Connectivity Reform Measures monitoring Progress Report

Transcription

1 Connectivity Reform Measures monitoring Progress Report June

2 Table of content 1. Introduction Transport policy reforms in the Western Balkans Measures aiming at creation of more competitive, safe and reliable transport system and network Rail Reform Road Safety Establishment of a functioning Road and Rail Maintenance system Measures aiming at smarter and more sustainable & resilient network Deployment of ITS solutions Improvement of the networks transport resilience Measures aiming at supporting trade across borders Trade facilitation and road border-crossing facilitation Rail border-crossing agreements Progress until Trieste Summit Transport Connectivity Reform Measures implementation Progress made by the Regional Participants Albania Bosnia and Herzegovina Kosovo... Error! Bookmark not defined. the former Yugoslav Republic of Macedonia... Error! Bookmark not defined. Montenegro... Error! Bookmark not defined. Serbia... Error! Bookmark not defined. 4. Recommendations... Error! Bookmark not defined. 5. Monitoring mechanism for the implementation of the Connectivity reform measures by subactions Error! Bookmark not defined. Annex 1: Monitoring mechanism - scoring Regional measures National measures

3 1. Introduction In 2014, the leaders of the Western Balkans Six (WB6) Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Kosovo* 1, Montenegro and Serbia met in Berlin to bring a new dynamism to regional cooperation. Since then, the EC has been working with them on concrete measures that citizens throughout the region can benefit from, in particular in building and connecting transport and energy infrastructure as a driver for growth and jobs, helping attracting investments. The WB6 has made the connectivity agenda one of its highest priorities, as it creates links and opportunities for businesses and people and contributes to good neighbourly relations in the region. The connectivity agenda puts a special emphasis on the 1) preparation and financing of concrete regional infrastructure investment projects, and in parallel, on 2) connectivity reform measures aiming at aligning with EU policy and standards. In this context, the EU has set aside up to 1 billion for connectivity investment projects and technical assistance for the period of In addition, EC deploys a substantial Technical assistance (Connecta) for supporting the process of setting and/or reinforcing the regulatory and institutional framework that should enable the Western Balkans to reap the full benefits of the investment in infrastructure. The connectivity reform measures require limited funding but a strong political commitment and their implementation will be decisive to access EU co-financing investments. The underlying notion for the connectivity reforms is that they maximize the economic development benefits expected from the investment in costly transport infrastructure by removing/addressing the non-physical barriers including the regulatory, management and procedural constraints of the transport system and along the corridors. The list of connectivity reform measures in transport is devised mostly from the findings and analysis in the Regional Transport Study (REBIS) carried out by the World Bank and the Flagship axes action plan, developed by EC TA to SEETO. They both prove the need to focus on soft side of the transport, as an answer to the non-physical barriers. These barriers contribute to an increase in transport costs and reduction in reliability of supply chains 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 total accumulated benefits from addressing non-physical barriers in the Western Balkans would amount to million Euros by year 2020, against the million EUR costs for the actions to alleviate non-physical barriers to transport and trade. 1 *This designation is without prejudice to position on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo Declaration of Independence 3

4 SEETO Secretariat oversees the process of implementation of the Connectivity reform measures by assessing the progress in the implementation of the measures listed in the Connectivity reform measures management plan (CRMMP), on the basis of agreed monitoring mechanism and by submitting reports to the Regional Participants and the European Commission. The assessment is carried out mainly by questionnaires and feedbacks provided by the Regional Participants, but also verified through other mechanisms, including the SEETO expert working groups on Railways and Road safety, as well as the SEETO Transport Facilitation working group, which represent a specific horizontal instrument to support the monitoring process, where in addition to the members from various national authorities, the EC, IFIs/WBIF, regional organisations (CEFTA, RCC) and Connecta consultants are represented, too. In producing this report, SEETO Secretariat applied the scoring methodology agreed by all parties (the tables with scores follow the narrative part of the report in Annex 1). The purpose of this report is to present the progress of the implementation of Connectivity Reform Measure Management plan (CRMMP) before the Western Balkans Six Summit to be held in July 2017 in Trieste and accordingly to provide the decision-makers an objective view on what is the current state of play about the transport policy reform measures and in which areas further and stronger efforts and commitments are needed. 2. Transport policy reforms in the Western Balkans 2.1 Measures aiming at creation of more competitive, safe and reliable transport system and network Rail Reform The main aim of the rail reform measures consists of setting the legislative framework and its implementation for opening the railway market as a pre-condition to increase the competitiveness within the railway sector that would lead to a needed positive modal shift towards railway transport. Railways are particularly important for regional trade integration as they are the more economically efficient mode for long distances and heavy loads. Rough cost estimates for opening the railway market and building capacity were estimated in the REBIS Update to be about 45 million for the WB6 per annum over a period of 5 years, an average cost of less than 2 million per annum per Regional Participant, while the returns to these investments were estimated to be over 250 percent. 4

