Activities and perspectives of Corridor VIII

Activities and perspectives of Corridor VIII

The 3 Steering Committee, held in Tirana on 27th May 2005 approved Secretariat s PLAN OF STUDIES (2005-2006) PRIORITY SECTORS FOR STUDIES AND PROJECTS Railroads: Cross-border areas, missing links, rehabilitation and upgrading of existing alignment Roads: Cross-border areas, bottlenecks, maintenance and upgrading of existing alignment Ports, Intermodality and Logistics: Ports infrastructures, Intermodality and Logistic organization along the Corridor

1st Study (Co-financed by CEI) Rail Working Group CORRIDOR VIII PRE-FEASIBILITY STUDY ON THE DEVELOPMENT OF THE RAILWAY AXIS

IDENTIFICATION OF THE DURRES-SKOPJE-SOFIA (DSS) RAIL PROJECT

IDENTIFICATION OF DSS RAIL PROJECT Total investment: about 1.200 million total investment and about 15 years to full completion; It should be deployed in phases. Three phases are proposed. Basic hypotheses: 1) Rail management of the Durres-Skopje-Sofia section could break even with the hypothesis of transporting 1.5-2 million tons of freight for an average distance of 500 km Passenger traffic does not add that much, but the line will be also used for this purpose 2) Under these hypotheses, the preliminary financial evaluations show an encouraging scenario 3) We must also consider that this DSS Rail Project will have a huge impact on the socio-economic integration in the South Balkans, as well as important economic impacts on national economies; economic return on investment should be somewhat two times higher than financial return.

1ST PHASE: Starting the construction of the missing links and opening rail communication between Southern Adriatic and Balkan Region. Construction of the missing link Lin-Struga (Albanian-fYR Macedonia cross-border), Completing the construction of the section Beliakovci-Kriva Palanka (Macedonia- Bulgaria cross-border) Rehabilitating Albanian section Durres-Lin to minimum safety standard, Construction of two intermodal terminals in Struga (Macedonia) and in Radomir or Gujeshevo (Bulgaria);

2ND PHASE: completing the construction of Rail Corridor VIII Missing Links. Completion of the 2 missing links: - Struga-Kičevo (FYR Macedonia) - Kriva Palanka-Gujeshevo (FYR Macedonia-Bulgaria cross-border). Construction of an Intermodal Terminal in Skopje

3RD PHASE: achieving an efficient rail Corridor VIII pursuant to European standard parameters. Investing on existing sections requiring upgrading.

Corridor VIII Secretariat

DSS RAIL PROJECT: Estimated Investments by Country

RECOMMENDATIONS 1) Member Countries approve the proposed Coordinated Rail Project Durres-Skopje-Sofia (DSS Rail Project) and support the initiative at a political level. In particular: a) Governments will officially support the DSS Rail project; b) The Project will be jointly presented to EC and IFIs, so as to finance Feasibility, Design and Implementation. 2) Member Countries appoint a permanent Coordination Technical Committee, composed by technical representatives of the interested Countries, in order to assure the promotion, coordination and implementation of DSS Rail Project. 3) Member Countries jointly take initiative to promote a full feasibility study on the DSS Rail Project, to be developed according to international standards as a first step towards its implementation. 4) The implementation of this Project be approached by phases, as indicated in this Study. In their national planning activities and allocation of financial resources related to the specific content of the Project, Member Countries will take into account the priorities jointly identified in the DSS Rail Project. 5) A short term program (Crash Program) be jointly defined among the member Countries in order to start the implementation between the approval and the operational beginning of the DSS Rail Project. 6) Governments, European Commission and IFIs will assign priority to single projects that will be submitted for financing in the frame of the DSS Rail Project, when defining cooperation and financing programs with the concerned Countries. 7) Specific technical-political Protocols be signed by concerned Countries and parties, confirming the common commitment to implement the DSS Rail Project.

