A recent report issued by the European Court of Auditors (ECA) has revealed that millions of pounds of EU public port finance may have been squandered in ineffective port projects.
The report looked at 27 seaports for the period 2000-2006 – accounting for 85% of the total Structural and Cohesion budget spent on port infrastructure at the time. The total cost of the audited projects was €1.7bn and the EU co-funding amounted to €726m.
It identified that only 11 out of 27 funded projects were effective, with some constructions having not even been completed, some not in use (Campamento, Arinaga and Augusta), and others needing additional funds before they can operate.
This calls into question where the funds have been spent and if they have been misused.
European Sea Ports Organisation (ESPO) secretary general, Patrick Verhoeven commented: “The report illustrates why it is necessary to bring at least part of the Cohesion Fund budget for transport under the control of the Connecting Europe Facility.” This is to help ensure priorities under the Trans-European Transport Networks are effectively met.
The Court concluded that there was a lack of long term port development plans in place across the projects. Also, little consideration was given to the monitoring and supervision of project results and there was inadequate guidance provided on sound financial spending.
ESPO has suggested that the Commission should develop a transparent methodology to prove the EU value added of funding, in terms of transport efficiency, sustainability and cohesion.
