Progress Report 4

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Support to the Integration of Ukraine in the Trans-European Transport Network TEN-T 4th Progress Report 2. Summary of Project Progress, Period 4 This is the forth progress report (Progress 4), covering the period 1 st February 2010 to 31 st July 2010 of the project “Support to the Integration of Ukraine in the Trans-European Transport Network TEN-T”. The project held a number of meetings throughout the period with the EU Delegation, Ministry of Transport and Communications (MoTC), executive bodies responsible for each mode of transport, and international financing institutions (IFIs). There remain some 18 EU funded projects, including TRACECA, currently operating in Ukraine and in addition there are many other transport related projects funded by World Bank, USAID and others as well as support on transport related issues through a Working Group (of which we are a member) established by an NGO “Foundation for Effective Governance” with the consultancy company McKinsey. Unfortunately the projects are not coordinated in any way but where possible the TEN-T meets with their representatives in Ukraine to limit any duplication of effort or conflict of advice. The TEN-T project has no authority to coordinate or advise any other project, nor would it expect to do so. Within the evolved strategy plan, Sector Budget Support (SBS) meetings were held by the project team with representatives of each individual transport subsector as well as MoTC, Roads Research Institute and EU Delegation concerning the establishment of the Sector Budget Support (SBS) indicators. The final meeting was held in early July 2010, where the agreement was reached. There were subsector meetings held with the EU Delegation on aviation following their request to produce an aviation twinning fiche within the resources of the project, by September 2010. The appointment of the New Minister of Transport in March 2010 and his later appointments of new Section Heads and senior managers for Ukravtodor, MoTC rail, Maritime, HR and Aviation etc. caused delays to the project, while the new appointees established themselves. Some introductions were facilitated through the MoTC Department of Transport and Communication System Development and Coordination (DTCSDC) for which we were very grateful, but the dates for subsequent follow up meetings have yet to be confirmed in some cases. 2.1 Steering Committee and Working Groups The third meeting of the Steering Committee was delayed from 17th December 2009 to 25th February 2010 to give the members time to review the summary of the Interim Reports issued with Progress Report 3 in January 2010. These were all accepted and the report approved. At the same time a complete set of the full Interim Reports was given to each member on electronic memory sticks but to date there has been no feedback from any one of the reports, submitted in English and Ukrainian. The fourth Steering Committee meeting was held on 27 July 2010 which reviewed the progress of the project and agreed on the activities of the following reporting period. During this Steering Committee meeting the possible extension of the project contract for one more year was discussed. The addendum to the contract shall be initiated after the signature of the addendum to the financing agreement on its extension by the Ministry of Economy. . It was agreed that most of the activities of the project shall be finalised by the end of 2010, while during the extension period (until the end of 2011) the focus will be on Work Packages 1, 8 and 9 as given in the original ToR with minor adjustments. The more detailed discussion of the activities during the extension period shall continue among the Consultant, Beneficiary and EU Delegation the following months. With the changes in personnel resulting from the reorganisations in the MoTC and transport subsectors some of the members of the Working Groups established by the project, including some head of WGs, are no longer in their positions. Notwithstanding, during the period 12 WG meetings have been held in the aviation (8), road (3), and rail (1). In addition a large number of other, less formal, meetings have been held to both bring the new personnel on board and discuss specific issues (e.g. international drivers’ visas, traffic forecasting, road safety and investment projects) were discussed in smaller groups. A list of all the meetings held in the period is attached as Appendix F. 2
2.2 Work Packages Support to the Integration of Ukraine in the Trans-European Transport Network TEN-T 4th Progress Report All 9 Work Packages have operated during Period 4 with 18 Working Group meetings having been held in the aviation (8), road (3), and rail (1). Due to changes in personnel in the transport sector, some of these meetings have involved operational staff instead of decision makers. The weekly meetings planned between the MoTC and the project have been held on a fairly regular basis. As a part of work package on Policy, regulatory, institutional and infrastructure financing issues) support has continued to be provided in Period 4 to help the MoTC implement agreements with each transport subsector representatives on the SBS indicators for the next four years that will meet the objectives set by the EU. The SBS implementation is contingent on the acceptance by the Cabinet of Ministers (CMU) of a Transport Strategy document, prepared by the MoTC, with assistance from the TEN-T project and the Twinning Project, “Support to Transport Policy Design and Implementation in Ukraine”. In July 2010, the MoTC circulated their final draft Strategy document to other ministries and decision makers for their comments before submission to the Cabinet of Ministers. This will need to be agreed by end 2010 at the latest. Road / Rail Infrastructure development - Data from Ukravtodor continues to be collected and discussions with the working group members has resulted in a better understanding of the main issues. A working Group was held on 2 June 2010 as well a two training events during the reporting period. As part of work package on Sector Strategy and Action Plan, the road network map, linking major roads in Ukraine to the European TEN-T network, as proposed at the 2 nd SC meeting (and in effect extending the TEN-T network “eastwards”) as required by the ToR, was approved at the 3 rd SC meeting by Ukravtodor as well as Ukrzaliznytsia (UZ) on the railway links showing the major routes in Ukraine that will link to the European TEN-T network. These maps have been widely circulated but with the advent of the new Minister may require to be modified. The maps have been used to define the framework for passenger and freight volume analysis and traffic forecasting based at present on the assumption of no new road or rail links being constructed. Aviation - During the reporting period the emphasis was laid upon the training of SAA staff and the aviation industry. The objective is to aim for sustainability of the training programs in Ukraine on the longer term by creating national training programs by introducing “train the trainer’s concept” This initiative is carried out in coordination with the National Aviation University and the State Aviation Authority (SAA). Regarding the institutional aspects of aviation safety the priorities were initially focused on the review and update of safety regulations, certification procedures and safety oversight of Aerodromes. The next period to that respect will be a shift towards the Air Navigation Service provision and flight operations. Railways - The railway team attended a number of meetings during Period 3, with the MoTC and Ukrzaliznytsia (UZ) to offer input to the discussions on the proposed railway restructuring, rail regulation, railway investment and the opening of the rail network to private operators, in accordance with the EU recommendations. This led to no further meaningful discussions until the new Head of Section, MoTC rail was appointed during Period 4 (in June 2010). Considerable progress was made at a meeting on 22 June 2010 and a schedule of meetings is being arranged that will include UZ personnel. We have been asked to advise MoTC rail as their main source of technical expertise and become a member of their new working group on railway reform. The first meeting of the group is planned for September 2010 in which the role of the group will be defined. We anticipate considerable progress will be made in Period 5. The work of the railway team during Period 4 concentrated on elaborating the principles of reorganisation by producing working notes and offering practical assistance to UZ and MoTC as they require. 3
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Progress Report 4

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