Amended proposal for a COUNCIL REGULATION (EC) laying down general rules for the procedure for the granting of Community financial aid in the field of trans-European networks
Date: 1995-03-16
Institutions: European Commission
Subjects: EU financial instrument, aid system, energy transport, intra-EU transport, telecommunications, transport infrastructure

COMMISSION  OF  THE  EUROPEAN  COMVIUNITIES 

Brussels,  16.03.1995 
COM(95)  32  final 

94/0065  (SYN) 

Amended  proposal 

f or  a 

COUNCIL  REGULATION  (EC) 

laying  down  general  rules  for  the  procedure 
for  the  granting  of  Community  financial  aid 
in the  field  of  trans-European  networks 

( p r e s e n t ed  by  the  Commission  pursuant 

to  A r t i c le  189  A  ( 2) 

of 

the  EC-Treaty) 

& 

EXPLANATORY  MEMORANDUM 

I. 

1. 

2. 

3. 

In order  to implement Title XII of the Treaty  as regards  the establishment  of trans-
European networks, the Commission on 2.3.1994 transmitted  to the Council and the 
European Parliament a Proposal  for  a Regulation laying down the general  rules  for 
the  granting  of  Community  financial  aid  in the  field  of  trans-European  networks1 
[COM(94)62]. 

The European Parliament gave its opinion2 in the plenary session of 30.11.94, where 
it adopted 31 amendments. 

Of the 31 amendments made by the Parliament, the Commission accepted  17 entirely 
and 9 partially.  Some are of an editorial nature; others are more substantive.  The 
Commission  accepted  any  European  Parliament  amendments  that  did  not  alter  the 
intent or structure of the original Proposal and which improved upon it.  In addition, 
the  Commission  has  initiated  some  minor  changes,  either  to  refine  the  text  of  the 
European Parliament amendments or to edit its original text. 

The changes are  summarised  below,  followed  by a summary  of  those  amendments 
which the Commission did not accept. 

II. 

Title of the Regulation (EP Amendment N' 1) 

".. .Regulation laying down the general rules" becomes "... laying down general rules for 
the procedure... ".  The change reflects  a stronger  emphasis  on the procedural  aspects 
of the Regulation. 

New Recital 3 (EP Amendment N*2V 

The recital emphasises joining  island,  landlocked  and peripheral  regions  to the central 
areas of the Community  and thus reflects  one of the priorities  laid out  in Article  129b 
of the Treaty. 

Recital 4 (EP Amendment  N'3) 

The addition points out that Article  129c concerns the establishment of the Guidelines. 

Recital 6 (EP Amendment N'4) 

Removed from the recital is the provision that eligible projects must be "financed by the 
Member States", in order to correspond  to the amended Article 2.2 of the Regulation. 

LOJ N*  C89,  26 March  1994, p.  8. 

2OJ.... 

Recital  8  (EP Amendment  N'6) 

Added  to  the  recital  is  a reference  to  the  decisions  of  the  Council  and  the  European 
Parliament in connection with the Guidelines.  It reinforces the original text and adds the 
European Parliament  to the Council  as the partner  in the co-decision  procedure. 

The  amendment  removes  reference  to  the  priority  projects,  which  avoids  repetition 
because  these  projects  are already  introduced  in Recital  7. 

New  Recital  9  (EP Amendment  N'7) 

This  recital  supports  the participation  of  private  capital  in  financing  networks,  which 
emphasises  an important political  goal. 

Recital  10 (EP Amendment  N'8) 

The phrase  "take the form of" has been replaced by  "relate to" and  "aid from the EIB 
and  the  EIF"  has  become  "financial  support",  in  order  to  make  precise  that  these 
institutions  do not provide  aid per se.  The phrase  "in exceptional  cases"  is changed to 
"in certain cases" concerning  direct co-financing,  which adds  flexibility. 

Recital  11 (EP Amendment  N'9) 

In connection with the granting of loan guarantee premiums in cases where the guarantee 
comes  from  a body  other than the EIF,  the phrase  "where  appropriate"  is  suppressed, 
adding  flexibility. 

Recital  13 (EP Amendment  N ' l l) 

The amendment defines the content of cost/benefit  analysis,  enumerating the taking into 
account  of  sustainability,  regional  planning,  appraisals  of  job  creation,  study  of  the 
capacity of existing infrastructure  and the socio-economic advantages particularly for the 
regions  concerned. 

Recital  14 (EP Amendment  N'12) 

The  addition  of  the  Common  Transport  Policy,  energy  and  telecommunications 
completes  the enumeration of  "Community  policies". 

New  Recital  15  (EP Amendment  N'13) 

This recital concerns the necessity for the Regulation to clarify  the respective powers and 
responsibilities  of  the  Member  States  and  the  Commission  with  regard  to  financial 
control,  corresponding  directly  to amended Article  15 of  the Regulation. 

Recital  16 (EP Amendment  N'14) 

To  the  coordination  effort,  "particularly  TEN  resources,  the  Structural  and  Cohesion 
Funds,  the  EIF  and the  EIB"  are  added,  which  enumerates  the  Community  financial 
instruments  concerning  the financing  of  networks. 

