Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Decision No 1639/2006/EC establishing a Competitiveness and Innovation Framework Programme (2007-2013) and Regulation (EC) No 680/2007 laying down general rules for the granting of Community financial aid in the field of the trans-European transport and energy networks
Date: 2011-10-19
Institutions: European Commission
Subjects: EIB loan, credit guarantee, energy transport, financial aid, financing method, information technology, innovation, new technology, trans-European network, transport network

EUROPEAN COMMISSION 

Brussels, 19.10.2011 
COM(2011) 659 final 

2011/0301 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Decision No 1639/2006/EC establishing a Competitiveness and Innovation 
Framework Programme (2007-2013) and Regulation (EC) No 680/2007 laying down 
general rules for the granting of Community financial aid in the field of the trans-
European transport and energy networks 

{SEC(2011) 1237 final} 
{SEC(2011) 1239 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

At a time of fiscal constraint, innovative solutions are urgently required to mobilise a greater 
share  of  private  savings  and  to  improve  the  range  of  financial  instruments  available  for 
infrastructure  projects,  especially  in  the  energy,  transport  and  ICT  sectors.  Reduced 
possibilities  to  access  finance  by  infrastructure  projects  calls  for  alternative  sources  of  debt 
financing.  The  norm  for  infrastructure  projects  with  commercial  potential  should  be  to 
combine  EU  funds  in  partnerships  with  the  capital  market  and  banking  sectors,  particularly 
via the European Investment Bank (EIB) as the EU financial body established by the Treaty.  

(a)  Europe  2020  Project  Bond  Initiative  in  the  framework  of  the  Connecting  Europe 

Facility (2014-2020) 

On  29  June  2011,  the  European  Commission  adopted  its  proposal  for  the  multi-annual 
financial framework (MFF) for the period 2014-2020. One of the key decisions was to bring 
the  granting  of  financial  aid  for  transport,  energy  and  ICT  infrastructure  into  a  common 
legislative framework, the Connecting Europe Facility: 

"The  Commission  has  decided  to  propose  the  creation  of  a  Connecting  Europe  Facility  to 
accelerate  the  infrastructure  development  that  the  EU  needs.  (…)  The  Connecting  Europe 
Facility  will  fund  pre-identified  transport,  energy  and  ICT  priority  infrastructures  of  EU 
interest,  and  both  physical  and  information  technology  infrastructures,  consistent  with 
sustainable development criteria."1 

Following  this  decision,  the  Commission  will  make  a  proposal  for  a  new  Regulation  to 
establish  the  Connecting  Europe  Facility.  The  Europe  2020  Project  Bond  Initiative  will 
become part of the array of debt instruments upon which the facility may draw in addition to 
equity instruments and grants. 

The  Facility  will  provide  the  longer-term  framework  ensuring  that  projects  in  energy, 
transport  and  telecommunications  are  developed  and  implemented  in  a  timely  and  effective 
manner. A comprehensive strategy of prioritised opportunities of infrastructure projects2, has 
significant  potential  to  attract  more  private  sector  financing  and  at  the  same  time  help  to 
complete the internal market.  

Financial instruments are needed to reduce specific barriers that prevent the flow of debt and 
equity  finance.  Their  main  objective  is  to  attract  and  facilitate  private  sector  finance  of 
projects. At the same time, increased investment activity in infrastructure projects stimulates 
the  global  development  of  post-crisis  financial  markets,  enhances  the  pace  of  economic 
recovery  and  promotes  growth.  The  Europe  2020  Project  Bond  Initiative  will  become  an 
integral part of the risk-sharing instruments of the Connecting Europe Facility for the period 
2014-2020.  The  financial  instruments  under  the  Facility  may  be  extended  to  other  sectors 
such as social infrastructure, renewable energy or certain space projects, provided they fulfil 
the appropriate economic and financial criteria and the Commission will seek to invite a range 

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COM(2011) 500 final. 
COM(2011) 500 A budget for Europe 2020 and the relevant Commission staff working papers. 

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of  partners,  including  international  financial  institutions  or  Member  States'  financial 
institutions  with  a  public  mission,  to  participate  in  the  implementation  of  the  post-2013 
financial instruments.  

(b) Europe 2020 Project Bond Initiative pilot phase 2012-2013 

The main objective of the pilot phase in 2012-2013 is to prepare the operational phase of the 
initiative  under  the  Connecting  Europe  Facility  for  the  period  2014-2020  and  to  provide 
immediate support for infrastructure projects.  

Due to fiscal austerity in the Member States, there is a danger that infrastructure projects of 
EU interest are not carried out at the pace required to achieve Europe 2020 objectives thereby 
compromising the EU's economic recovery and growth.  

In addition, due to the liquidity and risk challenges arising during the financial crisis, banks 
reacted with a shortening of loan maturities, combined with increased pricing and collateral 
requirements  for  infrastructure  projects.  Even  though  the  bank  debt  markets  show  signs  of 
recovery, infrastructure projects continue to have great difficulties in accessing long-term debt 
finance.  Therefore,  the  potential  importance  of  bond  markets  as  a  source  of  finance  has 
increased. However as there are no existing public credit enhancement measures, no project 
bonds in the field of TEN-T, TEN-E or broadband have been issued in the last few years. As 
long  as  infrastructure  projects  entail  features  and  risks  such  as  greenfield  development, 
uncertain  business  case  as  regards  future  revenue  flows,  regional  aspects  including  the 
influence of the sovereign crisis and cross-border impact, making the project preparation and 
implementation demanding and time consuming, such projects continue to be unattractive for 
capital market investors.  

In  view  of  this  and  to  contribute  to  the  completion  of  the  Single  Market,  it  is  proposed  to 
launch a pilot phase of the Europe 2020 Project Bond Initiative in the area of transport, energy 
and ICT. This initiative seeks to mobilise investment in areas that will stimulate growth and 
create jobs. The large and urgent infrastructure investment needs, combined with the long lead 
times for project preparation, call for immediate action to address the scarcity of funding and 
also  to  build  on  the  momentum  generated  by  the  public  consultation,  and  hence  bolster 
investor confidence.  

The Europe 2020 Project Bond Initiative aims to provide the credit enhancement required to 
attract capital market investors and would facilitate the creation of a new asset class in terms 
of  infrastructure  project  bonds.  In  the  context  of  economic  recovery  and  support  actions 
stimulating growth, it is necessary to launch the initiative during a period when capital market 
investors have started looking for alternative long-term investment opportunities with stable 
revenues. In order to allow a more efficient implementation of the financial instruments under 
the  Connecting  Europe  Facility,  the  launch  of  a  pilot  phase  is  required,  both  to  allow  the 
optimisation of the design and stimulate investor appetite for the post-2013 period.  

Even though the pilot phase would be limited in terms of scope, budget availability and the 
number of projects that can be supported, it is expected to stimulate market behaviour towards 
an increased acceptance of capital market debt financing for infrastructure projects in general 
and thus lay the ground for a fully-fledged implementation for the period 2014-2020. 

This  initiative  provides  EU  added  value  due  to  its  ability  to  transcend  the  market 
fragmentation issues that such an initiative would be faced with at Member State level. The 

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initiative  will  complement,  rather  than  replace  bank  lending  and  thus  provide  an  alternative 
and competitive source of long-term debt finance to infrastructure projects. Mobilising private 
sector  finance  through  EU  financial  instruments  will  preserve  scarce  grant  funding  for 
projects attracting insufficient private capital.  

