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# 52011PC0659

**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 /\* COM/2011/0659 final - 2011/0301 (COD) \*/**

  

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 projects[2],
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 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 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 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 stage[3]
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.

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/EC[4] of the European Parliament and
of the Council establishing the Competitiveness and Innovation Framework
Programme (2007-2013) and Regulation (EC) No 680/2007[5] 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.

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

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.

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 Committee[6],

Having regard to the opinion of the
Committee of the Regions[7],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)
Decision No 1639/2006/EC of the European
Parliament and of the Council of 24 October 2006[8]
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.

(2)
Regulation (EC) No 680/2007 of the European
Parliament and of the Council of 20 June 2007[9]
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 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.

(4)
In its resolution of 8 June 2011 on Investing in
the future: a new Multiannual Financial Framework (MFF) for a competitive,
sustainable and inclusive Europe[10],
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.

(5)
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.

(6)
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 Communication[11]
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.

(7)
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.

(8)
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.

(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)
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.

(16)
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.

(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:

(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:

"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.

Article 3

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

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

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

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

              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

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 structure[12]

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:

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.

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.

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 2011[13],
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)
envisaged[14]

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

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 laying down
the detailed provisions and procedures relating to the implementation of the
proposed Decision.

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.

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".

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.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description………………………...……….] || Diff./non-diff ([15]) || from EFTA[16] countries || from candidate countries[17] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

1A || 06.03.03 TEN-T || Diff || NO || NO || /NO || NO

Heading of multiannual financial framework || 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

1A || 32.03.02 TEN-E || Diff || NO || NO || NO || NO

Heading of multiannual financial framework || 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

1A || 09.03.01 CIP ICT PSP || Diff || YES || YES || YES || NO

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.

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || 1A || Competitiveness for Growth and Employment

DG: MOVE, ENER and INFSO || || || 2012[18] || 2013 || 2014 || TOTAL

 Operational appropriations || || || ||

06.03.03 || Commitments || (1) || 100 || 100 || 0 || 200

Payments || (2) || 40 || 60 || 100 || 200

32.03.02 || Commitments || (1a) || 0 || 10 || 0 || 10

Payments || (2a) || 0 || 10 || 0 || 10

09.03.01 || Commitments || (1a) || 0 || 20 || 0 || 20

Payments || (2a) || 0 || 20 || 0 || 20

Appropriations of an administrative nature financed from the envelope for specific programmes[19] || 0 || 0 || 0 ||

Number of budget line || || (3) || || || ||

TOTAL appropriations for DG MOVE, ENER and INFSO || Commitments || =1+1a +3 || 100 || 130 || 0 || 230

Payments || =2+2a +3 || 40 || 90 || 100 || 230

 TOTAL operational appropriations || Commitments || (4) || 100 || 130 || 0 || 230

Payments || (5) || 40 || 90 || 100 || 230

 TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0 || 0 || 0 || 0

TOTAL appropriations under HEADING 1A of the multiannual financial framework || Commitments || =4+ 6 || 100 || 130 || 0 || 230

Payments || =5+ 6 || 40 || 90 || 100 || 230

Heading of multiannual financial framework: || 5 || " Administrative expenditure "

EUR million (to 3 decimal places)

|| || || 2012 || 2013 || 2014 || 2015 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

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

 Human resources || 0.5 staff (ECFIN) + 0.1 staff (ENER) = 0.0762 (0.6\*127000 standard cost per post) || 0.1 staff (ECFIN) + 0.1 staff (ENER)+ 0.5 staff (INFSO) = 0.0889 (0.7\*127000 standard cost per post) || 0.1 staff (ECFIN) + 0.1 staff (ENER) = 0.0254 (0.2\*127000 standard cost per post) || || || || ||

 Other administrative expenditure || - (ENER) || - (ENER) || - (ENER) || || || || ||

TOTAL DG <…….> || Appropriations || 0.0762 || 0.0889 || 0.0254 || || || || ||

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.0762 (ENER + ECFIN + INFSO) || 0.0889 (ENER + ECFIN + INFSO) || 0.0254 (ENER + ECFIN + INFSO) || || || || || || || ||

EUR million (to 3 decimal places)

|| || || Year 2012[20] || Year 2013 || Year 2014 || Year 2015 || … enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 100.0762 || 130.0889 || 0.0254 ) || || || || || 230.1905

Payments || 40.0762 || 90.0889 ) || 1000.0254 ) || || || || || 230.1905

3.2.2.     Estimated impact on
operational appropriations

–
¨      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.

Commitment appropriations in EUR million (to 3 decimal
places)

Indicate objectives and outputs ò || || || 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

Type of output[21] || Average cost of the output will depend of the size of the project and its risk clasisficaction, maturity, etc || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

SPECIFIC OBJECTIVE No 1[22]… || Number of transport, energy and broadband projects supported.

- Output MOVE || Nr of projects projects || Estimated 20 || 1-2 || 40 || 1-3 || 60 || 1-6 || 100 || || || || || || || || || 3-11 || 200

- Output ENER || Nr of projects || Estimated 10 || || || 1 || 10 || || || || || || || || || || || 1 || 10

- Output INFSO || Nr of projects || Estimated 20 || || || 1-2 || 20 || || || || || || || || || || || 1-2 || 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

3.2.3.     Estimated impact on
appropriations of an administrative nature

3.2.3.1.  Summary

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

–
X       The proposal/initiative requires the use
of administrative appropriations, as explained below:

|| 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) || TOTAL

EUR million (to 3
decimal places)

HEADING 5 of the multiannual financial framework || || || || || || || ||

Human resources || 0.0762 || 0.0889 || 0.0254 || || || || || 0.1905

Other administrative expenditure || || || || || || || ||

Subtotal HEADING 5 of the multiannual financial framework || 0.0762 || 0.0889 || 0.0254 || || || || || 0.1905

Outside HEADING 5[24] of the multiannual financial framework || || || || || || || ||

Human resources || || || || || || || ||

Other expenditure of an administrative nature || || || || || || || ||

Subtotal outside HEADING 5 of the multiannual financial framework || || || || || || || ||

TOTAL || 0.0762 || 0.0889 || 0.0254 || || || || || 0.1905

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) ||

 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 || || ||

||  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] || - at Headquarters[27] || - (ENER) || - (ENER) || - (ENER) || || ||

|| - in 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:

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.

– ¨      Proposal/initiative
has no financial impact on revenue.

– X       Proposal/initiative has the following financial impact:

–
¨                  on own resources

–
X                  on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[28]

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)

Article …………. || || || || || || || ||

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

Specify the method for
calculating the impact on revenue.

[1]               COM(2011) 500 final.

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

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

[4]               OJ L 310, 9.11.2006, p. 15.

[5]               OJ L 162, 22.6.2007, p. 1.

[6]               OJ C , , p. .

[7]               OJ C , , p. .

[8]               OJ L 310, 9.11.2006, p. 15.

[9]               OJ L 162, 22.6.2007, p. 1.

[10]             COM(2011)500OJ C xxx , date, p.

[11]             COM(2011)660 xxx

[12]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[13]             COM(2011) 500 - A budget for Europe 2020 and the
relevant Commission staff working papers.

[14]             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

[15]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations.

[16]             EFTA: European Free Trade Association.

[17]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

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

[19]             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.

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

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

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

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

[24]             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.

[25]             CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert.

[26]             Under the ceiling for external personnel from
operational appropriations (former "BA" lines).

[27]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[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.

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