprehensive Network to the Western Balkans Figure 3.3: Committed Investments in TEN-T Comprehensive Network to the Western Balkans Figure 4.1.1: TEN-T Comprehensive and Core Network priority projects eligible for funding - Road and Airports Figure 4.1.2: TEN-T Comprehensive and Core Network priority projects eligible for funding - Rail, IWW and Maritime Figure 4.2.1: TEN-T Comprehensive and Core Network priority projects for preparation - Road and Airports Figure 4.2.2: TEN-T Comprehensive and Core Network priority projects for preparation - Rail and Maritime Figure 4.3: Overview of priority project on the Corridor Vc Figure 4.4: Overview of priority project on the Corridor VIII Figure 4.5: Overview of priority project on the Corridor X Figure 4.6: Overview of priority project on the Corridor Xd Figure 4.7: Overview of priority project on the Adriatic Ionian Corridor through Albania Figure 4.8: Overview of priority project on the Route 1 Figure 4.9: Overview of priority project on the Route 2a Figure 4.10: Overview of priority project on the Route 2b Figure 4.11: Overview of priority project on the Route 2c Figure 4.12: Overview of priority project on the Route 3 Figure 4.13: Overview of priority project on the Route 4 Figure.4.14: Overview of priority project on the Route 5 Figure 4.15: Overview of priority project on the Route 6b Figure 4.16: Overview of priority project on the Route 7 Figure 4.17: Overview of priority project on the Corridor Vc Figure 4.18: Overview of priority project on the Corridor VIII Figure 4.19: Overview of priority project on the Corridor X Figure 4.20: Overview of priority project on the Corridor Xb Figure 4.21: Overview of priority project on the Route 2 Figure 4.22: Overview of priority project on the Route 4 Figure 4.23: Overview of priority project on the Route 10 Figure 4.24: Overview of priority project on the River Sava 8

9 Figure 4.25: Overview of priority project on the River Danube Figure 4.26: Overview of priority project on the seaports and airports Figure A1-1: TEN-T Comprehensive and Core Road Network to Western Balkans Figure A1-2: TEN-T Comprehensive and Core Rail Network to Western Balkans Figure A1-3: TEN-T Comprehensive Network in Western Balkans Airports, Seaports, IWW and IWW Ports List of tables Table 2.1: Basic data on the TEN-T Comprehensive and Core Network to the Western Balkans by mode Table 4.1: Priority project list Projects Eligible for Funding Table 4.2: Priority project list Projects for preparation Table 5.1: Summary of SEE 2020 achievements and further expected results in Dimension Transport Table 5.2: Summary results of estimated cost/benefit ratios for implementing the identified interventions/actions for addressing non-physical barriers Table 5.3: Priority soft measures 9

10 Comprehensive and Core Network Development Plan Abbreviations AADT AAEF AMM CEFTA DAHAR DEG DPA EAR EBRD EC ECAA EIRR ERTMS EU EUSDR GIS GDP HEEP HGV IDB IFI ILS IPA IPF ITS IWW JSPA LoS Average Annual Daily Traffic Albanian-America Enterprise Fund Annual Meeting of Ministers Central European Free Trade Agreement Danube Inland Harbor Development Deutsche Infestations under Entwicklungsgesells-chaft Durres Port Authority European Agency for Reconstruction European Bank of Reconstruction and Development European Commission European Common Aviation Area Economic Internal rate of Return European Rail Traffic Management System European Union EU Strategy for the Danube Region Geographical Information System Gross Domestic Product Hydroelectrical Power Plant Heavy Goods Vehicle Islamic Development Bank International Financial Institution Instrument Landing System Instrument for Pre-accession assistance Infrastructure Project Facility Intelligent transport systems Inland waterway Joint Service Provisional Area initiative Level of service 10

11 MAP MoU NATO MIPD NPV RCC REBIS RIS SCN SEE SEETO SEETIS VTMIS TAV TEN-T TIA WB Multi Annual Plan Memorandum of Understanding North Atlantic Treaty Organisation Multi-annual Indicative Planning Document Net Present Value Regional Cooperation Council Regional Balkan Infrastructure Study River Information Services SEETO Comprehensive Network South East Europe South East Europe Transport Observatory South East Europe Transport Information System Vessel Traffic Monitoring and Information System Tepe Akfen Ventures Trans-European Transport Network Tirana International Airport World Bank WB6 Western Balkan 6 WBIF Western Balkan Investment Framework 11

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13 Introduction Introduction

14 Comprehensive and Core Network Development Plan 1. Introduction The year 2015 brought new strategic objectives and guidelines for the development of the Western Balkan transport system, revitalizing the objectives set by the Memorandum of Understanding 1 (MoU), as objectives relevant not just for the transport development of the region, but also necessary for economic and social regional development. The Western Balkans Conference held on 28 August 2014 in Berlin provided a political framework for the more intensive development of transport infrastructure in the region. Furthermore, substantial progress has been achieved during 2015, notably the agreement by the six Western Balkan Prime Ministers in Brussels in April on the regional core transport network, and the further agreement (in Riga in June) on the core network corridors (the Mediterranean, Orient/East-Med and Rhine/Danube corridors were extended to WB) and a list of infrastructure projects and soft measures to be implemented by 2020, as well as the appointment of corridor coordinators (Vienna Summit in August). These measures aim to enhance connectivity between the Western Balkan partners as well as with the EU network. The Core Transport Network for the Western Balkans was agreed in 2015, based on the Comprehensive network established under MoU and SEETO and the Trans-European Transport network (TEN-T) methodology for the definition of the TEN-T Core Network. This initiative extends the TEN-T Core Network to the Western Balkans, speeding up policy and regulatory reforms and concentrating investments on key corridors and interconnectors. SEETO intends to provide support to the process focusing on the needs assessment, to some extent already tackled through the Multi Annual Plan and priority projects, REBIS and the Flagship Axis initiative. Furthermore, SEETO as an existing platform should be used as technical support for Core network implementation. In an effort to further develop the Western Balkan infrastructure network, integrate it in the TEN-T Network 1 Memorandum of Understanding for the development of the Core Regional Transport Network and strengthen the underlying transport planning systems, a grant has been awarded by the Western Balkans Infrastructure Framework (WBIF) for updating the Regional Balkans Infrastructure Study (REBIS). The main objective of the study is to develop a Priority Action Plan for enhancing the efficiency of the indicative extension of the TEN-T Comprehensive Network to the Western Balkans (hereinafter TEN-T Comprehensive Network in Western Balkans), by developing a transport demand model, identifying the main corridors/routes on the TEN-T Comprehensive Network in the Western Balkans based on the EU TEN-T criteria, analysing the physical and non-physical barriers to the efficient operation of the Network and identifying potential efficiency-enhancing investments and measures. Additionally, together with the establishment of indicative extension of the TEN-T Core Network to the Western Balkans (hereinafter TEN-T Core Network in Western Balkans) and REBIS update project, a modification of the existing TEN-T Comprehensive Network in Western Balkans took place in Identified shortfalls in connectivity on a regional level were deemed to be resolved under this initiative, clearing the way to achieve full connectivity in the Western Balkans. The Flagship Axis Initiative aimed to identify physical and non-physical barriers to selected multimodal axes (Corridors/Routes) from the TEN-T Comprehensive Network in Western Balkans, focusing on development of cost efficient measures for reducing travel times and transport costs. With the support of EC Technical assistance, an Action plan for the selected axes was developed and adopted by the Regional Participants, containing measures for improving their attractiveness and decreasing administrative barriers in the Western Balkans. On a more strategic level, the SEE 2020 Strategy, developed under the auspices of the Regional Cooperation Council (RCC), highlights transport as one of the key sectors where greater regional cooperation can contribute to the socio-economic growth of the region and its greater integration with the EU. Under the umbrella of SEE 2020, SEETO and the RCC initiated Regional Study on Intermodality intend to optimize 14

15 1. Introduction the use of existing infrastructure and evaluate the possibilities for efficient combination of all modes of transport in the region. Furthermore, in coordination with the RCC, SEETO prepared the Regional Programme on Transport which addresses soft measures needed to create an efficient and smoothly functioning transport system in the SEE region. In cooperation with Joint Service Provisional Area (JSPA) a Regional programme on Air Transport was also developed and adopted. SEETO actively participates in the European Union Strategy for the Danube Region, more specifically in the EUSDR Priority Area 1b: To improve mobility and multimodality - road, rail and air links - with the aim of improving travelling times and developing efficient multimodal terminals at Danube river ports and dry ports to connect inland waterways with rail and road transport by To this end, in advance of the Strategy for the Danube region, two project ideas were developed and marked as priority: the Danube Region Intermodal Strategy and the Danube Region Air Transport Network Strategy. Significant changes in strategic networks of the Western Balkans have occurred, although not all of these changes are reflected in the data collection and presentation for this year s MAP. This issue specifically impacts the modified TEN-T Comprehensive Network in Western Balkans, since data from 2014 are presented in MAP

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17 Regional participants profile 2. Regional participants profile

18 Comprehensive and Core Network Development Plan 2. Regional participants profile 2.1. Overview TEN-T Comprehensive and Core Network in Western Balkans SEETO as a regional organization fosters a regional rather than national approach when analyzing the regional transport system, as transport is not limited by national boundaries. However, in order to allow better understanding of the regional transport system and the importance of regional projects and regional planning, within this chapter basic information on the SEETO Regional Participants economies, infrastructure and transport investments are given. Prior to the presentation by each Regional Participant and in the spirit of the new changes of the TEN T Comprehensive Network and Core Network establishment in Western Balkans, this subchapter will present basic information on the overall TEN-T Comprehensive Network and Core Network in the Western Balkans. The Regional Transport Network in South East Europe was defined by the Memorandum of Understanding (MoU), signed on 11th June The inclusion of the SEETO Comprehensive Network maps in the TEN-T Guidelines in 2013 as indicative extension of the TEN-T Comprehensive Network into the neighbouring countries together with the definition of the Core Network in the Western Balkans in 2015 motivated Regional Participants to further align the definition of the terminology of the Western Balkan regional networks with the EU. As of mid 2015, the official term for the Western Balkans regional networks to be used under the SEETO umbrella is Indicative extension of the TEN-T Comprehensive/Core Network to the Western Balkans as it will be called in the TEN-T guidelines. This was the final step that further fortifies the Comprehensive and Core Network in the Western Balkans as a precursor of the TEN-T Network in South East Europe, and provides it with a perspective to become fully part of the wider TEN-T network through the Regional Participants accession process. The TEN-T Comprehensive/Core Network to the Western Balkans is a multimodal network which includes road, rail and inland waterway links in the six SEETO Regional Participants, together with a number of designated seaport, river port and airport nodes and terminals. The newly established Core network is a subset of the Comprehensive Network. The Core Road network comprises 71% of Comprehensive Road Network corridors and routes and the new alignment for the Adriatic-Ionian Highway. The Railway Core Network comprises 67% of the Comprehensive Rail Network corridors and routes. Basic data on Comprehensive and Core networks by mode are provided in table 2.1. Table 2.1: Basic data on the TEN-T Comprehensive and Core Network to the Western Balkans by mode Mode Comprehensive Network Core Network Road km ( km Corridors; km Routes) km ( km Corridors; km Routes) Railway 3.857km (1.984km Corridors; 1.873km Routes) 2.602km (1.486km Corridors; 1.116km Routes) River 3 3 Seaport 3 2 Airport 10 6 IWW port

19 2. Regional participants profile 2.2. Regional participants at a glance The aim of this chapter is to provide a short insight into the latest key developments and trends in the transport sector for each SEETO Regional Participant, including the key economic indicators. Economic development and transport are closely correlated: transport presents a driver for economic development. Transport development creates growth potential, by improving quality of connections, removing bottlenecks, improving services, hence leading to increased mobility and connectivity and advanced economic development. By removing physical and non physical barriers to transport, increased trade and stronger economic development can be achieved. The Western Balkans comprises small economies and markets, with limited fiscal space, which has to be taken into account when planning infrastructure development. The purpose of this subchapter is to correlate the main economic indicators and TEN-T Comprehensive Network in Western Balkans development, providing support for long term infrastructure planning. This chapter will present the current situation in six Regional Participants, based on the following structure: Main economic indicators Analysis of investments in the TEN-T Comprehensive and Core Network to the Western Balkans Description of the TEN-T Comprehensive and Core Network to the Western Balkans The recent global financial crisis and the present difficulties of the Eurozone have highlighted the interdependence of national economies both with and beyond the EU, which together with the tightening of fiscal space, leads to difficulties in the financing of infrastructure development in the region. In the SEETO region, a variety of sources of financing exists and plays an important role. For ease of presentation we have divided them into 5 categories: International Financial Institutions (IFI) loans World Bank (WB), European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD) National Budgets EU Funds- Possible EU funds that can be used in WB are: Instruments for Pre-Accession Assistance (IPA), Connecting Europe Facility (CEF), macro regional programmes etc. Concession - A form of cooperation between public authorities and the private sector with the objective of introducing new mechanisms for the delivery and modernization of infrastructure and strategic public services. In the Western Balkans this is mostly present in nodes and terminals such as airports and seaports. Other sources, which include: bilateral loans from governments of different countries (Russia, Japan, Italy, Azerbaijan, Turkey etc.), China Exim Bank, IDB, OPEC, Kuwait Fund, Saudi Fund, Abu Dhabi fund, commercial bank loans, own resources etc. Primary sources of funding come from the budget and IFI loans, however due to the reducing financing possibilities, SEETO Regional Participants increasingly turn to financiers outside the EU. This can be substantiated by the fact that 27% of the total amount invested in the TEN-T Comprehensive Network in the Western Balkans since 2004 is financed from different financiers (other than EC, IFIs and national Budgets). Russia, China and Turkey are becoming more and more active in the region, offering loans for transport infrastructure projects. Similarly, investors from the Middle East and Central Asia also exhibit increasing interest in the region. More information regarding the distribution of financing, investments and network for each Regional Participant are presented in this subchapter, while more detailed analysis at regional and corridor level is presented in chapter 3 and the SEETO investment report. 19