In  the  pilot  phase,  the  Commission  would  work  in  particular  with  the  EIB  to  optimise  the 
design  of  the  initiative  for  optimal  implementation  from  2014  onwards.  Experience  gained 
through  the  pilot  phase  would  allow  investors  and  project  sponsors  alike  to  familiarise 
themselves with the structure of project bonds and would be taken into account as required for 
any further initiatives.  To  have  the  maximum impact, the initiative  could also be applied to 
projects at an advanced stage of the bidding process for the purposes of refinancing during or 
shortly after the end of the construction period. Even though, in the pilot phase, the initiative 
would be implemented with the EIB, for the implementation of the post-2013 phase a broader 
range of implementing partners would be sought.  

Under the current Multi-annual Financial Framework, the EU has already implemented a risk-
sharing  instrument  together  with  the  EIB  called  the  Loan  Guarantee  instrument  for  TEN-T 
projects  (LGTT).  The  risk-sharing  techniques and  working  methods  of  the  initiative  will  be 
aligned  to  those  of  LGTT,  whereby  the  scope  would  be  extended  to  energy  and 
telecommunications.  Similar  to  LGTT,  EU’s  contribution  would  thus  be  used  to  share  risks 
with the EIB. Therefore, due to the similarity, a multiplier effect of around 15-20 is expected 
for the Project Bond Initiative. 

Given  the  short  time  available,  the  Commission  invites  the  Parliament  and  the  Council  to 
adopt the proposal for a pilot phase as speedily as possible. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

A  public  consultation  was  launched  on  28  February  2011  on  the  basic  principles  of  the 
initiative.  In  addition,  a  conference  on  11  April  2011  debated  the  advantages  and 
disadvantages  of  the  planned  initiative.  At  the  end  of  the  consultation  period,  over  100 
responses had been received from a range of sectors. 

Stakeholders  have  welcomed  the  Project  Bond  Initiative.  Feedback  on  the  initiative's 
objectives  was  positive  with  stakeholders  feeling  that  it  would  increase  and  facilitate 
financing  of  infrastructure  by  opening  up  the  bond  markets  as  a  source  of  debt  capital  in  a 
form that is of interest to institutional investors. The  suggested mechanism and the targeted 
credit rating of A/A- were seen as appropriate.  

The impact of the initiative on financing costs and maturities is felt to be rather favourable, 
i.e.  costs  were  seen  to  decline  and  maturities  to  be  extended,  with  only  2%  or  respondents 
believing that it would not lower financing costs and the remainder believing that the impact 
would be at worst neutral and at best positive. 

Regarding the degree of credit enhancement, the majority of stakeholders who responded to 
this  question  expressed  the  view  that  credit  enhancement  instruments  of  20%  of  the  senior 
debt  amount  is  sufficient,  some  narrowing  it  to  10-20%  for  the  sectors  considered,  namely 
TEN-T, TEN-E and ICT. Almost all stakeholders believe these three sectors should represent 
the  core  projects  to  be  financed.  In  addition,  1/4  of  the  stakeholders  think  that  social 

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infrastructure should be included and 1/5 of respondents believe that renewables should also 
be  eligible.  However,  such  projects  do  not  fall within the remit of  TEN-T,  TEN-E and  ICT 
and will be considered at a later stage. 

Opinions were divided on the issue of having a single controlling creditor. The Commission 
will therefore not be prescriptive on this point, but encourage investors, project sponsors and 
other players to decide on mutually acceptable arrangements. 

The  overall  positive  feedback  confirms  that  the  Commission  and  the  EIB  have  identified  a 
significant  market  need  in  the  area  of  project  finance,  ensuring  that  the  initiative,  if  designed 
correctly, will be a success.  

The  impact  assessment  has  highlighted  some  potential  regulatory  obstacles  in  the  areas  of 
procurement and capital markets regulations. The Commission will continue to address these 
issues going forward with the aim of finding appropriate solutions if required. However, it is 
felt that these issues would not jeopardise the implementation of the pilot phase, although they 
may  slow  it  down.  Considering  the  de  facto  non-existent  project  bond  market  activity  in 
Europe, stakeholders stressed the need to launch the initiative as soon as possible. 

Considering  that  a  project  bond,  cross-sectoral  type  financial  instrument  for  infrastructure 
does not yet exist at European level, the pilot phase in 2012-2013 would allow the testing of 
its design and market acceptance in order to improve its effectiveness under the CEF for the 
2014-2020 period. In the pilot phase, the focus would be on projects at a relatively advanced 
stage3  to  accelerate  the  implementation  and  facilitate  the  creation  of  a  project  portfolio.  In 
order  to  gather  relevant  experience  to  ensure  rapid  take-up  post-2013,  the  EIB  is  willing  to 
work  on  concrete  operations  in  parallel  with  the  legislative  process  (i.e.  prior  to  the  formal 
political decision) in order to have first transactions executed in 2012. 

Following the hearing with the Impact Assessment Board on 31 August 2011, the Board sent 
its opinion on 2 September 2011. Based on the recommendations received, the report has been 
redrafted along the following main lines: 

The  impact  assessment  reviews  the  current  market  situation  with  a  link  to  the  impact 
assessment accompanying the proposal for the CEF which includes more background on the 
potential CEF instruments,  financing  gaps and market imperfections affecting current levels 
of  investment  in  infrastructure.  The  first  option  assessed  relates  to  the  status  quo,  i.e. 
continuing  with  current  grant  programmes  for  energy  and  transport  and  the  current  grant 
programmes and  financial  instruments for transport. The second option relates to regulatory 
incentives and the third one to the proposal to implement the Project Bond Initiative. In this 
context, the potential risks hindering the implementation of the Intiative have been reviewed 
and  a  quantifiable  expected  impact  revealed  in  terms  of  a  multiplier  effect.  The  assessment 
also signals issues related to the regulatory enabling framework for long-term investment such 
as procurement, Solvency II or capital requirements. 

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E.g. projects already at preferred bidder stage and/or refinancing of projects during construction). 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Legal basis 

As the scope of the proposal focuses on European networks in the field of transport, energy 
and telecommunications and amends notably Regulation (EC) No 680/2007, it is based on the 
legal  bases  thereof,  that  is  Articles  172,  and  173(3)  of  the  Treaty  of  the  Functioning  of  the 
EU.  

3.2. 

Subsidiarity and proportionality  

The proposal complies with the subsidiarity principle as the choice of the EU Regulation for 
financing  trans-European  networks  projects  with  project  bonds  is  best  suited  in  order  to 
provide an efficient means in terms of administrative burden to attract high levels of private 
sector financing, the expected multiplier effect in terms of EU budget contribution compared 
to the overall financing being estimated at around 15-20. By focusing on optimising the use of 
EU funds, the initiative will aim to improve the effectiveness of both EU and Member States 
action. 

The proposal is also in conformity with the proportionality principle, as the draft Regulation 
does not go beyond what is necessary in order to achieve its objectives.  

Whereas LGTT targets only transport projects, the Europe 2020 Project Bond Initiative will 
be  the  first  EU  financial  instrument  benefiting  infrastructure  projects  across  several  sectors 
with  similar  financing  needs  and  will  produce  higher  benefits  in  terms  of  market  impact, 
administrative  efficiency  and  resource  utilisation.  It  will  provide  a  coherent  EU  financial 
instrument  to  infrastructure  stakeholders  such  as  financiers,  public  authorities,  construction 
companies and operators.  