Implementation of priority projects 2 Possible options (to be evaluated): 1 st Option: Starting the implementation of the initiatives envisaged in the 1 st Phase of the DSS Rail Project (total estimated investment cost: 234 M + planning and tendering costs) 1) Starting Rail connection between South Adriatic Ports and fyr Macedonia (135 M ) Rehabilitating Albanian section Durres-Lin to minimum safety standard Construction of missing link Lin-Struga (Albania-fYR Macedonia cross-border) Construction of an intermodal terminal in Struga (fyr Macedonia) 2) Starting Rail connection between fyr Macedonia and Bulgaria (99 M ) Completing the construction of the section Beliakovci-Kriva Palanka (Km. 66) (fyr Macedonia - Bulgaria cross-border) Construction of an intermodal terminal in Radomir or Gujeshevo (Bulgaria);

Implementation of priority projects 2 Possible options (to be evaluated): 2nd Option: Launching two comprehensive cross-border projects, as envisaged in the 1st and 2ndPhases of the DSS Rail Project: (total investment cost: 479 M + planning and tendering costs) 1) Completing Rail connection between South Adriatic Ports and fyr Macedonia (265 M ) Rehabilitating Albanian section Durres-Lin to minimum safety standard Construction of missing link Lin-Struga (Albania-fYR Macedonia cross-border) Construction of an intermodal terminal in Struga (fyr Macedonia) Construction of the new section Struga-Kicevo (fyr Macedonia) 2) Completing Rail connection between fyr Macedonia and Bulgaria (214 M ) Completing the construction of the section Beliakovci-Kriva Palanka (Km. 66) Construction of the missing link Kriva Palanka (km.66) - Gujeshevo (fyr Macedonia - Bulgaria cross-border) Construction of an intermodal terminal in Radomir or Gujeshevo (Bulgaria);

Possible financing: DG Enlargement: IPA Current pre-accession support has been delivered through a number of different instruments, namely Phare, ISPA, SAPARD and the Turkey pre-accession instrument. EC funding for the Western Balkans has been delivered through the CARDS programme. IPA replaces all these instruments as it brings together for the first time, into a single framework, assistance to candidate countries and potential candidate countries. It is the new financial instrument for all pre-accession activities funded by the European Commission as of 1 January 2007. IPA five components: - transition assistance and institution building; - cross-border cooperation; - regional development; - human resources development; and - rural development. Pre-Accession assistance 2007-2009 under Multi-annual Institutional Financial Framework Pre-acc. Assistance envelopes, in Є Million 2007 2008 2009 Croatia 138.5 146.0 151.2 Former Yugoslav Rep. of Macedonia 58.5 70.2 81.8 Turkey 497.2 538.7 566.4 Albania 61.0 70.7 81.2 Bosnia and Herzegovina 62.1 74.8 89.1 Montenegro 31.4 32.6 33.3 Serbia 186.7 190.9 194.8 Kosovo 63.3 64.7 66.1

Possible financing: DG Regio European Territorial Cooperation 2007-2013 Transnational Cooperation Programme South East Europe (SEE) (preparation ongoing, operational: 2008) SEE 2007-2013 Operative Plan: Area of interest The Transnational Cooperation Programme South East Europe (SEE) is part of the new Objective European Territorial Cooperation1 legally based on Article 7 of the General Regulation (Reg. (EC) No 1083/2006, 11 July 2006). The Objective becomes now a target of its own on an equal footing with the other Objectives Convergence and Regional Competitiveness and Employment will substitute the Community Initiative INTERREG 2000-2006. The programme is also a component in the framework of Pre-Accession Assistance and European Neighbourhood Policy strengthening ties with partners on both sides of EU borders. Pan-European Corridors within eligible area: Corridor IV Corridor V Corridor VII Corridor VIII Corridor IX Corridor X Transnationat Axes within eligible ares: South Eastern Axis Motorways of the Sea

2nd Study (Co-financed by CEI): Motorways Working Group CORRIDOR VIII ROADS SYSTEM

PHASE 2 (n. 2 meetings, January - March 2008) with the objective of reaching a general agreement among participating countries on the definition of a completion strategy of the Road Corridor VIII and the identification of possible completion macro-phases (to be programmed on the basis of future specific detailed technical and economical analyses) A multinational Working Group on Corridor VIII road system was established under the general coordination of the Secretariat and with the Technical coordination of ANAS (Italian National Road Agency) The study is carried out in two phases: PHASE 1 (n. 3 meetings, completed March 2007), with the main objective to perform an up-to-date assessment of the road system in terms of: roads conditions and characteristics; implementation project already defined or undertaken by national road agencies; medium and long term future implementation project foreseen by national road agencies; existing national and international studies and analysis performed on the subject the identification of specific urgent issues along the alignment of Corridor VIII to define a number of short term priority projects finalised to quickly putting into operation the road system of the corridor relevant to infrastructural and logistic issues.