20 Comprehensive and Core Network Development Plan Albania Comprehensive Road: 729 km Core Road: 563 km Comprehensive Rail: 392 km Core Rail: 156 km Seaports: Durres (Core) Vlore (Comprehensive) Airports: Tirana (Core) Figure 2.1: TEN-T Comprehensive and Core Network in Albania Investments on transport networks in Albania from 2004 GDP: $ Billion * General government gross debt: 73% GDP * Data for 2014, International Monetary Fund, World Economic Outlook Database, April More information can be found in Annex 5 Total investments from TEN-T Comprehensive Network TEN-T Core Network billion billion Disbursed billion billion Committed 776 million 431 million Investments by transport mode Road billion billion Rail - - Seaport 104 million 88 million Airports 97 million 97 million Main source of funding Budget 39,5% 44% IFI loans 19,8 % 15 % Concessions (airport) 2 4,7% 6% EU funds 1,6% 1% Other 3 34,4% 34% 2 More information can be found in chapter 3 and SEETO CN Investment Report Other sources in Albania include: IDB,OPEC,Abu Dhabi fund, Italian Government, Kuwait fund 20

21 2. Regional participants profile Bosnia and Herzegovina Comprehensive Road: 870 km Core Road: 635 km Comprehensive Rail: 811 km Core Rail: 428 km IWW: Sava (Core) Riverports: Brcko (Core) Samac (Core) Airports: Banja Luka (Comprehensive) Sarajevo (Core) Figure 2.2: TEN-T Comprehensive and Core Network in Bosnia and Herzegovina Investments on transport networks in Bosnia and Herzegovina from 2004 GDP: $ Billion * General government gross debt: 45% GDP * Data for 2014, International Monetary Fund, World Economic Outlook Database, April More information can be found in Annex 5 Total investments from 2004 TEN-T Comprehensive Network TEN-T Core Network billion billion Disbursed billion billion Committed 460 million 414 million Investments by transport mode Road billion billion Rail 227 million 158 million Airports 7 million - Main source of funding Budget 10% 10% IFI loans 88% 88% Concessions (airport) - - EU funds - - Other 2% 2% 21

22 Comprehensive and Core Network Development Plan Kosovo* Comprehensive Road: 345 km Core Road: 179 km Comprehensive Rail: 152 km Core Rail: 152 km Seaport/Riveport: Airports: Prishtina (Core) Figure 2.3: TEN-T Comprehensive and Core Network in Kosovo Investments on transport networks in Kosovo from 2004 GDP: $7.318 Billion * General government gross debt: 19% GDP * Data for 2014, International Monetary Fund, World Economic Outlook Database, April More information can be found in Annex 5 Total investments from 2004 TEN-T Comprehensive Network TEN-T Core Network billion billion Disbursed 942 million 824 million Committed 690 million 600 million Investments by transport mode Road billion billion Rail 6.2 million 6.2 million Airports 146 million 146 million Main source of funding Budget 91% 90% IFI loans - - Concessions (airport) 4 8% 9% EU funds - - Other 1% 1% 4 4 * This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence. 4 More information can be found in chapter 3 and SEETO CN Investment Report

23 2. Regional participants profile the former Yugoslav Republic of Macedonia Comprehensive Road: 708 km Core Road: 513 km Comprehensive Rail: 530 km Core Rail: 268 km Seaport/Riveport: Airports: Skopje (Core) Ohrid (Comprehensive) Figure 2.4: TEN-T Comprehensive and Core Network in the former Yugoslav Republic of Macedonia Investments on transport networks in the former Yugoslav Republic of Macedonia from 2004 GDP: $ Billion * General government gross debt: 38% GDP * Data for 2014, International Monetary Fund, World Economic Outlook Database, April More information can be found in Annex 5 Total investments from 2004 TEN-T Comprehensive Network TEN-T Core Network billion billion Disbursed 368 million 358 million Committed 818 million 817 million Investments by transport mode Road 830 million 830 million Rail 236 million 236 million Airports 120 million 110 million Main source of funding Budget 4% 4% IFI loans 43% 44% Concessions (airport) 5 10% 9% EU funds 8% 8% Other 6 35% 35% 5 More information can be found in chapter 3 and SEETO CN Investment Report Other sources in the former Yugoslav Republic of Macedonia include: China EXIM Bank loan, NATO 23

24 Comprehensive and Core Network Development Plan Montenegro Comprehensive Road: 640 km Core Road: 297 km Comprehensive Rail: 184 km Core Rail: 184 km Seaport: Bar (Core) Airports: Podgorica (Core) Tivat (Comprehensive) Figure 2.5: TEN-T Comprehensive and Core Network in Montenegro Investments on transport networks in Montenegro from 2004 GDP: $4.462 Billion * General government gross debt: 58% GDP * Data for 2014, International Monetary Fund, World Economic Outlook Database, April More information can be found in Annex 5 Total investments from 2004 TEN-T Comprehensive Network TEN-T Core Network billion billion Disbursed 367 million 283 million Committed 809 million 809 million Investments by transport mode Road billion billion Rail 81 million 81 million Seaport 3.3 million 3.3 million Airports - - Main source of funding Budget 15.7% 13.1% IFI loans 11.2% 10.8% Concessions (airport) - - EU funds 0.3% 0.3% Other % 75.8% Other sources in Montenegro include: China EXIM Bank loan 24

25 2. Regional participants profile Serbia Comprehensive Road: 1624 km Core Road: 1332 km Comprehensive Rail: 1788 km Core Rail: 1414 km IWW: Danube (Core),Sava (Core) Tisa (Core) River ports: Belgrade (Core) Novi Sad (Core) Airports: Belgrade (Core) Nis (Comprehensive) Figure 2.6: TEN-T Comprehensive and Core Network in Serbia Investments on transport networks in Serbia from 2004 GDP: $ Billion * General government gross debt: 72% GDP * Data for 2014, International Monetary Fund, World Economic Outlook Database, April More information can be found in Annex 5 Total investments from 2004 TEN-T Comprehensive Network TEN-T Core Network billion billion Disbursed billion billion Committed billion billion Investments by transport mode Road billion billion Rail 1071 million 1071 million IWW 16.7 million 16.7 million River ports - - Airports 67 million 67 million Main source of funding Budget 21% 21% IFI loans 51% 51% Concessions (airport) - - EU funds 1% 1% Other 8 27% 27% Other sources in Serbia include: Russian loan, Azerbaijan loan, China EXIM bank loan, Kuwait fund 25

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27 Infrastructure investment overview 3. Infastructure investment overview

28 Comprehensive and Core Network Development Plan 3.1 Investments in the indicative extension of the TEN-T Comprehensive Network to the Western Balkans from 2004 Completed projects - once a project is completed or executed, the total investment allocated will be assigned to the year of the finalization of the projects. Therefore, once a project is completed, the associated total investment will be considered as DISBURSED. Ongoing projects - project under execution but not finalized the allocated total investment will be assigned to the year when this commitment of total investment was made. Thus, during the time that a project is under construction, the associated total investment will be considered as COMMITTED. Since the establishment of the TEN-T Comprehensive Network to the Western Balkans a significant amount has been invested in its development, thereby setting the foundations for regional integration and economic development. Total investments, disbursed and committed, on the TEN-T Comprehensive Network to the Western Balkans amounted to 12 billion in the period from 2004 until today and what is most encouraging is the constant increase in committed investments despite the strong impact of the global economic crisis billion or 48% of total investments was already disbursed while the remaining 52% or 6.27 billion is considered as committed investments. Under committed, two categories could be defined: Ongoing, projects that are under construction, 5.2 billion Finance secured, project that are going to start in the forthcoming period, 1.1 billion The trend of high investment in road infrastructure in the Western Balkans is present continuously from 2004, while the trend of rather small investments in Rail infrastructure projects is changing slowly, mostly due to the projects on Corridor X and Route 4 in Serbia, financed through other sources. Investments in IWW and Seaports are still at an insufficient level, though some encouragement could be taken from the presence of six IWW projects in this year s MAP priority project list as projects eligible for funding. Figure 3.1: Total Investments in the indicative extension of TEN-T Comprehensive Network to the Western Balkan from

29 3. Infrastructure investment overview Road infrastructure From 2004, a total amount of 9.84 billion was disbursed and committed to road infrastructure, which makes up 81.4% of the total investments in the TEN-T Comprehensive Network to the Western Balkans. Compared to other transport modes the road network is far ahead. Two ongoing projects on the TEN-T Comprehensive Road Network to the Western Balkans have the biggest share of total investment, and they are: Route 4, Bar-Boljare highway priority section Smokovac-Uvac-Matesevo, Montenegro priority project, started in 2014, financed by China Exim bank in amount of 809 million Route 6, Pristina Hani i Elezit (/MKD border), Kosovo priority project, started in 2014, financed from National Budget in amount of 600 million Disbursed 4.94 billion Budget 51% IFI 39% Other 9% EU Funds 1% Committed 4.9 billion Budget 11% IFI 42% Other 38% EU Funds 1% Total 9.84 billion 81% of total investments in Comprehensive Network Rail Infrastructure In the last three years, a positive trend is evident ( 1.13 billion committed from 2013). Comparing the total amount invested until now ( million) and the amount that is allocated in ongoing or finance-secured projects ( 1,3 billion), there is a notable increase of 270%. However, development of railway infrastructure lags behind road infrastructure, insufficient funds and the low level of maintenance during previous years contributing to the current poor condition of railways in the region. A total amount of 1.62 billon is disbursed and committed in the TEN-T Comprehensive Rail Network to the Western Balkans up to Disbursed million Budget 14% IFI 85% Committed 1.3 billion IFI 33% Other 62% EU Funds 3% Total 1.62 billion 13.5% of total investments in Comprehensive Network Two financially dominant projects on the TEN-T Comprehensive Rail Network to the Western Balkans are: Corridor X - Reconstruction and modernization of the railway line Stara Pazova - Novi Sad, priority project, Serbia, finance secured through a Russian loan in the amount of 400 million Route 4 - Overhaul of the section Resnik Vrbnica, non-priority project, Serbia, finance secured through a Russian loan in the amount of 200 million. 29

30 Comprehensive and Core Network Development Plan Airport Infrastructure From 2004, a total amount of million was disbursed and committed in Airport infrastructure, which makes 3.6% of total investments in the TEN-T Comprehensive Network to the Western Balkans. This puts this mode of transport in third place after Road and Rail. The predominant source of funding is through Concession Agreements. Disbursed million Budget 8.2% Other 4.3% Concession 87.5% Committed 40 million Other 100% Total million 3.6% of total investments in Comprehensive Network Inland Waterway Infrastructure The transport mode with the lowest level of investments is IWW. The total amount disbursed until today is 16.7 million which makes 0.15% of total investments in the TEN-T Comprehensive Network to the Western Balkans, and it is 100% financed by EU Funds. There are no committed investments. However, the presence of six IWW projects in the MAP 2016 priority list shows a gradual change of focus towards development of this mode Seaport Infrastructure Less than 1% of the total amount invested in the TEN-T Comprehensive Network to the Western Balkans from 2004 was disbursed and committed to Seaport projects in three ports. Disbursed 43.3 million Budget 15.5% IFI 73.9% EU FUnds 10.6% Committed 63.8 million Other 60.8% IFI 39.2% Total million 0.9% of total investments in Comprehensive Network 3.2. Investments in the TEN-T Comprehensive Network to the Western Balkans by source of funding from 2004 When observing investments in the TEN-T Comprehensive Network to the Western Balkans by source of funding, the highest share (39%) is financed through IFI loans. However, in the recent years this source of funding shows a slight downward trend. 30

31 3. Infrastructure investment overview Figure 3.2: Disbursed investments in TEN-T Comprehensive Network to the Western Balkans With the connectivity agenda and the new IPA fund, a larger share of EU funds (app. 2%) in total transport investments can be expected in the future. Furthermore, concession financing (app. 3% of overall investments) is solely focussed on Airport infrastructure projects. Finally, last but not least, Other Figure 3.3: Committed Investments in TEN-T Comprehensive Network to the Western Balkans Sources with a share of 27% which consists mostly of China s Exim Bank, Russian Loans, Abu Dhabi fund, IDB, Italian Government, Kuwait Fund, OPEC, etc. are showing a sharp rise within the last two years. The reason for this could be found in their favourable lending conditions. 31

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33 SEETO Priority Projects 4. SEETO Priority Projects

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35 4. SEETO Priority Projects 4. SEETO Priority Projects The following chapter distinguishes between two types of priority projects presented in two separate lists: 1. Priority projects eligible for funding advanced projects for which a comprehensive evaluation is available, based on a completed feasibility study and, if available, all of the project documentation. 2. Priority projects for preparation projects which require full project preparation and project evaluation to determine their feasibility. These projects are not ready for implementation but funding is required to carry out the necessary preparatory work. The estimates presented on the preparatory project list were derived from pre-feasibility studies and preliminary designs while funding is required for the preparation of feasibility studies and detailed designs. have detailed design and other project documentation already completed. The total estimated cost of the 12 projects amounts to 2.12 billion, a large part of the investment required for eligible-for-funding projects. Projects eligible for funding (21) are presented on the priority project list out of which 13 were on last year s list, while 8 advanced projects were introduced this year (Table 4.1). SEETO priority projects rating methodology 9 was adopted by the SEETO Steering Committee in July 2012 in order to provide Regional Participants and potential external financiers with an objective and consistent view on the suitability of the projects nominated for the implementation of the TEN-T Comprehensive and Core Network to Western Balkans. The rating mechanism was applied to 21 submitted priority projects eligible for funding that have a completed feasibility study and are sufficiently advanced to be analyzed and rated. Additionally, 27 priority projects that require preparatory activities are presented on a separate list. The estimated investment required for the implementation of these 48 priority projects is approximately 9.64 billion: a) eligible for funding: 2.67 billion, and b) preparatory: 6.97 billion. The number of priority projects has increased compared to the previous year`s list (17 projects more) which is reflected in the higher amount of required investment. Out of 21 projects eligible for funding, 12 projects are completely mature for implementation. These projects 9 Document can be found at SEETO webpage