3.3. 

Detailed explanation of the proposal  

To allow the launch of the pilot phase during the current Multiannual Financial Framework, 
Decision No 1639/2006/EC4 of the European Parliament and of the Council establishing the 
Competitiveness  and  Innovation  Framework  Programme  (2007-2013)  and  Regulation  (EC) 
No  680/20075  of  the  European  Parliament  and  of  the  Council  on  the  granting  of  Union 
financial  aid  in  the  field  of  the  trans-European  transport  and  energy  networks  require  the 
following modifications: 

Decision  No  1639/2006/EC  of  the  European  Parliament  and  of  the  Council  establishes  a 
Competitiveness and Innovation Framework Programme, which encompasses ICT. It needs to 
be amended in order to permit the launch of the Europe 2020 Project Bond Initiative in the 
area of ICT and, in particular, high-speed broadband. 

Article 1(1) of this proposal adds the word "broadband" to the existing Article 26(2)(b) of the 
CIP Decision. As the infrastructure projects under the CIP decision are expected to focus on 
the development of high-speed broadband projects, it is deemed necessary to emphasise this. 

4 
5 

OJ L 310, 9.11.2006, p. 15. 
OJ L 162, 22.6.2007, p. 1. 

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Article 1(2) replaces article 31(2) of the CIP Decision. It aims to add a definition of the risk-
sharing  instrument  for  project  bonds.  This  will  enable  ICT  projects  to  benefit  from  the 
initiative in its pilot phase. The instrument should be available until 31 December 2014. The 
EU budget liability will be strictly limited to the budget appropriations, the residual risk being 
borne by the EIB. 

Article  1  will  also  allow  a  transfer  of  up  to  EUR  20  million  from  the  ICT  budget  for  the 
benefit of the Europe 2020 project Bond Initiative. 

In addition, Regulation (EC) No 680/2007of the European Parliament and of the Council lays 
down  the  general  rules  for  the  granting  of  Union  financial  aid  in  the  field  of  the  trans-
European  transport  and  energy  networks  and  creates  also  the  risk-sharing  instrument  'Loan 
Guarantee  instrument  for  TEN-Transport  projects'  (LGTT).  Similarly,  Regulation  No 
680/2007 needs to be amended in order to allow the EU to modify the scope of the existing 
risk-sharing  partnership  with  the  EIB  under  LGTT  and  allow  the  EIB  to  support  bond 
financing under the initiative.  

Thus, Article 2(1) of this proposal amending Article 2 of the Regulation (EC) No 680/2007 
aims  to  add  a  definition  of  the  risk-sharing  instrument  and  of  the  credit  enhancement  for 
project bonds. This will enable transport and TEN-E projects to benefit from the initiative in 
its pilot phase.  

Article 2(2) of this proposal amends Article 4 of Regulation (EC) No 680/2007 and foresees 
that  applications  for  risk-sharing  instrument  for  project  bonds  are  made  to  the  EIB,  as 
currently is the case under LGTT. 

Article 2(3) of the proposal will allow a transfer of up to a total of EUR 200 million from the 
Loan-Guarantee instrument for TEN-Transport projects (LGTT) and EUR 10 million from the 
TEN-E  budget  for  the  benefit  of  the  Europe  2020  Project  Bond  Initiative.  The  EU  budget 
liability will be strictly limited to the budget appropriations, the residual risk being borne by 
the EIB. 

In  order  to  allow  a  prompt  implementation,  Article  3  of  the  proposal  specifies  that  the 
proposed Regulation should enter into force on the day following its publication. 

4. 

BUDGETARY IMPLICATION 

The  initiative  will  be  entirely  financed  by  redeployment  within  the  envelopes  of  existing 
programmes in 2012 and 2013. 

An amount of EUR 500 million is already determined by the Regulation (EC) No 680/2007 
for LGTT, of which up to EUR 200 million may be redeployed for the use of project bonds 
during the pilot phase in the transport area as follows:  

06 03 03 TEN Transport 

up to EUR 200 million in 2012-2013 

EUR  10  million  and  EUR  20  million  respectively  may  be  redeployed  from  the  TEN-E  and 
CIP budget lines as follows: 

32 03 02 TEN Energy 

up to EUR 10 million in 2012-2013 for TEN-E projects 

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09 03 01 CIP 

up to EUR 20 million in 2013 for ICT and broadband projects 

These  budgetary  reallocations  are  set  out  in  the  financial  statement  accompanying  the 
proposal.  There  would  not  be  any  contingent  liabilities  for  the  EU  budget  as  the  EU 
contribution  would  be  capped  to  the  amount  to  be  committed  for  this  purpose  under  the 
budget lines.  

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2011/0301 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Decision No 1639/2006/EC establishing a Competitiveness and Innovation 
Framework Programme (2007-2013) and Regulation (EC) No 680/2007 laying down 
general rules for the granting of Community financial aid in the field of the trans-
European transport and energy networks 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 172, and 173 (3) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Economic and Social Committee6,  

Having regard to the opinion of the Committee of the Regions7, 

Acting in accordance with the ordinary legislative procedure, 

Whereas:  

(1) 

(2) 

Decision  No  1639/2006/EC  of  the  European  Parliament  and  of  the  Council  of  24 
October 20068 establishes the Competitiveness and Innovation Framework Programme 
(CIP) with different types of implementing measures pursued by specific programmes, 
of  which  'the  Information  and  Communications  Technologies  (ICT)  Policy  Support 
Programme'  provides  support  for  the  strengthening  of  the  internal  market  for  ICT 
products  and  services  and  ICT-based  products  and  services,  and  aims  at  stimulating 
innovation through the wider adoption of and investment in ICT. 

Regulation  (EC)  No  680/2007  of  the  European  Parliament  and  of  the  Council  of  20 
June 20079 lays down the general rules for the granting of Community financial aid in 
the field of the trans-European transport and energy networks and creates also the risk-
sharing instrument 'Loan Guarantee instrument for TEN-Transport projects' (LGTT). 

(3) 

Over  the  next  decade,  unprecedented  investment  volumes  in  Europe's  transport, 
energy, information and communication networks will be needed in order to underpin 

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OJ C , , p. . 
OJ C , , p. . 
OJ L 310, 9.11.2006, p. 15. 
OJ L 162, 22.6.2007, p. 1. 

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the  Europe  2020  flagship  actions  and  develop  smart,  upgraded  and  fully 
interconnected  infrastructures  to  foster  the  completion  of  the  internal  market. 
Estimated  investment  needs  of  the  TEN-T  network  amount  to  EUR  500  billion. 
Among energy infrastructure projects of European relevance, approximately EUR 100 
billion  of  investments  is  at  risk  of  not  being  delivered  due  to  obstacles  related  to 
permit  granting,  regulation  and  financing,  while  another  EUR  100  billion  will  be 
financed  by  the  sector  itself.  Investment  needs  for  achieving  the  Digital  Agenda 
objective  of  providing  fast  internet  access  for  all  European  citizens  and  businesses 
range  from  EUR  181  to  EUR  273  billion,  of  which  private  sector  investment  is 
expected to amount to between EUR 30 billion and EUR 100 billion.  

