Cost Benefit Analysis Corridor PP22
Study on the completion of the railway link Germany - Greece
The Priority Project of the EU provides a railway link between Germany and Greece. This axis is the only connection from South Eastern Europe to the heart of the EU that does not cross the territory of non-EU countries. The aim of the project is to improve the connection by setting common quality standards. This study analysed how the objectives of the TEN-T Policy can be reached and the implications of this corridor's completion.
The study answers the following:
- What is the specific added value of future investments vs. the one already ongoing?
- What is/are the most suitable solution(s) for the connection between Germany and the Czech Republic, given the different options supported by the two countries?
- What is the relative effect of further upgrading the Southern part of the corridor (Arad - Athens) compared to the one generated by the development of the Northern part (Germany - Constanta)?
- What are the main internal & external costs & benefits of the development of PP22?
- How do the alternative PP22 development scenarios relate in terms of costs and benefits (IRR, NPV & Benefits/Costs Ratio)?
- What are the recommended priority interventions based on the outcome of the CBA?
The main conclusion is that the "Do-Minimum scenario" is most promising. This indicates that the investments made and planned so far are well spent. The foreseen investments on the Northern branch of the corridor (Dresden - Constanta) have a positive rate of return and the already foreseen investments of the corridor PP22 should continue.
More extensive investment programmes, such as the proposed passenger HS line Dresden - Prague, the upgrading of the Munich - Prague link and the Southern branch in Romania and Bulgaria, appear not to have a positive CBA. Further studies are recommended before investing in these links.
Transport & Mobility Leuven was responsible for the regional and economic modelling part of the study.
European Commission, DG for Mobility and Transport
NEA, PwC, ISIS
Griet De Ceuster, Christophe Heyndrickx
Griet De Ceuster
+32 16 31.77.30