First, regulation must provide sufficiently attractive financial conditions for investment in transport and conversion infrastructure. If transport operators have operational independence, they will often determine technical requirements and submit them to their authorities of tutelage, usually the national regulator, for financing through regulated tariffs.20 Policy issues are particularly challenging when transport and production are vertically integrated and the commercial interests of integrated incumbents are at odds with the public policy objectives of the regulator. When legitimate environmental concerns impede the construction of such installations, bilateral cooperation with neighbouring countries with more favourable conditions can yield mutual benefits.