1995R2236 — EN — 03.05.2004 — 002.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EC) No 2236/95
of 18 September 1995
laying down general rules for the granting of Community financial aid in the field of trans-
European networks
(OJ L 228, 23.9.1995, p. 1)
Amended by:
Official Journal
No page date
►M1 Regulation (EC) No 1655/1999 of the European Parliament and of the
Council of 19 July 1999L 197 1 29.7.1999
►M2 Regulation (EC) No 788/2004 of the European Parliament and of the
Council of 21 April 2004L 138 17 30.4.2004
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COUNCIL REGULATION (EC) No 2236/95
of 18 September 1995
laying down general rules for the granting of Community financial
aid in the field of trans-European networks
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, andin particular the third paragraph of Article 129d thereof,
Having regard to the proposal from the Commission (
1),
Having regard to the opinion of the Economic and Social
Committee (2),
Having regard to the opinion of the Committee of the Regions (3),
Acting in accordance with the procedure laid down in Article 189c of
the Treaty (4),
Whereas under Article 3 (n) of the Treaty the activities of the Commu-
nity should include encouragement for the establishment anddevelopment of trans-European networks;
Whereas Article 129b of the Treaty states that to help achieve the
objectives referred to in Articles 7a and 130a of the Treaty theCommunity shall contribute to the establishment and development oftrans-European networks in the areas of transport, telecommunicationsand energy infrastructures;
Whereas Article 129b (2) of the Treaty is aimed at promoting the inter-
connection and interoperability of national networks as well as access
to such networks and must take account in particular of the need to link
island, landlocked and peripheral regions with the central regions of theCommunity;
Whereas Article 129c of the Treaty provides that the Community shall
establish a series of guidelines covering the objectives, priorities andbroad lines of measures envisaged in the sphere of trans-European
networks and that it may support the financial efforts of the Member
States to establish trans-European networks;
Whereas general rules should be laid down for the Community finan-
cing of trans-European networks, thereby permitting implementation ofthis Article;
Whereas under Article 129c of the Treaty Community aid may be
granted to projects of common interest which are identified in the
framework of the guidelines;
Whereas the guidelines referred to in Article 129c (1) of the Treaty,
proposed by the Commission, are under consideration by the EuropeanParliament and the Council; whereas, should the decisions adoptingthese guidelines not have entered into force when this Regulationenters into force, provision should be made on a transitional basis for
a possible Community contribution to specific priority projects within
the limits of the appropriations available for the financial year 1995and at the latest until 31 December 1995;
Whereas involvement of private capital funding trans-European
networks should be increased and the partnership between the publicand private sectors developed;1995R2236 — EN — 03.05.2004 — 002.001 — 2
(1) OJ No C 89, 26. 3. 1994, p. 8.
(2) OJ No C 195, 18. 7. 1994, p. 74.
(3) OJ No C 217, 6. 8. 1994, p. 36.
(4) Opinion of the European Parliament of 30 November 1994 (OJ No C 363,
19. 12. 1994, p. 23). Council common position of 31 March 1995 (OJ No C
130, 29. 5. 1995, p. 1) and Decision of the European Parliament of 12 July
1995 (not yet published in the Official Journal).