2 

Recital  18 (EP Amendment N'15) 

"Transparency"  is  added  to  "information  and  publicity",  which  reflects  openness 
regarding  the activities  financed. 

Article  1. Definition  and Scope 

Reference to IDA is suppressed,  as this budget line is covered under separate legislation 
[see COM(93)69]. 

Article 2.  Eligibility  (EP Amendment N*16) 

Paragraph  1 removes  reference  to  the  requirement  that  projects  be  "financed  by  the 
Member  States."  This question is resolved  in paragraph 2. 

Paragraph 2 extends the possibility  to assist projects  which are also financed  by bodies 
other than the Member States.  This addition explains that projects financed by regional 
or local authorities or bodies working within a framework  which makes them similar to 
public entities,  including enterprises  that carry  out public services,  are eligible.  This 
addition clarifies  the original proposal and extends the potential to assist projects which 
are financed  by public or private bodies other than the Member State. 

Paragraph 3 adds the European Parliament in regard to co-decision on the Guidelines and 
expands  reference  to  Article  129b  of  the  Treaty,  which  corrects  and  elaborates  the 
original text (see Recital 8). 

Paragraph  4  adds  feasibility  studies  to  the  stages  of  a  project,  which  highlights  the 
importance of the feasibility  study phase  in project  realization. 

Article 3. Forms of Aid (EP Amendment N° 17) 

Subparagraph  (a)  lists  technical  studies  with  feasibility  studies,  which  completes  the 
definition  of feasibility  studies  in Article  129C I,  third  indent,  of the Treaty. 
Subparagraph  (d) adds  "in specific  cases"  to replace  "where by way of exception"  in 
connection to direct co-financing,  which adds  flexibility. 
To  subparagraph  (d)  is  also  added  "or  any  other  form  of  financial  support  which  is 
appropriate  to  meet the objectives;"  which creates  the possibility  for  future  forms  of 
financing,  for  example, reimbursable  grants. 

Article 5. Financial Participation  (EP Amendment N*18) 

Paragraph  1 is rephrased  and reference  is given to the amended Article 2.2. 

Paragraph  3  replaces  "similar  financial  organizations"  with  "other  public  or  private 
financial  organizations",  which adds precision. 

3 

Paragraph 4 sees a change in wording,  suppressing  "by way of exception" and replacing 
"within the meaning of"  with  "following  the provisions  of"  3(d) in connection to direct 
co-financing.  This change reflects  the rephrasing of  Article  3(d). 

Article  6.  Common project selection criteria  (EP Amendment N*19) 

Paragraph  1  adds  to  the  criteria  the  impact  of  "interoperability  of  trans-European 
networks",  which  is  one  of  the  central  aims  of  trans-European  networks  set  forth  in 
Treaty  Article  129b. 

Moved  to paragraph  1 are the criteria  of economic  and social cohesion and the smooth 
running  of the  internal  market,  now placed  before  the technical and economic  criteria. 
Thus  the structure  of  paragraph  1 now follows  more closely  that of  Article  129b. 

Also added to paragraph 1 are the criteria of  "contributions of a trans-frontier character" 
and  "filling  missing  links",  which reflects  the Treaty's  emphasis  on interconnection  of 
networks  (cf.,  Article  129b II). 

Paragraph  2 
The  order  of  (b)-(c)  have  been  rearranged  for  editorial  reasons;  (d)  has  changed 
"Community  regional  planning" to  "regional  planning  in the  Community. 

Paragraph  3  adds  that in the  context  of  the  definition  of  potential  economic  viability, 
account  is  to be taken of  a project's  socio-economic  profitability. 

Articled.  Selection criteria  concerning  transport  (EP Amendment  N'21V 

The  criterion  of  high  safety  standards  is  added;  priority  is  given  to  the  less 
environmentally  damaging projects.  These  new elements  are politically  important and 
must be taken on. 

Article  8.  Selection criteria concerning  telecommunications 

Criterion  (a)  adds  interoperability  of  services  and  applications,  complementing  the 
original  text. 

Article  9.  Selection criteria  concerning  energy 

Subparagraph  (d)  elaborates  upon the  original  text  by  adding  ..."and  of  facilities  for 
reception and storage  of  LNG  (liquified  natural gas)". 

Article  10.  Compatibility  (EP Amendment  N'23) 

This  article  sees  two minor editorial  changes:  "comply with" is replaced by  "respect"; 
"in  particular  those  relating  to  the  Common  Transport  Policy,  energy  and 
telecommunications"  is added, completing  the enumeration of Community policies  (see 
Recital  14). 

4-

Article  11.  Submission of applications  for  financial  aid 

The rephrasing follows the reformulation  of Article 2.2.  The change clarifies that prior 
agreement  of  the Member  State  is necessary  if  an application  is  submitted  by a body 
other than the Member  State,  which corresponds  to Article  129d of the Treaty  which 
stipulates that projects of Community interest relating to the territory of a Member State 
shall require its approval.  In the case of another body submitting the application, it must 
be the body or authority  referred  to in Article 2.2. 

Article  12. Information  required  for  the assessment  and  identification  of  applications  (EP 
Amendment N ' 25) 

Economic  and  social  viability  are  enumerated  as  components  of  financial  viability 
analysis. 