36 Comprehensive and Core Network Development Plan Economic criteria Regional criteria Regulatory/ Tehnical criteria Environmental criteria Table 4.1: Priority project list Projects Eligible for Funding Corridor/ Route/ Node Regional Participant Reference to MAP 2015 priority project list Project name TEN-T Network Total estimated cost (M ) Length (km) EIRR % 40% 40% 10% 10% Total Road projects Scoring BIH MAP 2015 Contruction of the motorway section Odzak -Vukosavlje-Podnovlje-Rudanka- Doboj south Core , % Corridor Vc BIH New Construction of the motorway section Odzak- Svilaj, border crossing and cross border bridge Svilaj over Sava river Core , ,5 2,5 80% BIH New Construction works on the motorway section Tarcin-Konjic Core , ,5 2,5 50% BIH New Construction of the motorway section Mostar Sjever-Pocitelj Core , ,5 2,5 50% Corridor X SER MAP 2015 Completion of Belgrade by pass, Sector 6: Strazevica-Bubanj Potok Core , % Corridor X MKD New Rehabilitation of the road section Negotino - Demir Kapija Core 9 17,5 Rehabilitation project-design completed Corridor Xd MKD MAP 2015 Construction and reconstruction of section Drenovo - Gradsko Comprehensive 40 15, % Route 2a BIH New Construction of the cross border bridge Gradiska over Sava river Core ,5 2,5 80% Route 2b BIH MAP 2015 Upgrade of Brod na Drini (Foca) - Hum (Scepan Polje) Comprehensive , % Route 2c ALB MAP 2015 Construction of Central East Corridor and Central South Corridor (Berat to Tepelene) Comprehensive , % Route 6b KOS New Upgrade (widening) of the section between Pristina - Montenegro border Comprehensive ,5 58% Route 7 KOS MAP 2015 Construction of Route 7, Pristina - Merdare Core , ,5 65% Total estimated cost road (M )

37 4. SEETO Priority Projects Rail projects Scoring Corridor Vc BIH New Overhaul of the railway section Sarajevo- Podlugovi Core 22, , , % Corridor VIII MKD MAP 2015 Constuction of the railway section Beljakovce-Kriva Palanka- Border with Bulgaria Core , ,5 5 95% Route 10 KOS MAP 2015 Modernisation of the Northern Part of Railway Route 10 (Fushe Kosove Leshak) Core % Total estimated cost rail (M ) 595 IWW projects Scoring BIH MAP 2015 Reconstruction and modernization of River Port of Brcko Core 7 / NA -5 64% River Sava BIH New BIH MAP 2015 Demining of the Sava river right bank from the confluence of Drina river to the confluence of Una river Rehabilitation and improvement of the Sava river waterway Core 8 Rehabilitation project-design completed Core NA % SER MAP 2015 River training and dredging works on critical sectors on the Sava River Core NA 10 95% River Danube SER MAP 2015 SER MAP 2015 River training and dredging works on critical sectors on the SRB-CRO joint stretch of the Danube River River training and dredging works on critical sectors on the Danube River in Serbia between Backa Palanka and Belgrade Core NA 10 95% Core NA 10 95% Total estimated cost IWW (M ) 108 Total estimated cost (M ) Average scoring 71% 37

38 Comprehensive and Core Network Development Plan Figure 4.1.1: TEN-T Comprehensive and Core Network priority projects eligible for funding - Road and Airports 38

39 4. SEETO Priority Projects Figure 4.1.2: TEN-T Comprehensive and Core Network priority projects eligible for funding - Rail, IWW and Maritime 39

40 Comprehensive and Core Network Development Plan It is evident that the amount of required total investment has increased from last year. This is mainly due to increased activities in the national prioritization process, through newly established National Investment Committees and Core Network identification in the Western Balkans, where new priorities have been identified such as the Adriatic Ionian Motorway. In comparison to the previous year, several MAP priority projects secured financing. For Road Route 4 (section Podgorica-Matesevo) in Montenegro, 809 million was secured for implementation through a loan from the Chinese Exim Bank. In the former Yugoslav Republic of Macedonia financing has been secured for Table 4.2: Table: Priority project list Projects for preparation rehabilitation of road sections Kumanovo-Miladinovce and Miladinovce to Kumanovo, road section Raec- Drenovo (EBRD loan). The significant number of IWW projects shows a redirection of strategic focus towards environmentally friendly transport modes, which were underinvested in previous years. Since in the Western Balkans inland waterways are often borders, their development can contribute to better regional development and cohesion. Relatively small investments will enable further development of IWW transport and a potential increase in cargo transport. Together with new project ideas on a regional level focusing on the development of intermodal transport in the region, this should contribute to the shift of container transport and support to environmentally friendly modes (such as IWW and railways). Corridor/ Route/Node Regional Participant Reference to MAP 2015 Name of the project TEN-T Network Total length (km) Total estimated cost (M ) Road projects Corridor VIII ALB New Construction of Tirana bypass Core Corridor VIII MKD New Rehabilitation of the road section from Kumanovo to Rankovce Core 32 9 Corridor X MKD New Implementation of ITS on Road Corridor X Core 176 Route 1/ Route 2b/ Corridor VIII/Route 2c ALB New Adriatic Ionian Motorway/Expressway Core 194,5 698 Route 1 MNE New Adriatic Ionian Motorway/Expressway Core Route 2b ALB New Upgrade of Thumane-Kashar-Vore Road connection node Core ALB New Construction of Tepelene bypass Core 3,5 38 ALB New Construction of Lezha bypass Core 4 24 Route 3 BIH MAP 2015 Completion of bypass East Sarajevo Core Route 4 MNE New MNE New SER New Completion of Road Route 4, section Mateševo- Andrijevica Construction of by-pass Podgorica (Capital- Smokovac-Farmaci) Construction of motorway section Belgrade- Vrsac - Romanian border Core Core Core Route 5 SER New Construction of motorway section Pojate -Preljina Comprehensive Route 7 SER New Construction of highway section Merdare- Kursumlija - Prokuplje bypass Merosina-Nis Core Total estimated cost for project implementation (M )

41 4. SEETO Priority Projects Railway projects Corridor VIII Corridor X ALB New Modernisation of the railway line of Tirana - Durres Core ALB MAP 2015 SER MAP 2015 SER MAP 2015 SER MAP 2015 Corridor Xb SER MAP 2015 Route 2 ALB MAP 2015 Route 4 MNE New Development of the Corridor VIII - section Durres- Rrogozhine - Pogradec /MKD border Modernization of the Nis Presevo (border with MKD border) railway line Reconstruction, modernization and construction of the second track on the section Stalac Djunis of the railway line Beograd Nis Modernization for the contemporary double- track traffic of the single - trak section of the railway line Resnik-Klenje-Mali Požarevac - Velika Plana, Reconstruction and Modernization of the railway line Belgrade - Novi Sad - Subotica - border with Hungary(Kelebija) Improvement of the railway link Durres -Vora- Shkodra-Hani Hotit Rail Route 4 (Bar-Vrbnica) - Signaling Podgorica & Bridges partly Core/ Comprehensive Core Core Core Core Core Core Total estimated cost for project implementation (M ) Seaport Projects ALB New Implementation of a Vessel Traffic Monitoring and Information System (VTMIS) for Albania na / 4,9 Total estimated cost for project implementation (M ) 4,9 Airport projects Nis SER MAP 2015 Sarajevo BIH New Expansion of the passanger terminal, construction of a new rapid runway and aircraft parking apron expansion Increasing operational capacity of the airport in order to support more traffic Comprehensive / 11 Core / 35 Tivat MNE MAP 2015 Construction of new passenger terminal Comprehensive / MNE MAP 2015 Reconstruction and rehabilitation of maneuvering area and apron Comprehensive / 28 Total estimated cost for project implementation (M ) 74 TOTAL COST (M ) The estimates presented in Table 4.2 are derived from pre-feasibility studies and preliminary designs, as investments for more detailed project documentation (feasibility studies and detailed designs) are still required in addition to those for project implementation. The estimated investments required for the implementation of the preparatory stage priority projects is 6.97 billion, amounting to 72% of the total required investments for MAP 2016 priority projects. From year to year an increase in the number of rail and nodes (seaport, airport) projects is evident, slowly shifting the focus to these modes in future transport development in the South East European region. 41

42 Comprehensive and Core Network Development Plan Figure 4.2.1: TEN-T Comprehensive and Core Network priority projects for preparation - Road and Airports 42

43 4. SEETO Priority Projects Figure 4.2.2: TEN-T Comprehensive and Core Network priority projects for preparation - Rail and Maritime 43

44 Comprehensive and Core Network Development Plan 4.1 Presentation of road network projects per Corridor/Route Road - Corridor Vc Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Bosnia and Herzegovina 1346 million 7% 9,120 veh/day Figure 4.3: Overview of priority project on the Corridor Vc Priority Project Name Regional Participant Estimated cost (mil Euro) Bosnia and Herzegovina 356 Length (km) 50 Core Network Yes segment Feasibility Study (FS), Detail Design (DD), Technical status Environmental Impact Assessment (EIA) Priority Project Name Regional Participant Estimated cost (mil Euro) Bosnia and Herzegovina 109 Length (km) 11 Core Network segment Yes Construction of the motorway section Odzak -Vukosavlje-Podnovlje- Rudanka- Doboj south Total score: 84% EIRR: 13.9% Construction of the motorway section Odzak-Svilaj, border crossing and cross border bridge Svilaj over Sava river Total score: 80% EIRR: 13.6% Technical status DD, EIA 44

45 4. SEETO Priority Projects Priority Project Name Regional Participant Estimated cost (mil Euro) Bosnia and Herzegovina 400 Length (km) 21 Core Network segment Yes Completion of motorway section Tarcin-Konjic Total score: 50% EIRR: 10.5% Technical status DD, EIA,FS Priority Project Name Regional Participant Estimated cost (mil Euro) Bosnia and Herzegovina 350 Length (km) 37 Core Network segment Yes Completion of motorway section Mostar Sjever-Pocitelj Total score: 50% EIRR: 10.5% Technical status DD, EIA,FS 45

46 Comprehensive and Core Network Development Plan Road - Corridor VIII Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Albania, the former Yugoslav Republic of Macedoni 1203 million 39% 10, 031 veh/day Figure 4.4: Overview of priority project on the Corridor VIII Priority Project Name Regional Participant Construction of Tirana bypass Albania Estimated cost (mil Euro) 109 Length (km) 22 Core Network segment Status Yes Preparatory Priority Project Name Regional Participant Rehabilitation of the road section from Kumanovo to Rankovce the former Yugoslav Republic of Macedonia Estimated cost (mil Euro) 9 Length (km) 32 Core Network segment Status Yes Preparatory 46

47 4. SEETO Priority Projects Road - Corridor X Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic the former Yugoslav Republic of Macedonia, Serbia 1812 million 81% 13,691 veh/day Figure 4.5: Overview of priority project on the Corridor X Priority Project Name Completion of Belgrade by pass, Sector 6: Strazevica- Bubanj Potok Regional Participant Estimated cost (mil Euro) Serbia Total score: 83% EIRR: 14.4% 97 Length (km) 10 Core Network segment Yes Technical status FS,DD Priority Project Name Rehabilitation of the road section Negotino - Demir Kapija Regional Participant the former Yugoslav Republic of Macedonia Estimated cost (mil Euro) 9 Length (km) 17,5 Core Network segment Yes Technical Status: Rehabilitation project, detail design, Elaborate for environmental protection completed Priority Project Name Implementation of ITS on Road Corridor X Regional Participant the former Yugoslav Republic of Macedonia Estimated cost (mil Euro) na Length (km) 176 Core Network segment Yes Technical Status: Preparatory 47

48 Comprehensive and Core Network Development Plan Corridor Xd Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic the former Yugoslav Republic of Macedonia 0 0% 3,938 veh/day Figure 4.6: Overview of priority project on the Corridor Xd Priority Project Name Regional Participant Estimated cost (mil Euro) the former Yugoslav Republic of Macedonia 40 Length (km) 15.5 Core Network segment No Construction and reconstruction of section Drenovo- Gradsko Total score: 44% EIRR: 7% Environmental criteria Regulatory/technical criteria Regional Criteria 6% 13% 25% Technical status FS,DD Economic Criteria 0% 0% 5% 10% 15% 20% 25% 48

49 4. SEETO Priority Projects Road Route 1/Route 2b/ Corridor VIII/Route 2 Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Albania, Bosnia and Herzegovina, Montenegro Figure 4.7: Overview of priority project on the Adriatic Ionian Corridor through Albania Priority Project Name Regional Participant Adriatic Ionian Motorway/Expressway Albania Estimated cost (mil Euro) 698 Length (km) 194,5 Core Network segment Status: Yes Preparatory 49

50 Comprehensive and Core Network Development Plan Road Route 1 Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Albania, Bosnia and Herzegovina, Montenegro 29 million 0% 9,593 veh/day Figure 4.8: Overview of priority project on the Route 1 Priority Project Name Regional Participant Adriatic Ionian Motorway/Expressway Montenegro Estimated cost (mil Euro) 880 Length (km) 110 Core Network segment Status: Yes Preparatory 50