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Whereas Community aid may take the form in particular of feasibility
studies, loan guarantees or interest rate subsidies; whereas these subsi-dies and guarantees relate in particular to financial support from the
European Investment Bank or other public or private financial bodies;
whereas in certain duly justified cases direct grants to investments maybe considered;
Whereas loan guarantees will be granted on a commercial basis by the
European Investment Fund or by other financial organizations; whereasCommunity financial aid may cover all or part of the premiums paid bythe beneficiaries of these guarantees;
Whereas Community aid is chiefly intended to overcome any financial
obstacles which may arise during the start-up phase of a project;
Whereas it is necessary to set a limit for Community aid in relation to
the total cost of investment;
Whereas Community aid is to be granted to projects on the basis of
how much they contribute to the objectives of Article 129b of the
Treaty and the other objectives and priorities covered by the guidelines
referred to in Article 129c of the Treaty; whereas account should alsobe taken of other aspects such as the stimulative effect on public andprivate finance, the direct and indirect socio-economic effects ofprojects, in particular on employment, and the consequences for theenvironment;
Whereas the Commission must carefully evaluate the potential
economic viability of the projects, with the help of cost/benefit
analyses and other appropriate criteria, as well as their financial profit-
ability;
Whereas Community financial support under Article 129c (1) of the
Treaty must be compatible with Community policies, in particular onnetworks and as regards environmental protection, competition and theaward of public contracts; whereas environmental protection includesan environmental impact assessment;
Whereas it is necessary to clarify the respective powers and responsi-
bilities of Member States and the Commission with regard to financial
control;
Whereas the Commission must ensure proper coordination of all
Community activities, especially between financing under trans-
European networks, and that of the Structural and Cohesion Funds, ofthe European Investment Fund and of the European Investment Bank,affecting trans-European networks;
Whereas provision should be made for suitable methods of evaluation,
follow-up and control of Community aid;
Whereas there should be suitable information, publicity and transpar-
ency regarding the activities financed;
Whereas a financial reference amount, within the meaning of point 2 of
the Declaration by the European Parliament, the Council and theCommission of 6 March 1995, is included in this Regulation for itsimplementation, without thereby affecting the powers of the budgetary
authority as they are defined by the Treaty;
Whereas an assessment should be made before the end of the financial
perspective for the period 1994-99 whether and to what extent the
action provided for in this Regulation meets the Community's needs,
HAS ADOPTED THIS REGULATION:
Article 1
Definition and Scope
This Regulation defines the conditions and procedures for granting
Community aid to projects of common interest in the field of trans-European networks for transport, telecommunications and energy infra-structures under Article 129c (1) of the Treaty.1995R2236 — EN — 03.05.2004 — 002.001 — 3
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Article 2
Eligibility
1. Community aid may be granted only to projects of common
interest (hereinafter referred to as ‘projects’) identified within theframework of the guidelines referred to in Article 129c (1) of theTreaty.
Parts of projects within the meaning of the first subparagraph shall also
be eligible in so far as they form technically and financially indepen-dent units.
Article 4
Forms of aid
1. Community aid for projects may take one or several of the
following forms:
(a) co-financing of studies related to projects, including preparatory,
feasibility and evaluation studies, and other technical supportmeasures for these studies. Community participation may ingeneral not exceed 50 % of the total cost of a study.
In exceptional, duly substantiated cases, at the initiative of the
Commission and with the consent of the Member States concerned,Community participation may exceed the limit of 50 %;
(b) subsidies of the interest on loans granted by the European Invest-
ment Bank or other public or private financial bodies. As ageneral rule, the duration of subsidy shall not exceed five years;
(c) contributions towards fees for guarantees for loans from the
European Investment Fund or other financial institutions;
(d) direct grants to investments in duly justified cases;
(e) risk-capital participation for investment funds or comparable finan-
cial undertakings with a priority focus on providing risk capital fortrans-European network projects and involving substantial private-sector investment; such risk-capital participation shall not exceed
1 % of the budgetary resources under Article 18. In accordance
with the procedure specified in Article 17, this limit may beincreased up to 2 % as from 2003 in the light of a review, to bepresented to the European Parliament and the Council by theCommission, of the functioning of this instrument.
Further modalities of implementation of this risk-capital participa-
tion are laid down in the Annex.
The participation may be made directly into the fund or comparable
financial undertaking or into an appropriate coinvestment vehiclemanaged by the same fund managers;
(f) Community assistance under points (a) to (e) shall be combined
where appropriate, in order to maximise the stimulus provided bythe budgetary resources deployed, which shall be used in the most
economical way.
2. The forms of Community aid referred to under points (a) to (e)
shall be used selectively to take account of the specific characteristicsof the various types of network involved and to ensure that such aiddoes not cause distortions of competition between undertakings in the
sectorconcerned.
3. The funding for transport infrastructure projects throughout the
period referred to in Article 18 should be used in such a way that atleast 55 % is devoted to railways (including combined transport) and
a maximum of 25 % to roads.