3rd STUDY ON CORRIDOR VIII PORTS AND LOGISTICS The Study will be finalized to improve intermodality and logistics between Corridor VIII ports and to speed up custom procedures and transit through ports border crossings. The Port Working Group (PWG) will be composed by a representative from each Ministry of Infrastructure and Transport of participating Countries and a representative from Port Authorities of Bari, Brindisi, Durres, Vlora, Varna, Burgas. The Study is co-financed by CEI. The Study will be started in January 2008. Secretariat is currently participating, on behalf of Italian Ministry of Infrastructure, in the Interreg MAP project, led by Bari Port Authority, including the Ports of Bari, Durres and Bar.

RELEVANCE OF THE STUDIES The results of these exercises appear to be particularly relevant because: 1. They have been conducted by Multinational Working Groups, composed of high level Representatives of Member Countries, guaranteeing at the same time internal technical consistency and consistency with the national transport Plans and Programs. The result has been a very fruitful multinational cooperation exercise. 2. For the first time a great quantity of information and projects from different Countries were put in a consistent frame focusing on Corridor VIII alignment, thus allowing to have a more comprehensive perspective within which the single national projects acquire a general consistent framework. 3. From these Studies, the case for Corridor VIII gains a new interest from the financial and economic point of view. Full development of Corridor VIII can contribute to pursue the general objectives of stabilization and integration of Southern Balkans, as an integral component of South Eastern European Transnational Axis.

RAPIDLY CHANGING REGIONAL PLANNING SCENARIOS 1 MAY 2004: EU 25 A NEW TRANSPORT POLICY TO EXTEND THE MAJOR TRANS- EUROPEAN TRANSPORT AXES TO THE NEIGHBOURING COUNTRIES AND REGIONS

Main regional planning agencies for the transport network in the Balkan Region ECMT-TINA Transport Infrastructure Needs Assessment (1999) ECMT-TIRS Transport Infrastructure Study in Balkans (2002) HLG-1 (Van Miert) Report On Trans-europeanTransport Network (2003) REBIS Regional Balkans Infrastructure Study (2003) TPPF Transport Project Preparation Facility in the Balkan Region (2004) TTFSE I Trade and Transport Facilitation in Southeast Europe (2000-05) TTFSE II Trade and Transport Facilitation in Southeast Europe (2005) HLG-2 (De Palacio) Networks for Peace and Development (2005) UNECE TER and TEM Master Plan (2006) SEETO South East Europe Core Regional Network Development Plan Five Year Multi-Annual Plan 2008 to 2012 (October 2007) TRANS-EUROPEAN NETWORKS : TOWARD AND INTEGRATED APPROACH Commission Staff Working Document: Communication from the Commission (March 2007)

November 2005: The new strategic scenario defined by the HLG (Loyola de Palacio) 5 Transnational Axes: Motorways of the Sea Northern Axis Central Axis South Eastern Axis South Western Axis

EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR ENERGY AND TRANSPORT DIRECTORATE B - Transeuropean Networks Energy & Transport 11 th meeting of Pan-European Transport Corridors and Areas Co-ordinators Group 24October 2007, Brussels Issues related to the extension of major axes of the TEN-T network to the neighbouring countries and future methods of coordination and integration of existing structures Working Groups - W1: "Differences of approach inside and outside the EU" (Mr W. Zarnoch ) - W2: " Optimum geographical coverage " (Mr H.Adelsberger ) - W3: " Promotion of non-infrastructure measures" (Mr J. Papajewski ) - W4: " Strengthening of cooperation and monitoring" (by Mr G.Patsiavos )

EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR ENERGY AND TRANSPORT DIRECTORATE B - Transeuropean Networks Energy & Transport 11 th meeting of the Pan-European Transport Corridors and Areas Co-ordinators Group 24October 2007, Brussels INTEGRATION OF PAN-EUROPEAN CORRIDORS INTO TRANS-NATIONAL AXES Since EU enlargement, Pan-European Corridors are at their greater parts, i.e. in EU member countries, covered by the TEN s. Nevertheless, they still play an important role as platforms for exchange of information, for common lobbying and as brand names for identification. A great part of the Pan-European Corridors have been defined priority TEN axes acc. to TEN Guidelines 884/2004. In the context with the new major Trans-National Axes they have important functions linking them with the TEN s and integrating also those EU member countries which are not directly affected by the Tran-National Axes. Example: South-Eastern Axis:the European section is composed from or linked with parts of Pan-European Corridors IV, V, VII, VIII, IX and X. It is therefore proposed to admit also relevant Corridor administrations to the steering committees of the Trans-National Axes. Source: Bundesministerium für Verkehr, Innovation und Technologie

