The signature of a Memorandum of Understanding (MoU) on the Development of the South East Europe Core Regional Transport Network on June 11, 2004 by Albania, Bosnia and Herzegovina, Croatia, fYR Macedonia, Serbia and Montenegro (including Kosovo), and the European Commission crowned the efforts of the countries of the region and the international community to develop a strategy for regional transport in South East Europe. It was also the result of  intensive interaction between the European Commission and the main international financial institutions within the Infrastructure Steering Group for South East Europe (ISG). The ISG, set up to give strategic direction to the development of regional infrastructure in SEE, comprises the European Commission (EC), the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the World Bank, the Council of Europe Development Bank and the Stability Pact.

Transport infrastructure and facilitation is a cornerstone for economic development. Establishing  adequate transport networks in South East Europe (SEE), linked to and compatible with the trans-European networks is a joint objective of the countries of region, and constitutes part of their efforts to integrate in the political and economic mainstream of Europe.

It was recognized, following the extensive planning exercises carried by the European Union (EU) in the 1990s to define the trans-European transport networks for the Member States and the accession countries – a process in which Bulgaria and Romania, as candidates for EU membership, were included at an early stage – that there is a need for further planning in South East Europe, to involve the five countries participating in the Stabilisation and Association Process. On June 11, 2004, a two-and-a-half-year phase of reflection and consensus building was concluded with the signature of the MoU on the Development of the South East Europe Core Regional Transport Network (hereafter Core Network). Albania, Bosnia and Herzegovina, Croatia, fYR Macedonia and Serbia and Montenegro (including Kosovo) endorsed the MoU, thereby committing themselves to cooperate for enhancing the development of a regional transport network in SEE. The MoU provides for reciprocal consultations on transport policy and for institutional reforms needed to make investments sustainable, and, opens the door to implementing a major infrastructure programme. The Core Network  includes 4300 km of railways across the five SEE countries, 6000 km of roads, major ports and airports, and, the inland waterways Danube and Sava. The total cost of developing the Core Network has been estimated at over €16 billion. 17 priority projects have been identified.

The basis for the definition of the Core Network has been set by the strategy paper Transport and Energy Infrastructure for South Eastern Europe, which was issued by the European Commission in 2001. It was further clarified and elucidated by the TIRS (Transport Infrastructure Regional Study) and the REBIS (Regional Balkans Infrastructure Study – Transport) technical studies of 2002 and 2003, respectively. Awareness about the need to develop a regional medium-term approach to transport infrastructure in SEE has also been increased by the World Bank, with an analysis entitled The Road to Stability and Prosperity in South East Europe (March 2000), and by the EIB with a Medium-Term Strategy for the Western Balkans (June 2003). 

Studies have found that efficient planning of public investment in the SEE transport sector requires building up four main blocks: a core regional transport network as a jointly agreed reference for planning investment of regional relevance; prioritization of investments of regional importance, which are financially affordable and suitable for international financing; commitment to policy reforms - notably aimed at improving sector management and addressing cross border issues; and, the establishment of an institutional framework for efficient coordination among the countries of the region.

In anticipation of the signature of the MoU, the cooperation of the European Commission and the international financial institutions with the countries of the region occurred in 2003 through three High Level Meetings, hosted respectively by the European Investment Bank (Luxembourg, February 2003), the European Bank for Reconstruction and Development (London, June 2003) and the World Bank (Paris, October 2003). These three meetings have been supported by the technical back-up provided by the REBIS study funded by the European Commission under its CARDS programme (Community Assistance for Reconstruction, Development and Stabilisation) and conducted under the guidance of the ISG, in close cooperation with the countries of the region.

See full text of the Memorandum of Understanding on the Development of the South East Europe Core Regional Transport Network (as signed), June 11, 2004 (pdf, 36 kb)

Annex 1a of the MoU (pdf, 330 kb)

Annex 1b of the MoU (pdf, 308kb)