5 Expected benefits: Increased competitiveness of railway transport within the regional participant s domestic market Increased customer responsiveness and improve services, including through efficiency gains Reduced government expenditures and liabilities associated with providing railway services Improved sustainability of railways and establishment of reliable and safe transport system Participating in the European Railway Freight Corridors is an added benefit and should be exploited further by the region. Technical Assistance was provided by the European Commission to assist the region in assessing the market needs and their readiness to join European Freight Corridors. Overall achieved progress: It is one of the most complex policy reforms in the transport sector for which the Western Balkans countries efforts started way before the WB 6 process. In fact, it is one of the regular sectoral priorities within SEETO and a commitment taken by the Regional Participants for creating a regional rail market since the signing of the Railway Addendum to the SEETO MoU in Consequently, it is one of the most difficult measures to achieve, encompassing currently 6 sub-actions. A major breakthrough was achieved by signing for the first time in the region, a contract for usage of the railway infrastructure in Serbia with a private operator. Montenegro and Kosovo are sufficiently ready to open the rail market too, however, this will depend on the strong commitment from the authorities to ensure non-discrimination as well as on the willingness of the private operators to access their railway market. On the rail freight corridors, even though the consultations are completed on national level, still the Regional Participants are not sufficiently engaged and are lagging behind in carrying out the consultations between them and the EU neighbouring countries, and in adhering to a joint letter of intent for a Rail Freight Corridor, with exception of Serbia which concluded these tasks. Signing of the Transport Community Treaty which includes Regulation EU 913/2010, would facilitate the process of extending the RFC to the Western Balkans Road Safety 5

6 Road safety in the Western Balkans still lags behind the EU. The average rate of fatalities per million people in the Western Balkans is about one third higher than the average of EU 28, and the road fatalities and injuries are estimated to cost 2% of its GDP. The region is thus making steps forward in all aspects of road safety. There are three road safety measures included in the CRMMP, based on the recommendations from the SEETO policy paper on Road Safety Audit and Inspection 2 : adoption of road safety inspection guidelines, carrying out safety audits on new projects and setting up of data crash databases throughout the region. The main scope is to improve road safety policy framework and regulations as well as improving road safety practices through carrying out pilot road safety inspections and audits. It should be noted that EU funded Technical Assistance, Connecta, started in January 2017, will assist further the regional participants towards the accomplishment of this measure. assessment of the current legislation and practises is performed. This completes the background sub-action as a road map for carrying out the trainings (completed) and for adoption of the RSI guidelines in the national Expected benefits: Towards zero road fatalities - Better statistics &reporting Main input for inspection and further treatment of black spots Better decision making legislation (still ongoing). SEETO contributed substantially towards finalizing the Terms of reference for the assistance in the preparation of the three-year RSI plan and for carrying out road safety audits on all projects on the core and comprehensive network. The establishment of a national system for continuous road crash data collection is at an infant stage, with exception of Serbia where it is already in place. Overall achieved progress: With regards to the road safety inspection, an 2 Road safety audits and inspections Policy paper 2016, SEETO, Belgrade 2016, downloadable HERE 6

7 2.1.3 Establishment of a functioning Road and Rail Maintenance system The main scope of this measure that encompasses two of most used networks, road and rail networks will be the establishment of an efficient and sustainable maintenance system, through preparation of 5 year maintenance plans, setting up of asset management system and deployment of the best engineering value maintenance contracts. As a result of the maintenance backlogs (see boxes), the networks users are faced with lower commercial speed, decline of rail transport, decline of roads from good conditions in medium conditions due to lack of maintenance (approx % every year). It should be noted that EU funded Technical Assistance, Connecta, started in January 2017, will assist further the regional participants towards the accomplishment of this measure. Overall achieved progress: The region is at initial stage in establishing a proper maintenance system for roads and rails. SEETO Secretariat contributed substantially in identifying the underlying issues in the field and in preparing Terms of reference for assisting the Regional Participants in putting in place a solid road and rail asset management system and in defining proper maintenance five year plans in the both sectors(overview of the road maintenance in the Western Balkans; Report on rail maintenance on TEN-T Core network in Western Balkans). The total amount of maintenance backlog in the region amounts to around 500 million Euro for the entire road network. For the indicative extension to TEN-T Road Comprehensive Network to Western Balkans, REBIS has estimated roughly an annual amount of 55 million Euro for the regular road maintenance and 340 million Euro for road rehabilitation and maintenance backlog. Total annual cost of road rehabilitation and maintenance is approx. 395 million. Based on the poor infrastructure condition and maintenance backlog, a large proportion of 2,900 km of the railway network that do not need immediate intervention to increase capacity, will require maintenance/rehabilitation. About 19 percent (900 km) may require interventions for upgrading at present. Depending on the economic growth scenario, between 25 and 33 percent of the network (1,200 km - 1,500 km) may require some upgrading intervention before