Article  13. Taking the decision (EP Amendment N°26) 

Two provisions  are added: 
The Commission  shall endeavour to deliver  a decision within six months of receipt of 
the  application,  which  shall  give  the  applicant  security  in  planning.  Secondly,  the 
essential  features  of  the  decisions  will  be  published  in  the  Official  Journal,  which 
contributes  to transparency. 

Article  14. Financial provisions  (EP Amendment  N'27) 

In  order  to  elaborate  the  payment  procedure,  a  new  paragraph  4,  adopted  from  the 
Cohesion  Fund  Regulation,  is  added  confirming  that  the  commitment  appropriations 
entered  into the budget shall be granted  on the basis of Commission decisions. 

Paragraph 5 clarifies  that payment shall be in three stages. 

A new paragraph 6 takes account of the fact that payments may be executed over several 
years,  to correspond  to the long realization phase of infrastructure  projects. 

Article  15. Financial control  (EP Amendment N'28) 

A  new paragraph  3  is  added,  clarifying  the  procedures  for  on-the-spot  checks.  This 
provision,  taken  verbatim  from  the  Structural  Funds  Regulation,  explains  standard 
procedures. 

Article  16. Coordination  (EP Amendment N*29) 

The  addition  spells  out the Community  financial  instruments  which  may  apply  to the 
projects  in question (see Recital  16). 

S 

Article  17.  Evaluation 

Reference  to defining  indicators has been rephrased  and moved to paragraph  1, to form 
part of  the  systematic  evaluation. 

III. 

The  main amendments  which the Commission  did not accept concern: 

~  Changes  to recital  3 and Articles  3 and 6 which would accord priority  to the Structural 
Fund-eligible regions, as such a provision does not correspond to the Treaty,  which sets 
economic  and  social  cohesion  as  one  priority  equal  in  weight  to  others,  such  as  the 
functioning  of  the internal market; 

~  Deletion  of  the  recital  which  introduces  the  priority  projects  in  connection  to  this 
Regulation,  because  the  European  Councils  of  Brussels,  Corfu  and  Essen  have 
emphasised  the  importance  of  developing  networks,  the  role  of  networks  in  the 
Community's economic growth and the Community's contribution to this development; 

~  The enumeration of  "preparatory and technical studies" with feasibility  studies in recital 
10  and  Articles  2  and  12,  because  it  would  limit  the  wider  meaning  of  the  term 
"feasibility  studies"; 

~  Provision  for  the  European  Investment  Bank  to  play  an advisory  role  in  the financial 
structuring  and evaluation of projects,  in recital  12, because the Bank is  involved only 
in those  projects  for  which it has granted loans; 

~  Adding to Article 3(d) that co-financing may involve the organizing,  by the Community, 
of  loans  on the capital  markets,  as this provision  has no legal basis  in the Treaty; 

—  Adding  "environmental  profitability"  to  the  definition  of  potential  economic  viability, 
because  the  concept  of  environmental  profitability  is  not  a  common  standard  or  a 
component  of  economic  viability; 

~ 

Introducing  to  Article  8  a  new  criterion  (c)  "integration  of  telecommunications  and 
transport  networks"  because  this  criterion  would  more  appropriately  fall  under  the 
heading  of  transport  and  is  already  included  in  the  Guidelines  concerning  the  trans-
European transport  network; 

~  Adding to Compatibility,  "taking into account the EIA and habitat directives,  sustainable 
transport,  fair competition between the various modes of transport,  and the transparent, 
verifiable  award  of  public  contracts,"  because  this  enumeration  is  unnecessary  and 
repeats  only  part of  what is  implicit  in  "Community policies"; 

4 

Allowing applications for  financial  aid to be submitted by third parties because such a 
provision  would not comport with Article  129d of the Treaty  (see Article  11 in part II 
above); 

Limiting  the  first  payment  to  50%  or  less  of  the  first  annual  tranche  of  the 
appropriations  committed  and restricting  subsequent  payments  to the condition  that at 
least  two  thirds  of  the  expenditure  relating  to  the  previous  payment  has  been  made, 
because neither of these provisions are applicable to all forms of intervention (guarantee 
premiums,  interest subsidies); 

Creating  a consultative  Committee for  each sector,  procedure  la,  because this  type of 
committee and procedure would be difficult  to reconcile with Article  129d of the Treaty 
which  states  that  "[P]rejects  of  common  interest  which  relate  to  the  territory  of  a 
Member  State shall require the approval of the Member State concerned. 