In its resolution of 8 June 2011 on Investing in the future: a new Multiannual Financial 
Framework (MFF) for a competitive, sustainable and inclusive Europe10, the European 
Parliament underlined that the Union should take action notably to enhance the use of 
the  Union  funds  as  a  catalyst  for  attracting  additional  financing  from  the  European 
Investment Bank (EIB), European Bank for Reconstruction and development (EBRD), 
other  international  financial  institutions  and  the  private  sector  and  welcomed  the 
Europe  2020  Project  Bond  Initiative,  as  a  risk-sharing  mechanism  with  the  EIB, 
providing  capped  support  from  the  Union  budget,  that  should  leverage  the  Union 
funds and attract additional interest from private investors for participating in priority 
Union projects in line with Europe 2020 objectives. 

Financial instruments can improve the efficiency of budget spending and achieve high 
multiplier  effects  in  terms  of  attracting  private  sector  financing  and  achieved 
investment volumes. The expected multiplier effect of the Europe 2020 Project Bond 
Initiative is 15-20. 

The Council of 12 July 2011 recalled that financial instruments need to be assessed in 
terms  of  leverage  effects  in  comparison  to  existing  instruments,  risks  that  would  be 
added to government balance sheets and possible crowding out of private institutions. 
The  Commission  Communication11  on  a  pilot  for  the  Europe  2020  Project  Bond 
Initiative and its impact assessment, which draw on a public consultation contributes 
to addressing the aforementioned issues. 

The Europe 2020 Project Bond Initiative has a double objective : first to help finance 
projects  of  European  policy  priorities,  and  second,  to  facilitate  greater  private  sector 
involvement in the long-term capital market financing of infrastructure projects. It will 
redirect  some  EU  budget  spending  towards  growth-enhancing  areas,  taking  into 
account  the  Unions  budgetary  discipline  and  the  ceilings  under  the  current 
Multiannual Financial Framework.  

It  will  be  the  first  financial  instrument  benefiting  infrastructure  projects  with  similar 
financing  needs  across  several  sectors  and  will  as  such  produce  higher  benefits  in 
terms  of  market  impact,  administrative  efficiency  and  resource  utilisation.  It  will 
provide a coherent instrument to infrastructure stakeholders such as financiers, public 
authorities, construction companies and operators.  

(4) 

(5) 

(6) 

(7) 

(8) 

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COM(2011)500  
COM(2011)660 

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(9)  With  the  Europe  2020  Project  Bond  Initiative,  bonds  would  be  issued  by  project 
companies,  the Union budget together with financing from a financial partner would 
be  used  to  improve  the  credit  quality  of  the  bonds  in  order  to  attract  debt  capital 
market investors such as pension funds and insurance companies.  

(10)  The Union support should mitigate the risk inherent in project bonds to the extent that 
capital  market  participants  are  willing  to  invest  in  a  larger  volume  infrastructure 
project bonds than would be possible without Union support. 

(11)  Europe's  economic  recovery  should  not  be  compromised  by  growing  transport 
congestion, missing energy links and a slowing down of broadband penetration due to 
infrastructure  projects'  difficulties  in  gaining  access  to  long-term  private  finance  or 
public funding.  

(12)  The  reassessment  of  infrastructure  investment  programmes  by  Member  States  in  the 
context  of  their  fiscal  austerity  and  structural  reforms  will  not  facilitate  the  required 
acceleration  of  the  pace  of  infrastructure  investment.  In  addition,  long-term  bank 
lending  for  infrastructure  projects  continues  to  be  insufficient  and  expensive,  calling 
for alternative and competitive sources of debt financing.  

(13)  However,  debt  capital  market  financing  is  not  readily  available  for  infrastructure 
projects  in  the  Union.  Due  to  the  fragmentation  of  the  bond  markets  across  the  EU, 
combined with the size and complexity of infrastructure projects which demand long 
lead  times  for  project  preparation,  addressing  this  issue  at  Union  level  through  an 
accelerated process well in advance of the Connecting Europe Facility is both timely 
and appropriate. 

(14)  Therefore,  a  pilot  phase  for  the  Europe  2020  Project  Bond  Initiative  should  be 
launched  during  the  current  financial  framework  in  order  to  develop  debt  capital 
market financing in the area of infrastructure more generally and to extend the range 
of financial instruments currently available for transport projects.  

(15) 

(16) 

In  order  to  implement  the  pilot  phase  of  the  Europe  2020  Project  Bond  Initiative, 
Decision  No  1639/2006/EC  and  Regulation  (EC)  No  680/2007  should  be  amended. 
This  pilot  phase  aims  to  support  infrastructure  projects  with  commercial  potential  in 
the transport, energy and ICT sectors, while after 2013 the initiative may be extended 
to other sectors.  

In  light  of  the  EIB's  long-standing  expertise  and  as  the  major  financier  of 
infrastructure projects and given its nature as the EU financial body established by the 
Treaty,  the  Commission  should  involve  the  EIB  in  the  implementation  of  this  pilot 
phase.  The  specific  terms  and  conditions  of  the  co-operation  including  risk-sharing 
and  remuneration  of  the  EIB,  should  be  laid  down  in  an  agreement  between  the 
Commission and the EIB. 

(17)  The  pilot  phase  of  the  Europe  2020  Project  Bond  Initiative  should  be  launched  in 
preparation of the proposed Connecting Europe Facility. This pilot phase will help to 
pave  the  way  for  the  risk-sharing  financial  instrument  under  the  Connecting  Europe 
Facility. 

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(18)  The  application  for  support,  selection  and  implementation  of  all  projects  shall  be 
subject  to  Union  law,  in  particular  with  regard  to  state  aid  and  shall  seek  to  avoid 
creating or adding to market distortions. 

(19)  The pilot phase should be funded using budget redeployment in 2012 and 2013 from 
existing transport, energy and telecommunication programmes. For this purpose, up to 
EUR 200 million might be redeployed for this initiative from the TEN-T budget, up to 
EUR  20  million  from  the  budget  of  the  Competitiveness  and  Innovation  Framework 
Programme and up to EUR 10 million from the TEN-E budget. The budget available 
limits both the scope of the initiative and the number of projects that can be supported.  

(20)  Budgetary  funds should  be requested by the  EIB on the basis of  a range of projects, 
which  the  EIB  would  deem  suitable  and  likely  to  be  realised.  Any  such  requests 
should  be  made  prior  to  31  December  2013.  Due  to  the  complexity  of  large 
infrastructure projects, the actual approval might take place at a later date, but no later 
than 31 December 2014. 

(21) 

In  order  for  the  emasures  provided  for  in  this  Regulation  to  be  effective,  this 
Regulation should enter into force on the day following its publication, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Amendments to Decision No 1639/2006/EC 

Decision No 1639/2006/EC is amended as follows: 

1. In Article 26(2), point (b) is replaced by the following: 

"(b)  stimulation  of  innovation  through  the  wider  adoption  of  and  investment  in  ICT  and 
broadband;" 

2. Article 31 is amended as follows: 

(a) Paragraph 2 is replaced by the following: 

"2. 'The projects shall aim to promote innovation, technology transfer and the dissemination 
of new technologies that are ready for market uptake.  

The  Union  may  award  a  grant  to  contribute  to  the  budget  of  the  projects  referred  to  in 
paragraph 1(a).  

Alternatively, the Union may make a financial contribution to the EIB to the provisioning and 
capital allocation for loans or guarantees to be issued by the EIB on its own resources under 
the risk-sharing instrument for project bonds referred to in paragraphs 2a to 2d." 

