Strategy Meeting for PO3 a More Connected Europe by Enhancing Mobility and Regional ICT Connectivity

Strategy meeting for PO2 and PO3

13.03.2020. Riga AGENDA

1. ICT infrastructure 2. Mobility 3. Connectivity

2 PO2 investment

Railway EMMISIONS MOBILITY

Multimodal Bicycle Public transport centres

TEN-T NETWORK CONNECTIVITY

Roads

PO3 investment

PO3 digitalisation as enabler Investment interventions

Digitalisation (PO3) Next generation network in rural areas Broadband ViaBaltica 5G Last mile connections Rail Baltica electronic communications

Environmental actions, multimodality (PO2)

Railway electification Rolling stock P&R Environmentally friendly public transport

Transport infrastructure (PO3)

Railway State main and regional roads Riga city as TEN-T urban node Sea ports Connecting National centres/ Regional centres 4 AGENDA

1. ICT infrastructure 2. Mobility 3. Connectivity

5 Synergy or dependency?

Electronic communication infrastructure serves as an enabler for development of digital transformation and lifestyle

6 Emphasis for next planning period:

Connectivity targets set by EU by 2025:

• all schools, transport hubs and main providers of public services as well as digitally intensive enterprises should have access to internet connections with download/upload speeds of 1 Gbps; • all households should have access to networks offering a download speed of at least 100 Mbps, which can be upgraded to 1 Gigabit; • all urban areas as well as major roads and railways should have uninterrupted 5G wireless broadband coverage;

Reducing digital divide between urban and rural areas;

Development of neutral 5G infrastructure

Cybersecurity

7 DESI index – one of priorities in National development plan for 2021- 2027 National development plan for 2021-2027 sets out the target to step up from 17-th place to 13-th place in DESI index rankings. National broadband plan for 2021 – 2027 will cover the Connectivity indicator of the DESI index

Action «Technological environment and services» National broadband • [294] Broadband electronic plan communications infrastructure in line with EU connectivity objectives.

8 DESI Connectivity indicator

9 Development of National broadband plan

National broadband plan will define goals and actions for period 2021 - 2027

• Fulfillment of the enabling conditions Broadband applicable to ERDF and the Cohesion development Fund; plan should • The justification of planned public provide: intervention on the basis of sustainable investment models etc.;

1 0 Timeline for development of National broadband plan

1 1 Priorities for the next period (1)

Continuation of development of the middle mile:

• Goal is to bring middle mile as close to the end-users as possible: • to make deployment of the last mile more attractive for operators; • to reach territories not covered by existing state aid program; • Connecting mobile base stations, having direct impact on the last mile availability

1 2 Current broadband state aid program (1)

State Aid Program Nr. SA.33324 “Next Generation Network for rural areas” (approved by the EC Decision No C(2011)7699) (SAP) is being implemented to provide internet access services with a data transfer rate of at least 30 Mbit/s in the "white" areas (at the parish level).

Financing: Results: 1st phase - €26.4 million 1st phase of SAP is completed (ERDF €23 million 87.18%); in 2015 - 813 km of optical network line and 177 access (2007-2013 Programming points are built period) 2nd phase of SAP is ongoing 2nd phase - 46.7 million from 2016. It is planned to (ERDF €39.7 - 85%) (2014- build 2200 km of optical cable 2020 Programming period) network and 220 access points.

1 3 Current broadband state aid program (2)

1 4 Priorities for the next period – last mile

There is a significant digital divide, in terms of coverage and take-up, between urban and rural areas in Latvia, even though the country performs relatively well in terms of overall broadband connectivity. Investment needs have therefore been identified to enhance digital connectivity, in particular to:

– deploy very-high capacity networks, eliminating coverage gaps in rural and less populated areas.

1 5 Otrer priorities for the next period (2)

Via Baltica and RailBaltica: • Initiatives are being developed in response to the European 5G Action Plan; • The goal is to deploy a neutral 5G ready passive infrastructure alongside Via Baltica road (through Estonia, Latvia and Lithuania) and RailBaltica route to be used by mobile operators; • Discussions are ongoing with involved parties.

