The main problem with the elements of the Trans-European Transport Network (TEN-T) in Hungary is that, although the vast majority of the infrastructure has been established, the quality is bad or the capacity falls short of demand. Thus, according to the Hungarian position, making substantial improvements to the sections available is at least as important in solving bottlenecks as establishing the missing connections, Minister of State for Infrastructure Pál Völner emphasised at the TEN-T Days 2013 conference in Tallinn on 17 October 2013.

At the annual conference held in the Estonian capital this year, top officials of the transport ministries of Member States, members of the relevant committees of the European Parliament and representatives of the European Commission discuss network financing issues. The number one issue at this year’s discussions was the finalisation of the regulatory framework to be approved by the end of this year.

At their February session, the European Council had established an overall budget of EUR 29.3bn, at 2011 prices, for the newly set up Connecting Europe Facility (CEF) for the budget period of 2014-2020. Within this, EUR 23.1 billion were earmarked for transport purposes, of which EUR 10 billion were to be transferred from the Cohesion Fund, separated for Member States eligible for Cohesion Fund money. The rest of the support can be used for energy and telecommunications development.

The sources transferred from the Cohesion Fund are to be available for application according to the national envelopes by the end of 2016. According to preliminary calculations, Hungary may have a share of EUR 953.9 million, at 2011 prices, from this sum (or of EUR 1075m at current prices). As of January 2017, national allocations will no longer be available; funds that have not been committed by then will be channelled back to the common CEF budget. From that time on, Cohesion Fund countries with better prepared projects will precede other countries in getting funding. Within this framework, funding is available under much more favourable conditions than the general funding intensity of 20-50 per cent: with a funding rate of 85 per cent by the EU. As regards the support targets, there is a gradual shift from public road development towards railways, intelligent transport and financing tools.

In working out the new regulations, the European Commission urges the intensive involvement of private funds and PPP’s. In his address, Pál Völner noted that, according to the Hungarian experience, PPP made fast developments possible in the short run but was not at all profitable in the long run. Availability fees to be paid for motorways built by PPP are considerable burden on the state budget for long decades. The Minister of State for Infrastructure therefore confirmed in Tallinn once more that Hungary did not plan to launch major projects financed by innovative financial tools through state participation.

(Ministry of National Development Communications Department)