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Europe Daily Bulletin No. 9597
Contents Publication in full By article 12 / 26
GENERAL NEWS / (eu) eu/transport

Commission recommends use of multi-annual contracts to finance rail infrastructure

Brussels, 07/02/2008 (Agence Europe) - On Wednesday 6 February, the European Commission adopted a communication on multi-annual contracts on the quality of the rail infrastructure. The communication, which falls within the framework of arrangements already in force in European legislation, recommends multi-annual financing - at least triennial - which it considers to be the best way of ensuring the balanced and consistent development of European railways. Although several of the recommendations could be included in the overhaul of the first rail package, scheduled for the end of 2008, the Commission will examine whether it is appropriate to make a binding proposal.

The system, which was introduced into European legislation through directive 2001/14 on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure, would allow continuity of financing of the infrastructure and the freeing up of additional funding for maintenance (work related to construction are not part of the legislation). Member states, which, in most cases, own the infrastructure, will be required to conclude multi-annual contracts (rather than the short-term contracts concluded by almost half of member states) with infrastructure managers or, if necessary, to ensure that infrastructure managers commit resources, including in-house provision or contracting, for periods of more than three years. The contracts should specify the various funding sources, minimum commitments in terms of level of performance of the trains or the network capacity, and should designate an independent monitoring body. The contracts should be consistent with national strategic transport plans and infrastructure managers' business plans. It will be up to infrastructure managers to monitor the state of the tracks, which they will be required to assess at least once a year for all lines and more often for main lines. All stakeholders should be consulted before the award of contracts. To ensure management independence, state intervention in the management of the infrastructure should be limited by the contract. Otherwise, the contract will have to be renegotiated. Infrastructure managers should report in the network statement when lines are not properly maintained. Without such a document, the section of the network concerned will be taken out of service. An independent body should be tasked with monitoring compliance with multi-annual contracts and with mediating between the parties to the contract. Some of these recommendations, principally relating to management independence and consistency of the contracts with national plans, could be introduced in the overhaul of the first rail package, expected by the end of the year. (A.By.)

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