Information from the Commission – Notice of implementation of the TEN Infrastructure Risk Capital Scheme under Article 4.1.(e) of Regulation (EC) No 2236/95 as amended by Regulation (EC) No 1655/1999
Date: 2001-07-04
Institutions: European Commission
Subjects: investment policy, trans-European network, transport infrastructure, venture capital

4.7.2001

EN

Official Journal of the European Communities

C 188/13

Notice of implementation of the TEN Infrastructure Risk Capital Scheme under Article 4.1.(e) of
Regulation (EC) No 2236/95 as amended by Regulation (EC) No 1655/1999

(2001/C 188/05)

Following the adoption of Regulation (EC) No 1655/1999 (1) amended Regulation (EC) No 2236/95 (2)
laying down general rules for the granting of Community financial aid in the field of trans-European
networks, on 26 June 2001 the Commission entered into a cooperation agreement with the European
Investment Bank (EIB) and the European Investment Fund (EIF) concerning the implementation of Article
4(1)(e) of this Regulation. This Article provides for the possibility of extending Community support in the
form of risk capital participations in investment funds with a priority focus on providing risk capital for
trans-European network projects.

The EIB manages the scheme on behalf of the Community and will make the selection of the Community
investments into appropriate investment funds or comparable financial undertakings. The investment may
be made directly into the fund or into an appropriate co-investment vehicle.

In order to ensure maximum transparency on how investments are selected, the investment policy, which
EIB will follow, is hereby published in full:

THE TEN INFRASTRUCTURE RISK CAPITAL SCHEME (cid:151) INVESTMENT POLICY

Purpose

The TEN infrastructure risk capital scheme is a facility funded by the European
Community under Regulation (EC) No 2236/95 as last amended and designed to
stimulate the access of trans-European network projects to risk-capital. By extending
funds for risk-capital investments into investment funds or comparable financial under-
takings with a priority focus on providing risk capital for trans-European network
projects and involving substantial private sector
investments the scheme should
facilitate the implementation of the TEN projects concerned.

Under the scheme investments may be made directly into the fund or comparable
financial undertaking or into an appropriate co-investment vehicle managed by the
same fund managers.

Maximum investment

The amount allocated at present is limited to 1 % (EUR 46,0 million) of the total
budgetary resources made available for TENs for the period 2000 to 2006.
In
accordance with the procedure specified in Article 17 of Regulation (EC) No
2236/1995, this limit may be increased up to 2 % as from 2003 in the light of a
review of the functioning of this instrument.

Nature of
investments

The TEN infrastructure risk capital scheme will invest in, or as appropriate co-invest
with, specialised investment funds or comparable financial undertakings with a priority
focus on providing risk capital for trans-European network projects.

It will not invest in funds exclusively investing in shares of existing project companies.

The Community stake in an investments fund shall in no case exceed a 20 % of the
total capital of the investment fund or comparable financial undertaking. The amount
committed to a single investment fund or comparable financial undertaking will as a
general rule not exceed EUR 25 million.

In any event recipient investment funds or other comparable financial vehicles shall
undertake to invest not less than a sum equivalent to two and a half times the
Community participation into trans-European network projects.

(1) OJ L 197, 29.7.1999, p. 1.
(2) OJ L 228, 23.9.1995, p. 1.

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Official Journal of the European Communities

4.7.2001

Target funds

The TENs infrastructure risk capital scheme will target commercially oriented inter-
mediary investment funds operating in the EU managed by independent professional
teams with sufficient business experience to demonstrate the necessary capability and
credibility to manage an infrastructure investment fund according to sound financial
principles.

Fund managers will be required to demonstrate a clear strategy, a sufficient number of
anchor investments, a sufficient deal flow and appropriate exit policies. They will be
expected to apply best market practice in terms of legal structure, investment principles
and reporting.

The TENs risk capital scheme will target funds with a sufficient size to achieve a critical
mass in the segment of the infrastructure market that they address and to make a
sufficient number of infrastructure investments.

Fund managers shall be required to demonstrate substantial private sector investment.

Funds will be structured through suitable vehicles. Fund vehicles shall have a finite life
at the time of the investment.

TEN projects

intermediary investment

The target
funds, comparable financial undertakings or
co-investment vehicles shall demonstrate their ability to ensure the utilisation of
Community funds for trans-European network projects (TENs), as defined in:

(cid:151) Decision No 1692/96/EC of the European Parliament and of the Council of 23 July
the trans-European

the development of

1996 on Community guidelines for
transport network (1), in

(cid:151) Decision No 1254/96/EC of the European Parliament and of the Council of 5 June
1996 laying down a series of guidelines for trans-European energy networks (2), and
in

(cid:151) Decision No 1336/97/EC of the European Parliament and of the Council of 17 June
1997 on a series of guidelines for trans-European telecommunications networks (3).

