EU Funds Week
Presenters
Richard Harding
Over 24 years in economic development and EU Structural Funds
o 8 years in EC - DG REGIO – involvement in over 40 OPs with territorial focus
o Worked in Croatia since 2008 – UK Adviser EU Cohesion Policy (2011-2013)
Chris Kirby
Over 25 experience in coordination and implementing the EU
Structural Funds in the UK
o Some 15 years of experience in providing policy to accession and
candidate countries.
Ivana Kruzelova
Implementation of EU Structural and Cohesion Funds in Czech Republic
o Over 7 years at the Ministry of Regional Development
o Since 2010 policy advisor on SCFs and State Aid attached to the UK Ministry BIS
EU Funds Week
EU support for Transport in the context of Sustainable Urban Development
Agenda
1.
UK Examples of ERDF-supported urban rapid transit systems
2.
Key state aid issues for infrastructure investment in 2014-2020
3.
Recent trends and further UK project examples – low carbon approach
EU Funds Week
EU support for Transport in the context of Sustainable Urban Development
Examples from the UK
Manchester Metrolink
Manchester Metrolink
Surface light rail scheme for Greater
Manchester in the North of England
• Linked Manchester city centre to Bury (North)
and Altrincham (South)
• Opened 1992
• Took over suburban rail
lines
• Spur to Manchester
Piccadilly mainline rail
station
Manchester Metrolink
Phase 1
Phase 1 built under a ‘Design Build Operate and Maintain’ (DBOM) contract
Private consortium (GEC, Mowlem and AMEC)
15 year contract to operate later awarded to Greater Manchester Metro Ltd. (GMML)
Total Cost € 160m
• System had to cover operating costs – no operating subsidy
• Extensions to Salford Quays and Eccles 1999-2000
• € 55m National Government
• € 90m Local Authority
• € 15m ERDF
http://www.metrolink.uk
• Total length 39.2km – Small compared with the total road length of 8,413 km (DETR, 2001)
Look familiar..?
Not so familiar...
Manchester Metrolink
Effects on local car traffic
• Metrolink has taken 2.5 million car trips a year off the roads
Scheurer et al (2001)
o equivalent to a 10% reduction in car traffic on the Metrolink corridor
• Metrolink may have affected the pattern of car purchases GMPTE (1995)
o number of cars per person dropped by 3% in the Metrolink corridor compared with a rise of 5%
in the county as a whole
Photo - EIB
• Over 100% increase in off-peak rail-based travel demands in corridors served
Manchester Metrolink
East Manchester regeneration context
Photo: www.skycrapercity.com
Photo: David Dixon- www.geograph.org.uk
• Area of acute social and urban deprivation
Photo: LS Wilson - www.geograph.org.uk
o within the 5% most deprived in England and Wales
o national priority in the Government's Sustainable Communities Plan
• Regeneration Framework is comprehensive in nature
o € 2,4bn (€ 900m public, € 1.5bn private)
o links physical renewal with improvements in social conditions
o better economic prospects for residents – including access to job
opportunities
• Metrolink a significant factor in
attracting investors into the area
‘Metrolink influences over € 900m of
investment on projects currently in
development’
Memorandum by New East Manchester (LR 90) - 2005 – www.parliament.uk
Manchester Metrolink
Future expansion plans
By 2016, Manchester Metrolink Phase 3 to bring…
• Total of 97km, with 99 stops and fleet of 94 trams
• Second, additional line across Manchester city centre
• Extension to Manchester Airport
EIB loan of nearly €600m (over 30 years)
‘EIB support will lower the overall cost of the project through
cheaper financing costs, fixed interest rates and
diversification of finance’ European Investment Bank 2013
EU Funds Week
EU support for Transport in the context of Sustainable Urban Development
Examples from the UK
Tyne and Wear Metro
Tyne and Wear Metro
2nd largest of the three UK metro systems
…after the London Underground
Network - 74.7 km
Opened in stages during 1980-2002
ERDF funding
€ 10m for first extensions 1981-1983
€ 3m for extension to Newcastle Airport - 1991
€ 17m for extension to Sunderland – 2001
€ 0.6m for new station at Simonside - 2008
€ 30.6m total
http://www.nexus.org.uk
EU grant rate typically 20% of total eligible costs
Tyne and Wear Metro
Extension to Newcastle International Airport
Crucial extension linking urban rapid transit system to
air and mainline rail transport networks
Integrated with Airport development programme
under regional strategy
a single journey (as at March 2012).