* 

Amended  proposa I for a 
COUNCIL  REGULATION  (EC) 
laying down general rules for the procedure 
for the granting of Community  financial  aid 
in the field  of trans-European  networks 

Original  Proposal 

Modified  Proposal 

Title  of  the  Regulation: 
Proposal  for  a Council  Regulation  (EC) 
laying  down  general  rules  for  the  granting 
of  Community  financial  aid  in the field of 
trans-European  networks 

Whereas  Article  129c provides  that  the 
Community  may  support  the  financial 
efforts  of  the  Member  States  to  establish 
trans-European  networks; 

Recital  6 
Whereas  under  Article  129c  Community 
aid  should  be  granted  to projects  of 
common  interest  financed  by  the  Member 
States  which  are  identified  in the 
framework  of  the  guidelines; 

Title  of the  Regulation: 
Proposal  for  a Council  Regulation  (EC) 
laying  down  general  rules  for  the 
procedure  for  the granting  of  Community 
financial  aid  in the  field  of  trans-European 
networks 

Recital  3 
Whereas  Article  129b(2)  of  the  Treaty 
establishing  the European  Community 
establishes  as  a priority  for  Community 
action the setting  up of  links  between 
the island,  landlocked  and  peripheral 
regions  of the  Community  and the 
central  regions; 

Recital  4 
Whereas  Article  129c provides  that  the 
Community  shall  establish  a series  of 
guidelines covering the  objectives, 
priorities  and broad lines  of  measures 
envisaged in the sphere  of trans-
European  networks  and whereas  the 
Community  may  support  the  financial 
efforts  of the Member  States  to  establish 
trans-European  networks; 

Recital  6 
Whereas  under  Article  129c  Community 
aid  should  be granted  to projects  of 
common  interest  which  are  identified  in 
the  framework  of the  guidelines; 

Original  Proposal 

Modified  Proposal 

Whereas,  pending  the  adoption  of  all  the 
guidelines  referred  to  in Article  129c of 
the Treaty,  it  is necessary  to be able to 
support  priority  projects  of this  kind,  since 
they  help  to  achieve  the objectives  of 
Article  129b of  the  Treaty; 

Whereas  Community  aid may  take the 
shape  in particular  of  feasibility  studies, 
loan  guarantees  or  interest  rate  subsidies; 
whereas  these  subsidies  and  guarantees 
take the  form  in particular  of  aid  from  the 
EIB,  the other  Community  loan 
instruments  and  the  EIF;  whereas  in 
certain  cases  investment  projects  may  be 
co-financed; 

Whereas  loan guarantees  will  be  granted 
by  the European  Investment  Fund  on a 
commercial  basis  or,  where  appropriate. 
by  other  financial  organizations;  whereas 
Community  financial  aid  may  cover  all or 
part  of  the premiums  paid by  the 
beneficiaries  of  these  guarantees; 

Recital  8 
Whereas,  until  such time as  the 
guidelines  referred  to  in Article  129c of 
the Treaty  have  been decided  upon by 
the Council  and the  European 
Parliament,  infrastructure  projects 
which contribute  to the achievement  of 
the objectives  of  Article  129b  of  the 
Treaty  concerning  the establishment  and 
development  of  trans-European 
networks  may  be supported; 

Recital  9 
Whereas  involvement  of  private  capital 
in funding  trans-European  networks 
should be increased  and the  partnership 
between the public  and private  sectors 
extended; 

Recital  10 
Whereas  Community  aid  may  take the 
shape  in particular  of  feasibility  studies, 
loan guarantees  or  interest  rate  subsidies; 
whereas  these  subsidies  and  guarantees 
relate  in particular  to  financial  support 
from  the EIB,  the other  Community  loan 
instruments  and  the  EIF;  whereas  in 
certain  cases  investment  projects  may  be 
co-financed; 

Recital  11 
Whereas  loan guarantees  will  be  granted 
by  the  European  Investment  Fund  on a 
commercial  basis  or  by  other  financial 
organizations;  whereas  Community 
financial  aid may  cover  all  or  part  of the 
premiums  paid  by  the beneficiaries  of 
these  guarantees; 

Original Proposal 

Modified  Proposal 

Whereas Community  action must take 
account of the potential economic viability 
of the projects,  as evaluated with the help 
of cost/benefit  analysis and other 
appropriate criteria; 

Whereas, with an eye to profitability,  a 
detailed evaluation should be undertaken 
before Community  resources are 
committed  so as to guarantee that the 
resources mobilized generate the desired 
socio-economic  benefits; 

Whereas Community  financial  support 
under Article  129c(l) of the Treaty must 
be compatible with Community  policies, in 
particular as regards environmental 
protection,  competition and the award of 
public contracts; whereas environmental 
protection includes an environmental 
impact assessment; 

Recital  13 
Whereas Community  action must take 
account of the sustainability and potential 
economic viability of the projects, as 
evaluated with the help of regional 
planning, cost/benefit analyses, 
appraisals of the amount of investment 
in relation to the number of jobs 
created, assessment of any remaining 
capacity of existing infrastructures and 
other appropriate criteria; whereas, with 
an eye to profitability,  a detailed 
evaluation should be undertaken before 
Community  resources are cornmitted  so as 
to guarantee that the resources mobilised 
generate the desired integral socio 
economic benefits,  particularly for the 
regions concerned; 

Recital 14 
Whereas Community  financial  support 
under Article  129c(l) of the Treaty must 
be compatible with Community  policies, in 
particular as regards energy, a 
sustainable Common Transport Policy, 
telecommunications,  environmental 
protection, competition and the award of 
public contracts; whereas environmental 
protection includes an environmental 
impact assessment of projects; 

Recital 15 
Whereas it is necessary to clarify the 
respective powers and responsibilities of 
Member States and the Commission 
with regard to financial control; 

IP 

Original  Proposal 

Modified  Proposal 

Whereas  the Commission  must  ensure 
proper  coordination  of  all  Community 
activities  affecting  trans-European 
networks; 

Whereas  there  should  be  suitable 
information  and  publicity  regarding  the 
activities  financed; 

Recital  16 
Whereas  the Commission  must  ensure 
proper  coordination  of  all  Community 
activities,  especially  TEN  resources,  the 
Structural  and Cohesion Funds,  the  EIF 
and the EIB,  affecting  trans-European 
networks; 

Recital  18 
Whereas  there  should be  suitable 
information,  publicity  and  transparency 
regarding  the activities  financed; 

HAS  ADOPTED  THIS  REGULATION. 