1 6 Related issues - cybersecurity

National policy targets to ensure cyber security are set in Latvian Cyber Security Strategy for 2019-2022.

• National development plan also recognizes the importance of cybersecurity; • One of the actions foresees necessity to advance DDoS solution in order to protect important public services from cyberattacks.

The Ministry of Defense and the Ministry of Interior are responsible for other cybersecurity issues.

1 7 Related issues – cooperation mechanisms

Ministry of Transport has established a working group that includes For the purpose of coordination of the stakeholders from electronic national state aid program Ministry of Ministry of Transport is responsible for communication sector: Transport has established dedicated Broadband Competence Office functions •NGO’s; Optical Network Steering Committee in Latvia •Academics; that consists of representatives from •The Latvian Association of Local and Regional Governments and Latvian Association of Large Cities. organisations mentioned above

The Ministry of Transport ensures Law on High-speed Electronic Ministry of Transport also holds dialogue involvement of electronic Communications Network determines with railway and road transport communication NGOs in the order in which coordination and representatives on planned 5G development of the new broadband information of construction works are development projects plan done

1 8 AGENDA

1. ICT infrastructure 2. Mobility 3. Connectivity

1 9 The composition of Latvian greenhouse gas emissions (GHG) in 2018

(including indirect CO2, excluding LULUCF)

Source: draft Latvia’s national inventory report 1990 – 2018 2 0 Trend in GHG emissions from Transport sector in 1990-2018 (kt CO2 eq.)

Road transport – main source of emissions

2 Source: draft Latvia’s national inventory report 1990 – 2018 1 Vehicles by fuel type, 2019

GHG emissions in road transport (kt. CO2 eq.)

buses 0,46% 0,48% cars 21 bus 22 buses 7% RES gasoline 32%

99% 61% diesel 2 2 gasoline diesel RES gasoline diesel RES 12,0 Share of RES in transport, % 10,0

8,0 7%, 2030 target

6,0 4,7 4,0 4,1 4,0 4,0 4,1 3,9 4,0 2,8 2,4 2,2 1,9 2,0 2,5 Source: Eurostat 1,7 1,7 (nrg_ind_ren) 0,0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Use of RES in transport, 2005-2018, TJ

Source: draft Latvia’s national inventory report 1990 – 2018 2 3 Environmental actions in transport sector supported by ESIF

Railway network 2014 electrification 314 km - Electric trains 32 new wagons, 2020 incl. 23 - EU funds financed

Electric vehicle charging infrastructure 139 stations, incl. 70 stations implemented 69 – planned

Environmentally friendly public urban transport investments also 2007- 57 buses in national centres 2013 2 trams in Liepaja and Daugavpils 4 Environmentally friendly public urban transport: results of implemented projects

2007 2014 2014 - - - 2013 2020 2020 Liepaja and Rezekne Jekabpils Daugavpils trams Electric buses CNG buses

386 tCO2/year Number of – emission passengers reduction increased 238 tCO2/ year – by 29% in emission Liepaja 18% – increase in number of reduction by 17% in passengers of Daugavpils environmentally friendly public transport 2 5 Investment progress in EVC infrastructure 2014-2020

REQUIREMENT OF DIRECTIVE 2014/94/EU on the deployment of alternative fuels infrastructure in respect to electricity supply for transport is fullfiled

SO 4.4.1. to develop charging infrastructure of electric 2 vehicles in Latvia: implemented 70 (2019), planned 69 (2023) 6 Alternative Fuels Plan

Alternative Fuels 2014 Development - Plan 2017-2020 2020 adopted in 2017

Alternative Fuels 2021 Development - Plan 2021-2023 2027 is under preparation

2 7 Alternative fuels research

Research on Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the deployment of alternative fuels infrastructure scenarios carried out in 2018. MAJOR OBSERVATIONS: - prior up to 2035 CNG, LNG up to and biofuels are the most

2035 favourable, serving as a transition technology in road transport to reduce GHG emissions

- post 2035 and in long term post both from GHG emissions reduction and lower costs 2035 perspective, electric vehicles and biofuels utilisation scenarios 2 are the most favourable. 8 Latvia's Strategy for Climate Neutrality by 2050