8 Due to circumstances to which the countries could not affect by any means, many subactions are accredited non-applicability and are not considered within the final percentage of this measure. That said, the final scores for this measure should be carefully perceived, as it might be misleading when having in perspective the overall objective of the measure. Expected benefits: Reduction of the users operating costs (1 Euro not spent in maintenance = Thousands spent in Vehicle Operating costs, users pay more) Efficient use of maintenance budgets based on the technical needs assessment and better monitoring of resources Dissemination and introduction of best practices in maintenance performance based contracts in the region, according to EU legislation 2.2 Measures aiming at smarter and more sustainable & resilient network Deployment of ITS solutions The use of information and communication technologies in the field of transport, related to infrastructure, vehicle or users, is becoming increasingly important to deliver improvements in network capacity, traveller mobility and thus, economic productivity. Due to the limited use of Intelligent Transport Systems (ITS) in the Western Balkans to date, interventions in this area are expected to have high rate of returns. With WB6 at an early stage of deployment, common regional approach as well as framing ITS into their transport strategic level, as suggested by the SEETO ITS Deployment Report 3, could help Regional Participants to create the necessary legal and institutional environment, and to later adopt proven technologies especially along the main corridors. In addition, ITS deployment is a requirement, according to several EU legislative acts, and as such the region is working towards compliance with TEN-T standards. This measure focusses on both deployment and legislative and organizational aspects in order to facilitate ITS 3 ITS Deployment Report, SEETO, Belgrade 2016, downloadable HERE 8

9 deployment in Western Balkans. It should be noted that EU funded Technical Assistance, Connecta, started in January 2017, will assist further the regional participants towards the accomplishment of this measure Overall achieved progress: The region is in preparatory stage for definition of a strategic framework for implementation of ITS on the Core Network. On the transposition of the relevant EU legislation for ITS, there has been a progress in the railway, maritime and IWW sector, but many gaps still need to be filled in the road sector. SEETO Secretariat contributed substantially in identifying the underlying issues in all transport modes related to ITS, and in preparing Terms of reference for assisting the Regional Participants in putting in place proper ITS strategies across all transport modes. Due to circumstances to which the countries could not affect by any means, many subactions are accredited non-applicability and are not considered within the final percentage of this measure. That said, the final scores for this measure should be carefully perceived, as it might be misleading when having in perspective the overall objective of the measure. Expected benefits: Improved mobility for people and freight through better managed transportation infrastructure, reduction of travel uncertainty, less traffic congestion Increasing safety and security for freight movement and personal travel Reduced environmental impact of surface transportation Improvement of the networks transport resilience Climate change is putting at risk the lives of millions of people worldwide, and millions in investments in transport infrastructure and services. A transport system that cannot withstand the emerging impacts of climate change will prove burdensome, impose high costs for repair, and cause significant economic losses. The region is lacking on actions needed to diagnose systemic weaknesses and adapt transport systems to withstand expected climate impacts such as changes in rainfall, flooding, and sea-level rise as well as extreme weather events. This measure was agreed by the regional participants through the World Bank Trade and Facilitation Action Plan in Paris Summit. Expected benefits: Better understanding of existing vulnerability assessment tools Introduction of cost-effective engineering measures and technologies all designed to ensure robustness, redundancy and resilience of transport networks 9

10 Overall achieved progress: improve their practices on transport resilience. The target for 2017 was only to carry out the scoping phase on the region s needs to 2.3 Measures aiming at supporting trade across borders Trade facilitation and road bordercrossing facilitation The trade policy implemented by the CEFTA parties based on the CEFTA Agreement and their bilateral Free Trade Agreements with third countries ensured a substantial level of merchandise trade openness in the CEFTA parties. In general, the trade of goods is liberalized, but has never reached its full potential. The Western Balkans have low export levels with less than 50% of GDP in exports, with intra-regional trade declining. Further trade liberalization measures, coupled with transport facilitation measures are expected to upgrade the logistic performance and to leverage the opportunities to integrate with the global value chains. There are further steps needed in 1) improving risk management systems to streamline processes at borders, 2) in simplification of documentation and formalities for trading companies and 3) in enhancing transparency and predictability between governments and international operators. The efficiency of border crossings is also incremental for the cross border trade and transport movements. Large benefits could be generated by simplifying and harmonizing procedures and by ensuring sufficient capacity to handle border trade. On the contrary, the Expected benefits: Effective cross-border road transport Reducing of the waiting times and logistic costs Increased cross-border agency cooperation (border control is jointly performed by officials of both parties in one location, carrying out all procedures of border control, including passport control, customs, veterinary and phytosanitary control) Improvement of safety and security on BCPs. 10