51 4. SEETO Priority Projects Road Route 2a Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Bosnia and Herzegovina 175 million 21% 7,848 veh/day Figure 4.9: Overview of priority project on the Route 2a Priority Project Name Regional Participant Bosnia and Herzegovina Construction of the cross border bridge Gradiska over Sava river Total score: 80% EIRR: 14% Estimated cost (mil Euro) 105 Length (km) / Core Network segment Yes Technical status DD,EIA 51

52 Comprehensive and Core Network Development Plan Road Route 2b Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Bosnia and Herzegovina, Albania 74 million 14% 6, 302 veh/day Figure 4.10: Overview of priority project on the Route 2b Priority Project Name Regional Participant Estimated cost (mil Euro) Bosnia and Herzegovina 62 Length (km) 23 Core Network segment No Upgrade of Brod na Drini (Foca) - Hum (Scepan Polje) Total score: 55% EIRR: 7.9% Technical status FS Priority Project Name Regional Participant Upgrade of Thumane-Kashar-Vore Albania Estimated cost (mil Euro) 90 Length (km) 22 Core Network segment Status: Yes Preparatory 52

53 4. SEETO Priority Projects Priority Project Name Regional Participant Construction of Tepelene bypass Albania Estimated cost (mil Euro) 38 Length (km) 3.5 Core Network segment Status: Yes Preparatory Priority Project Name Regional Participant Construction of Lezha bypass Albania Estimated cost (mil Euro) 24 Length (km) 4 Core Network segment Status: Yes Preparatory 53

54 Comprehensive and Core Network Development Plan Road - Route 2c Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Albania 148 million 25% 4,025 veh/day Figure 4.11: Overview of priority project on the Route 2c Priority Project Name Construction of central East Corridor and central South Corridor (Berat to Tepelene) Regional Participant Albania Total score: 39% EIRR: 10.7% Estimated cost (mil Euro) 210 Length (km) 44 Core Network segment No Technical status Feasibility Study 54

55 4. SEETO Priority Projects Road Route 3 Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Bosnia and Herzegovina, Serbia 11 million 0% 2, 465 veh/day Figure 4.12: Overview of priority project on the Route 3 Priority Project Name Regional Participant Completion of bypass East Sarajevo Bosnia and Herzegovina Estimated cost (mil Euro) 391 Length (km) 87 Core Network segment Status: No Preparatory 55

56 Comprehensive and Core Network Development Plan Road Route 4 Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Montenegro, Serbia 1459 million 4% 7,009 veh/day Figure 4.13: Overview of priority project on the Route 4 Priority Project Name Completion of Road Route 4, section Matesevo-Andrijevica Regional Participant Montenegro Estimated cost (mil Euro) 340 Length (km) 20 Core Network segment Yes Status: Preparatory Priority Project Name Construction of bypass Podgorica (Capital-Smokovac-Farmaci) Regional Participant Montenegro Estimated cost (mil Euro) 280 Length (km) 17 Core Network segment Yes Status: Preparatory Priority Project Name Construction of motorway section Belgrade-Vrsac-Romanian border Regional Participant Serbia Estimated cost (mil Euro) 570 Length (km) 92 Core Network segment Yes Status: Preparatory 56

57 4. SEETO Priority Projects Road Route 5 Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Serbia 55 million 0% 5,533 veh/day Figure 4.14: Overview of priority project on the Route 5 Priority Project Name Construction of motorway section Pojate-Preljina Regional Participant Serbia Estimated cost (mil Euro) 600 Length (km) 110 Core Network segment No Status: Preparatory 57

58 Comprehensive and Core Network Development Plan Road - Route 6b Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Kosovo, the former Yugoslav Republic of Macedonia 131 million 15% 8,581 veh/day Figure 4.15: Overview of priority project on the Route 6b Priority Project Name Upgrade (widening) of the section between Pristina - Montenegro border Regional Participant Kosovo Total score: 58% EIRR: 12% Estimated cost (mil Euro) 83 Length (km) 40 Core Network segment No Technical status FS 58

59 4. SEETO Priority Projects Road - Route 7 Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Albania, Serbia, Kosovo 1639 million 52% 5,643 veh/day Figure 4.16: Overview of priority project on the Route 7 Priority Project Name Construction section Pristina-Merdare Regional Participant Kosovo Total score: 65% EIRR: 8.25% Estimated cost (mil Euro) 150 Length (km) 60 Core Network segment Technical status Yes FS; EIA; Tendering procedure; DD; Implementation schedule Priority Project Name Construction of highway section Merdare- Kursumlija - Prokuplje bypass Merosina-Nis Regional Participant Serbia Estimated cost (mil Euro) 855 Length (km) 77 Core Network segment Yes Status: Preparatory 59

60 Comprehensive and Core Network Development Plan 4.2 Presentation of rail network projects per Corridor/Route Rail - Corridor Vc Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Bosnia and Herzegovina 158 million 20% 36 million pkm 1,020 million tkm Figure 4.17: Overview of priority project on the Corridor Vc Priority Project Name Overhaul of the railway section Sarajevo-Podlugovi Regional Participant Estimated cost (mil Euro) Bosnia and Herzegovina 22.5 Total score: 100% EIRR: 12.5% Length (km) 24 Core Network segment Yes Technical status FS, DD 60

61 4. SEETO Priority Projects Rail - Corridor VIII Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic the former Yugoslav Republic of Macedonia, Albania 191 million 0% 22 million pkm 38 million tkm Figure 4.18: Overview of priority project on the Corridor VIII Priority Project Name Regional Participant Estimated cost (mil Euro) the former Yugoslav Republic of Macedonia 470 Length (km) 57.4 Core Network segment Yes Construction of the railway section Beljakovce-Kriva Palanka-Border with Bulgaria Total score: 95% EIRR: 11.84% Environmental criteria Regulatory/technical criteria Regional Criteria 5% 8% 41% Technical status Feasibility Study, Detail Design Economic Criteria 41% 0% 10% 20% 30% 40% 50% Priority Project Name Modernization of the railway line of Tirana-Durres Regional Participant Albania Estimated cost (mil Euro) 61 Length (km) 35 Core Network segment Yes Status: Preparatory Priority Project Name Development of the Corridor VIII- section Durres-Rrogozhine Pogradec/ MKD border Regional Participant Albania Estimated cost (mil Euro) 206 Length (km) 137 Core Network segment Partly Status: Preparatory 61

62 Comprehensive and Core Network Development Plan Rail - Corridor X Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic The former Yugoslav Republic of Macedonia, Serbia 817 million 39% 340 million pkm 1,428 million tkm Figure 4.19: Overview of priority project on the Corridor X Priority Project Name Regional Participant Priority Project Name Regional Participant Reconstruction, modernization and construction of the second track on the section Stalac- Djunis of the railway line Beograd-Nis Serbia Estimated cost (mil Euro) 106 Length (km) 19 Core Network segment Status: Modernization of the Nis-Presevo (border with MKD) railway line Serbia Estimated cost (mil Euro) 265 Length (km) 148 Core Network segment Status: Priority Project Name Regional Participant Yes Preparatory Yes Preparatory Modernization for the contemporary double-track traffic of the singletrack section of the railway line Resnik-Klenje-Mali Pozarevac-Velika Plana Serbia Estimated cost (mil Euro) 368 Length (km) 69 Core Network segment Status: Yes Preparatory 62

63 4. SEETO Priority Projects Rail - Corridor Xb Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Serbia 0 million 0% 103 million pkm 512 million tkm Figure 4.20: Overview of priority project on the Corridor Xb Priority Project Name Regional Participant Reconstruction and Modernization of the railway line Belgrade - Novi Sad - Subotica - border with Hungary (Kelebija) Serbia Estimated cost (mil Euro) 791 Length (km) 148 Core Network segment Status: Yes Preparatory 63

64 Comprehensive and Core Network Development Plan Rail- Route 2 Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Albania, Montenegro - 0% 5 million pkm 22 million tkm Figure 4.21: Overview of priority project on the Route 2 Priority Project Name Improvement of the railway link Durres-Vora-Shkodra-Hani I Hotit Regional Participant Albania Estimated cost (mil Euro) 165 Length (km) 140 Core Network segment Yes Status: Preparatory 64

65 4. SEETO Priority Projects Rail- Route 4 Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Montenegro, Serbia 379 million 0% 156 million pkm 579 million tkm Figure 4.22: Overview of priority project on the Route 4 Priority Project Name Rail Route 4 (Bar-Vrbnica) - Signaling Podgorica & Bridges Regional Participant Montenegro Estimated cost (mil Euro) 40 Length (km) 25 Core Network segment Yes Status: Preparatory 65

66 Comprehensive and Core Network Development Plan Rail - Route 10 Regional Participants: Total committed and disbursed investments until 2014 Percentage of motorways Average Annual Daily Traffic Kosovo, Serbia 6.21 million 0% 33 million pkm 88 million tkm Figure 4.23: Overview of priority project on the Route 10 Priority Project Name Regional Participant Estimated cost (mil Euro) Modernisation of the Northern Part of Railway Route 10 (Fushe Kosove Leshak Border with Serbia) Kosovo Total score: 66% EIRR: 9% 102 Length (km) 64 Environmental criteria 10% Core Network segment Yes Regulatory/technical criteria 0% Regional Criteria 15% Technical status FS Economic Criteria 41% 0% 10% 20% 30% 40% 50% 66

67 4. SEETO Priority Projects 4.3 Presentation of IWW network and river port projects IWW - River Sava Regional Participants: Total committed and disbursed investments until 2014 Category of inland waterway Bosnia and Herzegovina, Serbia 0 million CEMT class I to IV Figure 4.24: Overview of priority project on the River Sava Priority Project Name Reconstruction and modernization of River Port of Brcko Regional Participant Estimated cost (mil Euro) Bosnia and Herzegovina 7 Total score: 64% EIRR: 12% Length (km) / Core Network segment Yes Technical status FS 67

68 Comprehensive and Core Network Development Plan Priority Project Name Rehabilitation and improvement of the Sava river waterway Regional Participant Estimated cost (mil Euro) Bosnia and Herzegovina 21 Total score: 100% EIRR: 20% Length (km) 56 Core Network segment Yes Technical status Feasibility study Priority Project Name Regional Participant Demining of the Sava river right bank from the confluence of Drina river to the confluence of Una river Bosnia and Herzegovina Estimated cost (mil Euro) 8 Length (km) Core Network segment Yes, Rhine/Danube corridor Technical status Yes Rehabilitation project, detail design completed Priority Project Name River training and dredging works on critical sectors on the Sava River Regional Participant Estimated cost (mil Euro) Serbia Total score: 95% EIRR: 19% 9 Length (km) 211 Core Network segment Yes Technical status Feasibility study 68

69 4. SEETO Priority Projects IWW - River Danube Regional Participants: Total committed and disbursed investments until 2014 Category of inland waterway Serbia 17 million CEMT class VIc and VII Figure 4.25: Overview of priority project on the River Danube Priority Project Name Regional Participant Estimated cost (mil Euro) River training and dredging works on critical sectors on the SRB-CRO joint stretch of the Danube River Serbia Total score: 95% EIRR: 9% 49 Length (km) 129 Core Network segment Yes Technical status Feasibility Study Priority Project Name Regional Participant Estimated cost (mil Euro) River training and dredging works on critical sectors on the sectors on the Danube River in Serbia between Backa Palanka and Belgrade Serbia Total score: 95% EIRR: 9% 14 Length (km) 92 Core Network segment Yes Technical status Feasibility Study 69

70 Comprehensive and Core Network Development Plan Presentation of seaports and airport priority projects Figure 4.26: Overview of priority project on the seaports and airports Priority Project Name Implementation of a Vessel Traffic Monitoring and Information System (VTMIS) Regional Participant Albania Estimated cost (mil Euro) 4.9 Length (km) / Core Network segment na Status Preparatory Priority Project Name Expansion of the passenger terminal, construction of a new rapid runway and aircraft parking apron expansion Regional Participant Serbia Node Airport Nis Estimated cost (mil Euro) 11 Length (km) / Core Network segment No Status: Preparatory Priority Project Name Increasing operational capacity of the airport in order to support more traffic Regional Participant Bosnia and Herzegovina Node Airport Sarajevo Estimated cost (mil Euro) 35 Length (km) / Core Network segment Yes Status: Preparatory Priority Project Name Construction of new passenger terminal and Reconstruction and rehabilitation of manoeuvring area and apron Regional Participant Montenegro Node Airport Tivat Estimated cost (mil Euro) 28 Length (km) / Core Network segment No Status: Preparatory 70

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73 5Transport policy outlook 5. Transport policy outlook

