1995R2236 — EN — 18.08.1999 — 001.001 — 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-Euro-
pean networks
(OJ L 228, 23.9.1995, p. 1)
Amended by:
Official Journal
No page date
►M1Regulation (EC) No 1655/1999 of the European Parliament and of the
Council of 19 July 1999 L 197 1 29.7.1999
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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,
Havingreg ard to the Treaty establishingthe European Community, andin particular the third paragraph of Article 129d thereof,
Havingreg ard to the proposal from the Commission(
1),
Havingreg ard to the opinion of the Economic and Social Committee(2),
Having regard to the opinion of the Committee of the Regions (3),
Actingin 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
Community 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 promotingthe
interconnection and interoperability of national networks as well asaccess to such networks and must take account in particular of the needto link island, landlocked and peripheral regions with the central regionsof the Community;
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-Europeannetworks and that it may support the financial efforts of the MemberStates to establish trans-European networks;
Whereas general rules should be laid down for the Community
financingof trans-European networks, thereby permittingimplementa-tion of this Article;
Whereas under Article 129c of the Treaty Community aid may be
granted to projects of common interest which are identified in theframework 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 Regulation entersinto force, provision should be made on a transitional basis for apossible Community contribution to specific priority projects within thelimits of the appropriations available for the financial year 1995 and atthe latest until 31 December 1995;
Whereas involvement of private capital fundingtrans-European
networks should be increased and the partnership between the publicand private sectors developed;
(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 NoC 130, 29. 5. 1995, p. 1) and Decision of the European Parliament of 12July 1995 (not yet published in the Official Journal).
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Whereas Community aid may take the form in particular of feasibilitystudies, loan guarantees or interest rate subsidies; whereas these subsi-dies and guarantees relate in particular to financial support from theEuropean 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 duringthe 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 andthe other objectives and priorities covered by the guidelines referred toin Article 129c of the Treaty; whereas account should also be taken ofother aspects such as the stimulative effect on public and privatefinance, the direct and indirect socio-economic effects of projects, inparticular on employment, and the consequences for the environment;
Whereas the Commission must carefully evaluate the potential
economic viability of the projects, with the help of cost/benefit analysesand other appropriate criteria, as well as their financial profitability;
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 includes anenvironmental impact assessment;
Whereas it is necessary to clarify the respective powers and responsibil-
ities of Member States and the Commission with regard to financialcontrol;
Whereas the Commission must ensure proper coordination of all
Community activities, especially between financingunder trans-Euro-pean networks, and that of the Structural and Cohesion Funds, of theEuropean Investment Fund and of the European Investment Bank,affectingtrans-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 meaningof 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 affectingthe powers of the budg etaryauthority 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 theaction 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.
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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 the frame-work of the guidelines referred to in Article 129c (1) of the Treaty.
Parts of projects within the meaningof the first subparag raph shall also
be eligible in so far as they form technically and financially independentunits.
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Article 4
Forms of aid
1. Community aid for projects may take one or several of the
followingforms:
(a) co-financingof studies related to projects, includingpreparatory,
feasibility and evaluation studies, and other technical support meas-ures for these studies. Community participation may in general notexceed 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 a generalrule, the duration of subsidy shall not exceed five years;
(c) contributions towards fees for guarantees for loans from the Euro-
pean 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 involvingsubstantial private-sector investment; such risk-capital participation shall not exceed1 % of the budgetary resources under Article 18. In accordancewith 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 functioningof 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 undertakingor 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 mosteconomical way.
2. The forms of Community aid referred to under points (a) to (e)
shall be used selectively to take account of the specific characteristics ofthe various types of network involved and to ensure that such aid doesnot cause distortions of competition between undertakings in the sector-concerned.
3. The fundingfor transport infrastructure projects throug hout the
period referred to in Article 18 should be used in such a way that atleast 55 % is devoted to railways (includingcombined transport) and amaximum of 25 % to roads.
4. The Commission shall specifically promote recourse to private
sources of financingfor projects funded under this Reg ulation where themultiplier effect of Community financial instruments can be maximised
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in public-private partnerships. Each case shall be examined individually
by the Commission, with account taken where appropriate of a possiblealternative financed solely with public resources. The support of eachmember State concerned shall be required for each project in accord-ance with the Treaty.
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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 the totalinvestment cost.
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Exceptionally, in the case of projects concerningsatellite positioningand navigation systems as provided for in Article 17 of Decision No1692/96/EC (
1), the total amount of Community aid under this Regula-
tion may reach 20 % of the total, investment cost as from 1 January2003 followinga review.
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4. The financial resources provided for under this Regulation shallnot, in principle, be assigned to projects or stages of projects whichbenefit from other sources of Community funding.
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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 155 ofthe Treaty. The programme will be based on applications for financialaid 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 common interest,as previously identified within the framework of the guidelines referredto in Article 155(1 ) of the Treaty, in specific fields havingsubstantialfinancial needs over a longperiod.