11 excessive waiting times increase dramatically the costs- the REBIS Update calculations show that trucks spend collectively over 26 million hours at border crossing points (BCPs) in Western Balkans and that the sum of inventory carrying costs, vehicle costs and driver costs attributed to border crossings in a Western Balkan participant is more than 5 times the cost in an efficient EU country, excluding the cost of the negative multiplier effect of unpredictability of waiting/processing times on the supply chain. A one-day delay reduces the export value of most goods by 1%, and for agricultural products, it is even by 7%. The unpredictability at border crossings coupled with an excessive control contribute to high logistics cost estimated at 16% of GDP for the Western Balkans, compared to about 8 percent in the EU and the US. Overall progress achieved: The Additional Protocol 5 of the CEFTA Agreement, the implementation of which is expected to further facilitate the trade in the region, has been negotiated and signed during this period. Overall, the region has fully completed all sub-actions in this measure, and all trade related actions will be further monitored by the CEFTA structures within the trade facilitation agenda. Additionally, the CRMPP included a measure on assessing the opportunities for introducing one-stops shop system at the road BCPs, as well as other systems for decreasing the waiting times at the borders. SEETO Secretariat has been making a contribution in preparation of the Terms of reference for future assistance in assessing the opportunities for introducing one-stop shop on the Core road network s BCPs and electronic systems for managing queues. It should be noted that EU funded Technical Assistance, Connecta, which started in January 2017, will assist SEETO further towards the accomplishment of this assessment. Finally, recognizing the need to specially address the capacity constraints on the Common Crossing Point Merdare, a special measure was included in the CRMMP for construction of parking lane on each side of the CCP of Merdare, as part of the implementation of the Integrated Border Management (IBM) at CCPs between Serbia and Kosovo. Upon finalization of the documentation, the construction work began in February 2017, thus it is considered that the measure is fulfilled Rail border-crossing agreements International freight rail performance has significantly diminished in the past decade, but fewer trains have not led to shorter dispatching times at the borders, since the rules and regulations have not changed, and rail border crossing operations have not been improved. According to the Final Report and Action Plan for the SEETO Flagship axes 4, a 4 Action Plan to establish SEETO Flagship corridors, EC TA -Support to the implementation of the SEETO Strategic Work Programme, April 2015, downloadable HERE normal freight dispatching in the Western Balkans lasts between 90 and 180 minutes but in reality, it can take longer, depending on various factors (outdated and fault-prone equipment, non-coordination on traction on both sides of the border) or when delays in long-distance international rail transport have disrupted the flow of transport and the reserved paths are no longer allocated. 11

12 Notwithstanding the need for modernized equipment and improved coordination of the rail border agencies, the first and foremost step is signing bilateral Rail BCP Agreements on the basis of SEETO templates which are in compliance with the EU rail acquis, in particular with the Directive 2012/34/EU, and that are exactly the measures monitored under the CRMMP (signing of BCA agreements and subsequent protocols adhering to the rail operators, border police, customs and phytosanitary authorities). Once such bordercrossing agreements and protocols, in conformity with EU legislation, have been signed and applied, the basis for an easy and time efficient dispatching at the border stations is set up. Overall achieved progress: The separate rail BCP agreements between the former Yugoslav Republic of Macedonia and Serbia, and between Albania and Montenegro are sufficiently advanced, as they are signed together with all relevant protocols, albeit the practical enforcement needs yet to take place, pending the construction of the join border station in the case of the former, and the training of the staff of the border agencies, in the both cases. The negotiations for the other rail BCPs agreements are still ongoing or at early stage, as shown below in the graph. Expected benefits: Simplify border crossing for the citizens and shippers using rail transport Reducing of the dispatching time by 50% Improve the competitiveness of their international rail traffic Improve the cross-border agency cooperation by performing joint controls 12

