PLANNING FOR A SUSTAINABLE EUROPE? - TU Berlin

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countries will increase substantially, likely accounting for at as much as 2 billion Euro in
infrastructure development. 14
Looking at Phare’s past record in transport sector funding, we can see that Phare
grants were also biased in favor of road projects. Figure 8.2 reveals that 53% percent of a
total 884.2 million ECU disbursed were allocated to road, while only 32% went to rail.
This modal bias is still odds with the mode-specific assessed needs of the recipient
countries, and it remains to be seen if ISPA will finally reverse this trend.
Figure 8.1 PHARE Funds for Hungary and Poland per Sector 1990-97 (in MECU)
800
700
Infrastructure (energy,
transport,
telecommunications)
13%
600
500
400
2%
Other sectors
300
200
100
34% 39% 26% 33%
45% 52%
58%
47%
0
1990-
1993
1994 1995 1996 1997 1990-
Hungary
1993
1994 1995 1996 1997
Poland
Source: Own compilation using data from the EU Phare Program
14 The budget for Sapard, the pre-accession instrument for agricultural and rural development aid, is
significantly smaller than ISPA, accounting for 520 million a year. The 2 billion per year in infrastructure
development consist of the about 1 billion of Phare’s annual total of 1.5 billion which will go for
infrastructure investment, and ISPA, of which 500 million will go directly to transport infrastructure.