(b) The following paragraphs 2a to 2d are inserted:  

"2a. Risk-sharing instrument for project bonds means a credit enhancement which fulfils the 
following criteria: 

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(a) takes the form of a loan or a guarantee granted by the EIB in favour of financing provided 
to projects in the field of ICT and broadband; 

(b) covers the debt service risk of a project and mitigates the credit-risk of bond holders; 

(c) is used only for projects whose financial viability is based on project revenues.  

2b.  The  Union  exposure  to  the  risk  sharing  instrument  for  project  bonds,  including 
management fees and other eligible costs, shall be strictly limited to the amount of the Union 
contribution  to  the  risk-sharing  instrument  for  project  bonds  and  there  shall  be  no  further 
liability on the general budget of the Union. The residual risk inherent in all operations shall 
be borne by the EIB.  

2c. The detailed terms and conditions for implementing the risk-sharing instrument for project 
bonds,  including  its  monitoring  and  control,  shall  be  laid  down  in  a  delegation  agreement 
between the Commission and the EIB.  

2d. In 2013, an amount of up to EUR 20 million may be used from the budget allocated for 
the pursuance of ICT and broadband policy in accordance with the rule set out in point (b) of 
Annex I. The risk-sharing instrument may reuse any revenues received within the investment 
period for new loans and guarantees". 

Article 2 

Amendments to Regulation (EC) No 680/2007 

Regulation (EC) No 680/2007 is amended as follows: 

(1) In Article 2: 

the following points 14 and 15 are added: 

"14.  'risk-sharing  instrument  for  project  bonds'  means  a  credit  enhancement  provided  to 
projects  of  common  interest.  The  risk-sharing  instrument  for  project  bonds  covers  the  debt 
service  risk  of  a  project  and  mitigates  the  credit-risk  of  bond  holders.  It  is  used  only  for 
projects whose financial viability is based on project revenues. 

15. 'Credit enhancement' means the use of an EIB loan or an EIB guarantee to improve the 
credit quality of the project debt." 

(2) In the first paragraph of Article 4: 

the following sentence is added: 

"Applications  for  risk-sharing  instrument  for  project  bonds  under  point  (g)  of  Article  6(1) 
shall be addressed to the EIB in accordance with the EIB's standard application procedure." 

(3) Article 6(1) is amended as follows: 

(a) in point (d), the following sentence is added: 

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"In  2012  and  2013,  an  amount  of  up  to  EUR  200  million  may  be  redeployed  for  the  risk-
sharing instrument for project bonds in the transport sector." 

(b) the following point (g) is added: 

'(g) a financial contribution to the EIB to the provisioning and capital allocation for loans or 
guarantees to be issued by the EIB on its own resources under the risk-sharing instrument for 
project  bonds  in  the  field  of  TEN-T  and  TEN-E.  The  Union  exposure  to  the  risk  sharing 
instrument, including management fees and other eligible costs, shall be strictly limited to the 
amount  of the  Union contribution to the risk-sharing instrument for project bonds and there 
shall be no further liability on the general budget of the Union. The residual risk inherent in 
all operations shall be borne by the EIB. The detailed terms and conditions for implementing 
the  risk-sharing  instrument  for  project  bonds,  including  its  monitoring  and  control,  shall  be 
laid down in a delegation agreement between the Commission and the EIB. In 2012 and 2013, 
an amount of up to EUR 210 million, of which up to EUR 200 million for transport projects 
and  up  to  EUR  10  million  for  energy  projects,  may  be  redeployed  for  the  risk-sharing 
instrument  for  project  bonds  in  accordance  with  the  procedure  referred  to  in  Article  15(2) 
from the TEN-T (LGTT) and TEN-E budget lines, respectively. The risk-sharing instrument 
for project bonds may reuse any revenues received within the investment period for new loans 
and guarantees. 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 3 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

1.2. 

Policy area(s) concerned in the ABM/ABB structure 

1.3. 

Nature of the proposal/initiative  

1.4. 

Objective(s)  

1.5. 

Grounds for the proposal/initiative  

1.6. 

Duration and financial impact  

1.7. 

Management method(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1. 

Monitoring and reporting rules  

2.2. 

Management and control system  

2.3. 

Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 
affected  

Heading(s) of the multiannual financial framework and expenditure budget line(s) 

3.2. 

Estimated impact on expenditure  

3.2.1.  Summary of estimated impact on expenditure  

3.2.2.  Estimated impact on operational appropriations  

3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.4.  Compatibility with the current multiannual financial framework 

3.2.5.  Third-party participation in financing  

3.3. 

Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  amending  Decision  No 
1639/2006/EC establishing a Competitiveness and Innovation Framework Programme (2007-2013) 
and  Regulation  (EC)  No  680/2007  laying  down  general  rules  for  the  granting  of  Community 
financial aid in the field of the trans-European transport and energy networks. 

1.2. 

Policy area(s) concerned in the ABM/ABB structure12  

Policy area: 

Economic and Financial Affairs 

ABB Activity:  Financial operations and instruments 

Policy area: 

Mobility and Transport  

ABB Activity:  Trans-European Networks 

Policy area: 

Information Society and Media 

Activities: 

ICT take-up (0903) 

Policy area: 

Energy  

ABB Activity:  Trans-European Networks (3203) 

1.3. 

Nature of the proposal/initiative  

The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

To prepare CEF 

Support  development  of  energy  infrastructures  which  ensure  continuity  and  safety  of  the 
energy supply and, thereby, proper functioning of the economy 

To ensure interconnections and interoperability of transport networks 

To support ICT take-up 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objective: The number of transport, energy and broadband projects supported. 

ABB Activity:  

12 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 

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ECFIN: Financial operations and instruments 

MOVE Interconnections and interoperability of networks through removal of bottlenecks 

INFSO ICT take-up (0903) 

ENER To improve security of energy supply through infrastructure 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The  objective  of  the  initiative  is  to  support  the  revival  of  the  European  project  bond 
markets  and  facilitate  infrastructure  projects'  access  to  finance.  The  Europe  2020  Project 
Bond  Initiative  is  a  new  risk-sharing  financial  instrument  to  be  introduced  in  the  TEN-
policies for transport, energy and telecommunications, in particular broadband. It aims at 
encouraging more private sector debt finance for European infrastructure projects actions.  

As  part  of  the  TEN-T,  TEN-E  and  Competitiveness  and  Innovation  Framework 
Programme (CIP) budget – instead of being used as a grant – the EU budget is invested in 
the  form  of  provisions  and  capital  allocation  at  the  European  Investment  Bank  (EIB)  in 
order to cover a share of the risk the EIB is taking when financing infrastructure projects 
under this initiative.  

The implementation of the facility should allow: 

a) Financing by the EIB of a larger lending volume to infrastructure projects, and riskier 
but still “bankable” infrastructure projects.  

b)  Generation  of  a  multiplier  effect  of  EU  budget  funding  on  private  investment  in 
infrastructure, so that EUR 1 of EU funds allocated to the initiative could generate between 
EUR 15 and EUR 20 invested in European infrastructure projects. 

However,  considering  the  amounts  available  under  the  budget  lines  and  their  non-
fungibility  in  the  pilot  phase,  it  is  estimated  that  the  number  of  projects  that  can  be 
supported is limited to 5-14 infrastructure projects. This estimated number of projects will 
mainly depend on their size and market acceptance.  

1.4.4. 

Indicators of results and impact  

The  objective  is  to  increase  capital  market  debt  financing  available  for  infrastructure 
projects which are eligible for support under the Regulation No 690/2007 and Decision No 
1639/2006/EC. Thus the following indicators will be applied: 

-  The  number  of  TEN-T,  TEN-E  and  broadband  projects  having  received  EIB  financing 
under the initiative. 

