The problem

Studies of European transport policy highlight the difficulty of mobilising capital investment as a key problem in financing transport infrastructure projects. Research is needed to identify the optimum charging and investment policies to attract the necessary funding. One promising avenue is the creation of a European transport infrastructure fund, financed by mark-ups on transport activities. Another option is to exploit mark-ups of user costs charged by the suppliers who make the initial investment. Scientific modelling and analysis is needed to find the best option or mixture of options.

Overview:

FUNDING will develop a scientifically sound approach to analysing options for the funding of large transport infrastructure investments in the EU.

The project will:

• Estimate the scale of the funding gap for investments in transport infrastructure, by mode of transport and by country, up to 2020
• Develop alternative scenarios for a European transport infrastructure fund and the use of mark-ups on transport costs to finance the fund
• Use modelling to test the effect of different infrastructure funding scenarios

Contribution to policy development:

• FUNDING will develop a tested methodology for charging and investment policies in the transport sector.
• It will carry out a trans-European overview of greater use for European policy-makers than existing national studies.
• It will highlight options to promote a better balance between competing policy demands of economic development, quality of transport services and environmental quality.

Project deliverables

• Report on the economics of European infrastructure funds – June 2006
• Scenarios for a European infrastructure fund and the use of mark-ups – June 2006
• Results of testing the impacts of alternative scenarios for a European infrastructure fund – April 2007
• Five case studies on the effects of infrastructure fund scenarios on existing Trans-European Transport Network projects – June 2007
• Conclusions, recommendations and final report – December 2007

Dissemination

• Website with information for target users, and email network to contact interested parties – from July 2005
• Dissemination workshop – October 2007
• Technical implementation plan – December 2007
• Publications in academic journals – as results become available
• Presentation of results at international conferences – as opportunities arise

Technical information

Project acronym: FUNDING
Project’s official full title: Funding Infrastructure: Guidelines for Europe
Research priority: The development of tools, indicators and operational parameters for assessing sustainable transport and energy systems performance (economic, environmental and social)
CORDIS ref: http://cordis.europa.eu/search/index.cfm?fuseaction=proj.simpledocumentlucene&HD_ID=7874300&CFID=539170&CFTOKEN=92095811
Specific webpage: http://www.econ.kuleuven.be/funding
Proposal/contract no: 513499
Start date: 1 July 2005
Kick off meeting: July 2005
Completion date: 31 December 2007
European Commission scientific officer: Frederik Rasmussen, Frederik.RASMUSSEN@ec.europa.eu

Coordinator:
Name: Katholieke Universiteit Leuven
Abbreviated name: KULeuven
Address: Naamsestraat 69, 3000 Leuven
Country: Belgium
Tel: +32 16 326801
Fax: +32 16 326796
Website: http://www.econ.kuleuven.be/ete

Partners

Name: Institute for Transport Studies, University of Leeds
Abbreviated name: UNIVLEEDS
Country: United Kingdom         

Name: Christian-Albrechts University of Kiel
Abbreviated name: CAU Kiel
Country: Germany

Name: Free University of Amsterdam
Abbreviated name: FUA
Country: Netherlands

Name: Workgroup for Infrastructure Policy, Berlin University of Technology
Abbreviated name: TUB
Country: Germany

Name: Hebrew University of Jerusalem
Abbreviated name: HUJI
Country: Israel

Name: Tampere University of Technology
Abbreviated name: TTY
Country: Finland

Name: Transport & Mobility Leuven
Abbreviated name: TML
Country: Belgium

Name: AdpC
Abbreviated name: AdpC
Country: Belgium

Name: Institute for Transport Planning and Traffic Engineering, University of Vienna
Abbreviated name: TU Wien
Country: Austria

Name: Aristotle University of Thessaloniki
Abbreviated name: AUTH
Country: Greece

Name: Büro für Raumforschung, Raumplanung und Geoinformation
Abbreviated name: RRG
Country: Germany