Article  1:  Definition  and  Scope 

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, 
energy  and  telecommunications 
infrastructures  under  Article  129c, 
paragraph  1, of the Treaty1. 

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, 
energy  and  telecommunications 
infrastructures  under  Article  129c, 
paragraph  1, of the  Treaty. 
(footnote deleted) 

Proposal  for  a  Council  Decision  on  a  series  of  guidelines  for  trans-European  data  communications 

networks  between  administrations  (IDA)  COM(93)69  f.  OJEC  C  105,  16.04.93, p.  10. 

Original  Proposal 

Modified  Proposal 

Article  2;  Eligibility 

Articled:  Eligibility 

1.  The  Community  aid  granted  in 

1.  The  Community  aid  granted  in 

accordance  with  this  Regulation  shall 
concern  projects  of  common  interest 
financed  by  the Member  States  and 
identified  within  the  framework  of  the 
guidelines  referred  to  in Article  129c 
of  the Treaty. 

accordance  with  this  Regulation  shall 
concern  projects  of  common  interest 
identified  within  the framework  of  the 
guidelines  referred  to  in Article  129c 
of  the  Treaty. 

2.  Projects  financed  by  organizations 

working  within  an administrative  or 
legal  framework  which  makes  them 
similar  to public  organizations  shall 
also be eligible. 

3.  Where  the guidelines  referred  to  in 
Article  129c,  as proposed  by the 
Commission,  have  not yet  been 
adopted  by  the  Council  other 
infrastructure  projects  which 
contribute  to the achievement  of the 
objectives  set  out  in Article  129b of 
the  Treaty  may  be  eligible. 

4.  Within  the meaning  of  this  Regulation 
the concept  of  "project"  shall  include 
all  the  technically  and financially 
separate  stages  of projects  which  form 
a  whole designed  to  fulfil  an  economic 
and  technical  function. 

Projects  financed  by the  Member 
States  or by regional  or local 
authorities  or by bodies  working 
within  an administrative  or  legal 
framework  which makes  them  similar 
to public entities,  in  particular 
enterprises  which hold franchises  to 
run public services  or which  are 
entrusted  with the operation  of 
services  of  public interest,  shall  be 
eligible. 

3.  Where  the guidelines  referred  to  in 
Article  129c,  as proposed  by  the 
Commission,  have not  yet  been 
adopted  by the Council  and the 
European  Parliament  other 
infrastructure  projects  which 
contribute  to the achievement  of  the 
objectives  set  out  in Article  129b of 
the Treaty  concerning  the 
establishment  and development  of 
trans-European  networks  may  be 
eligible. 

Within  the meaning  of  this  Regulation 
the  concept  of  "project"  shall  include 
all  the technically  and  financially 
separate  stages  of projects  which  form 
a  whole designed  to  fulfil  an  economic 
and  technical  function,  including 
feasibility  studies. 

IX 

Original  Proposal 

Modified  Proposal 

Article 3:  Forms  of  Aid 

Article 3:  Forms  of  Aid 

Community  aid may  take  one or  several  of 
the following  forms: 

Community  aid  may  take one  or  several  of 
the following  forms: 

(a)  co-financing  of  feasibility  studies, 
including  preparatory  studies, 
evaluation  studies  and  other  technical 
support  measures; 

(a)  co-financing  of  feasibility  studies, 

including  preparatory  studies,  evalua 
tion  studies, technical  studies  and 
other  technical  support  measures; 

(b)  contribution  to the premiums  of  loan 

(b)  contribution  to the premiums  of  loan 

guarantees; 
interest  rate  subsidies; 

(c) 

guarantees; 
interest  rate  subsidies; 

(c) 

(d)  where by  way  of  exception  these 

forms  of  financial  aid provided  for 
above  are  inappropriate,  co-financing 
of  investment  projects. 

(d)  where in specific  cases these  forms 
of  financial  aid provided  for  above 
are  inappropriate,  co-financing  of 
investment  projects  or any  other 
form  of  financial  support  which is 
appropriate  to meet the  objectives. 

13 

Original Proposal 

Modified  Proposal 

Article 5:  Financial  participation 

Article 5:  Financial participation 

1. 

In general, Community  aid to 
feasibility  studies shall be subject to a 
substantial  contribution from the 
public authorities. 

1. 

In general, in the case of feasibility 
studies, the participation of the 
authorities or bodies referred to in 
Article 2, paragraph 2, shall be 
substantial. 

