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EU announces EUR2.2 billion funding for transport projects [free access]

July 16, 2020

The European Union (EU) has announced EUR2.2 billion funding for public transport projects through the Connecting Europe Facility (CEF) to support sustainable transport and to spur economic recovery following the slowdown resulting from the COVID-19 pandemic. Of the total amount, EUR1.6 billion will be allocated to 55 projects on the trans-European transport (TEN-T) core network. The European Commission (EC) will formally adopt the financing decisions following approval by the EU member states of the selected projects. The EC’s Innovation and Networks Executive Agency (INEA) is expected to sign the grant agreements with the project beneficiaries by January 2021.

 

The projects were selected for funding through two competitive calls for proposals launched in October 2019, with the regular CEF Transport call, and in November 2019, with the CEF Transport Blending Facility call. The EU’s financial contribution will be provided in the form of grants, with different co-financing rates depending on the project type. EU support will be combined with additional financing from banks through a loan, debt, equity, or any other repayable form of support for 10 projects selected under the blending facility call.

 

The Rail Baltica project has been granted an additional funding of EUR216 million. The project has received EUR184 million till 2024 from CEF and EUR32 million from national co-financing. Of the total amount, EUR128 million will be used for construction works, and EUR88 million will be spent for technical design and planning works. The Rail Baltica project has received 55 per cent of the total available funding of the 2019 CEF Cohesion Transport call.  In addition to the EUR184 million EU grant for the Rail Baltica sections in the Baltic states, EUR422 million was granted by EU to the Rail Baltica section in Poland.

 

(1 EUR [Euro] = 1.14 USD)