13 3. Progress until Trieste Summit 3.1 Transport Connectivity Reform Measures implementation The main breakthrough in the reporting period (December 2016-April 2017) is the contracting of EC Technical assistance -Connecta in January 2017 and the agreed Terms of Reference in April 2017 for three of the regional measures to be carried out with Connecta assistance: 1) ITS, 2) Road and Rail Maintenance and 3) Road safety. Another one for road border-crossing facilitation has been drafted by the SEETO Secretariat. As originally foreseen, the results of Connecta in broader sense shall include: strategic plans and frameworks for the ITS development and maintenance of the Core Network to TEN-T standards, impact assessments, trainings, guidelines, analysis and assessment of existing national strategies, laws and/or plans including recommendations. This assistance is seen as crucial to the region, as it will lead to enhanced implementation of the connectivity reform measures, facilitation of the transposition of the EU acquis, introduction of EU policy best practices, speed up policy reforms and improved business environment in the region. The specific results for the implementation and monitoring of the connectivity reform measures and the related transfer of know-how to the beneficiaries will be achieved in close collaboration between the Connecta consultants and the SEETO Secretariat. Taking into account the fact that the progress for some of the regional measures for which Connecta has been assigned, cannot be measured before the Trieste summit, due to the short period of time ahead and the thorough preparations of the CRM subprojects, it was decided that for the specific sub-actions where Connecta involvement was envisaged (ITS, Maintenance, Road safety), the scoring mechanism would not be applicable in this SEETO progress monitoring report. 5 In addition, the EC assistance in developing a Study on rail freight corridors and action plans for road safety is on-going, and some results are expected by Trieste Summit. As far as the national measures goes, despite some initial intensive exchange of communication between border authorities which resulted in signing of some of the Protocols stemming from the Rail border crossing agreements, there is somewhat slower pace of progress with regards to agreeing the modalities of their implementation. Bosnia and Herzegovina managed to approve the negotiation basis for Rail BCP agreement with Croatia. In addition, upon all construction permits have been issued by the Kosovo authorities. Furthermore, the rail BCP agreements which were added as measures after the Paris summit, have seen less intensity and frequency in the reporting period in terms of coordination between the central authorities (lead Ministries) of the neighbouring countries. This may be partly due to the fact that in some cases, this coordination entails neighbouring authorities from EU member States over which SEETO does not exceed its The construction works for parking lanes at the CCP Merdare have started, thus, one of the measures from the CRMMP could be considered fully implemented. 5 Decision made by SEETO Steering Committee on April 6 th, 2017 in Skopje 13

14 competence in monitoring. Nevertheless, some initial efforts are done through the European Commission and the Transport Facilitation Working Group (TFWG), the last meeting of which, held in April 2017, was used as a coordination framework between SEETO Regional Participants and their EC Member States counterparts. 3.2 Progress made by the Regional Participants Albania Overall progress achieved by Albania until the Trieste Summit is shown in the following diagram: Recommendations: Albania and Montenegro are encouraged to conduct the final training and finalize the Modus Operandi for the functioning of the joint BCP in Tuzi in order to start with joint operation as early as possible. Albania should finalize the adoption of guideline On rules for implementation of the intelligent systems in field of road transport and connection with other modes of transport and start with the transposition of rail technical specification for interoperability (Control command and signalling - CCS TSI). Albania should continue with the rail reforms, more specifically, with establishing the necessary rail institutions, further transposition of legal base and railway organizational restructuring. Main achievements: The first joint training was held on 26 May 2017, in the joint border railway station of Tuzi, (Montenegro), during which the discussions on Modus Operandi were held. Correspondence and discussions have continued after the training, aiming to refine the modus operandi and remove any shortcomings. The Modus operandi is expected to be signed by the beginning of July, when the final training is scheduled to be held. The Albanian Party expresses its willingness to extend the road one stop shop at the Murriqan/Sukobin border crossing point for freight transport too. This issue is being discussed internally with the responsible authorities, in order to be prepared for the further discussions with the Montenegrin partners. Investments to improve the existing infrastructure might be needed to implement this initiative. The SEETO RSI guidelines are translated and soon it will be adopted by amending the corresponding bylaw. A new project with the World Bank has got a component for checking the compliance with the EU of the Road Safety Audit guidelines, developed by Albania itself. The Institute of Transport of Albania (IoT), and the Polytechnic University with which the Ministry of Transport has already signed a Memorandum for Cooperation in the field of developing 14

15 road safety guidelines, shall test the experience for the road safety auditors and inspectors and provide certificates for them. Ministry of Transport prepared draft guideline On rules for implementation of the intelligent systems in field of road transport and connection with other modes of transport, which aims the full approximation of the EU directive 2010/40/EU. It received the relevant opinions (except official opinion from the Ministry of European Integration) from the interested stakeholders, and according to the NPEI , is foreseen to be adopted within the first half of Even though, rail market opening measure has been limited to Orient/ East Med Corridor, Albania has made certain progress in this measure with the adoption of the new Railway Code, providing one general legal framework for rail reform in Albania. Furthermore, they have been drafting subsequent laws and instructions to further regulate this area. Bosnia and Herzegovina Overall progress achieved by Bosnia and Herzegovina until the Trieste Summit is shown in the following diagram: Main achievements: The Council of Ministers of Bosnia and Herzegovina adopted the basis for negotiations on concluding the Agreement between the Council of Ministers of Bosnia and Herzegovina and the Government of the Republic of Croatia on the establishment of border procedures for rail border crossings Samac-Slavonski Samac and Capljina-Metkovic on the Mediterranean corridor (Corridor Vc) in January BIH Presidency took decision on May 10, 2017, after which Bosnia and Herzegovina proposed immediately to Croatian side the date for negotiations, but the answer is still pending. The Ministry of Communications and Transport of Bosnia and Herzegovina prepared amendments to the by-laws on road safety, auditing and inspection procedures in order to align road safety condition requirements with the EU Directive 2008/96. The Rulebook on basic safety conditions for roads and road facilities which will define the procedures for road safety audits and road safety inspections, shall be issued by the minister, as prepared in cooperation with the competent road authorities. Guidelines, in the form of annex, would form part of the Rulebook. European Bank for Reconstruction and Development has started public procurement for the project Development of traffic accident database within the Ministry of Communications and Transport of Bosnia and Herzegovina, 15