The maximum  amount of the interest-
rate subsidy may not exceed  10% of 
the total cost of the investment in net 
grant equivalent. 

The maximum amount of the interest-
rate subsidy must not exceed  10% of 
the total cost of the investment in net 
grant equivalent. 

Community  financial  support may 
cover all or part of the loan guarantee 
premiums  granted by the European 
Investment  Fund or, where 
appropriate, by other organizations. 

Where the aid takes the form of a 
direct subsidy within the meaning  of 
Article 3.1(d), the Commission shall 
make the level of that subsidy such 
that it is sufficient  to mobilise the 
requisite financial  resources. 

3.  Community  financial  support may 

cover all or part of the loan guarantee 
premiums granted by the European 
Investment Fund or, where 
appropriate, by other public or 
private financial  organizations. 

4.  Where the aid takes the form of a 
direct subsidy following the 
provisions of Article 3(d), the 
Commission  shall make the level of 
that subsidy such that it is  sufficient 
to mobilise the requisite  financial 
.resources. 

'i-

Original  Proposal 

Modified  Proposal 

Article 6:  Common project selection 
criteria 

Article 6:  Common project selection 
criteria 

1.  The projects  shall be of  sufficient 
dimension to have a significant 
impact on the establishment and 
development of networks. 

1. 

The projects presented shall have a 
significant  impact on the 
establishment,  development and 
interoperability of trans-European 
networks. 

Community  aid shall be granted on a 
priority basis to projects  according to 
their degree of contribution 

Community  aid shall be granted on a 
priority basis to projects  according 
to their degree of contribution 

(a) 

to the establishment  of trans-
European networks; 

to the smooth running of the 
internal market; 

(b) 

to the harmonization of technical 
standards; 

to the interconnection and 
interoperability  of national networks; 

to the Community's economic and 
social cohesion, with particular 
regard to the need to connect 
island, landlocked and peripheral 
regions with the central areas of 
the Community; 

to the improvement  of access to the 
networks; 

The selection of the projects shall take 
account of the degree of contribution 

to the integration of the various 
networks; 

(a) 

to the reliability and safety of the 
networks. 

to the establishment  of trans-
European networks, in particular 
where the projects are of a 
transfrontier nature and complete 
'missing links'; 

/S" 

(c) 

(d) 

(e) 

(f) 

Original  Proposal 

Modified  Proposal 

2. 

(a) 

(b) 

(c) 

(d) 

(e) 

Projects  shall  also be selected  as a 
function  of: 

their  contribution 
to the  smooth  running  of  the 
internal  market; 

to the Community's  economic  and 
social  cohesion,  with  particular 
regard  to the  need to  connect 
island,  landlocked  and  peripheral 
regions  with the central  areas  of  the 
Community; 

their  importance  to the  development 
of  trade  at  European  level; 

their  contribution  to  increasing  the 
competitiveness  of the  European 
economy; 

their  compliance  with  environmental 
considerations; 

their  consistency  with  Community 
regional  planning. 

(b) 

(c) 

(d) 

(e) 

(f) 

2. 

(a) 

(b) 

(c) 

(d) 

to the harmonization  of  technical 
standards; 

to the interconnection  and 
interoperability  of national 
networks; 

to the  improvement  of  access to  the 
networks; 

to the  integration  of  the  various 
networks; 

to the  reliability  and  safety  of  the 
networks. 
Projects  shall  be  selected  as a 
function  of: 

their  importance  to the  development 
of trade  at  European  level; 

their  contribution  to  increasing  the 
competitiveness  of the  European 
economy; 

their  compliance  with  environmental 
considerations; 

their  consistency  with  regional 
planning  in the  Community. 

3. 

Account  shall be taken  of: 

3. 

Account  shall  be  taken of: 

(a) 

their  potential  economic  viability: 
extent  of  financial  and  socio 
economic  profitability,  including 
direct  or  indirect  effects  on 
employment; 

(a) 

their  potential  economic  viability: 
extent  of  socio-economic  and 
financial  profitability,  including 
direct  or  indirect  effects  on 
employment; 

(b) 

their  readiness; 

(b) 

their  readiness; 

(c) 

the  soundness  of  the  financial 
package; 

(c) 

the solidity  of  the  financial  pack 
age; 

&' 

Original  Proposal 

Modified  Proposal 

Article  7:  Selection  criteria  concerning 
transport 

Article  7:  Selection criteria  concerning 
transport 

Without  prejudice  to the common  criteria 
referred  to  in Article  6,  Community 
financial  aid  in the transport  sector  shall 
be granted  on a priority  basis  according  to 
the  contribution  of  the  projects: 

Without  prejudice  to the common  criteria 
referred  to  in Article  6,  Community 
financial  aid  in the transport  sector  shall 
be granted  on a priority  basis  according  to 
the contribution  of the  projects: 

(b) 

to  sustainable  development,  in 
particular  of traffic  at  European 
level,  notably 

(b)  to  sustainable  development,  in 

particular  of traffic  at  European  level, 
notably 

—  transfrontier  and  long  distance 
traffic,  given  its present  and 
potential  importance,  within  the 
Community  and  in  neighbouring 
third  countries 

--.-  transfrontier  and  long  distance 
traffic,  given  its present  and 
potential  importance,  within  the 
Community  and  with  neighbouring 
third  countries 

(c)  to  guaranteeing  high  safety 

standards  for  all means  of trans 
port. 