4. The Commission shall specifically promote recourse to private
sources of financing for projects funded under this Regulation wherethe multiplier effect of Community financial instruments can be maxi-mised in public-private partnerships. Each case shall be examined1995R2236 — EN — 03.05.2004 — 002.001 — 4
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individually by the Commission, with account taken where appropriate
of a possible alternative financed solely with public resources. Thesupport of each member State concerned shall be required for each
project in accordance with the Treaty.
Article 5
Conditions for Community aid
1. Community aid shall be granted, in principle, only if achievement
of a project meets financial obstacles.
2. Community aid shall not exceed the minimum considered neces-
sary for the launch of a project.
3. Regardless of the form of intervention chosen, the total amount of
Community aid under this Regulation shall not exceed 10 % of thetotal investment cost.
Exceptionally, in the case of projects concerning satellite positioning
and navigation systems as provided for in Article 17 of Decision No
1692/96/EC (
1), the total amount of Community aid under this Regula-
tion may reach 20 % of the total, investment cost as from 1 January2003 following a review.
4. The financial resources provided for under this Regulation shall
not, in principle, be assigned to projects or stages of projects whichbenefit from other sources of Community funding.
Article 5a
Community indicative multiannual programme
1. Without prejudice to the application of Article 6 and in order to
improve the efficiency of the Community's action, the Commissionmay, in accordance with the procedure set out in Article 17, elaborateby sector an indicative multiannual programme (hereinafter called‘programme’) on the basis of the guidelines referred to in Article 155of the Treaty. The programme will be based on applications for finan-
cial aid under Article 8 and reflect inter alia information provided by
Member States, in particular the information set out in Article 9.
2. The programme shall exclusively be composed of projects of
common interest and/or coherent groups of projects of commoninterest, as previously identified within the framework of the guidelinesreferred to in Article 155(1 ) of the Treaty, in specific fields havingsubstantial financial needs over a long period.
3. For each project or group of projects referred to in paragraph 2
the programme will establish the indicative amounts for the granting
of financial aid subject to the annual decisions of the budgetary
authority. No more than 75 % of the budgetary resources under Article18 shall be used for the purposes of indicative multiannualprogrammes.
4. The programme shall serve as a reference for the annual decisions
allocating Community aid for projects within the annual budgetaryappropriations. The Commission shall regularly inform the Committee
referred to in Article 17 of the progress of programmes and any deci-
sions taken by the Commission in allocating Community aid forprojects. The supporting documents accompanying the Commission'spreliminary draft budget shall include a report concerning progress inthe implementation of each multiannual indicative programme in accor-dance with the Financial Regulation.1995R2236 — EN — 03.05.2004 — 002.001 — 5
(1) OJ L 228, 9.9.1996, p. 1.▼B
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The programme must be reviewed, at least at mid-term or in the light
of the effective progress of the project(s) or groups) of projects, and ifnecessary revised, in accordance with the procedure set out in Article
17.
The programme shall also give an indication of other sources of finan-
cing for the projects concerned, in particular from other Communityinstruments and the European Investment Bank.
5. In case substantial changes in the implementation of the project(s)
or the groups) of projects take place, the Member State concerned willinform the Commission without delay.
Modifications to the indicative global amounts established by the
programme for the project(s) or groups) of projects, which may be
necessary following these changes, shall be decided in accordancewith the procedure of Article 17.
Article 6
Project selection criteria
1. Projects shall be assisted according to their degree of contribution
to the objectives set out in Article 129b of the Treaty and to the otherobjectives and priorities defined in the guidelines referred to in Article
129c (1) of the Treaty.
1 a. In its implementation of this Regulation, the Commission shall
ensure the conformity of its decisions on granting Community aid withthe priorities laid down in the guidelines for the different sectors estab-lished pursuant to Article 155(1) of the Treaty. This shall include theirconformity with any requirements which may be laid down in those
guidelines in terms of a percentage of total Community aid.
2. Community aid shall be assigned to projects that are potentially
economically viable and for which the financial profitability at thetime of application is deemed insufficient.
3. The decision to grant Community assistance should also take
account of:
— the maturity of the project,
— the stimulative effect of community intervention on public and
private finance,
— the soundness of the financial package,
— direct or indirect socio-economic effects, in particular on employ-
ment,
— the environmental consequences.