3. For each project or group of projects referred to in paragraph 2 the
programme will establish the indicative amounts for the granting offinancial aid subject to the annual decisions of the budgetary authority.No more than 75 % of the budgetary resources under Article 18 shallbe used for the purposes of indicative multiannual programmes.
4. The programme shall serve as a reference for the annual decisions
allocatingCommunity aid for projects within the annual budg etaryappropriations. The Commission shall regularly inform the Committeereferred to in Article 17 of the progress of programmes and any deci-sions taken by the Commission in allocatingCommunity aid forprojects. The supportingdocuments accompanyingthe Commission’spreliminary draft budget shall include a report concerning progress inthe implementation of each multiannual indicative programme inaccordance with the Financial Regulation.
(1) OJ L 228, 9.9.1996, p. 1.
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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 Article17.
The programme shall also give an indication of other sources of
financingfor the projects concerned, in particular from otherCommunity instruments 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 benecessary followingthese chang es, shall be decided in accordance withthe procedure of Article 17.
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Article 6
Project selection criteria
1. Projects shall be assisted accordingto their deg ree 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 Article129c (1) of the Treaty.
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1 a. In its implementation of this Regulation, the Commission shallensure 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 thoseguidelines in terms of a percentage of total Community aid.
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2. Community aid shall be assigned to projects that are potentiallyeconomically viable and for which the financial profitability at the timeof 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
timingof different parts of the project shall also be taken into account.
Article 7
Compatibility
The projects financed under this Regulation shall comply with
Community law and Community policies, in particular in relation toenvironmental protection, competition and the award of publiccontracts.
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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 directly
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concerned. The Commission shall establish the agreement of the
Member States concerned.
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Article 9
Information required for the assessment and identification of
applications
1. Each application for financial aid shall include all the information
necessary for the examination of the project accordingto Articles 5, 6and 7, and in particular:
(a) if the application concerns a project:
— the body responsible for carryingout the project,— a description of the project concerned and the type of
Community aid envisaged,
— the results of the cost/benefit analyses, includingthe results of
the potential economic viability analysis and of the financialprofitability analysis,
— the position of the project, accordingto the g uidelines, 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 CouncilDirective 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 theEuropean Investment Bank, have been examined,
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— a financial plan listing, in euro or in national currency, all the
components of the financial package, including the financial aidrequested 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 the aidalready granted;
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(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.
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2. Applicants shall supply the Commission with any relevant addi-tional information which it requires, such as the parameters, guidelinesand hypotheses on which the cost/benefit analysis is based.
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3. The Commission may seek any specialist advice it requires inorder to assess an application, includingthe opinion of the EuropeanInvestment Bank.
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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 shall
(1) OJ No L 175, 5. 7. 1985, p. 40.
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take the annual decisions to grant aid within the indicative financialamounts provided for in that programme. In the case of other projects,measures shall be adopted in accordance with the procedure specified inArticle 17. The Commission shall notify its decision directly to thebeneficiaries and to the Member States.
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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 bindingas commitments to incur expenditure author-ized 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, shallbe paid once the application for aid has been approved. Intermediatepayments shall be made on the basis of requests for payment, takingaccount of the progress made in implementing the project or study and,if necessary takingaccount of revised financial plans in a rig orous andtransparent manner.
5. The payments must take account of the fact the infrastructure
projects will be implemented over a period of years and that provisionmust 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 beneficiary anditemizingall the expenditure actually incurred.
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7. Followingthe procedure set out in Article 17, the Commissionshall 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 investmentfunds or comparable financial undertakings with a priority focus onprovidingrisk capital for trans-European network projects.
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Article 12
Financial control
►M11. In order to guarantee successful completion of projects
financed by this Regulation, Member States and the Commission, eachin its field of competence, shall take the necessary measures to: ◄
— 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,
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— 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 implementingpublic authority provide proof that theywere not responsible for the irregularity, the Member State shall beliable in the alternative for reimbursement of any sums unduly paid.
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2. Member States shall inform the Commission of the measures
taken for these purposes and, in particular, shall notify the Commissionof the description of the management and control systems established toensure the efficient implementation of projects and studies.
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3. Member States shall make available to the Commission any appro-priate 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 accord-ance with Article 209 (c) of the Treaty, Commission officials or agentsmay carry out spot checks, includingsample checks, in respect ofprojects financed under this Regulation and may examine the controlsystems and measures established by the national authorities, whichshall inform the Commission of measures taken to that end.
5. Before carryingout an on-the-spot check, the Commission shall
give notice to the Member State concerned with a view to obtaining allthe 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 repeatingchecks inrespect of the same subject matter duringthe same period. The MemberState concerned and the Commission shall immediately exchange anyrelevant information concerningthe results of the checks carried out.