74 Comprehensive and Core Network Development Plan 5. Transport policy outlook Transport links regions and countries and integrates them into the global economy, enabling movement of people and goods from one location to another. Efficient transport systems and routes can increase the volume of trade and movement of people through decreased cost of trade, thus contributing to higher growth. The quality and coverage of transport networks influence the costs of inputs, production and distribution, and therefore national competitiveness. Improved regional connectivity plays an important role in fostering economic integration and growth, including by facilitating firms integration into global value chains. (OECD, Policy Framework for Investments, 2015) This chapter tries to capitalize the assessments made of various policy measures, cost-benefit analysis of non-physical measures and recommendations provided by the following different sources, with solid SEETO contribution: Flagship Axis action plan, prepared with EC Technical assistance to SEETO Regional Transport Study (REBIS update)- led by the World Bank (Chapter 2- Non-physical barriers to transport and trade) OECD Competitiveness Outlook (Chapter Transport) SEE2020 Annual Report on Implementation (Dimension Transport) 5.1 Overview of general developments The much needed political support for definition of the Core transport network in the region received a significant boost in the period from the second half of 2014 and throughout 2015, when the Prime Ministers of all 6 economies under the auspices of the Western Balkan 6 initiative agreed to endorse the indicative extension of both the TEN-T Core and Comprehensive Network into the Western Balkans based on the existing Network established under MoU and SEETO. This should allow the region to further integrate into the international transport networks and facilitate the transport of goods from East to the West. This way the transportation of goods but also passengers will become more efficient, faster and in a long run will make the SEE region as a whole more competitive and integrated into the world economy. As long as transport policy is centred on the transport network, it will include a set of actions, measures and reforms that relate to the whole transport system and not necessarily to either the Comprehensive or the Core Network. However, the latest political developments concerning the definition of the Core Network for the region are expected to influence transport policy in terms of streamlining and speeding up policy reform measures. The Western Balkans summit in August 2015 in Vienna confirmed the list of soft measures which is presented in table 5.3. The list includes specific time lines for each measure, and progress with regard to their implementation will be reviewed at the next Summit in France in The level of transport policies varies from one country to another. The SEETO Regional Participants have made efforts in the area of transport infrastructure policies, transport governance and regulations policies. However, transport sustainability policies remain to be adopted/ implemented/drafted/applied. Montenegro, the former Yugoslav Republic of Macedonia and Serbia have taken the necessary policy measures and have taken steps towards their implementation. Kosovo, Bosnia and Herzegovina and Albania have made progress in the adoption of certain transport-related policies, but implementation procedures need to be reinforced. 10 According to the OECD Report mentioned, economies have scored particularly well under the policy field of transport regulation and governance. Road safety strategies have been adopted in all of the economies and efforts have made, especially in Albania, Montenegro, and the former Yugoslav Republic of Macedonia. Although railway liberalisation reform continues to move slowly across the region, in the former Yugoslav Republic of Macedonia, Montenegro and Kosovo, as well as in Serbia, efforts have been 10 OECD Competitiveness Outlook, July

75 5. Transport policy outlook made to develop and adopt the necessary strategies and establish the required bodies under the EU railway acquis. However, the railway market in the region is still closed compared to the EU and further actions towards railway liberalisation are necessary. Maintenance of the transport infrastructure is still one of the major challenges in the region. The price of maintenance per km varies greatly among the SEE economies and there is no consistent methodology among them for defining maintenance costs based on the level of maintenance. Better maintenance of the infrastructure network could further improve the region s competitiveness. The region could strive for performance-based contracts to ensure better quality and improved lifecycle costs. The World Bank has started road rehabilitation programmes in Albania, the former Yugoslav Republic of Macedonia and Serbia which also deal with introducing performancebased contracts. Additionally, evaluation of existing maintenance systems and unified best practice proposals for improvement could have a positive impact on maintenance efficiency. When it comes to co-modal transport solutions, there is a clear regulatory and institutional gap, as well as a lack of financial incentives for their development. The former Yugoslav Republic of Macedonia, Serbia and Albania have defined multi-modal transportation nodes based on studies, but for the moment implementation is only likely for the Belgrade intermodal terminal after financing has been sought by the recent Vienna summit. The share of alternative transport modes in South East Europe rail transport and inland waterways in particular is still comparatively low compared to OECD countries. Under the implementation of the SEE2020 Strategy, a Regional Intermodal Strategy is being carried out, in order to assist the beneficiaries in their further steps in developing the intermodal sector. (more info in Chapter 5.3) among other things - is not yet a common tool in the region. Sustainability is increasingly becoming part of infrastructure development plans, but it is clearly not a priority. Improvement of energy efficiency in the region in the area of transport is an overall challenge and is not sufficiently covered in the policy documents and not reflected enough in planned measures. Transport sustainability should be integrated into national transport strategies. Improving energy efficiency would positively affect the competitiveness of the transportation system in general. Governments could focus more on developing a well-balanced transport system which should take into account competitive advantages of different modes of transport, environmental impacts and ease of use for users through inter-modal nodes. Governments could integrate more outcome indicators into their strategies such as decreasing energy consumption, greenhouse gas emissions, use of renewable energies, and modal shifts from road to rail and waterways. Economies could further promote provision of high quality logistics services and facilitation international shipments. Although international shipments and quality of logistics services do not directly respond to public policies, governments play an important role in promoting economic efficiency in the freight transportation sector in terms of jurisdiction and funding mechanisms (as for example, reducing variability of clearance times at the borders through simplifying procedures and better co-ordination. National logistics performance is playing an increasingly important role in relation to attractiveness of a region or a country in terms of business location and/or Foreign Direct Investments (FDI) and overall national and/or regional competitiveness. 11 The transport sustainability strategy policy area scores lowest of all transport policy fields in the OECD Report. It is referred to the least within the national strategies and master plans. The sustainability strategy, focusing on reducing energy consumption and increasing the share of electrical mobility, and optimising transportation solutions in urban areas - 11 OECD Competitiveness Outlook, July

76 Comprehensive and Core Network Development Plan 5.2 Regional strategies and other EU project initiatives The assessments in this part are based mostly on the involvement of SEETO in the implementation and monitoring of the regional South East Europe 2020 Strategy for Jobs and Prosperity (SEE2020 Strategy), as shown in Table 5.2. With respect to the other EU Macroregional strategies, such as the EU Strategy on the Danube Region (EUSDR) and the EU Strategy on the Adriatic-Ionian region (ADRION), SEETO is officially recognized as an important stakeholder which will play significant partner role in transport related projects. Table 5.1: Summary of SEE2020 achievements and further expected results in Dimension Transport SEE2020 Strategy, Dimension Transport Actions Achievements 2014/2015 Further results expected Remove physical and non-physical barriers to development of the TEN-T Comprehensive Network in Western Balkans Endorsement of the Core Transport Network by the 6 Western Balkan Prime Ministers agreeing priority transport routes for the extension of the TEN-T to the region Identification of key non-physical barriers affecting cross border transport flows on flagship corridors in the Western Balkans and development of draft action plan for all transport modes including: Legislative issues Technology & IT requirements Organisational issues Physical investments Results of World Bank led study on update of the Regional Transport Infrastructure reviewed by national officials and International Financial Institutions under WBIF structures. Approval and commencement of investment activities on specific Core Transport network projects; Establishment of National Investment Committees and preparation of sectoral pipelines of priority investment projects including the transport sector; Technical and financial Support from EU (IPA) and IFIs secured for specific investments; Detailed design and approval of regional actions for removal of non-physical barriers to cross border transport flows on flagship corridors building on results of EC financed study Monitoring of the regional Flagship Axis action plan by the new Transport Facilitation Working Group (TFWG) to be established by SEETO Promote further liberalisation of rail services /railway reform (in line with Addendum to MoU) EU expertise and sharing of best practice via the regular meetings of the SEETO led Railway and Intermodal Working Group feeding into national policy developments in areas such as: Safety and interoperability Regulations for European freight network; Implications of EU directives on market access for the railway sector; Costing of railway infrastructure Further strengthening of institutional capacities to ensure greater liberalisation and reform of the railway sector through regular meetings of the Railway and Intermodal Working Group; 76

77 5. Transport policy outlook Track progress in transport policy areas; Improve quality and expand dissemination of research and analysis on key transport issues Recommendations from EC-financed assistance project for implementation of the SEETO Work Programme on data collection and harmonisation implemented by SEETO Secretariat as part of preparation of SEETO Multi-Annual Plan New transport demand model and identification of investment requirements to meet demand provided to national administrations available following completion of the World Bank led update on the Regional Transport Infrastructure Study (REBIS); Regular consultations with key public and private transport users organised by SEETO and RCC (ministries of transport, national transport agencies, freight forwarders, port operators, container shipping companies and representative organisations etc.) provide opportunity to brief users on policy changes and implications and to secure feedback on main issues affecting key users; Issues identified to date for further development include: Need for harmonized IT systems; Streamlining of customs procedures; Cooperation between port operators and railway companies; Opportunities to shift to rail as part of low carbon strategies; Enhanced SEETO Multi-Annual Plan based on improved data collection and harmonisation; Further strengthening of public/private dialogue on transport policy issues via meetings of Key Transport Users and cooperation with the International Transport Forum; Wide circulation of final reports on EC-financed assistance project for implementation of the SEETO Work Programme; World Bank REBIS report and RCC/SEETO study on intermodal transport options; Identification of strategic framework for deployment of a regionally coordinated Intelligent Transport System. Development of curriculum for road safety auditing in line with EU procedures Assess issues arising with respect to use of co-modal transport options in region with the objective of promoting an energy efficient and environmentally friendly transport system Study on intermodality launched by RCC and SEETO and data collection underway, which will: Assess the potential market; Examine existing intermodal infrastructure Identify areas for growth Highlight opportunities and threats for the intermodal transport market in South East Europe. Completion of study on inter modal transport options and consultations with policy makers and key transport users; Determine capacity to implement agreed recommendations. Source: SEE2020 Annual Report on Implementation May 2015 Furthermore, SEETO actively participates in the European Union Strategy for the Danube Region, more specifically in the EUSDR Priority Area 1b: To improve mobility and multimodality - road, rail and air links - with the aim of improving travelling times and developing efficient multimodal terminals at Danube river ports and dry ports to connect inland waterways with rail and road transport by To this purpose, in advance of the Strategy for the Danube region, two project ideas were developed and marked as priority: the first, the Danube Region Intermodal Strategy, aims to develop a common sustainable strategy for intermodal transport in the whole Danube region integrating all modes of transport, including inland waterways, waterways of the sea, rail, road and air. The second aims at improving air network connectivity in the Danube Region. The objective of the Project is development of a Danube Region Air Transport Network Strategy that will elaborate new air transport connections within the Danube region which could considerably improve mobility and accelerate economic integration and cooperation. 77

78 Comprehensive and Core Network Development Plan In addition, the Project Effective and Coordinated Road infrastructure Safety operations (ECOROADS), financed under the Horizon 2020 Programme, to which SEETO is one of the Participant organisations, has officially been launched as of June 1st, The period for implementation of the Project is two years. Regional Participants and SEETO overall will benefit from: Workshops with stakeholders (European tunnel and road managers); Analysis/review of national practices regarding Road Safety Inspections (RSI) and Road Safety Audit (RSA), Exchange of best practices and experiences between European tunnel experts and road safety professionals Pilot joint safety operations, including SEETO road sections having both open roads and tunnels Recommendations and guidelines for the application of the RSA and RSI concepts within the tunnel safety operation 5.3 Facilitation of transport related soft measures Although the diversification of the transport network and its extension are generally seen as crucial for improving competitiveness, in the majority of the SEE economies the bulk of the necessary infrastructure already exists. The development of the inland infrastructure has led to a decrease in transportation costs in the region and improvement of logistics related indicators. For example, the cost of import and export of one 20-foot container in deflated US$ has decreased by 4% between 2012 and Regional economies should now try to maintain their focus on development of the SEETO core and comprehensive network, by focusing on its better management through modernisation and efficiency enhancement. Addressing the non-physical barriers is critical for enhancing connectivity in Southeast Europe and for better integrating SEETO Regional Participants into the EU. In addition to requiring significantly lower financial resources to alleviate, the economic returns to removing non-physical obstacles are high as shown below. Moreover, the economic development benefits expected from investment in costly transport infrastructure will not be fully realized if non-physical barriers and regulatory and procedural constraints at the borders and along the corridors are not removed. ultimately diverting potential business from the region. The REBIS Study s section on non-physical measures provides a crude order of magnitude of total logistics costs in the Western Balkans, and an estimate of how much of these could potentially be avoided if the operational environment reaches average EU levels. The key areas of intervention necessary to alleviate non-physical barriers in customs and transport policy, according to the REBIS Report are: Administrative and institutional capacity in the regulatory and implementing agencies Adoption and implementation of inter-operable Information Technology (IT) systems in trade and transport Inter-agency cooperation both in trade and transport operations In transport: safety regulation and enforcement in all modes, especially in road transport In transport: access to markets, especially in rail but also in air transport In customs: risk management systems and simplified customs procedures In customs: adoption of inter-connected IT systems, such as the New Computerized Transport System (NCTS) in transit operations These barriers contribute to an increase in transport costs and reduction in reliability of supply chains 12 OECD Competitiveness Outlook, July 2015 Overall, by the year 2020, the costs for of the proposed actions to alleviate non-physical barriers to trade (including short-term and medium-term measures) would amount to approximately million Euros in the SEETO Regional Participants, when 78

79 5. Transport policy outlook implemented appropriately. On an annual basis, the total cost for the proposed measures or actions would be about M in years The total accumulated benefits from addressing nonphysical barriers would amount to million Euros by year 2020 corresponding to approximately M per year in years Based on the costs and benefits, REBIS presents summary results of the indicative economic efficiency criteria for each measure for each Regional Participant as well as an aggregate for each Regional Participant, as shown in Table 5.2. The analysis yielded high estimates of economic efficiency ratios, which demonstrates the economic viability of all types of actions for addressing non-physical barriers. Table 5.2: Summary results of estimated cost/benefit ratios for implementing the identified interventions/actions for addressing non-physical barriers Intervention/Action Type ALB BiH MKD KOS MNE SRB Strengthening the administrative capacity of Civil Aviation Authorities Establishing and Operationalizing a of CEFTA Committee on Trade Facilitation Collecting and monitoring comparable data on process times at Border Crossing Points (e.g. WCO s Time Release Study) Air C/BC C/BC Implementing the NCTS Transit Convention C/BC Improving Customs IT systems & laboratory equipment Implementing efficient risk management, post control audit & simplified procedures C/BC C/BC Supporting Single Window procedures C/BC Establishing AEO status procedures and providing capacity building C/BC Enabling better use of the inter-modal transport IM Strengthening the administrative capacity in Road Transport & Safety Agencies Facilitating admission to road haulage market & profession Implementing legislation regarding dangerous goods Strengthening the administrative capacity in Rail Safety & Regulatory Agencies Separating operations from infrastructure management Road Road Road Rail Rail Opening up the rail market to competition Rail Strengthening administrative and technical capacity M/IW Developing the River Sava waterway and IT systems IWW Benefit/Cost ratio for Regional Participant Source: REBIS Study Final Report 79