- The achieved multiplier effect, cumulative and per sector. The expected multiplier effect 
is up to 15-20 in terms of EU budget support compared to the total investment raised for 
the projects supported under the initiative and the terms of the transactions. 

- The volume of debt capital market financing being raised for these projects, cumulative 
and per sector in question. 

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The  monitoring  of  the  results  will  be  based  on  the  reporting  by  the  EIB  and  market 
research.  

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

Due to fiscal austerity in the Member States, there is a danger that infrastructure projects of 
EU  interest  are  not  carried  out  at  the  pace  required  to  achieve  Europe  2020  objectives 
thereby compromising EU's economic recovery and growth.  

In  addition,  due  to  the  liquidity  and  risk  problematic  during  the  financial  crisis,  banks 
reacted with a shortening of loan maturities, increased pricing and collateral requirements 
for  infrastructure  projects.  Even  though  the  bank  debt  markets  show  signs  of  recovery, 
infrastructure  projects  continue  to  have  difficulties  in  accessing  long-term  debt  finance. 
Therefore, the potential importance of bond markets as a source of finance has increased. 
However as there are no permanent public credit enhancement measures, no project bond 
operations in the field of TEN-T, TEN-E or broadband have been done in the last years.  

The  Europe  2020  Project  Bond  Initiative  aims  at  providing  the  credit  enhancement 
required to attract capital market investors and would facilitate the creation of a new asset 
class  in  terms  of  infrastructure  project  bonds.  In  the  context  of  economic  recovery  and 
support to actions stimulating growth, it is necessary to launch the initiative at a moment 
when  capital  market  investors  have  started  looking  for  alternative  longer  term,  rather 
secure  investment  alternatives.  In  order  to  stimulate  market  behaviour  and  allow  a  more 
efficient  implementation  of  the  financial  instruments  under  the  Connecting  Europe 
Facility,  the  launch  of  a  pilot  phase  is  required,  also  for  market  testing  purposes  which 
would allow optimising the design for the post-2013 period. 

1.5.2.  Added value of EU involvement 

The  initiative  will  complement,  rather  than  replace  bank  lending  and  thus  provide  an 
alternative  and  competitive  source  of  long-term  debt  finance  to  projects.  Similar 
instruments  which  would  attract  capital  market  financing  into  key  EU  infrastructure 
projects do not exist. 

Innovative  solutions  are  required  to  mobilise  urgently  a  greater  share  of  private  EU  and 
foreign  savings  for  infrastructure  projects  and  alleviate  the  pressures  on  national  public 
budgets.  EIB  financing  operations  under  the  Europe  2020  Project  Bond  Initiative  will 
complement  the  activities  carried  out  under  the  current  equity  and  debt  instruments, 
Marguerite and Loan Guarantee instrument for TEN-Transport (LGTT). 

EIB  Financing  Operations  represent  a  highly  visible  and  effective  tool  in  support  of 
infrastructure  projects  in  the  area  of  transport,  energy  and  ICT,  which  are  significant  for 
the  implementation  of  Europe  2020  strategy.  The  EIB  passes  on  in  full  the  financial 
advantages  resulting  from  the  EU  support  and  the  attractive  funding  costs  of  the  EIB  to 
final beneficiaries in the form of competitive interest rates. 

This  risk-sharing  instrument  provides  for  the  necessary  financial  backing  by  the  EU  for 
projects which would not normally fit within the EIB's standard guidelines and criteria. 

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1.5.3.  Lessons learned from similar experiences in the past 

The  findings  are  summarised  and  analysed  in  the  impact  assessment  which  accompanies 
the present proposal.  

The  experiences  with  the  Loan-Guarantee  Instrument  for  TEN-Transport  (LGTT)  show 
that  significant  time  is  needed  to  get  the  financial  markets,  financial  and  legal  advisors, 
public authorities, project sponsors and operators to accept new ideas and understand the 
beneficial impact of LGTT on the financial structuring of projects. LGTT was launched in 
2007  and  was  a  novelty,  a  dedicated  instrument  to  cover  operational  risks  after  the 
constuction period of transport infrastructure projects. Therefore, it is important to launch a 
pilot phase for the Europe 2020 Project Bond Initiative in order not to lose the momentum 
by these stakeholders, which welcome the initiative.  

1.5.4.  Coherence and possible synergy with other relevant instruments 

This initiative is coherent with the Europe 2020 Strategy, with the proposal to implement 
the Connecting Europe Facility and with the Annual Growth Survey.  

The  Connecting  Europe  Facility  will  provide  the  longer-term  framework  ensuring  that 
projects in energy, transport and telecommunications are developed and implemented in a 
timely  and  effective  manner.  A  comprehensive  strategy  of  prioritised  opportunities  of 
infrastructure projects, as proposed by the Commission on 29 June 201113, has significant 
potential to attract more private sector financing and at the same time help to complete the 
internal  market.  The  strategy  including  the  selection  of  projects  eligible  for  funding  is 
transparent, thus ensuring a high level of certainty for all stakeholders. Within this strategy, 
the setting of policy priorities, regulations, incentive schemes, close co-ordination between 
stakeholders,  information  and  awareness  campaigns  are  required  to  establish  the  overall 
framework  conditions  for  infrastructure  investments,  enforcing  behavioural  changes 
amongst  stakeholders  and  accelerating  the  pace  of  intervention.  Grants  and  financial 
instruments,  each  under  a  distinct  set  of  financial  rules,  would  be  available  in  a  co-
ordinated manner.  

Financial instruments are needed to reduce specific barriers that prevent the flow of debt 
and equity finance. Their main objective is to attract and facilitate private sector finance of 
projects.  At  the  same  time,  increased  investment  activity  in  infrastructure  projects 
stimulates  the  global  development  of  post-crisis  financial  markets,  enhances  the  pace  of 
economic  recovery  and  promotes  growth.  The  Europe  2020  Project  Bond  Initiative  will 
become an integral part of the risk-sharing instruments of CEF for the period 2014-2020. 
The main objective of the pilot phase in 2012-2013 is immediate support for infrastructure 
projects and preparation of the operational phase of the initiative in 2014-2020.  

1.6. 

Duration and financial impact  

Implementation with a start-up period from 2012 to 2013 . 

1.7.  Management mode(s) envisaged14  

Joint management with the delegation of implementation tasks to the EIB. 

13 
14 

COM(2011) 500 - A budget for Europe 2020 and the relevant Commission staff working papers. 
Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

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In  line  with  existing  provisions,  the  proposal  foresees  that  the  EIB  finances  investment 
projects in accordance with its own rules and procedures. The Commission is responsible 
for  managing  the  budget  appropriations.  The  EIB  and  the  Commission  enter  into  an 
agreement 
the 
implementation of the proposed Decision. 

the  detailed  provisions  and  procedures  relating 

laying  down 

to 

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules, management and control  

EIB Financing Operations will be managed by the EIB in accordance with the EIB's own 
rules  and  procedures,  including  appropriate  audit,  control  and  monitoring  measures.  As 
foreseen  in  the  EIB  Statute,  the  Audit  Committee  of  the  EIB,  which  is  supported  by 
external  auditors,  is  responsible  for  verifying  the  regularity  of  the  EIB  operations  and 
accounts. The EIB accounts are approved annually by its Board of Governors. 