Journey from Newcastle Airport to the heart of the city
around 25 minutes
Airport Metro station is linked to the terminal building by
a covered walkway
Tyne and Wear Metro
Links for new business development, education and
deprived communities
Many areas in Metro’s route subject to Community
Economic Development (CLLD-type) interventions
All Tyne and Wear’s universities
linked to the Metro
Improved access to jobs
in low carbon economy
e.g. at Riverside
Enterprise Park offshore wind
technology
Tyne and Wear Metro
Infrastructure issues
Construction of city centre underground lines and stations
• major upheaval lasting several years
New bridges including River Tyne crossing
• also sharing of existing infrastructure with suburban lines
With Sunderland extension Metro became first UK system
to implement a form of the Karlsruhe ModeI
• Using track shared with mainline trains
Tyne and Wear Metro
Ownership and operation
• Metro is publicly owned by Nexus - formerly
Tyne and Wear PTE
• Financed via central Government, local tax
contributions and fare revenues
• Central Government support covers operating
subsidy and modernisation investment
• Operations and train maintenance contracted
out in 2010 - to DB Regio
• One of first initiatives involved deep-cleaning and
refurbishment of stations and trains
UK urban rapid transit system development
Wider analysis
UK urban rapid transit system development
Wider analysis
• Main impact is felt directly in the areas served by the systems
Number of passenger-km in Greater Manchester by car,
light rail, bus and train, 1998
• Overall effects on
traffic are small
• Main impact
Passenger-km
(millions)is felt directly
% in the areas served by the systems
• Climate change
Car
13,530
91
mitigation – negligible
Metrolink
117
1
Bus
1,041
7
• Need to maximise
Rail
197
1
urban development
Total
14,885
100
Source: DETR (2001a,b) - financial year 1998/9
value of transport
projects
EU Funds Week
EU support for Transport in the context of Sustainable Urban Development
Overview on state aid 2014-2020
1. Infrastructure and state aid
2. Leipzig-Halle Judgement
3. Recommended steps for ERDF projects
1. Infrastructure and state aid
Projects implemented through Operational Programmes have to be
compliant with State aid rules
It is the responsibility of the Managing Authority of that particular
Opertional Programme
Type of infrastructure financed
• Roads, motorways
• Broadband
• Buildings for social services
• Hospitals
• Airports and ports
• Railway
• Research infrastructure
• Sport stadiums, skilifts
• Multifunction and business centres
• Playgrounds etc.
State aid test for infrastructure
1. Intervention by the State or
through State resources
2. Intervention gives recipient an
advantage on a selective basis
3. Competition has been or may be
distorted
4. The intervention is likely to affect
trade between EU MS
Common (not quite right) approach by MS
• Financing of infrastructure is not
subject to state aid rules as the
construction and operation of
infrastructure constitutes a
public interest task
Infrastructure and state aid
JUDGEMENT of the Court of Justice Leipzig Halle
ANY TYPE OF INFRASTRUCTURE that is later
commercially exploited is State aid relevant
(activity does not need to be profitable)
2. Leipzig Halle airport case
The construction of airport runway financed from public money.
Leipzig Halle Judgement
• JUDGEMENT of the General Court T -455/08 and
T-443/08
• JUDGMENT of the Court of Justice-288/11 P Mitteldeutsche Flughafen a Flughafen Leipzig-Halle
v. European Commission
• Six grounds of appeal
Content of the Leipzig Halle Judgement
• The operation of airport
infrastructure constitutes an
economic activity = Case law
2000 Aéroport de Paris
• Leipzig Halle rulling added a
further link between the
exploitation of infrastructure
as an economic activity and
the construction for its later
exploitation
Leipzig Halle and the private sector
Leipzig Halle airport aimed to
become DHL ‘s European hub.