80 Comprehensive and Core Network Development Plan Within the SEETO Flagship Axis initiative, in the period , EC Technical assistance has been granted to assist SEETO in identifying potential short-term investments and measures that would enhance the efficiency performance of the flagship corridors, and to elaborate substantial measures and recommendations for addressing barriers and for harmonisation of procedures. The main deliverable of the assistance is the Flagship Axis Action Plan, which presents horizontal and corridor related measures to be undertaken. The monitoring of the Action Plan s implementation is going to be carried out by a Transport Facilitation Working Group (TFWG), which will be created under auspices of SEETO. SEETO and the TFWG will put a special emphasis on the involvement of the private sector (operators, ports, freight forwarders), thus making possible a market-oriented approach in the Flagship Axis implementation. At the same time, the Action Plan distributes the responsibilities among various state institutions and agencies, which need to commit and prove to the market that there is a willingness to improve supply chains using the corridors. Medium-term Regional Actions (2020 Goals) On the basis of the Flagship Axis Action Plan, but also horizontal measures listed in the REBIS update and the programming exercises done under the SEE2020 Strategy, SEETO prepared a priority list of soft measures to serve as a sort of single-measurepipeline and as guidance for implementation of policy measures that complement the infrastructure development, irrespective of their future source of financing. Even though the likely interventions under the proposed measures can yield positive results in a rather short lifespan, a broad consensus and high political commitment must be secured, while proper monitoring and reporting should be executed by the SEETO structures. On the basis of this wider priority list of soft measures (listed in Annex 4), at the Western Balkan 6 summit in August 2015, the countries in the region have committed to implement the following policy measures as presented in table 5.3. Table 5.3: Priority soft measures Short-term Regional Actions (2016 Goals) 1. Opening of the transport market 1.1 Implementation of rail reform strategy Rail market opening on the pilot basis on the Orient/East Med corridor Definition of a framework for implementation of EU Freight corridors extended to the Western Balkans 2. Establishment of competitive, reliable and safe transport system 2.1 Improvement of road safety Targeting the reduction of fatalities by 20% compared to reference year 2014 Adoption of Road Safety inspection (RSI) guidelines and curriculum and delivering of training 2.2 Trade and Transport Facilitation Development and implementation of System of Exchange Excise Data (SEED) Plus to support the CEFTA Framework Agreement on exchange of data and simplification of inspections Signature of a legally binding document-protocol on an exchange of transport data in cooperation with CEFTA 2.3 Intelligent Transport System (ITS) deployment on the Core Network 2.4 Establishment of functioning maintenance system ensuring no section in poor/very poor condition Definition of strategic framework for implementation of ITS on the Core Network Adoption of Maintenance Plan for for the entire Core Network 3. Increasing effectiveness of Border Crossing Procedures 3.1 Effective Border Crossing Agreements Implementation of the BCA between Serbia and the former Yugoslav Republic of Macedonia Conclusion of negotiations between Bosnia and Herzegovina and Croatia for all BCPs Implementation of BCA between Montenegrao and Albania as a part of Adriatic-Ionian highway project 3.2 Implementation of Integrated Border Management (IBM) strategy Implementation of IBM at Common Crossing Points (CCPs) between Serbia and Kosovo Provide one parking lane on each side of the CCP of Merdare 80

81 5. Transport policy outlook The list is divided into two types of measures: 1) measures with a visible regional component, the implementation of which can bring higher results if conducted and guided with common efforts through regional platforms (and on the basis of the framework prepared by SEETO), and 2) measures with a predominantly national/bilateral component, which should be enforced by national authorities and/or in cooperation with the authorities of neighbouring countries, but still with an important impact on the entire Core Network, given the corridor-based approach to be taken. Some common features for the priority soft measures are: The resources needed are minimal and manageable for the SEETO Participants; limited additional financial resources may be required, especially for the regional measures The major challenges of road BCP are not bilateral or legal instruments at the border but electronic transmission between border authorities on both sides of the border The major challenges of rail BCP are the implementation of the SEETO model of bordercrossing agreements ( BCAs), their subsequent agreements and electronic data transmission The measures related to opening the market and establishment of competitive, reliable and safe transport system under headings 1 and 2 require deeper and more substantial reforms, so constant and continuous monitoring is essential; however they bring extremely positive benefits for the overall development of the transport system in a sustainable manner. The expected results from the measures for increasing the effectiveness of BC procedures could be summarized as follows: Improvement of road safety and security at road BCPs due to new parking lanes/places (with respective infrastructure eg. hygienic and sanitary) Reduction of dispatching time at road BCPs due to the installation of single-window BCPs Reduction of border dispatching times due to improved communication between the railways and border authorities (in particular customs) Increase in the attractiveness and competiveness of corridors due to one-stop-shops for rail and the possibility of developing attractive supply chain products Installation of corridor/regional wide electronic exchange of data for customs and railways. 81

82

83 Annex Annex

84 Comprehensive and Core Network Development Plan Annex 1 TEN-T Comprehensive and Core Network to the Western Balkans description Annex 1.1 TEN-T Comprehensive and Core Road Network description Corridor/ Routes Corridor V C Corridor VIII Corridor X Comprehensive Road Network Core Road Network 13 Nodes CRO border/bosanski Samac (BIH) - Sarajevo (BIH) Doljani/CRO border Tirane/ Durres/ Vlore (ALB) Skopje (MKD) Deve Bair/BG border CRO border /Batrovci Belgrade (SER) Skopje (MKD) Bogorodica/GR border Length (km) Corridor X B HU border/ Horgos Novi Belgrade (SER) 185 Nodes CRO border/bosanski Samac (BIH) - Doboj (BIH) -Sarajevo (BIH) Mostar (BIH) Bijaca (CRO border) Tirane/ Durres (ALB) Elbasan (ALB) Struga (MKD) Tetovo (MKD) - Skopje (MKD) Deve Bair/BG border CRO border /Batrovci Belgrade (SER) Nis (SER) - Skopje (MKD) Bogorodica/GR border HU border/ Horgos Subotica Novi Sad (SER) - Belgrade (SER) Length (km) Corridor X C Nis (SER) Gradina/BG border 110 Nis (SER) Gradina/BG border 110 Corridor X D Veles (MKD) Medzitlija/ GR border Route 1 CRO border/neum Northwest Neum (BIH) Bar (MNE) 126 Neum Northwest/CRO border/debeli Brijeg Bar (MNE)-Muriqan (ALB)-Lezhe (ALB) 147 Route 2 A CRO border/gradiska - Banja Luka (BIH) Lasva (BIH) 228 CRO border/gradiska - Banja Luka (BIH) Lasva (BIH) 228 Route 2 B Sarajevo (BIH) Podgorica (MNE) Vore (ALB) 395 Lezhe (ALB) Vore (ALB) 53 Route 2 C Fier (ALB) Kakavija/GR border 125 Fier (ALB) Kakavija/GR border 125 Route 3 Sarajevo (BIH) Uzice (SER) Route 4 Route 5 Route 6 A Romanian border/vatin Belgrade (SER) Podgorica (MNE) Bar (MNE) Cacak (SER) Krusevac (SER) Paracin (SER) Vrska Cuka/BG border Ribarevina (MNE) Ribarice (SER) Pristina (KOS) Skopje (MKD) 601 Romanian border/vatin Belgrade (SER) Podgorica (MNE) Bar (MNE) Pristina (KOS) Skopje (MKD) 84 Route 6 B Pristina (KOS) Peje/Pec (KOS) Kolasin (MNE) Route 7 Lezhe (ALB) Pristina (KOS) Doljevac (SER) 314 Lezhe (ALB) Pristina (KOS) Doljevac/Nis (SER) Route 8 Podmolje ( MKD) Bitola MKD) The description of Core Road Network for Route 1 and Route 2B is based on the respective planned new alignment of Adriatic-Ionian Highway. 84

85 Annex Figure A1-1: TEN-T Comprehensive and Core Road Network to Western Balkans 85

86 Comprehensive and Core Network Development Plan Annex 1.2 TEN-T Comprehensive and Core Rail Network to the Western Balkans description Corridor/ Routes Comprehensive Rail Network Core Rail Network Nodes Length (km) Nodes Length (km) Corridor V C Bosanski Samac (BIH) Sarajevo Capljina (BIH ) 428 Bosanski Samac (BIH) Sarajevo Mostar - Capljina (BIH ) 428 Corridor VIII Tirana/ Durres/ Vlore (ALB) Lin/Pogradec (ALB)-Kicevo (MKD) Skopje Kumanovo (MKD) Beljakovci (MKD) 426 Tirana/ Durres/ Vore (ALB) - Skopje (MKD) Deva Bair/ BG border 73 Corridor X Sid (SER) Belgrade Skopje (MKD) Gevgelija/GR border 730 Sid (SER) Belgrade Skopje (MKD) Gevgelija/GR border 730 Corridor X B HU border/kelebija Stara Pazova (SER) 151 HU border/kelebija Novi Sad (SER) - Stara Pazova (SER) 151 Corridor X C Nis (SER)-Dimitovgrad/BG border 104 Nis (SER)-Dimitovgrad/BG border 104 Corridor X D Veles (MKD) Kremenica/GR border Route 2 Podgorica (MNE) Vore (ALB) 144 Podgorica (MNE) Vore (ALB) 144 Route 4 RO border / Vrsac Belgrade (SER) Bar (MNE) 580 RO border / Vrsac Belgrade (SER) Podgorica (MNE) - Bar (MNE) 580 Route 7 Nis (SER) Doljevac (SER) - Pristina (KOS) Route 9A Banja Luka (BIH) Doboj (BIH) Tuzla (BIH) Brcko (BIH) Route 10 Lapovo-Kraljevo (SER) Pristina (Kosovo) Gorce Petrov (MKD) 340 Kraljevo (SER) Pristina (Kosovo) Gorce Petrov (MKD) 254 Route 11 Pozega (SER) Stalac (SER) 138 Pozega (SER) Stalac (SER) 138 Route 13 HU border/ Horgos Subotica (SER)

87 Annex Figure A1-2: TEN-T Comprehensive and Core Rail Network to Western Balkans 87

88 Comprehensive and Core Network Development Plan Annex 1.3 TEN-T Comprehensive and Core nodes description Participant Airport (Comprehensive) Airport (Core) Albania Tirane (TIA/LATI) Tirane (TIA/LATI) Bosnia and Herzegovina Banja Luka (BNX/LQBK) - Bosnia and Herzegovina Sarajevo (SJJ/LQSA) Sarajevo (SJJ/LQSA) the former Yugoslav Republic of Macedonia Skopje (SKP/LWSK) Skopje (SKP/LWSK) the former Yugoslav Republic of Macedonia Ohrid (LWOH/OHD) - Montenegro Podgorica (TGD/LYPG) Podgorica (TGD/LYPG) Montenegro Tivat (LYTV/TIV) - Serbia Belgrade (BEG/LYBE) Belgrade (BEG/LYBE) Serbia Nis (INI/LYNI) - Kosovo Pristina (PRN/LYPR) Pristina (PRN/LYPR)) Participant Seaport (Comprehensive) Seaport (Core) Albania Durres Durres Albania Vlore - Montenegro Bar Bar Participant IWW Port (Comprehensive) IWW Port (Core) Bosnia and Herzegovina Brcko Brcko Bosnia and Herzegovina Samac Samac Serbia Belgrade Belgrade Serbia Novi Sad Novi Sad 88

89 Annex Annex 1.4 TEN-T Comprehensive and Core Inland Waterway Network to the Western Balkans description Comprehensive Inland Waterway Network Core Inland Waterway Network Corridor VII Danube Inland Waterway Length (km) Corridor VII Danube Inland Waterway Length (km) CRO/SER SER SER/RO Batina/Bezdan Ilok/ Batina/Bezdan Ilok/ CRO/SER Backa Palanka Backa Palanka Backa Palanka Backa Palanka SER Ram/Nera river Ram/Nera river Ram/ Nera river Ram/ Nera river SER/RO Timok river/pristol Timok river/pristol Total: Total: Sava River Inland Waterway Length (km) Sava River Inland Waterway Length (km) CRO/SER/BiH Belgrade Sisak 593 CRO/SER/BiH Belgrade Sisak 593 Total: 593 Total: 593 Tisa River Inland Waterway Length (km) Tisa River Inland Waterway Length (km) SER Hungarian border Hungarian border 164 SER 164 Danube river Danube river Total: 164 CRO/SER Total: 164 Figure A1-3: TEN-T Comprehensive Network in Western Balkans Airports, Seaports, IWW and IWW Ports 89

90 Comprehensive and Core Network Development Plan Annex 2 Project Fiches - Priority projects eligible for funding Priority Project name Construction of the motorway section Odzak -Vukosavlje- Podnovlje-Rudanka- Doboj south Road Corridor Vc Regional Participant Total score Estimated cost (mil Euro) Length (km) Bosnia and Herzegovina 84% Yes Core Network segment Technical status Feasibility Study (FS), Detail Design (DD), Environmental Impact Assessment (EIA) FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed values of time for the different user groups Assumed traffic growth per year Motorway in Corridor Vc feasibility study IPSA Institute, Sarajevo Civil Engineering Institute of Croatia, Zagreb Ministry of Transport and Communications, Bosnia and Herzegovina Business related trips: 5,58 /h (10,91 BAM/h) Non-business related trips: 0,981 /h (1,92 BAM/h) 5,8% 3,2% (year ) network with investments 5,7% 3,1% (year ) without investments Overall project objective The project aims to enhance the economic and social development of Bosnia and Herzegovina by satisfying the increasing demand for local transport, and the promotion of regional trade with North East Europe. Project benefits Expected benefits include savings in travel time and in vehicle operation costs for all types of vehicle; better road safety and decreased environmental impact; displacement of traffic from the densely populated urban zones along the existing main road. Objectively verifiable indicators EIRR 13.19% Forecasted pax volume Year 2047: vehicles per year Forecasted cargo volume Year 2047: trucks per year Distance savings: 25 km Time savings: 120 min Operating cost savings: 4 million Accident cost savings:

91 Annex Priority Project name Construction of the motorway section Odzak-Svilaj, border crossing and cross border bridge Svilaj over Sava river Road Corridor Vc Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Bosnia and Herzegovina 80% Yes DD, EIA FEASIBILITY STUDY Title of study Prepared by (name of consultants or government agency) Supervised by (name of institution) Assumed Values of Time for the different user groups Assumed traffic growth per year Motorway on the Corridor Vc Feasibility Study IPSA Insitut d.o.o. Sarajevo BIH, Institut građevinarstva Hrvatske (IGH) d.d. Zagreb, Croatia Ministry of Communications and ransport of Bosnia and Herzegovina Business related trips: 5,58 Eur/h Non-business related trips: 0,98 Eur/h 5,8% - 3,2% (year ) network with investments 5,7% - 3,1% (year ) without investments Overall project objective Construction of the Svilaj bridge over the Sava river between Bosnia and Herzegovina and Republic of Croatia aims to improve connectivity in this region and to facilitate transport from Adriatic coast to Central Europe through Corridor Vc. The project also covers construction of the access road to the bridge, as well as building of border crossing facilities and infrastructure between Bosnia and Herzegovina and Republic of Croatia Project benefits Objectively verifiable indicators EIRR 13.6% Forecasted Traffic Growth Rate: 5,3 % International Passenger Traffic: >10% International Freight Traffic: >10% Distance savings: 25 km Time savings: 120 min The following benefits have been considered: Savings in travel time and in vehicle operation costs for all type of vehicles; better road safety and decreased environmental impact, displacement of traffic from the densely populated urban zones along the existing main road. 91

92 Comprehensive and Core Network Development Plan Priority Project name Completion of motorway section Tarcin-Konjic Road Corridor Vc Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Bosnia and Herzegovina 50% Yes DD, EIA, FS FEASIBILITY STUDY Title of study Prepared by (name of consultants or government agency) Supervised by (name of institution) Assumed Values of Time for the different user groups Assumed traffic growth per year Motorway in Corridor Vc feasibility study IPSA Institute, Sarajevo Civil Engineering Institute of Croatia, Zagreb Ministry of Transport and Communications, Bosnia and Herzegovina Business related trips: 5,58 /h (10,91 BAM/h) Non-business related trips: 0,981 /h (1,92 BAM/h) 5,8% 3,2% (year ) network with investments 5,7% 3,1% (year ) without investments Overall project objective The project aims to enhance the economic and social development of Bosnia and Herzegovina by satisfying the increasing demand for local transport, and the promotion of regional trade with North East Europe. Project benefits Expected benefits include savings in travel time and in vehicle operation costs for all types of vehicle; better road safety and decreased environmental impact; displacement of traffic from the densely populated urban zones along the existing main road. Objectively verifiable indicators EIRR 10.5% Forecasted Traffic Growth Rate: 5,3 % International Passenger Traffic: >10% International Freight Traffic: >10% Time savings: 40% 92

93 Annex Priority Project name Completion of motorway section Mostar Sjever-Pocitelj Road Corridor Vc Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Bosnia and Herzegovina 50% Yes DD, EIA, FS FEASIBILITY STUDY Title of study Prepared by (name of consultants or government agency) Supervised by (name of institution) Assumed Values of Time for the different user groups Assumed traffic growth per year Motorway in Corridor Vc feasibility study IPSA Institute, Sarajevo Civil Engineering Institute of Croatia, Zagreb Ministry of Transport and Communications, Bosnia and Herzegovina Business related trips: 5,58 /h (10,91 BAM/h) Non-business related trips: 0,981 /h (1,92 BAM/h) 5,8% 3,2% (year ) network with investments 5,7% 3,1% (year ) without investments Overall project objective The project aims to enhance the economic and social development of Bosnia and Herzegovina by satisfying the increasing demand for local transport, and the promotion of regional trade with North East Europe. Project benefits Expected benefits include savings in travel time and in vehicle operation costs for all types of vehicle; better road safety and decreased environmental impact; displacement of traffic from the densely populated urban zones along the existing main road. Objectively verifiable indicators EIRR 10.5% Forecasted Traffic Growth Rate: 5,3 % International Passenger Traffic: >10% International Freight Traffic: >10% Time savings: 40% 93

94 Comprehensive and Core Network Development Plan Priority Project name Completion of Belgrade by pass, Sector 6: Strazevica- Bubanj Potok Road Corridor X Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Serbia 83% Yes FS, DD FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed traffic growth per year Feasibility study for Belgrade City Road Bypass Serbian Road Directorate appointed Scott Wilson and its sub-consultants, the Highway Institute and the Transportation Institute. The study, which includes engineering, environmental and economic studies, is financed by the European Agency for Reconstruction (EAR). European Agency for Reconstruction (EAR), Ministry of Transport Resulting overall traffic growth was 6.0 percent per year in the optimistic scenario and 4.5 percent per year in the pessimistic scenario. Overall project objective Belgrade s bypass highway is a motorway belt being built around Belgrade. In size and significance it is one of the most important infrastructure projects in the Regional Participant. The main route of Corridor X was intersecting Belgrade s metropolitan area, creating significant traffic problems and congestion on the inner city road network. The idea is to alleviate traffic problems by moving transit away from urban areas onto a new bypass highway. This bypass ring will intersect all motorways leading to Belgrade. Objectively verifiable indicators EIRR: 14.4% OCK: 10% Project benefits Expected benefits include significantly reduced vehicle travel time (international and cross Belgrade journeys), better level of service and less congestion in Belgrade city centre. It will have a great social and economic impact on the wider Belgrade area through improved accessibility and considerably improvement in road safety. The bypass passes through an environmentally sensitive area which will lead to better environmental protection. 94

95 Annex Priority Project name Construction of the cross border bridge Gradiska over Sava river Road Route 2a Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Bosnia and Herzegovina 80% 105 / Yes DD,EIA Overall project objective Gradiska bridge is located on the Route 2a, which connects the north of Bosnia and Herzegovina with the central part of the country. The Gradiska bridge is connection between Corridor X and Corridor Vc via E-661 road. The future border crossing Gradiska will be the BIP for passengers and goods between BiH and EU. Also, the project covers construction of the border crossing facilities and infrastructure between Bosnia and Herzegovina and Republic of Croatia for transport of passengers and goods. Objectively verifiable indicators EIRR 14% Time savings : 18min Removed bottleneck: Yes Distance Savings: 10 km International Passenger Traffic: >10% International Freight Traffic: >10% Project benefits The following benefits have been considered: Savings in travel time and in vehicle operation costs for all type of vehicles; better road safety and decreased environmental impact, displacement of traffic from the densely populated urban zones along the existing main road. 95

96 Comprehensive and Core Network Development Plan Priority Project name Construction and reconstruction of section Drenovo- Gradsko Road Corridor Xd Regional Participant the former Yugoslav Republic of Macedonia Total score Estimated cost (mil Euro) Length (km) 44% 40 15,5 No Core Network segment Technical status Feasibility Study, Detail Design Title of study Feasibility study and preliminary design Raec Drenovo and Drenovo Gradsko FEASIBILITY STUDY Prepared by Supervised by Assumed values of time for the different user groups Assumed traffic growth per year Prostor Kumanovo Faculty of Civil Engineering Skopje For trips made in the framework of work and for professional drivers the value of time is 3,4 / hour. For trip purpose to and from work the value of time is considered to be 1,7 / hour. For trips with other purposes the value of time is considered to be 0,85 / hour. 4% Overall project objective The starting node of the Corridor Xd in Veles in the former Yugoslav Republic of Macedonia and it stretches until Medzitlija (Greek border) in a total length of 117 km. Complete alignment is in a two lane road profile. Objectively verifiable indicators EIRR: 7% NPV:

97 Annex Priority Project name Upgrade of Brod na Drini (Foca) Hum (Scepan Polje) Road Route 2b Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Bosnia and Herzegovina 55% No FS Technical status Title of study Improvement of the Foca Hum main road Feasibility Stud WYG International Ltd, UK FEASIBILITY STUDY Prepared by Supervised by Assumed values of time for the different user groups Assumed traffic growth per year Group of Sub-consultants IPSA Institute, Sarajevo, B&H; Projekt, a.d.banja Luka, B&H; Transportation Engineering Faculty, BU, Serbia Ministry of Transport and Communications, Bosnia and Herzegovina business related trips: for PA 3,78 /h (7,4 BAM/h), for BUS 3,4 /h (6,6 BAM/h) non-business related trips: for PA 1,13 /h (2,2 BAM/h), for BUS 1,01 /h (2,0 BAM/h) 3.6% 2.4% (year ) for commercial vehicles 3.9% 1.2% (year ) for passenger cars Overall project objective The road from Brod na Drini (Foca) to Hum and into Montenegro (Scepan Polje Pluzine) provides a direct connection between Bosnia and Herzegovina and Montenegro and is the shortest route from Albania via Montenegro and Bosnia and Herzegovina to Central Europe via Corridor Vc. The main traffic problems on the existing road, due to current traffic flows are: bottlenecks, low road safety level, low average vehicle speeds, with lower than average speed limits due to poor road elements and conditions, increased vehicle operating cost (VOC) and travel time cost for passengers and goods due to very low speeds, environmental threat caused by increased pollution, especially emissions and noise. Objectively verifiable indicators EIRR 8.46% (scenario I optimistic) EIRR 7.90% (scenario II medium) EIRR 7.51% (scenario III pessimistic) Project benefits Main benefits will be represented through reduced vehicle operating costs and time savings on new road, improved safety and higher environmental concerns. In addition, reduction of travel time and distance as well as reduction of generalised transport costs are expected. 97

98 Comprehensive and Core Network Development Plan Priority Project name Construction of central East Corridor and central South Corridor (Berat to Tepelene) Road Route 2c Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Albania 39% No Feasibility Study FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed values of time for the different user groups Assumed traffic growth per year Pre-feasibility study for the Central South Corridor Scot Wilson K Patrick, UK Ministry of Transport Business time value=1.52 euro/hour; Non business time value=0.508 euro/hour (ANTP 2) 7% Overall project objective Road Route 2c is situated in Albania, from Fier in western Albania to the Greek border 125 km in length with 31 km of full motorway profile. The new planned branch Elbasan Tepelene should provide a better connection between central and southern Albania. Objectively verifiable indicators EIRR = 10.67% NPV = (M ) Forecasted traffic growth rate: 7% Project benefits Time saving, operation cost saving, maintenance cost saving, VOC. Social economic developments of areas near the road. Reducing the travel distance from Tirana to the south of Albania. The total length of the Central South Corridor is about 180 km, of which about 10% consists of existing roads requiring no improvements, so no new ecological risks will occur. Upgrading is planned on 15% of the section while new construction will take place on 75%. 98

99 Annex Priority Project name Upgrade (widening) of the section between Pristina - Montenegro border Road Route 6b Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Kosovo 58% No FS Technical status FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed traffic growth per year Feasibility Study and Environmental Assessment for Two Main Road Axes in Kosovo COWI Ministry of Infrastructure 4% Overall project objective The Route 6b provides the shortest connection between three capitals (Podgorica and Pristina and further to Skopje) and connects Route 4 with Corridor VIII and Corridor X. It is of great economic importance from the perspective of the transportation of goods and passengers within SEE countries. The project supports the activation of natural and human resources and helps to overcome political and civil difficulties, offering economic, political and cultural cooperation among Regional Participants. Objectively verifiable indicators EIRR = 12% Forecasted Traffic Growth Rate [%]=4 Importance of International Demand - Passenger Traffic =20% Freight Traffic =40% Project benefits Advantages are: reduction of travel times, reduction of maintenance costs, cost efficiency regarding environmental protection, decrease of accidents, fostering development of WB through improved connection. 99

100 Comprehensive and Core Network Development Plan Priority Project name Construction section Pristina-Merdare Road Route 7 Regional Participant Total score Estimated cost (mil Euro) Length (km) Kosovo 65% Yes Core Network segment Technical status FS; EIA; Tendering procedure; DD; Implementation schedule FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed traffic growth per year Feasibility Study and Environmental Assessment for Two Main Road Axes in Kosovo COWI Ministry of Infrastructure 4% Overall project objective The Highway Merdare-Pristina Kukes Durres (Route 7) creates the shortest connection between Kosovo and Albania with the European network of international roads. It is of great economic importance from the perspective of the transportation of goods and passengers within SEE countries, as well as being the shortest route to European and Mediterranean countries. Objectively verifiable indicators EIRR: 8.25 % NPV: mil Importance of international demand - Passenger traffic: 20% Freight traffic: 40% Project benefits The main argument or reasoning behind Route 7 was based on advantages such as: reduction of travel time and expenditures as well as more secure travel. This change caused the discontinuation of the track of Route 7, having its impact on the effective function of the network when fully completed. The project supports the activation of natural and human resources and helps to overcome political and civil difficulties, offering economic, political and cultural cooperation among Regional Participants. 100