4. Especially in the case of cross-border projects, coordination of the
timing of different parts of the project shall also be taken into account.
Article 7
Compatibility
The projects financed under this Regulation shall comply with Commu-
nity law and Community policies, in particular in relation to
environmental protection, competition and the award of publiccontracts.
Article 8
Submission of applications for financial aid
Applications for financial aid shall be submitted to the Commission by
the Member States concerned or, with the agreement of the MemberState(s), by the public or private undertakings or bodies directly1995R2236 — EN — 03.05.2004 — 002.001 — 6
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concerned. The Commission shall establish the agreement of the
Member States concerned.
Article 9
Information required for the assessment and identification of appli-
cations
1. Each application for financial aid shall include all the information
necessary for the examination of the project according to Articles 5, 6
and 7, and in particular:
(a) if the application concerns a project:
— the body responsible for carrying out the project,
— a description of the project concerned and the type of Commu-
nity aid envisaged,
— the results of the cost/benefit analyses, including the results of
the potential economic viability analysis and of the financialprofitability analysis,
— the position of the project, according to the guidelines, in the
field of transport, on the axes and nodes,
— consistency with regional planning,— a summary description of the environmental impact, based on
the assessments carried out in accordance with Council Direc-tive 85/337/EEC of 27 June 1985 on the assessment of theeffects of certain public and private projects on the environ-ment (
1),
— a statement that alternative possibilities of public and private
financing, including the European Investment Fund and the
European Investment Bank, have been examined,
— a financial plan listing, in euro or in national currency, all the
components of the financial package, including the financial
aid requested from the Community, in its different forms asmentioned in Article 4, and from local, regional or nationalgovernment bodies, as well as from private sources, and theaid already granted;
(b) if the application relates to a study, the study's objective and
purpose and the methods and techniques envisaged;
(c) a provisional timetable of work;
(d) a description of the control measures to be operated by the Member
State concerned over the use of the funds requested.
2. Applicants shall supply the Commission with any relevant addi-
tional information which it requires, such as the parameters,guidelines and hypotheses on which the cost/benefit analysis is based.
3. The Commission may seek any specialist advice it requires in
order to assess an application, including the opinion of the European
Investment Bank.
Article 10
Grant of financial aid
In accordance with Article 274 of the Treaty, the Commission shall
decide to grant financial aid under this Regulation according to itsassessment of the application in accordance with the selection criteria.In the case of projects identified in the relevant indicative multiannualprogramme established pursuant to Article 5a, the Commission shall1995R2236 — EN — 03.05.2004 — 002.001 — 7
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take the annual decisions to grant aid within the indicative financial
amounts provided for in that programme. In the case of other projects,measures shall be adopted in accordance with the procedure specified
in Article 17. The Commission shall notify its decision directly to the
beneficiaries and to the Member States.
Article 11
Financial provisions
1. Community aid may cover only project-related expenditure
incurred by the beneficiaries or by third parties responsible for theimplementation of a project.
2. Expenditure incurred before the date on which the Commission
received the application for financial aid shall not be covered.
3. Decisions to grant financial aid taken by the Commission under
Article 10 shall be binding as commitments to incur expenditure
authorized by the Budget.
4. As a general rule, payments shall be made in the form of
advances, intermediate payments and a final payment. The advance,which shall not normally exceed 50 % of the first annual tranche, shall
be paid once the application for aid has been approved. Intermediate
payments shall be made on the basis of requests for payment, takingaccount of the progress made in implementing the project or studyand, if necessary taking account of revised financial plans in a rigorousand transparent manner.
5. The payments must take account of the fact the infrastructure
projects will be implemented over a period of years and that provision
must therefore be made for multiannual financing.
6. The Commission shall make the final payment after approval of
the final report on the project or study, submitted by the beneficiaryand itemizing all the expenditure actually incurred.
7. Following the procedure set out in Article 17, the Commission
shall establish a framework for the procedures, timetable and amountsfor payments of interest-rate subsidies, guarantee premium subsidiesand support in the form of risk capital participation, for investment
funds or comparable financial undertakings with a priority focus on
providing risk capital for trans-European network projects.