16 Establishment of Road Safety Unit and related RSA Procedures within the Ministry of Communications and Transport. Terms of Reference have been agreed and the selection of consultants is expected soon. A Commission was established to conduct road survey with regard to the current road conditions and to assess the road maintenance needs on Recommendations: Since the basis for negotiation has been set, Bosnia and Herzegovina should try to accelerate the negotiations regarding Rail BCP agreement and protocol signing, using the existing regional experience in this area.ec should continuously support and facilitate this process by instigating official correspondence with the Croatian authorities, while Bosnia and Herzegovina should prove that all bilateral mechanisms have been exhausted. Further efforts are needed to transpose the ITS directives in road and IWW sector as well as interoperability directive rail sector. Bosnia and Herzegovina is encouraged to develop performance based multi annual contract between the railway infrastructure managers and the relevant governments to ensure efficient use of maintenance budgets and better condition of infrastructure. the Core Network. The Working group to monitor and report on the implementation of CR measure prepared Road Maintenance Plan for the period on the all Core Network. Within the road management plans, adequate funds are planned for the core network maintenance. The Working group to monitor and report on the implementation of CR measure prepared the Strategic framework for implementation of ITS on the Core Road Network. As for rail, there are important pieces of legislation adopted for aligning with the rail interoperability legislation on both state and entity levels EBRD has chosen TA consultant for climate change resilience in FBIH, to support the Beneficiary to establish an appropriate institutional framework for assessing, managing and informing on climate risks on the road network, as well as in assessing climate risks on the road network and mapping specific vulnerabilities. Even though, rail market opening measure has been limited to Orient/ East Med Corridor, Bosnia and Herzegovina has made certain progress in this measure and has an active Railway Regulatory Board, that plays an important role in further alignment with EU technical standards and technical specifications. Bosnia and Herzegovina should continue with the rail reforms, more specifically with further transposition of legal base and railway restructuring. 16

17 Kosovo Overall progress achieved by Kosovo until the Trieste Summit is shown in the following diagram: Main achievements: The construction works for the parking lane on the common crossing point Merdare between Kosovo and Serbia have started on 16 of February The deadline for completion of IBM permanent facilities at BCP Merdare from the starting date of works is planned to be finished within 18 months. This national measure is considered as fully completed. Ministry of Infrastructure and Railway Regulatory Authority are finalizing needed Administrative Instructions and Regulations on market opening in compliance with EU standards. In addition, on April 12, 2017 INFRAKOS has opened consultation process for Network Statement 2018, and it is expected to complete this process by the end of June in order to approve and publish the Network Statement for The road Safety Inspection Guidelines have been translated into Albanian and Administrative Instruction has been drafted. Recommendations: Even though the construction of the parking lanes at the Merdare crossing point have started and with that Kosovo has provisionally fulfilled its part of the measure, the measure will remain to be monitored by SEETO, as the spirit of the measure is to have these parking lanes constructed and operational to users. Therefore, Kosovo authorities are invited to ensure the smooth carry out of the project and to report its finalization. Macedonian and Kosovo authorities are strongly encouraged to share the templates of protocols and to start with concrete discussion on the protocols deriving from the Rail BCP agreement as well as their implementation. Kosovo has been investing efforts for the opening of the railway market. Further market opening will depend on the strong commitment from the authorities to ensure non-discrimination and on willingness of private operators to access Kosovo railway market. Further efforts are needed to transpose the road ITS directive as well as to adopt the EU technical specifications for ERTMS (TSI CCS -control, command and signalling). The Agreement between Kosovo and the former Yugoslav Republic of Macedonia on border dispatching for rail transport was signed in 2011, stipulating Hani i Elezit as a joint border railway station. An Implementing agreement on interconnection of networks of Macedonian railways and Kosovo 17