(d)  Priority  shall  be given to the  less 

environmentally  damaging 
infrastructure  projects. 

Article 8:  Selection criteria  concerning 
telecommunications 

Article 8:  Selection criteria  concerning 
telecommunications 

Without  prejudice  to the common  criteria 
referred  to  in Article  6,  Community 
financial  aid  in the  telecommunications 
sector  shall  be granted  on  a priority  basis 
to projects  according  to their  contribution: 

Without  prejudice  to the common  criteria 
referred  to  in Article  6,  Community 
financial  aid  in the  telecommunications 
sector  shall  be granted  on a priority  basis 
to projects  according  to their  contribution: 

a) 

to the  establishment  of  trans  European 
networks,  notably 

a) 

to the establishment  of  trans 
European  networks,  notably 

transfrontier  interconnection 
between physical  networks 

interoperability  of  services; 

transfrontier  interconnection 
between  physical  networks 

interoperability  of  services 
and applications. 

a 

Original Proposal 

Modified  Proposal 

Article 9: Selection criteria concerning 
energy 

Article 9; Selection criteria concerning 
energy 

(d) 

to increased transport capacity of 
natural gas supply,  inlet and storage 
pipelines. 

(d) 

to increased capacity of natural gas 
supply and pipelines, and of 
facilities for reception and storage 
of LNG (liquified natural gas). 

Article 10: Compatibility 

Article 10: Compatibility 

The projects financed under this 
Regulation shall comply with the 
provisions of the Treaties, with the acts 
adopted on the basis thereof and 
Community policies, environmental 
protection,  competition and the award of 
public contracts. 

The projects financed under this 
Regulation shall respect the provisions of 
the Treaty, with the acts adopted on the 
basis thereof and Community  policies, in 
particular those relating to the Common 
Transport Policy, energy, 
telecommunications,  environmental 
protection, competition and the award of 
public contracts. 

Article 11: Submission of applications 
for financial aid 

Article 11: Submission of applications 
for financial aid 

Applications for financial aid shall be 
submitted to the Commission through the 
intermediary of the Member State 
concerned or by the body directly 
concerned with the agreement of the 
Member  State. 

Applications for financial  aid shall be 
submitted to the Commission by the 
Member  State concerned or, with the 
prior agreement of the Member State, 
by the authorities or bodies referred to 
in Article 2, paragraph 2. 

Tl 

Original Proposal 

Modified  Proposal 

Article 12: Information required for the 
assessment and identification of 
applications 

Article 12: Information required for the 
assessment and identification of 
applications 

1. 

(a) 

(b) 

In addition to the  information 
specified  in Article 6, and, where 
appropriate, Articles 7, 8 and 9 
above, each application for  financial 
aid shall include the following 
information  to identify  the project 
and to enable the Commission to 
assess the application: 

the body responsible for carrying 
out the project; 

the type of assistance envisaged and 
a description of the project 
concerned; 

1. 

(a) 

(b) 

In addition to the  information 
specified  in Article 6, and, where 
appropriate, Articles 7, 8 and 9 
above, each application for  financial 
aid shall include the following 
information  to identify  the project 
and to enable the Commission  to 
assess the application: 

the entity responsible for  carrying 
out the project; 

a description of the project 
concerned and the type of 
assistance envisaged; 

(d) 

If the application relates to a 
project: 

(d) 

If the application relates to a 
project: 

the results of the cost/benefit 
analyses, including the results 
of the financial viability 
analysis; 

the results of the  cost/benefit 
analyses, including the results 
of the financial, economic 
and social viability analysis; 

Article 13:  Taking the decision 

Article 13:  Taking the decision 

The Commission shall decide to grant 
financial  aid under this Regulation 
according to its assessment of the 
applications, in accordance with the 
selection criteria and the procedure 
specified  in Article  19(2).  It shall  notify 
its decision directly to the beneficiaries 
and the Member  State concerned. 

The Commission shall take a decision on 
the application for financial aid under 
this Regulation according to its assessment 
of the applications, following the selection 
criteria and the procedure specified  in 
Article  19(2) below, to the extent 
possible, within six months of receipt of 
the application submitted.  It shall 
directly notify the beneficiaries  and the 
Member  States concerned of its decision. 

The essential features of the 
Commission's decisions shall be 
published in the Official  Journal of the 
European Communities. 

l3 

Original Proposal 

Modified  Proposal 

Article 14: Financial provisions 

Article 14: Financial provisions 

Aid may not be granted in respect of 
expenditure before the date on which 
the Commission  received the 
application for financial aid. 

2.  Aid may not be granted in respect of 
expenditure incurred before the date 
on which the Commission received the 
application for financial  aid. 

As a general rule, payments shall be 
made in the form of advances and a 
final  payment.  The first  advance shall 
be paid once the application for aid has 
been approved.  Subsequent payments 
shall be made on the basis of requests 
for payment, taking account of the 
progress made in implementing the 
project. 

4,  The commitment appropriations 
entered in the budget shall be 
granted on the basis of the decisions 
approving the measures concerned. 