6. Possible solutions for low carbon development 6.4. Resource efficient and environmentally friendly transport. Ensured sustainable and environmentally friendly mobility for citizens. The public transport system is efficient and sustainable, thus competing successfully with private transport. Public transport is comodal and sustainable, thus competing successfully with private transport. It has reduced congestion and GHG emissions from road transport, significantly improved air quality and urban attractiveness in cities. The park and ride system has significantly expanded, the use of bicycles, barking wheels, blankets, etc. has increased and attractive conditions for pedestrians have been created by introducing green infrastructure solutions in urban areas. Interurban transport mainly uses railways, it uses less energy per passenger-kilometre than road transport. Public transport is easily linked to international transport (connections to airports and ports). 2 9 Source: Latvia's Strategy for Climate Neutrality by 2050 National Energy and Climate Plan 2030 Goals

Action to achieve the plan in the transport sector: No.5 Improving energy efficiency, promoting the use of alternative fuels and renewable energy technologies in transport

NATIONAL GOALS 2030 Reduce Latvia's greenhouse gas emissions from non-major energy and -6% industrial activities compared to 2005, including: ✓ ensure at least 50% share of renewable energy in final energy consumption in Latvia ✓ ensure at least 7% share of renewable energy (modern biofuels, electricity) in the final consumption of transport energy in Latvia ✓ ensure a share of at least 3.5% of modern biofuels in the final consumption of transport energy in Latvia

3 Source: National Energy and Climate Plan 2030 0 Transport development plan 2021-2027

[281] Reduce the greenhouse gas emissions. Decarbonisation of transport system.

[282] Mitigating the effects of climate change

3 1 Transport development guidelines 2021-2027

Develop a multimodal public transport network with rail as the backbone of public transport, while developing safe road and street infrastructure and convenient connections between train and bus routes.

*TDG are planned to be submitted to the Cabinet of Ministers by 30.09.2020. 3 2 Environmental actions in transport sector to be supported by ESIF NDP 2027 targets Environmentally friendly intercity transport 2021 intercity buses, etc. SUSTAINABLE - MOBILITY Multimodal connections, 2027 park&ride MODERN, in the centers of the regions at the train stations LOW-EMISSION TRANSPORT Further railway network SYSTEM electrification Pierīga, incl. Sigulda Railway passenger REDUCTION OF rolling stock GHG EMMISIONS

Cycle infrastructure (tracks, parking) INCREASE OF RES SHARE IN connected to multimodal TRANSPORT (5,85% points in populated areas, in 2027) along main roads

3 3 AGENDA

1. ICT infrastructure 2. Mobility 3. Connectivity

3 4 Commuting migration and areas of multimodality points*

- commuting intensity in areas around x cities

*Sources: - ACTION PLAN FOR THE DEVELOPMENT OF RIGA METROPOLES AREAL, Approved by Riga Planning Region Development Council, January 10, 2020 - Draft of analyses for JSC 3 «Pasažieru vilciens», 2020 5 Riga agglomeration project

3 5 railways lines directions => 30 multimodality points 6 National vision 2020-2040 - development of highways

✓ Time to reach bypasses from Riga agglomeration – up to 30 minutes ✓ Time to reach Riga bypass - up to 2 hours ✓ VIA Baltica – the main transit artery ✓ Highway – 130 km/h ✓ Regional access to highways

3 7 Develop a sustainable, climate resilient, intelligent, secure and intermodal TEN-T and its accessibility. Roads

3 8 Actual status of TEN-T

3 9 Actual status regional roads

4 0 Roads quality

National Regional Roads length, km Road roads roads (national + regional + local, (bituminous bituminous and gravel condition pavement) pavement) km % km % km % Good, very good 1264,5 72,0 1729,0 37,1 4682,0 23,2 Satisfactory 133,1 7,6 1051,3 22,6 6489,1 32,2 Bad, very bad 358,9 20,4 1878,6 40,3 8978,4 44,6 Total: 1756,5 100,0 4658,9 100,0 20149,5 100