PROPOSAL FOR SUBDIVISION OF AXES It is proposed to subdivide the axes (and steering committees) with more than 10 countries involved: according to geographical, cultural, economic and political differences in the area (=> different speeds of implementation), to achieve working groups at operable sizes. Example: South-Eastern Axis: 2 subgoups: - SE-European Section - Middle East Section Alternative: - Subdivision into 4 subgroups Source: Bundesministerium für Verkehr, Innovation und Technologie

SEETO Five Year Multi Annual Plan 2008-2012 October 2007 Albania, Bosnia and Herzegovina, Croatia, fyr Macedonia, Serbia, Montenegro, and the United Nations Mission in Kosovo

SEETO Multi Annual Plan 2008-2012 Priority Projects

SOUTH-EAST EUROPE TRANSPORT OBSERVATORY Third Annual Meeting of Ministers on the Development of the South East Europe Core Regional Transport Network 4 December 2007 - Tirana Resolution of the 2007 Meeting of Ministers Addendum on the Memorandum of Understanding concerning the SEE Railway Transport Area OBJECTIVES 1: Effective regulatory institutions for the rail sector 2: Separation, management independence, market orientation 3: Access to the market, interoperability and railway safety 4: Financial stability and transparency 5: Facilitate border crossing 6: Social dimension and social dialogue

Commission Staff Working Document: Communication from the Commission TRANS-EUROPEAN NETWORKS : TOWARD AND INTEGRATED APPROACH Brussels, 21.3.2007 Ten-T Priority Projects by 2020

January 1 2007: EU 27 Corridor VIII bridges 2 EU Countries, while enhancing the development of candidate and potential candidate Balkan Countries, at various stages in the process of EU enlargement

Corridor VIII Secretariat DEVELOPMENT POTENTIAL OF CORRIDOR VIII The integration of Corridor VIII with HLG South Eastern European Transnational axis, will make it part of the transnational trade traffic between Mediterranean, Adriatic and Black Sea transport Areas, Caucasic regions and Far East SOUTH EAST EUROPE TRANSNATIONAL AXIS SOUTH EAST EUROPE TRANSNATIONAL AXIS

November 2007: Agreement ENI-Gazprom for a New Gas Pipeline (Source: La Repubblica, 23 November 2007) December 3 rd, 2007 - Tirana: Meeting Prodi - Berisha Signature of a renewed trade agreement Italian investments in the energy sector: New Energy Plant in Vlore by Enel Corridor 8 has been confermed a vital axis for Albania and Italy as a gate to the Balcan Region.

Wed 17 January 2007 20:23 Sofia, Roma Tackle Corridor N. 8 Development Bulgaria in EU The heads of government of Bulgaria and Italy have agreed to speed up work on infrastructure projects to create a transport corridor crossing the Balkans to link Western Europe and the Middle East. During a daylong visit to the new EU member state, Italian Prime Minister Romano Prodi discussed bilateral ties and European policies with his Bulgarian counterpart Sergey Stanishev. Prodi advocated for further development of transport Corridor No 8, which linking the Adriatic and the Black Sea will "create a really strong economic zone" in southern Europe. The plan, including also Albania and Macedonia, envisages the construction of missing links in a 1,300- kilometer route of highways, railways and port infrastructure linking Italy's Adriatic port of Bari with the Bulgarian Black Sea port of Burgas. The corridor is meant to provide a faster connection between Western Europe and the countries of the Middle East and the Caucasus region. Corridor 8 is one of ten 'Trans-European Corridors' which plan to make the exchange of goods, people, oil and other energy supplies easier between the EU, the Balkan states (which look onto the Black and Caspian seas) and the states of central Asia. The European Union, whose commission president Romano Prodi was previously, believes the Corridor 8 project will help to stabilise the troubled Balkans region.