Article 12
Financial control
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M1 1. In order to guarantee successful completion of projects
financed by this Regulation, Member States and the Commission,each in its field of competence, shall take the necessary measuresto:◄
— verify on a regular basis that projects and studies financed by the
Community have been properly carried out,
— prevent irregularities and take action against them,
— recover any amounts lost as a result of irregularity, including
interest on account of late repayment in accordance with the rulesadopted by the Commission. Except where the Member States)
and/or the implementing public authority provide proof that they
were not responsible for the irregularity, the Member State shallbe liable in the alternative for reimbursement of any sums undulypaid.
2. Member States shall inform the Commission of the measures
taken for these purposes and, in particular, shall notify the Commission1995R2236 — EN — 03.05.2004 — 002.001 — 8
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of the description of the management and control systems established
to ensure the efficient implementation of projects and studies.
3. Member States shall make available to the Commission any
appropriate national reports on the control of projects.
4. Without prejudice to any control measures carried out by the
Member States in accordance with national laws, regulations andadministrative provisions and without prejudice to the provisions ofArticle 188 a of the Treaty and control measures carried out in accor-dance with Article 209 (c) of the Treaty, Commission officials oragents may carry out spot checks, including sample checks, in respect
of projects financed under this Regulation and may examine the control
systems and measures established by the national authorities, whichshall inform the Commission of measures taken to that end.
5. Before carrying out an on-the-spot check, the Commission shall
give notice to the Member State concerned with a view to obtaining
all the assistance necessary. If the Commission carries out on-the-spotchecks without giving notice, it shall be subject to agreements reachedin accordance with provisions of the Financial Regulation. Officials oragents of the Member State concerned may take part in such checks.
The Commission may require the Member State concerned to carry out
an on-the-spot check to verify the correctness of payment applications.Commission officials or agents may take part in such checks, and mustdo so if the Member State concerned so requests.
The Commission shall ensure that any checks that it carries out are
performed in a coordinated manner so as to avoid repeating checks inrespect of the same subject matter during the same period. TheMember State concerned and the Commission shall immediately
exchange any relevant information concerning the results of the checks
carried out.
6. In the case of Community aid granted to public or private under-
takings or bodies directly concerned, the control measures shall becarried out by the Commission in cooperation with the Member States
as appropriate.
7. The responsible bodies and authorities and public or private
undertakings or bodies directly concerned shall keep available for theCommission all the supporting documents regarding expenditure on
any project for a period of five years following the last payment in
respect of the project.
Article 13
Reduction, suspension and cancellation of assistance
1. If the implementation of an operation appears not to justify, in
whole or in part, the financial aid allocated to it, the Commission shallconduct an appropriate examination of the case, in particular requestingthe Member State, or the authorities or bodies designated by it to carry
out the operation, to submit their comments within a specified period
of time.
2. Following the examination referred to in paragraph 1 above, the
Commission may reduce, suspend or cancel aid in respect of the opera-
tion in question if the examination reveals an irregularity or a failure to
comply with one of the conditions laid down in the decision to grantassistance, and in particular any significant change affecting the natureof, or conditions for carrying out, the project for which the Commis-sion's approval was not sought.
Any undue cumulation shall give rise to the recovery of sums unduly
paid.
2 a. Except in cases duly justified to the Commission, aids granted
to projects which have not started within two years following the date1995R2236 — EN — 03.05.2004 — 002.001 — 9
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of their expected start, as indicated in the decision granting assistance,
will be cancelled by the Commission.
3. Any sum to be recovered for want of due entitlement shall be
repaid to the Commission.
Article 14
Coordination
The Commission shall be responsible for coordination and coherence
between the projects and the programmes referred to in Article 5a(1)
undertaken under this Regulation and projects undertaken with the
help of contributions from the Community budget, the EuropeanInvestment Bank, the European Investment Fund and other Communityfinancial instruments.
Article 15
Appraisal, monitoring and evaluation
1. The Member States and the Commission shall ensure that the
implementation of projects under this Regulation is subject to effectivemonitoring and evaluation. Projects may be adapted according to moni-toring and evaluation results.