Regional roads Good, very good Saticfactory National roads Bad, very bad

Total road lenght

0 5000 10000 15000 20000 25000 4 1 Investment progress: 2007-2013, 2014-2020

4 2 State-of-play completing the core TEN-Rail in Latvia

3162 km – total track length 1860 km – length of railway operation lines, including – 250,9 km of electrified lines (14% of the network)

4 3 Electrification of the Latvian railway network

4 444 Plans for development of the national rail network

1. Integration of Latvian transport infrastructure into the TEN-T network, ensuring safe reachability and accessibility, territorial and economic development, passenger mobility – Electrification of Latvian Railway Network – reduction of the use of fossil energy and use of railway as an environmentally friendly mode of public transport – Modernization of passenger services and railway infrastructure - to facilitate passenger mobility, promote travel time reductuon – Safety and security - to reduce the risks of accidents on and off the railway tracks

2. Environmentally friendly and energy efficient transport sector – Replacement of fossil fuels with alternative sources of energy - hydrogen, biogas locomotive prototyping – Improving environmental aspects - improving energy efficiency, reducing noise / vibration and historical / oil product pollution

3. Smart Transport (digitalization) – Increased use of IT systems in transport - traffic management, notification, alarm systems and process automation

4 5 Differences of regional transport and connectivity needs

the regional level, commuting migration flows to the main strong commuting migration development centers are significantly flow to Riga, the area - 1.5 lower than the route to Riga; supply hours by train, up to 80-90 km on the rail network is largely from Riga inadequate to accommodate regional commuting migration flows SOLUTION the development of the railway as backbone for public transport infrastructure and quality of the passenger transportation Source: and multimodality Draft of analyses for JSC 4 6 «Pasažieru vilciens» Transport priority in National development plan 2021-2027

NDP priority «Quality living environment and territorial development»

[251] Transport infrastructure that ensures territorial accessibility and high quality, sustainable internal mobility.

NDP priority «Sustainable regional development»

[325] The availability of a set of public services needs to be adapted to the demographic challenges of shrinking regions, improving the cost-effectiveness of services as well as mobility and digital solutions for accessibility.

4 *Draft NDP approved by the Cabinet of Ministers on 25.02.2020. 7 Main tasks by 2030 identified in National development plan 2021- 2027

✓ Multimodal public transport network with a railway as the "backbone" of public transport ✓ Improving international connectivity (Rail Baltica, Riga International Airport), increasing the competitiveness of transit services, Riga as a modern transport hub ✓ Increase the use of bicycles and other environmentally friendly vehicles, RES, development of appropriate infrastructure (PO2)

4 8 Transport priority in Transport development guidelines 2021-2027

*TDG are planned to be submitted to the Cabinet of Ministers by 30.09.2020. 4 9 Planned actions in transport sector to be supported by ESIF

NDP 2027 targets 2021 SUSTAINABLE Railways MOBILITY new or modernised railway - COST-EFFECTIVENESS infrastructure and equipment 2027 OF TRANSPORT SERVICES State main and regional roads reconstruction or INDICATORS: modernisation Improvement of transport Riga city as infrastructure index – TEN-T urban node from 52th place (57,3 reconstruction or points) to 46th place (59,0 points) modernisation

Sea ports Increase of share of rail measures for port passengers in public restructuring aimed at transport from 7,38% to promoting climate neutrality 12% and maritime safety Reduction in the Connecting national/ number of regional centres fatalities in road reconstruction or accidents by 35% in 5 modernisation comparision with 2020 0 AGENDA

1. ICT infrastructure 2. Mobility 3. Connectivity …OTHER ISSUES

5 1 Development of planning documents

5 2 Urban mobility

✓ Investments in national and regional development centres will be made in accordance with city development plans ✓ Appropriate framework for sustainable urban mobility (separate or as part of the development plan) shall be in place where investments are planned to establish how this investment will contribute to local / urban mobility ✓ At national level to fullfil an enabling condition multimodal mapping of existing and planned infrastructures which includes economic justification of the planned investments, underpinned by robust demand analysis and traffic modelling, will be carried out 5 3 Enabling conditions

Transport development guidelines 2021-2027 – Railway infrastructure development plan 2018-2022 – National ERTMS implementation plan – Alternative fuels development plan 2021-2023 – Road Safety Plan 2021-2023 Research: Study on fulfillment of enabling conditions for implementation of comprehensive transport planning system, incl. investment mapping and development of investment assessment methodologies:

Multimodal mapping of existing and planned infrastructures until 2030, analysis and traffic modelling procurement study draft final procedure for contract study study study TIMETABLE Enabling conditions V Fulfilment III VI IX of the Transport XII enabling development IV VI IX guidelines conditions

public submission to the approval by consultation meeting of State the Cabinet 5 process Secretaries of Ministers 4 Cross-border regional and local mobility

✓ Rail Baltica project - the connectivity of Latvia and the whole Baltic railway infrastructure with the European railway area ✓ Reconstruction and/or modernization of the state roads near the borders with Lithuania, Estonia, Russia and Belarus - efficient mobility of persons and goods across the border areas (11 projects, 65.77 km) ✓ Via Baltica project (within the territory of Latvia) - efficiency and safety of passenger and cargo mobility in the Central Baltic region ✓ 5G mobile coverage along TEN-T transport corridors, specifically, along Rail Baltica and Via Baltica.

5 5 Rail Baltica progress

DESIGN PRIORITIES

- main line design works for CEF 2014-2020 project 130 km in the central part of application submitted to LV on-going

INEA: 2020 2019 - tender for design works on remaining 135 km up to EE - RIX construction (II phase) and LT borders completed in - Riga central Station 12.2019.; contract is construction (II phase) planned be signed in 04.2020. - Riga main line construction - 1st phase on construction - Salaspils intermodal freight tender for RIX completed in terminal technical design 02.2020; contract is planned - regional stations design to be signed in Q4 2020. - land acquisition (II phase) - design phase is planned be completed by the end 2022. 56 Transfer points with Rail Baltica

✓ Technical design of regional stations included in CEF6 project application ✓ Indicative timetable foresses that construction could start at the end of 2021-2027 programming period

Source: Rail Baltica: Preparation of the Operational Plan of the Railway, Final Study Report Railway signalling / interoperability

ERTMS requirement does not apply to isolated Rail Baltica - a new railway networks (rail 1435 mm track network with a track gauge line - will be gauge different from that fully equipped with of the European standard the latest available nominal track gauge version of the (1 435 mm)) ERTMS system

5 8 Administrative capacity building, Roads

SJSC «Latvian State Roads» performs: ✓ management of the state road network ✓ administration of the State Road Fund ✓ organisation of public procurement in order to provide the publics with profitable, durable, safe and environmentally friendly state road network.

The company has the Laboratory of Roads and its “Center of Excellence in Roads” which carries out quality assessment of maintenance, reconstruction and quality of construction works. The company has cooperation with Riga Technical University and is involved in research. “Center of Excellence in Roads” organises conferences. The company is currently implementing the first PPP project in road sector – construction of Ķekava bypass.

5 9 Administrative capacity building, Railways

✓ 2007-2013: 10 ✓ 2007-2013: 1 projects, incl. 1 major project, 9 mil.EUR project, 254 mil.EUR EU EU funds financing funds financing ✓ 2014-2020: 1 major ✓ 2014-2020: 3 projects, project, 114 mil.EUR incl. 1 major project, EU funds financing 454 mil.EUR EU funds financing SJSC Latvian SJSC Pasanger Railways train

6 0 Administrative capacity building, Regions

NDP 2021-2027 planned activities (responsible ministry – MoEPRD): ✓ Capacity building of planning regions and municipalities in order to increase municipal cooperation and capacity to ensure population mobility, investment friendly environment and high quality of services provided by municipalities ✓ Integrating climate change policy into sectoral and regional policies (developing climate change policy planning tools and integrating climate change policies into sectoral and regional policies and activities)

6 1 Administrative capacity building, Road Transport Administration Road Transport Administration responsible for: ✓ Maintaining and developing an effective, safe, competitive, environment friendly and flexible public transport system

Planned activities to improve passenger transport services: ✓ Introduction of a single ticket storage system that would provide ticket purchasing opportunities for regional and urban transport ✓ Development of digital public transport planning model system and multimodal public transport infrastructure

6 2 datums,