18 railways is signed in 2016 between the IM and the RU from both Parties. However, despite the agreement from the TFWG meeting held in April 2017, and the exchange of contacts between the counterparts of the Border Police and Customs from Kosovo and the former Yugoslav Republic of Macedonia, there is no evidence that further negotiations on the protocols deriving from the Rail BCP agreement have taken place. the former Yugoslav Republic of Macedonia Overall progress achieved by the former Yugoslav Republic of Macedonia until the Trieste Summit is shown in the following diagram: Main achievements: The contract for irap survey of the road network was signed on 21st April Within the Contract a survey of 3047 km of national and regional roads managed by PESR will be conducted. The Contract end date is 12 months after contract signing, i.e. 21st April Based on the irap methodology, a star-rating map will be delivered defining the highest risk accident section. Prioritizing accident spots by potential accident reduction and cost-effectiveness and developing a nation-wide road safety program including the identification of black spots and improvement are the main outcomes of the project. There are certain steps undertaken for introducing Technical Specifications for Interoperability in the legal system. Within a loan for construction of the rail corridor VIII, the Ministry of Transport and Communications is assigned a grant fund for selection of consultants who will have to do revision of existing legislation in the segment of the railway system interoperability and to develop or amend existing by-laws to comply with the technical specifications for interoperability. Regarding the road asset management system (RAMS), the hardware for RAMS is procured, and consultancy services are provided to the Public Enterprise State Roads (PESR) to carry out preparatory activities for RAMS. The second stage of the tendering process for procurement the RAMS software, road measurements and consultancy services is finished. The contract was signed on and the time period shall be 12 (twelve) months for development and implementation and additional 24 months for maintenance and user support. At the beginning of July activities will start. An establishment of new RAMS unit within PESR is foreseen in the new systematization act of the working posts. 18

19 Upon approval of the Needs Assessment Report and Conceptual designs by the relevant Authorities from the former Yugoslav Republic of Macedonia and Republic of Serbia, in February 2017, the second phase of the assignment of the IPF Consultant for design of the facilities at the joint border station in Tabanovce has started. In May 2017, the power of attorney was issued by the Ministry of Transport and Communications to the company that is engaged by the Consultant for preparation of the urban plans. Additional dislocation of some interfering facilities is needed before the construction works can start. The Agreement between Kosovo and the former Yugoslav Republic of Macedonia on border dispatching for rail transport was signed in 2011, stipulating Hani i Elezit as a joint border railway station. An Implementing agreement on interconnection of networks of Macedonian railways and Kosovo railways is signed in 2016 between the IM and the RU from both Parties. However, despite the agreement from the TFWG meeting held in April 2017, and the exchange of contacts between the counterparts of the Border Police and Customs from Kosovo and the former Yugoslav Republic of Macedonia, there is no evidence that further negotiations on the protocols deriving from the Rail BCP agreement have taken place. Macedonian authorities have taken the initiative to negotiate an Agreement on Border Dispatching for Rail Transport with Greece for the border crossing at Gevgelija-Idomeni. Recommendations: Further efforts are needed to transpose the road ITS directive. In September 2014 the Law of Railway system was amended to allow private legal entities to operate on the Macedonian railway network for transportation of goods for their own needs. Macedonian authorities should continue with amendments to allow market opening for domestic carriers. Macedonian and Kosovo authorities should share the templates of protocols and start with concrete discussion on the protocols deriving from the Rail BCP agreement as well as their implementation. Macedonian authorities should use all existing opportunities, including the TFWG and RWWG framework and meetings to discuss all aspects of the Rail BCP agreement with Greece. EC should continuously support and facilitate the process of negotiations for the Rail BCP agreement by instigating official correspondence with the Greek authorities. The draft text has been sent to the Greek side, and furthermore, based on the conclusions from the TFWG meeting held in April 2017, SEETO Secretariat has sent an official letter to the Greek Ministry of Transport enclosing the drafted Agreement; however, no reply has been received yet. MoTC prepared the tender documentation and conducted public procurement procedure for 19

20 Montenegro preparation of the project documentation on a level of detailed design (DD) for the Intelligent Transport System-ITS, which will be financed from the State budget. The tender was launched in July The contract with the economic operator was signed in November The kick-off meeting with the economic operator was held on and the activities foreseen in the ToR are ongoing. It is expected that the DD will be prepared in the Q Overall progress achieved by Montenegro until the Trieste Summit is shown in the following diagram: inspection (RSI) on the road section Herceg Novi - Kotor, SEETO Route 1 Assessment was performed by the members of Ministry of Interior and Ministry of Transport and Maritime Affairs and the data base for road crash data is planned to be developed. Drafting of the new Law on Roads started in the first quarter of 2017 aiming to transpose the Directive 2010/40/EU on the framework for the deployment of Intelligent Transport Systems in the field of road transport and for interfaces with other modes of transport Recommendations: Montenegro and Albania are encouraged to conduct the final training and finalize the Modus Operandi for the functioning of the joint BCP in Tuzi in order to start with joint operation as early as possible. Main achievements: Montenegro is currently in process of gathering information for defining the Roadmap for the implementation of one stop shop for freight vehicles on the Murriqan/Sukobin road BCP, which shall be subject to interministerial discussions and considerations In order to implement the pilot RSIs on high accident sections, the Minister of Transport and Maritime Affairs has issued the Decision on appointment of the Commission for the implementation of road safety Consultation process between the Ministry of Transport and Maritime Affairs, the Prime Minister and Ministry of Finance is encouraged in order to make progress with the introduction of multiannual contracts in the railway sector. Further efforts are needed to transpose the road ITS directive as well as to adopt the EU technical specifications for ERTMS (TSI CCS -control, command and signalling) The first joint training was held on 26 May 2017, in the joint border railway station of Tuzi, (Montenegro), during which the discussions on Modus Operandi were held. Correspondence and discussions have continued after 20