Payments shall be made in the form of 
advances, intermediate payments and 
a final payment.  The first advance 
shall be paid once the application for 
aid has been approved.  Subsequent 
payments shall be made on the basis of 
requests for payment, taking into 
account, in a rigorous and 
transparent manner, the progress 
made in implementing the project. 

6.  The payments must take account of 
the fact that the infrastructure 
projects will be implemented over a 
period of years and that provision 
must therefore be made for 
multiannual  financing. 

5.  The Commission  shall make the  final 

payment after  approval of the report on 
the project or study submitted by the 
beneficiary  and itemizing all the 
expenditure actually incurred. 

The Commission  shall make the  final 
payment after  approval of the report on 
the project or study submitted by the 
beneficiary  and itemizing all the 
expenditure actually incurred. 

With regard to interest-rate subsidies 
and guarantee premium subsidies, the 
Commission  shall determine the 
procedures and timetable for payments. 

With regard to interest-rate subsidies 
and guarantee premium subsidies, the 
Commission  shall determine the 
procedures and timetable for payments. 

15 

Original Proposal 

Modified  Proposal 

Article 15: Financial Control 

Article 15: Financial Control 

Without prejudice  to any control 
measures carried out by the Member 
States in accordance with national 
laws, regulations and administrative 
provisions and without prejudice to the 
provisions of Article  188a of the 
Treaty and control measures carried 
out in accordance with Article 209c of 
the Treaty, Commission officials  or 
staff  may carry out spot checks on 
projects  financed. 

2.  Without prejudice to any control 

measures carried out by the Member 
States in accordance with national 
laws, regulations and administrative 
provisions and without prejudice to the 
provisions of Article  188a of the 
Treaty and control measures carried 
out in accordance with Article 209c of 
the Treaty, Commission officials  or 
staff  may carry out on-the-spot checks 
on projects  financed. 

X\ 

Original Proposal 

Modified Proposal 

3.  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.  On-the-
spot checks carried out by the 
Commission without notice shall be 
subject to agreements reached in 
accordance with the Financial Regu 
lation.  Officials  of the Member 
State concerned may take part in 
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 staff may take part in 
such checks, and must do so if the 
Member State concerned so requests. 

The responsible body and authorities 
shall keep available for the 
Commission all the supporting 
documents regarding expenditure on 
any project for a period of three 
years following the last payment in 
respect of the project. 

XL-

Original Proposal 

Modified  Proposal 

Article 16: Coordination 

Article 16: Coordination 

1.  The Commission shall be responsible 
for coordination between the projects 
undertaken under this Regulation and 
projects undertaken with the help of 
contributions from the Community 
budget, the European Investment Bank 
and other Community  financial 
instruments, and for ensuring they are 
compatible. 

1.  The Commission  shall be responsible 
for coordination between the projects 
undertaken under this Regulation and 
projects undertaken with the help of 
contributions from  the Community 
budget (such as TEN resources, the 
Structural and Cohesion Funds, 
etc.),  the European Investment 
Fund, the European Investment Bank 
and other Community  financial 
instruments, and for ensuring they are 
coherent. 

Article 17: Evaluation 

Article 17: Evaluation 

1.  In order to ensure that Community aid 
is used efficiently,  the Commission and 
the Member  States concerned shall 
systematically evaluate progress with 
projects,  if necessary with the coop 
eration of the European Investment 
Bank.  To this end, Member States 
shall inform  the Commission each year 
on the progress of projects  approved. 

2.  Before the end of  1997, the 

Commission  shall verify  the results 
achieved with Community  assistance in 
the different  fields of application in 
terms of the original objectives. 

1.  In order to ensure that Community aid 
is used efficiently,  the Commission and 
the Member  States concerned shall 
systematically evaluate progress with 
projects,  if necessary with the coop 
eration of the European Investment 
Bank.  To this end, Member States 
shall inform the Commission  each year 
on the progress of projects  approved. 

This will entail defining indicators, 
to the extent possible, as a means of 
measuring the extent to which the 
original objectives have been 
achieved. 

This will entail defining  appropriate 
indicators as a means of measuring the 
extent to which the original objectives 
have been achieved. 

2.  Before the end of  1997, the 

Commission  shall verify  the results 
achieved with Community  assistance in 
the different fields of application in 
terms of the original objectives. 

22. 

Original Proposal 

Modified  Proposal 

Article 19, Committees 

Article 19, Committees 

1.  In implementing  this Regulation, the 

1.  In implementing  this Regulation, the 

Commission  shall be assisted, 
depending on the sector concerned... 

Commission  shall be assisted, 
depending on the sector concerned... 

The decision required by this 
Regulation shall be taken in accordance 
with the procedure set out in paragraph 
2 of this Article. 

The decisions required by this 
Regulation shall be taken in accordance 
with the procedure set out in paragraph 
2 of this Article. 

*\ 

ISSN 0254-1475 

COM(95) 32  final 

DOCUMENTS 

EN 

01 

Catalogue number  : CB-CO-95-047-EN-C 

ISBN 92-77-85539-8 

Office for Official Publications of the Europedn Communities 

L-2985 Luxembourg