DHL – private company
The airport in competition with
other airport in the area
Construction of the runway was a
condition to set the hub.
3. Recommended steps for ERDF projects
Analyse case by case
Consult State aid Authority (AZTN)
Consult the information by EC on public remit activities (security,
safety, airtrafic control etc.)
If State aid relevant consult an application of relevant legal tool
(GBER, SGEI, Broadband and Transport Guidelines, Notifications,
Notifications for legal certainty)
Analyse, consult and apply rules before you start the
implementation
Specific rolling stock state aid guidance
1. The rolling stock concerned must be
exclusively assigned to urban, suburban or
regional passenger transport services
2. The rolling stock must remain exclusively
assigned for at least 10 years to the specific
service or region for which it received aid
3. The replacement of rolling stock must meet the latest
interoperability, safety and environmental standards applicable to
the network concerned
4. The Member State must prove that the project contributes to a
coherent regional development strategy
EU Funds Week
EU support for Transport in the context of Sustainable Urban Development
Examples from the UK
East London Gondolas
East London Gondola
Cable car system opened in 2012
– 1.1km in length
• New way of crossing the Thames
between North Greenwich and the
Royal Victoria Docks
• Capable of carrying up to 2,500
passengers per hour across the river
East London Gondola
ERDF support
ERDF contributed to the costs of all necessary infrastructure including:
• two stations, support towers, gondolas
Total Cost € 52m
• € 41m Emirates Airlines
• € 1m Transport for London (TfL)
• € 10m ERDF
http://www.tfl.gov.uk/modalpage
s/23863.aspxw
East London Gondola
Key features of the system
• Good links to other networks
• South station links to London Underground
• North Station located about 200 m from the Docklands Light Railway Station
• The cable car system has 36 gondolas
• 34 can be in operation at any one time
• Each gondola can carry ten passengers
• folding seats allow for wheelchair access and space for bicycles
East London Gondola
Increasing attractiveness of the area to boost regeneration
• Journey time 5-6 minutes
• Projected increase in the number of
visitors from outside the area
• Users have views of London!
Located near inner-city priority action zones
1.97 hectares of brownfield land and a 50 m
long watercourse reclaimed and redeveloped
EU Funds Week
EU support for Transport in the context of Sustainable Urban Development
Looking to the future…
Examples from the UK
Electric Vehicle (EV) infrastructure
Studies and pilot project
Accelerating the introduction of Electric Vehicle Rapid Charging
Studying adoption and use along PP axes 13 and 26 in the UK and Ireland
Assessing the creation, use and
business feasibility of a
- transnational
- multi-standard
- interoperable
EV rapid charging infrastructure
Pilot action:
• real-world trial of 74 rapid charging
stations in the UK and Ireland
Accelerating the introduction of Electric Vehicle Rapid Charging
Studying adoption and use along PP axes 13 and 26 in the UK and Ireland
• TEN-T Priority Projects 13 and 26 – over 1,100 km
• Cross-border interoperability solutions, meeting both
customers' needs and operators' requirements
EU funding – DG Move
€ 3.7m for 2013-2015 (total cost €7.4m)
Beneficiaries & Implementing bodies:
Nissan Motor (GB) Ltd
BMW AG
Renault s.a.s.
Volkswagen AG
Electricity Supply Board (Ireland)
http://inea.ec.europa.eu/download/project_fiches/
multi_country/fichenew_2012eu13066s_final.pdf
EU Funds Week
EU support for Transport in the context of Sustainable Urban Development
Key references
•
Manchester Metrolink regeneration effects
Memorandum by New East Manchester (LR 90) - 2005 – www.parliament.uk
•
Tyne and Wear Metro – UK Light Rapid Transit Association
www.lrta.org/tynewear.html
•
Evidence of performance - Manchester Metrolink and other systems
www.elseviersocialsciences.com/transport/konsult/private/level2/instruments/instrument002/l2_002c.htm