Governance of Transport Corridors in OIC Member States:
Challenges, Cases and Policy Lessons
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Participation of local authorities
Local authorities are actively encouraged to participate in Corridor Working Groups and through
investments in the TEN-T. For example, local authorities in the territory of the Rhine-Alpine Corridor
have established the European Grouping for Territorial Cooperation (EGTC), “a group representing the
local and regional level as a stakeholder contributing to the joint development of the Rhine-Alpine
Corridor.”13 Regional authorities can apply directly for EU funds for transportation investments. On
top of that, many regional authorities use TEN-T as a method to receive additional funds from national
governments for transportation projects in their region (Aparicio, 2017).
Participation of the private sector
The private sector is encouraged to participate through investments in the CEF based on co-funding.
Specific funding mechanisms are set up by the EU to stimulate participation and reduce private sector
risks. The participation of the private sector (and for social parties) in the knowledge exchange phase
of transport policy happens during consultation procedures and a variety of formal and informal
meetings. The barrier to participate is relatively high compared to participation opportunities in
national legislative procedures in most European countries (Aparicio, 2017).
3.1.4 Infrastructure: financing, planning and programming
Sources of financing available to effectively ensure governance of transport corridors
The EU is funded in four ways:
 Import duties and levies;
 Percentage based on a members’ value added tax (VAT) rate;
 Percentage based on members’ gross national income (GNI);
 Other sources: donors, fines, deductions, bank interest.
INEA and corridor coordinators are financed through the general budget of the EU, according to
financial rules applicable to the general budget of the EU.
Financing by government(s)
The national governments provide the funds for the general budget. The lion’s share of the TEN-T
projects is financed by national governments. For the period of 2007 – 2013, this was 73%.
Financing by international organisations/international banks
Many projects are financed through EU grant funding: TEN-T; Horizon 2020; Connecting Europe
Facility; Cohesion Fund; ERDF. Not all of these are specifically designed for infrastructure investments,
e.g. the Cohesion Fund can be used for infrastructure investments. Next to the EU grant funding,
“further EU funds will be assigned to innovative financial instruments such as loans, guarantees and
other risk bearing mechanisms. These instruments are specifically designed to draw private
investment into commercially viable TEN-T projects by lowering project risk profiles and engendering
confidence among private investors. It is anticipated that the credibility offered by these risk bearing
schemes will create a leverage affect, thereby mobilising investments far in excess of that which could
be achieved by an entirely grant-funded approach.”14 These are:
1. Bank Financing: EIB; SFF/SA; EBRD;
2. Public-private partnerships;
3. Innovative financing instruments: LGTT; EU project bonds; Marguerite funds.
13 See
14