Reporting requirements

Semi-annual information for each investment made by a target investment fund will be
required, including data on the precise use of the risk-capital investment by the fund.
Funds must make provisions to allow the European Commission and the European
Court of Auditors and all other Community institution or organisms entitled to control
the scheme according to the applicable legislation to have access to adequate
information to enable them to discharge their duties with respect to control of the
application of European Community funds.

Realisation of
investments

As infrastructure investment funds in which TEN infrastructure risk capital investments
are made will typically be unquoted and illiquid, the realisation of investments will be
achieved principally through the distribution of
the proceeds from the sale of
funds. Fund managers will be expected to
investments made by the investment
investments within
manage their portfolios with the clear objective of realising all
the life of their funds.

Financial performance

Fund managers will be required to demonstrate their objective of managing the infra-
structure investment fund or comparable financial vehicle so as to achieve financial
viability. The Community contribution into an investment fund or comparable financial
undertaking shall rank pari passu in terms of risk with the other investors in the fund.

4.7.2001

EN

Official Journal of the European Communities

C 188/15

Selection

Investment proposals will be examined as and when received on a continuing basis,
taking into account the availability of budgetary funds, as well as the following factors:

(cid:151) Investment strategy

Consistency with the purposes of the facility;
adequate safeguards to ensure the required leverage of
projects;
identification of suitable and achievable exit routes for investments.

investments into TENs

(cid:151) Management team
Relevant experience;
size of team and balance of skills;
incentives for management.

(cid:151) Deal flow

Credibility of plans to originate deal flow consistent with the purposes of the
facility.

(cid:151) Size of the fund

Balance between fund size and expected deal flow.

(cid:151) Expected returns

Evidence that the fund is to be run on commercial basis and that it can be expected
to be financially viable.

(cid:151) Other investors

The extent of support from private sector investors;
Avoidance of conflict of
projects.

interest between investors and sponsors of

targeted

(cid:151) Proposed terms

Consistency with market norms;
Compatibility with terms and conditions provided for in the TENs Financial Regu-
lation.

Applications

Applications
following information:

for TEN infrastructure risk capital participations

shall

include the

(cid:151) an information memorandum containing the main provisions of

the statutory

documentation of the fund including its legal and management structure,

(cid:151) its detailed investment guidelines including information on target projects,

(cid:151) information on the involvement of private investors,

(cid:151) information on geographical coverage,

(cid:151) information on the financial viability of the fund,

(cid:151) information on the rights of the investors in relation to investment decisions taken

by the fund,

(cid:151) information on the exit policies of the fund and arrangements for the termination

of the fund,

(cid:151) information on environmental policies applied by the fund,

(cid:151) rights of representation in the committees of investors.

(1) OJ L 228, 9.9.1996, p. 1.
(2) OJ L 161, 29.6.1996, p. 147.
(3) OJ L 183, 11.7.1997, p. 12.

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Official Journal of the European Communities

4.7.2001

Procedure for the submission of applications

Investments will be considered for approval in chronological order following satisfactory conclusion of this
examination within the available budget allocations made from year to year by the European Commission
and the degree the investment contributes to the objectives set out in Article 155(1) first subparagraph,
first indent of the Treaty and to the other objectives and priorities defined in the guidelines referred to in
Article 155(i) of the Treaty.

Investment funds interested in benefiting from the scheme should contact:

The Programme Manager (cid:151) The TEN Infrastructure Risk Capital Scheme
Structured Finance Department
European Investment Bank
100, Boulevard Konrad Adenauer
L-2950 Luxembourg
Tel. (352) 43 79 31 22, fax (352) 43 79 31 89
email: info@eib.org

Non-opposition to a notified concentration

(Case COMP/M.2459 (cid:151) CDC/Charterhouse/Alstom Contracting)

(2001/C 188/06)

(Text with EEA relevance)

On 19 June 2001 the Commission decided not to oppose the above notified concentration and to declare
it compatible with the common market. This decision is based on Article 6(1)(b) of Council Regulation
(EEC) No 4064/89. The full text of the decision is only available in English and will be made public after it
is cleared of any business secrets it may contain. It will be available:

(cid:151) as a paper version through the sales offices of the Office for Official Publications of the European

Communities (see list on the last page),

(cid:151) in electronic form in the (cid:145)CEN(cid:146) version of the CELEX database, under document No 301M2459. CELEX

is the computerised documentation system of European Community law.

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