Furthermore,  the  EIB  Board  of  Directors,  where  the  Commission  is  represented  by  a 
Director and an alternate Director, approves each EIB  Financing  Operation and monitors 
that the EIB is managed in accordance with its Statute and with the general directives laid 
down by the Board of Governors. 

The existing tripartite agreement between the Commission, the Court of Auditors and the 
EIB of October 2003, renewed for another four-year period in 2007, details the rules under 
which  the  Court  of  Auditors  is  to  carry  out  its  audits  on  the  EIB  Financing  Operations 
under EU guarantee. 

As per Article 49 of the Interinstitutional Agreement, the Commission shall report to the 
budgetary authority each year on the activities carried out by the EIB. 

Furthermore,  the  EIB  shall  provide  the  Commission  with  statistical,  financial  and 
accounting data on each of the EIB Financing Operations as necessary to fulfil its reporting 
duties or requests by the European Court of Auditors as well as an auditor’s certificate on 
the outstanding amounts of the EIB Financing Operations. 

Monitoring  by  the  Commision  in  accordance  with  sound  financial  management  shall 
include the drawing up of regular reports on progress made in implementing the initiative 
by means of financial implementation, results and impact indicators. The reporting under 
Article 49 of the Interinstitutional agreement will include a section on this initiative. 

Finally, the Commission intends to carry out an evaluation of the pilot phase in the second 
half of 2013 in order to evaluate its success during the short period of operation and any 
lessons for the post-2013 implementation within CEF. 

2.2.  Measures to prevent fraud and irregularities  

As this initiative entails the operational management by the EIB, the initiative builds on the 
control  and  monitoring  already  in  place  for  the  Loan-Guarantee  instrument  for  TEN-
Transport projects (LGTT). The EIB has the main responsibility for the adoption of fraud 
prevention  measures,  notably  through  the  application  to  the  financed  operations  of  the 
"EIB’s Policy on preventing and deterring Corruption, Fraud, Collusion, Coercion, Money 
Laundering  and  the  Financing  of  Terrorism  in  European  Investment  Bank  activities"  as 
adopted in April 2008. 

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The EIB's rules and procedures include, among the detailed arrangements to fight against 
fraud  and  corruption,  the  competence  of  OLAF  to  carry  out  internal  investigations.  In 
particular, in July 2004, the EIB Board of Governors approved a decision "concerning the 
terms  and  conditions  for  internal  investigations  in  relation  to  the  prevention  of  fraud, 
corruption and any illegal activity detrimental to the Communities' financial interests". 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

•  Existing expenditure budget lines. The financing of the instrument will be guaranteed by 
redeployment  of  EU  budget  within  the  current  programmes  in  the  same  policy  areas 
(MOVE, ENER and INFSO) which are concerned by this new instrument and under the 
same budget lines.  

Budget line 

Type of  
expenditure

Contribution  

Number  
[Description………………………...……….] 

Diff./non-
diff 
(15) 

from 
EFTA16 
countries 

from 
candidate 
countries17 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

Heading of 
multiannual 
financial 
framework 

1A 

06.03.03 

TEN-T 

Diff 

NO 

NO 

/NO 

NO 

Budget line 

Type of 
expenditure

Contribution  

Number  
[Heading……………………………………..] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

32.03.02 

TEN-E 

Diff 

NO 

NO 

NO 

NO 

Budget line 

Type of 
expenditure

Contribu
tion  

Heading of 
multiannual 
financial 
framework 

1A 

Heading of 
multiannual 
financial 
framework 

Number  
[Heading……………………………………..] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

1A 

09.03.01 

CIP ICT PSP 

Diff 

YES 

YES 

YES 

NO 

15 
16 
17 

Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

This decision on credits allocated to this action will be taken by the budgetary authority in the context of the annual procedure. Therefore, the 
split of the commitment and payment appropriations over the years is indicative only. In any case, the total EU budget available for the pilot 
phase of the Europe 2020 Project Bond Initiative is capped at EUR 230 million.  

In the case of DG MOVE and TEN-T EA, the administrative effort required is expected to remain stable at the same level as the one presently 
required for the management of the Loan Guarantee Facility for TEN-Transport. There is therefore no net impact on staffing. For DGs ENER 
and INFSO, this represents a new action, while for ECFIN, the implementation and follow-up requires administrative effort. Hence, there are 
staffing impacts, albeit different ones, reflecting the different tasks, for these DGs. 

Heading of multiannual financial 
framework:  

1A 

Competitiveness for Growth and Employment 

EUR million (to 3 decimal places) 

DG: MOVE, ENER and INFSO 

201218 

2013 

2014 

TOTAL 

(cid:121) Operational appropriations  

06.03.03 

32.03.02 

09.03.01 

Commitments 

Payments 

Commitments 

Payments 

Commitments 

(1) 

(2) 

(1a) 

(2a) 

(1a) 

100 

100 

0 

40 

0 

0 

0 

60 

10 

10 

20 

100 

0 

0 

0 

200 

200 

10 

10 

20 

18 

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

23 

EN 

 
  
 
 
 
 
 
 
 
                                                 
Appropriations 
administrative 
from the envelope for specific programmes19  

an 

of 

Payments 

(2a) 

0 

20 

nature 

financed 

0 

0 

Number of budget line 

TOTAL appropriations 
for DG MOVE, ENER and INFSO 

(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(3) 

=1+1a 
+3 

=2+2a 

+3 

(4) 

(5) 

(6) 

100 

130 

40 

90 

100 

100 

40 

0 

130 

90 

0 

TOTAL appropriations  
under HEADING 1A 
of the multiannual financial framework 

Commitments 

=4+ 6 

100 

130 

Payments 

=5+ 6 

40 

90 

0 

0 

0 

0 

100 

0 

0 

100 

20 

230 

230 

230 

230 
0 

230 

230 

19 

EN 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct 
research. 

24 

EN 

 
  
 
 
 
 
 
 
 
 
                                                 
Heading of multiannual financial framework:  

5 

" Administrative expenditure " 

2012 

2013 

2014 

2015 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6)  

TOTAL 

EUR million (to 3 decimal places) 

DG: MOVE, ENER, INFSO and 
ECFIN and TEN-T EA 

(cid:121) Human resources  

(cid:121) Other administrative expenditure  

0.1 
staff 
(ECFIN
) + 0.1 
staff 
(ENER
)+ 0.5 
staff 
(INFSO
) 
= 

0.0889 
(0.7*12
7000 
standar
d cost 
per 
post) 
- 
(ENER
) 

0.5 
staff 
(ECFIN
) + 0.1 
staff 
(ENER
) 
= 

0.0762 
(0.6*12
7000 
standar
d cost 
per 
post) 

- 
(ENER
) 

0.1 
staff 
(ECFIN
) + 0.1 
staff 
(ENER
) 
=  

0.0254 
(0.2*12
7000 
standar
d cost 
per 
post) 

- 
(ENER
) 

TOTAL DG <…….> 

Appropriations  

0.0762 

0.0889 

0.0254 

EN 

25 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

0.0762 
(ENER 
+ 
ECFIN 
+ 
INFSO) 

0.0889 
(ENER 
+ 
ECFIN 
+ 
INFSO) 

0.0254 
(ENER 
+ 
ECFIN 
+ 
INFSO) 

Year 
201220 

Year 
2013 

Year 
2014 

Year 
2015 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

EUR million (to 3 decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

100.076
2 

130.088
9 

0.0254 
) 

40.0762 

90.0889 
) 

1000.02
54 ) 

230.1905 

230.1905 

20 

Year N is the year in which implementation of the proposal/initiative starts. 