2. In order to ensure that Community aid is used efficiently, the
Commission and the Member States concerned shall systematicallymonitor progress with projects, where appropriate with the cooperationof the European Investment Bank or other appropriate bodies.
3. On receipt of an application for aid, and before approving it, the
Commission shall carry out an appraisal in order to assess the project'sconformity with the conditions and criteria laid down in Articles 5 and6. Where necessary, the Commission shall invite the European Invest-ment Bank or other appropriate bodies to contribute to this appraisal.
4. The Commission and the Member States shall assess the manner
in which the projects and the programmes have been carried out and
evaluate the impact of their implementation, in order to assess whetherthe original objectives can be, or have been, achieved. This evaluationshall, inter alia , cover the impact of projects on the environment,
regard being had to the Community laws in force. The Commission
may, after consultation of the Member State concerned, also require
the beneficiary to provide a specific evaluation on projects or groupsof projects supported under this Regulation, or to provide it with theinformation and the assistance required to evaluate such projects.
5. Monitoring shall be carried out, where appropriate, by reference
to physical and financial indicators. The indicators shall relate to the
specific character of the projects and its objectives. They shall bearranged in such a way as to show:
— the stage of the project reached in relation to the plan and the
operational objectives originally laid down,
— the progress achieved on the management side and any related
problems.
6. In vetting individual applications for assistance, the Commission
shall take into account the findings of appraisals and evaluations made
in accordance with this Article.
7. Procedures for evaluation and monitoring, as provided in para-
graphs 4 and 5, shall be established in the Decisions approving theprojects and/or in the contractual provisions relating to the financialaid.1995R2236 — EN — 03.05.2004 — 002.001 — 10
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Article 16
Information and publicity
1. The Commission shall submit an annual report on the activities
carried out under this regulation to the European Parliament, theCouncil, the Economic and Social Committee and to the Committeeof the Regions for their appraisal. This report shall contain an evalua-
tion of the results achieved with Community aid in different fields of
application, in terms of original objectives, as well as a chapter on thesubstance and implementation of current multiannual programmes,especially an account of the revisions provided in Article 5a.
2. Beneficiaries shall ensure that suitable publicity is given to assis-
tance granted under this Regulation in order to inform the public of therole played by the Community in the implementation of the projects.
They shall consult the Commission on how this should be done.
Article 17
Committee
1. The Commission shall be responsible for the implementation of
this Regulation.
2. In implementing this Regulation, the Commission shall be
assisted by one Committee that will meet in the appropriate composi-tion according to the sectors treated:
— trans-European networks in the field of transport,
— trans-European networks in the field of telecommunications,
— trans-European networks in the field of energy.
The Committee shall be composed of representatives of the Member
States and chaired by a representative of the Commission.
The European Investment Bank shall appoint a representative to the
Committee who shall not vote.
3. The representative of the Commission shall submit to the
Committee a draft of the measures to be adopted. The Committee shalldeliver its opinion on the draft within a time limit which the Chairmanmay lay down according to the urgency of the matter. The opinion
shall be delivered by the majority laid down in Article 148 (2) of the
Treaty in the case of decisions which the Council is required to adopton a proposal from the Commission. When votes are taken within theCommittee, the votes of the representatives of the Member Stateswithin the Committee shall be weighted as defined in that Article.
The Chairman shall not vote.
4. (a) The Commission shall adopt the measures envisaged if they are
in accordance with the opinion of the Committee.
(b) If the measures envisaged are not in accordance with the opinion
of the Committee, or if no opinion is delivered, the Commissionshall, without delay, submit to the Council a proposal relating tothe measures to be taken. The Council shall act by a qualified
majority.
If, on the expiry of a period of three months from the date of referral to
the Council, the Council has not acted, the proposed measures shall be
adopted by the Commission.
Article 18
Funding
The financial framework for the implementation of this Regulation for
the period 2000 to 2006 shall be EUR1995R2236 — EN — 03.05.2004 — 002.001 — 11
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The annual appropriations shall be authorised by the budgetary
authority within the limits of the financial perspective.
