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PLANNING FOR A SUSTAINABLE EUROPE? - TU Berlin

PLANNING FOR A SUSTAINABLE EUROPE? - TU Berlin

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319<br />

First, as far as funding for the TINA networks is concerned, one needs to keep in<br />

mind that although international finance has been available for many projects located in<br />

the key TINA corridors, the CEE countries themselves will still be left with vast majority<br />

of the overall investment burden. A few numbers suffice to illustrate this: according to<br />

the TINA Final Report, the total assessed infrastructure needs from 2000 to 2015 amount<br />

to € 36.42 billion in Poland and € 10.16 billion in Hungary, thus theoretically requiring<br />

average annual investments in the amount of € 2.28 billion in Poland and € 635.38<br />

million in Hungary to bring transport infrastructures up to the desired level until 2015.<br />

Investments for the Helsinki corridors alone would require average annual investments in<br />

the amount of € 607 million rail sector and € 784 million road sector investment in<br />

Poland, as well as € 182 million rail sector and € 240 million road sector investments in<br />

Hungary. By contrast, past funding records show that between 1990 and 2000, Poland<br />

was only able to attract an average amount of € 150 to 200 million a year for TINA type<br />

infrastructure investments from international institutions, and Hungary only attracted<br />

about an average € 80-100 million a year. 9<br />

So in the end international funding only ever<br />

covers a fraction of CEEC infrastructure needs. More importantly, IFI assistance comes<br />

largely in the form of loans that will have to be paid back by the governments.<br />

Second, the TINA estimations also show that the road sector should receive no<br />

more than 49%, i.e. less than half of all funds in Poland or Hungary, while the rail sector<br />

should receive at least 40% of all TINA-type infrastructure investments. Contrary to this,<br />

until 2000, the EIB, the EBRD and the World Bank allocated about 70% of their<br />

combined funds in the TINA networks to the road sector. There has thus been a strong<br />

bias towards road investments in past international lending (also see Figure A.1). Many<br />

9 These figures were calculated using data listed in the tables in Annex I and in the TINA Final Report.

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