101 Annex Priority Project name Construction of the railway section Beljakovce-Kriva Palanka-Border with Bulgaria Rail Corridor VIII Regional Participant the former Yugoslav Republic of Macedonia Total score Estimated cost (mil Euro) Length (km) 95% ,4 Yes Core Network segment Technical status Feasibility Study, Detail Design FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed values of time for the different user groups Assumed traffic growth per year Feasibility Study for Corridor VIII Eastern Section and ESIA Eptisa in association with DB Mobility Networks Logistics Faculty for Civil Engineering Skopje, the former Yugoslav Republic of Macedonia Business EUR 9.50 per hour, Non-business EUR 3.51 per hour. Annual growth rate in the next five-year period is 57.14% (years ) Overall project objective The project focuses on the rehabilitation of railway sections along the Corridor VIII: Beljakovce Kriva Palanka border with Bulgaria. Construction on this section began at the end of the 90s but was abandoned due to lack of financial resources. Project benefits The new railway line will generate benefits for users (consumer s surplus) in passenger and freight traffic, in particular in terms of: savings due to a shift in passenger traffic from road to rail; savings due to a shift of freight transport from road to rail; savings due to the transfer of freight traffic from other railway routes to the project line due to the shortening of transport distances; savings of travel time for passengers; savings of transport time for freight transportation. Objectively verifiable indicators EIRR: 11,84 % NPV: 383 ( M ) International passenger traffic demand: 56.5% (2019) International cargo traffic demand: 86% (2019) Forecasted growth rate: 57.14% ( ) Cut operation and maintenance cost: euro Time savings: Skopje Kumanovo Bejlakovce: Year ,935 hour s Skopje Kumanovo BG border: Year ,436 hours 101

102 Comprehensive and Core Network Development Plan Priority Project name Overhaul of the railway section Sarajevo-Podlugovi Rail Corridor Vc Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Bosnia and Herzegovina 100% Yes FS, DD Title of study TA2-BIH-TRA-02: Track Overhaul of Railway Section Podlugovi-Sarajevo on Corridor Vc PHASE I: Feasibility Study FEASIBILITY STUDY Prepared by (name of consultants or government agency) Supervised by (name of institution) Assumed Values of Time for the different user groups Assumed traffic growth per year COWI-IPF Consortium, BiH Railways Public Corporation (BHRPC) reducing travel time of trains on this section for 15 minutes 1,75% freight and 10% passenger (term forecasts up to year 2030.) Overall project objective Overhaul of the railway on the corridor Vc, section Sarajevo- Podlugovi, which includes: track overhaul in order to restore the railway to the condition foreseen in the original project, i.e. Enable achieving speeds of km/h; installation of new rails and switches at stations; repair of bridges, culverts, slopes and embankment; installation of signalling/security system at the stations and level crossing where currently not existing, and adaptation of level crossings. Project benefits Objectively verifiable indicators EIRR: 12.5 % Time savings: 15min Cut operation and maintenance cost: per year Distance Savings: 25,4 km Enable achieving speeds of km/h. Forecasted Traffic Growth Rate: 600 % International Passenger Traffic: 40% International Freight Traffic: 60% Benefits which have been considered are shortening of transport distances; savings of travel time for passengers; savings of transport time for freight transportation. Last repair was performed 45 years ago, this project would also remove a bottleneck section on the line Sarajevo Zenica -Doboj 102

103 Annex Priority Project name Modernisation of the Northern Part of Railway Route 10 (Fushe Kosove Leshak Border with Serbia) Rail Route 10 Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Kosovo 66% Yes FS Technical status FEASIBILITY STUDY Title of study Prepared by Supervised by Study for the Rehabilitation of Rail Route 10 (64 km) COWI IPF Consortium Kosovo Railways JSC Overall project objective The existing Rail Route 10 has a total length of 252 km and connects Kraljevo (SRB) Pristina (KOS) Gorce Petrov (MKD). By developing this project, Kosovo will have an inter-operable railway infrastructure through which domestic and regional railway operators will operate. Project benefits Objectively verifiable indicators EIRR: 9.17 % Forecasted traffic growth rate: 20% Importance of international demand - Passenger traffic: 50% Freight traffic: 90% This will help develop the Kosovo and regional economy providing to all interested parties safe, appropriate and essential services. The project will bring increased economic activity by the provision of regular and reliable services, as well as environmental benefits due to the shift of passengers and freight from the road sector to railways. 103

104 Comprehensive and Core Network Development Plan Priority Project name Reconstruction and modernization of River Port of Brcko Sava River- Port of Brcko Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Bosnia and Herzegovina 64% 7 / Yes FS Technical status FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed traffic growth per year Reforming the management of the port of Brcko MTBS (Maritime and Transport Business Solutions), The Netherlands Assembly of Brcko District of Bosnia and Herzegovina Estimated port throughput growth: 150,000 tonnes for the five-year period Overall project objective The port of Brcko is located in the north-eastern part of BiH, on the right side of the Sava River waterway. Class IV navigability, an average navigation period of 260 days/year, and gravitation area economy, determined the importance of the port in relation to the upstream piers. Possibility of establishing shipment of goods through Brcko Port: it is possible to establish direct shipments of goods from the Sava river to Danube basin ports in Western and Eastern Europe as well as to ports on the North and Black Sea. In order to improve the overall condition of the port of Brcko, rehabilitation of port facilities, handling equipment, improvement of railway connection and storage capacities are required. Objectively verifiable indicators EIRR: 12% NPV (KM) in 2010: 2,956,495 Project benefits Port Brcko could play a central role in providing interconnectivity with the land-based transport modes (road, rail) and is an essential transit point for cargo traffic flows to and from the heavy industries in Bosnia and Herzegovina. With an expected increase in cargo volume after the rehabilitation of the port of Brcko, the project will have a significant positive influence on regional economic growth. 104

105 Annex Priority Project name Rehabilitation and improvement of the Sava river waterway Sava River Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Bosnia and Herzegovina 100% Yes Feasibility study FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed traffic growth per year Feasibility study and project documentation for the rehabilitation and development of transport and navigation on the Sava River waterway Pacific Consultants International, Japan International Sava River Basin Commission On average 1 million tonnes for the five-year period for the whole stretch of the Sava River Overall project objective Development of the Sava River waterway and structuring an appropriate economic and organizational framework for restoring trade and navigation (cargo and passengers) on the Sava River. At this moment the Sava River does not meet the required navigation parameters, set by the Sava Commission, for international waterway Class IV and Class Va, which would ensure a minimum depth of 2.5 m for 300 days per year (international waterway Class IV), and a minimum length km 586 (Sisak). Feasibility study showed that the Sava River offers valuable opportunities for development and commercialization. Objectively verifiable indicators EIRR (for the Va Class of waterway, medium volume scenario): 20,2% NPV (for the Va Class of waterway, medium volume scenario): 157,9 million euro at 6% discount rate Proportion of international traffic 10% Project benefits The main benefit will be the upgrade of the Sava River waterway to a minimum navigability Class IV and Class Va, by ensuring a minimum depth of 2.5 m. Furthermore, the project includes the implementation of River Information Service, RIS, on the entire length of the Sava River. This will improve the connectivity and communication system for navigation, thus improving the safety of inland waterway vessels. 105

106 Comprehensive and Core Network Development Plan Priority Project name Demining of the Sava river right bank from the confluence of Drina river to the confluence of Una river Sava River Regional Participant Total score Estimated cost (mil Euro) Length (km) Bosnia and Herzegovina 8 Yes Core Network segment Technical status Rehabilitation project, detail design completed FEASIBILITY STUDY Title of study Prepared by (name of consultants or government agency) Supervised by (name of institution) Which benefits have been considered (for example: reduced travel times, etc.) Feasibilty study and project documentation for the rehabilitation and development of transport and navigation on the Sava river waterway Pacific Consultants International, Japan International Commission for Sava River Basin (ICSRB) Feasibilty study concerns rehabilitation of inland navigation on the Sava river waterway. Activity on demining of the right river bank is the precondition for safe execution of future works and safe navigation. Overall project objective International navigation regime on the Sava river aims to create conditions for safe navigation, and also conditions for safe investigation works during preparation of detailed design (soil investigation, geotechnical borings, etc) and execution of future works on rehabilitation of the inland waterway Sava. Demining includes cleaning of all known and / or suspected mine hazardous areas and water to a minimum depth of 10 cm, or deeper in accordance with the BHMAC standards for mine clearance and EOD operations in Bosnia and Herzegovina. This project is in tight connection with the project Rehabilitation of the Sava river Waterway, and its precondition. Also, Croatia is currently working on detailed design for the rehabilitation of the inland waterway on the Sava river, and demining of the right bank is the main precondition for this activity. Project benefits Main objective of this project is to create safe environment along the Sava river, as preconditions for preparation of detailed designs, both in BiH and Croatia for rehabilitation of the Sava inland waterway, as well as for the future works. Also, the present navigation conditions are not safe, particularly after floods in May Potential positive effects of the projects are: Provision of safe navigation conditions Provision of safe environmental conditions for works at the river bank Provision of safe social conditions for population which lives and works nearby the river bank (living, agriculture, hobbies, recreation, etc) Development of full environmental and social impact assessment report, together with an environmental and social management plan (ESIA),

107 Annex Priority Project name River training and dredging works on critical ectors on the Sava River Sava River Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Serbia 95% Yes Feasibility study FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed traffic growth per year Feasibility Study and Project Documentation for the Rehabilitation and Development of Transport and Navigation on the Sava River Waterway Pacific Consultants International (Japan), has been selected as the lead consultant in association with Witteveen+Bos (The Netherlands); NEA Transport Research and Training (The Netherlands); CRUP Inland Navigation Development Centre Ltd. (Croatia); and Dvokut ECRO (Croatia). The International Sava River Basin Commission Feasibility Study Freight Transport Forecast, indicated in the Base Case scenario (annual tons of goods) is: 2015: 2,056,000 t 2020: 2,516,000 t Overall project objective The purpose of the project is to insure minimum navigable depth and width of the fairway during the low water level periods on the Sava River. In this way, navigation on the Sava River will become more predictable in terms of availability of the fairway for vessels, more reliable in terms of logistics and transport planning, and more competitive in relation to other comparable modes of transport. A total of 6 critical sectors for navigation exist at the Sava River. Objectively verifiable indicators EIRR: 19% Proportion of international traffic 2% to 10% Project benefits Implementation of the project would contribute to the integration of the Sava River into the Pan-European transport network. Full utilization of project results is closely related to improvement of navigation conditions on the Sava River in all upstream countries. By doing so, the Sava River will become part of the integrated system of inland waterways and could greatly contribute to social and economic development of the whole Sava River Basin, including the Republic of Serbia. 107

108 Comprehensive and Core Network Development Plan Priority Project name River training and dredging works on critical sectors on the SRB-CRO joint stretch of the Danube River Danube River Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Serbia 95% Yes Feasibility study FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed traffic growth per year Preparation of necessary documentation for river training works on selected locations on the Danube River Prefeasibility and Feasibility Study Consortium Witteveen+Bos (Netherlands), DHI (Denmark) and Energoprojekt (Serbia) Steering committee Ministry responsible for transport Based on an expected GDP growth rate for Serbia of 2.36 %, the autonomous development can be assessed at 2.5% (for tonnes) and 4.8% (for tonkm) A yearly growth rate of 1.0 to 1.5 % is expected on the Rhine-Main-Danube link between the The cargo volume scenario for the with project of rehabilitation are ranged between 2.5%-5.5%. The medium scenario for transit, import-export and domestic is 4.0%. Overall project objective The purpose of the project is to insure minimum navigable depth and width of the fairway during the low water level periods at the Serbia-Croatia common stretch of the Danube River. In this way, Danube navigation will become more predictable in terms of fairway conditions, more reliable in terms of logistics and transport planning, and more competitive in relation to other comparable modes of transport. Objectively verifiable indicators EIRR: 9% Proportion of international traffic 2% to 10% Project benefits Implementation of the project would create long term perspectives for the future development of inland waterway transport on the whole Danube River. Full utilization of results is closely in relation to improvement of navigation conditions on the Danube River in all countries, both upstream and downstream of the Serbian stretch. Only in that way, will the Danube River become fully competitive on the Pan-European transportation market and could greatly contribute to social and economic development of the whole Danube region, including the Republic of Serbia. 108

109 Annex Priority Project name River training and dredging works on critical sectors on the Danube River in Serbia between Backa Palanka and Belgrade Danube River Regional Participant Total score Estimated cost (mil Euro) Length (km) Core Network segment Technical status Serbia 95% Yes Feasibility study FEASIBILITY STUDY Title of study Prepared by Supervised by Assumed traffic growth per year Preparation of necessary documentation for river training works on selected locations on the Danube River Prefeasibility and Feasibility Study Consortium Witteveen+Bos (Netherlands), DHI (Denmark) and Energoprojekt (Serbia) Steering committee Ministry responsible for transport Based on an expected GDP growth rate for Serbia of 2.36 %, the autonomous development can be assessed at 2.5% (for tonnes) and 4.8% (for tonkm) A yearly growth rate of 1.0 to 1.5 % is expected on the Rhine-Main-Danube link between the The cargo volume scenario for the with project of rehabilitation are range between 2.5%-5.5%. The medium scenario for transit, import-export and domestic is 4.0%. Overall project objective The purpose of the project is to insure minimum navigable depth and width of the fairway during the low water level periods at the stretch from Croatian border up to Belgrade. In this way, Danube navigation will become more predictable in terms of fairway conditions, more reliable in terms of logistics and transport planning, and more competitive in relation to other comparable modes of transport. Objectively verifiable indicators EIRR: 9% Proportion of international traffic 2% to 10% Project benefits Implementation of the project would create a long term perspective for the future development of inland waterway transport on the whole Danube River. Full utilization of results is closely related to improvement of navigation conditions on the Danube River in all countries, both upstream and downstream of the Serbian stretch. Only in that way, will the Danube River become fully competitive on the Pan- European transportation market and could greatly contribute to social and economic development of the whole Danube region, including Republic of Serbia. 109