Article 19
Revision clause
Before the end of 2006 the Commission shall submit to the European
Parliament and the Council a comprehensive report on the experience
gained with the mechanisms under this Regulation for granting
Community aid, in particular the mechanisms and provisions laiddown in Article 4. The European Parliament and the Council, actingin accordance with the procedure laid down in the first paragraph ofArticle 156 of the Treaty, shall examine whether and under whichconditions the measures provided for in this Regulation will be
continued or amended after the end of the period referred to in Article
18.
Article 20
Entry into force
This Regulation shall enter into force on the day following its publica-
tion in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
in all Member States.1995R2236 — EN — 03.05.2004 — 002.001 — 12
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ANNEX
Implementation modalities referred to in Article 4(1)(e)
1.Conditions for a Community contribution to risk capital
Applications for financial assistance under Article 4(1)(e) of the Regulation
shall include the following information, satisfactory to the Committee
referred to in Article 17 thereof, as a basis for decisions to grant assistance:
— an information memorandum containing the main provisions of the statu-
tory documentation of the fund including its legal and management
structure,
— its detailed investment guidelines including information on target
projects,
— information on the involvement of private investors,— information on geographical coverage,
— information on the financial viability of the fund,
— information on the rights of the investors to take remedial action in the
event that the undertakings given to them are not honoured by the fund,
— information on the exit policies of the fund and arrangements for the
termination of the fund,
— rights of representation in the committees of investors.
Before the decision to grant assistance, the intermediary investment fund or
other comparable financial institution must undertake to invest not less than a
sum equivalent to two and a half times the Community contribution, into
projects previously identified as projects of common interest in accordance
with Article 155(1) first subparagraph, first indent of the Treaty.
Community aid for investment funds or comparable financial undertakings, if
granted in the form of a risk-capital participation, shall be granted, in prin-
ciple, only if the Community contribution ranks pari passu in terms of risk
with other investors in the fund.
Recipient investment funds or comparable financial undertakings have to
follow sound financial principles.
2.Limits for intervention and maximum investment
Contributions under Article 4(1)(e) of the Regulation shall not exceed 1 % of
the overall amount for the period mentioned in Article 18. However this limit
may be increased in accordance with the said Article 4(1)(e).
Community assistance under the said Article 4(1)(e) shall not exceed 20 % of
the total capital of an investment fund or comparable financial undertaking.
3.Management of the Community contribution
The management of the Community contribution will be ensured by the
European Investment Fund (EIF). The detailed terms and conditions for
implementing Community assistance under Article 4(1)(e) of the Regulation,
including its monitoring and control, shall be laid down in a Cooperation
Agreement between the Commission and the EIF, taking into account the
provisions laid down in this Annex.
4.Other provisions
The provisions applying to appraisal, monitoring and evaluation as specified
in the Regulation shall apply in full to Article 4(1)(e) thereof, including the
provisions on conditions for Community aid, on financial control and the
reduction, suspension and cancellation of assistance. This shall, inter alia ,
be ensured by appropriate provisions in the Cooperation Agreement between
the Commission and the EIF and appropriate agreements with investee funds
or comparable financial undertakings stipulating the necessary controls at the
level of individual projects of common interest. Appropriate arrangements
will be made to allow the Court of Auditors to exercise its mission in parti-
cular in order to verify the regularity of payments made.
Payments under Article 4(1)(e) shall be governed by Article 11(7) thereof,
notwithstanding Article 11(6) thereof. After the end of the investment period
or earlier as the case may be, any balances resulting from a return of invested
capital or distribution of profits and capital gains and any and all other distri-
butions due to investors shall be returned to the Community budget.1995R2236 — EN — 03.05.2004 — 002.001 — 13
▼M1
All decisions to provide risk-capital participations under Article 4(1)(e) of the
Regulation shall be submitted to the Committee referred to in Article 17
thereof.
The Commission will report regularly to the said Committee on the imple-
mentation of risk capital participations under Article 4(1)(e) of the
Regulation.
Before the end of 2006, the Commission shall in the framework of Article 15
of the Regulation provide an evaluation of actions carried out under Article
4(1)(e) thereof, in particular on its utilisation, its effects on the implementa-
tion of the trans-European network projects supported and the involvement of
private investors in the projects financed.1995R2236 — EN — 03.05.2004 — 002.001 — 14