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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 Statesas appropriate.
7. The responsible bodies and authorities and public or private under-
takings or bodies directly concerned shall keep available for theCommission all the supportingdocuments reg ardingexpenditure on anyproject for a period of five years followingthe last payment in respectof the project.
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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 carryout the operation, to submit their comments within a specified period oftime.
2. Followingthe examination referred to in parag raph 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 tocomply with one of the conditions laid down in the decision to grantassistance, and in particular any significant change affecting the natureof, or conditions for carryingout, 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.
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2 a. Except in cases duly justified to the Commission, aids granted toprojects which have not started within two years followingthe date oftheir expected start, as indicated in the decision granting assistance, willbe cancelled by the Commission.
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3. Any sum to be recovered for want of due entitlement shall berepaid to the Commission.
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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 helpof contributions from the Community budget, the European InvestmentBank, the European Investment Fund and other Community financialinstruments.
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 effectivemonitoringand evaluation. Projects may be adapted accordingtomonitoringand 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 approvingit, 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 andevaluate the impact of their implementation, in order to assess whetherthe original objectives can be, or have been, achieved. This evaluationshall,interalia, cover the impact of projects on the environment, regard
beinghad to the Community laws in force. The Commission may, afterconsultation of the Member State concerned, also require the benefi-ciary to provide a specific evaluation on projects or groups of projectssupported under this Regulation, or to provide it with the informationand the assistance required to evaluate such projects.
5. Monitoringshall be carried out, where appropriate, by reference to
physical and financial indicators. The indicators shall relate to thespecific 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 vettingindividual applications for assistance, the Commission
shall take into account the findings of appraisals and evaluations madein 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 relatingto the financial aid.
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Article 16
Information and publicity
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1. The Commission shall submit an annual report on the activitiescarried out under this regulation to the European Parliament, theCouncil, the Economic and Social Committee and to the Committee of
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the Regions for their appraisal. This report shall contain an evaluation
of the results achieved with Community aid in different fields ofapplication, 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.
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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 implementingthis Reg ulation, the Commission shall be assisted
by one Committee that will meet in the appropriate compositionaccordingto 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 accordingto the urg ency of the matter. The opinion shallbe delivered by the majority laid down in Article 148 (2) of the Treatyin the case of decisions which the Council is required to adopt on aproposal from the Commission. When votes are taken within theCommittee, the votes of the representatives of the Member States withinthe Committee shall be weighted as defined in that Article. TheChairman 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 relatingtothe measures to be taken. The Council shall act by a qualifiedmajority.
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 beadopted by the Commission.
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Article 18
Budgetary resources
The financial framework for the implementation of this Regulation for
the period 2000 to 2006 shall be EUR 4 600 million.
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 experiencegained with the mechanisms under this Regulation for granting
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Community aid, in particular the mechanisms and provisions laid downin Article 4. The European Parliament and the Council, actinginaccordance 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 becontinued or amended after the end of the period referred to in Article18.
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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.
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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 followinginformation, satisfactory to the Committee referredto in Article 17 thereof, as a basis for decisions to grant assistance:
— an information memorandum containingthe main provisions of the statu-
tory documentation of the fund including its legal and management struc-ture,
— 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 asum equivalent to two and a half times the Community contribution, intoprojects previously identified as projects of common interest in accordancewith 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 excee d1%o f
the overall amount for the period mentioned in Article 18. However this limitmay 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 forimplementingCommunity assistance under Article 4(1)(e) of the Reg ulation,includingits monitoringand control, shall be laid down in a CooperationAgreement between the Commission and the EIF, taking into account theprovisions laid down in this Annex.
4.Other provisions
The provisions applyingto appraisal, monitoringand evaluation as specified
in the Regulation shall apply in full to Article 4(1)(e) thereof, including theprovisions on conditions for Community aid, on financial control and thereduction, suspension and cancellation of assistance. This shall, inter alia ,b e
ensured by appropriate provisions in the Cooperation Agreement between theCommission and the EIF and appropriate agreements with investee funds orcomparable financial undertakings stipulating the necessary controls at thelevel of individual projects of common interest. Appropriate arrangementswill be made to allow the Court of Auditors to exercise its mission inparticular in order to verify the regularity of payments made.
Payments under Article 4(1)(e) shall be governed by Article 11(7) thereof,
notwithstandingArticle 11(6) thereof. After the end of the investment periodor earlier as the case may be, any balances resultingfrom a return of investedcapital or distribution of profits and capital gains and any and all otherdistributions due to investors shall be returned to the Community budget.
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 17thereof.
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The Commission will report regularly to the said Committee on the imple-
mentation of risk capital participations under Article 4(1)(e) of the Regula-tion.
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 Article4(1)(e) thereof, in particular on its utilisation, its effects on the implementa-tion of the trans-European network projects supported and the involvement ofprivate investors in the projects financed.