EN 

26 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated impact on operational appropriations  

–  (cid:133) 

The proposal/initiative does not require the use of operational appropriations  

–  x 

The  proposal/initiative  requires  the  use  of  operational  appropriations,  as  explained  below:  However,  these  needs  will  be  covered 
through redeployment. In addition, there are no fixed costs per project as the EU budget required will depend on the size of the project and 
other conditions. Therefore, the figures provided hereunder are only estimates and indicative to demonstrate that the number of projects to 
be supported will be limited. 

–  The outputs are the number of projects enhanced and the budget contribution required from EU to EIB. 

Year 
2012 

Year 
2013 

Year 
2014 

Year 
N+3 

… enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

OUTPUTS 

Commitment appropriations in EUR million (to 3 decimal places) 

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

t
s
o
C

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

t
s
o
C

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

t
s
o
C

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

t
s
o
C

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

t
s
o
C

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

t
s
o
C

r
e
b
m
u
N

s
t
u
p
t
u
o

f
o

t
s
o
C

Total 
number 
of outputs 

Total  
cost 

Type 
of 
output
21 

Indicate 
objectives and 
outputs  

(cid:216) 

Average 
cost  
of the 
output 
will 
depend 
of the 
size of 
the 
project 
and its 
risk 
clasisfic
action, 
maturity
, etc 

21 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 

EN 

27 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
SPECIFIC OBJECTIVE No 122… 

- Output MOVE  Nr of 
project

- Output ENER 

Nr of 
project

- Output INFSO  Nr of 
project

Estimat
ed 20 

Estimat
ed 10 

Estimat
ed 20 

Number of transport, energy and broadband projects supported. 

1-2 

40 

1-3 

60 

1-6 

100 

1 

10 

1-2 

20 

3-11 

200 

1 

1-2 

10 

20 

Sub-total for specific objective N°1 

1- 

40 

3-6 

90 

1-6 

100 

SPECIFIC OBJECTIVE No 2… 

- Output 

Sub-total for specific objective N°2 

TOTAL COST 

1-2 

40 

1-6 

90 

1-6 

100 

5-14 

230 

TOTAL COST 

1-2 

40 

1-6 

90 

1-6 

100 

5-14 

230 

22 

As described in Section 1.4.2. "Specific objective(s)…" 

EN 

28 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–  (cid:133) 

The proposal/initiative does not require the use of administrative appropriations  

–  X 

The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

EUR million (to 3 decimal places) 

Year 
2012 23 

Year 
2013 

Year 
2014 

Year 
2015 

…  enter  as  many  years  as  necessary 
to  show  the  duration  of  the  impact 
(see point 1.6) 

TOTA
L 

HEADING 5 
of the multiannual 
financial framework 

Human resources 

0.0762 

.0889 

0

0

.0254 

0

0

0

.0762 

.0889 

.0254 

Other  administrative 
expenditure 

Subtotal  HEADING  5 
of 
the  multiannual 
financial framework 

Outside HEADING 524 
of 
the  multiannual 
financial framework 

Human resources 

expenditure  
Other 
of  an  administrative 
nature 

Subtotal  
outside  HEADING  5 
of 
the  multiannual 
financial framework 

0

0

.1905 

.1905 

TOTAL 

0
.0762 

0
.0889 

0
.0254 

0
.1905

23 
24 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

EN 

29 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
3.2.3.2.  Estimated requirements of human resources  

–  The proposal/initiative requires the use of human resources, as explained below: 

2012 

2013 

2014 

2015 

 Enter as many 
years as 
necessary to show 
the duration of 
the impact 
(see point 1.6) 

(cid:121) Establishment plan posts (officials and temporary agents) 

ECFIN: 01 01 01 01, ENER 32.01.01, INFSO 09.01.01 
(Headquarters and Commission’s Representation Offices) 

0.1 
(ENER) 
+ 0.5 
(ECFIN) 

0.1 
(ENER) + 
0.1 
ECFIN + 
0.5 
INFSO 

0.1 
(ENER) + 
0.1 
INFSO 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)25 

XX 01 02 01 (CA, INT, SNE from the "global envelope") 

- (ENER) 

- (ENER) 

- (ENER) 

XX 01 02 02 (CA, INT, JED, LA and SNE in the 
delegations) 

- (ENER) 

- (ENER) 

- (ENER) 

XX 01 04 yy 26 

Headquarters27 

- (ENER) 

- (ENER) 

- (ENER) 

delegations  

- (ENER) 

- (ENER) 

- (ENER) 

XX 01 05 02 (CA, INT, SNE - Indirect research) 

- (ENER) 

- (ENER) 

- (ENER) 

10 01 05 02 (CA, INT, SNE - Direct research) 

- (ENER) 

- (ENER) 

- (ENER) 

Other budget lines (specify) 

- (ENER) 

- (ENER) 

- (ENER) 

TOTAL 

Estimate to be expressed in full amounts (or at most to one decimal place) 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DGs who are already assigned 
to management of the action and/or have been redeployed within the DGs, together if 
necessary with any additional allocation which may be granted to the managing DG under 
the annual allocation procedure and in the light of budgetary constraints. Description of 
tasks to be carried out: 

25 

26 
27 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young Experts 
in Delegations); LA= Local Agent; SNE= Seconded National Expert. 
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and European 
Fisheries Fund (EFF). 

EN 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Officials and temporary agents 

As the main operational responsibility lies with the EIB, Commission staff will carry 
out the following tasks:  

- Negotiation of contractual arrangement etc 

- Administration of the budgetary procedure (based on the project pipeline provided by 
the EIB); 

-  Assessment  of  the  regular  information  submitted  by  the  EIB  and  preparation  of 
reports  to  the  budgetary  authority,  such  as  those  under  Article  49  of  the 
Interinstitutional Agreement; 

- Participation to steering group meetings to monitor the implementation; 

- Accounting; 

- Relations with the Court of Auditors, Parliament and Council. 

- Providing eligibility guidelines to the EIB on individual project cases 

External personnel 

N/A 

3.2.4.  Compatibility with the current multiannual financial framework  

–  Proposal/initiative  is  compatible  the  current  multiannual  financial  framework.  These 

amounts will come from redeployment within existing programmes. 

3.3. 

Estimated impact on revenue  

Interest  and  other  revenues  generated  by  the  instrument,  such  as  fees  paid  by  the 
beneficiaries,  and  received  by  31  December  2013  can  be  added  to  the  resources  of  the 
initiative.  After  1  January  2014,  the  revenues  are  returned  to  the  Union  budget.  At  this 
stage, it is not possible to estimate the flow and timing of potential revenues. 

–  (cid:133) 

Proposal/initiative has no financial impact on revenue. 

–  X 

Proposal/initiative has the following financial impact: 

– 

– 

(cid:133) 

X 

on own resources  

on miscellaneous revenue  

Appropriations 
available for the 
ongoing budget 
year 

Budget revenue line: 

Article …………. 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative28 

2012 

2013 

2013 

Year 
N+3 

… insert as many columns as necessary 
in order to reflect the duration of the 
impact (see point 1.6) 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

Specify the method for calculating the impact on revenue. 

28 

As  regards  traditional  own  resources  (customs  duties,  sugar  levies),  the  amounts  indicated  must  be  net 
amounts, i.e. gross amounts after deduction of 25% for collection costs. 

EN 

31 

   EN