21 Serbia the training, aiming to refine the Modus Operandi and remove any shortcomings. The Modus Operandi is expected to be signed by the beginning of July, when the final training is scheduled to be held. Overall progress achieved by Serbia until the Trieste Summit is shown in the following diagram: Main achievements: On 25th of March 2017, the first private railway operator in Serbia concluded the Contract with the Infrastructure Manager (IM) for the use of the railway infrastructure The Law on Amendments to the Law on Road Traffic Safety was drafted and it contains provision for adoption of the RSI guidelines as a part of a rulebook. The Public Enterprise Roads of Serbia (PERS) is working in the ranking of road sections for RSI that will be based on the data available on traffic accidents. Three-year RSI plan for Core and Comprehensive network was completed by Public Enterprise Roads of Serbia within an on-going Twinning project. A special Road Sector Strategy up to 2025 shall define strategic framework for ITS development in road sector in Serbia. It is planned that this Strategy will be adopted in 2017 The National Assembly of the Republic of Serbia has adopted legal Decision on National Program of Public Railway Infrastructure for period which defines that ERTMS application on Corridor X. Draft of the new Law on roads contains provisions for priority areas and priority actions defined in ITS Directive 2010/40/EU The negotiations between Serbia and Bulgaria on the Rail BCP agreement are ongoing. The Draft Agreement on determining border procedure for railway border crossing Dimitrovgrad Dragoman was prepared by Serbia and one bilateral meeting was held on Recommendations: Serbian authorities should use all existing opportunities, including the TFWG framework and meetings to discuss all aspects of the Rail BCP agreement with Bulgaria. EC should continuously support and facilitate the process of negotiations for the Rail BCP agreement by instigating official correspondence with the Bulgarian authorities, while Serbia should prove that all bilateral mechanisms have been exhausted. Network statement for freight terminals should be updated and aligned with relevant EU rules. Further efforts are needed to transpose the road ITS directive. 21

22 22nd of March 2017 in Dimitrovgrad, Serbia. The opinions on the draft were exchanged between both sides in April and May.The second bilateral meeting is not confirmed, as the Bulgarian side requested additional time for internal consultations At the invitation of Infrastructure Railways of Serbian JSC to all regional IMs meeting was took place on 24th of April 2017, on which the 5-year Maintenance Plan was presented. 22

23 4. Recommendations 1. The steady progress in implementation of the connectivity reform measures in the period July June 2017, and the mobilization of the EC TA (Connecta) in this period, coupled with the fact that the national structure is already in place, should be used as a ground for continuation of the efforts and for speeding up the reform process in the upcoming period. 2. SEETO needs to steer the three agreed projects under Connecta for road safety, ITS and Maintenance in a fashion that the regional benefits are widely transferred in the Regional Participants and that any likely gaps and needs on national level are further on addressed by Connecta, too. In addition, SEETO will complete the ToRs for the remaining projects on road BCP facilitation and transport network resilience. 3. SEETO working groups (Transport Facilitation, Railway and Road safety) should be exploited even more as a platform for real cross-sectoral and cross-border/regional cooperation, aiming at concluding the bilateral measures and exchanging best practices for the national ones. The participation from all respected authorities should be ensured and topics which can also trigger higher involvement from the private sector. 4. The European Commission should undertake further efforts to ensure the active collaboration from the EU Member States which are neighbouring the region and where a slow responsiveness is reported. The positive experience from the TFWG could be further promoted as a tool, as well as the Core Corridors forums, where Western Balkans partners are invited, too. 5. The conclusions from the Trieste summit will be immediately reflected in the CRMMP if needed and an update of the CRMMP regarding new 2018 milestones could be foreseen after the Summit. SEETO shall continue effectively to monitor the implementation of the connectivity reforms in terms of their progress, but also in terms of their effectiveness and impact (for which, given their nature, it can be measured only on long run). 6. It is important that SEETO, or its successor deriving from the Transport Community Treaty, continues to lead the transport connectivity agenda under the Western Balkans Six process. It is beneficial for the continuity and for the leverage of the entire process, but also because the connectivity reform measures are at the heart of the Common transport policy to which the Western Balkans wish to adhere to, and they are crucial for the regional economic growth. 23