Article 18 Budgetary resources
1. The financial envelope for the implementation of this Regulation for the period 2007 to 2013 shall be EUR 8 168 000 000, of which EUR 8 013 000 000 shall be for TEN-T and EUR 155 000 000 shall be for TEN-E. 2. The annual appropriations shall be authorised by the budgetary authority within the limits of the multiannual financial framework.
Amendment rationale: 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. 
Revised version (Article 18 ):
Budgetary resources 1. The financial envelope for the implementation of this Regulation for the period 2007 to 2013 shall be EUR 8 168 000 000, of which EUR 8 013 000 000 shall be for TEN-T and EUR 155 000 000 shall be for TEN-E. 2. The annual appropriations shall be authorised by the budgetary authority within the limits of the multiannual financial framework.
Article 19 Revision clause
Before the end of 2010, the Commission shall submit to the European Parliament and to the Council a general report on the experience gained with the mechanisms provided for by this Regulation for the granting of Community financial aid. Acting in accordance with the procedure provided for in the first subparagraph of Article 156 of the Treaty, the European Parliament and the Council shall decide if, and under what conditions, the mechanisms provided for by this Regulation are to be maintained or amended beyond the period referred to in Article 18 of this Regulation.
Amendment rationale: 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. 
Revised version (Article 19 ):
Revision clause Before the end of 2010, the Commission shall submit to the European Parliament and to the Council a general report on the experience gained with the mechanisms provided for by this Regulation for the granting of Community financial aid. Acting in accordance with the procedure provided for in the first subparagraph of Article 156 of the Treaty, the European Parliament and the Council shall decide if, and under what conditions, the mechanisms provided for by this Regulation are to be maintained or amended beyond the period referred to in Article 18 of this Regulation.
Article 20 Entry into force
This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union. It shall apply as from 1 January 2007. Actions underway in the field of transport and energy on the date of application of this Regulation shall continue to be subject to Regulation (EC) No 2236/95 in the version in force on 31 December 2006.
Amendment rationale: 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. 
Revised version (Article 20 ):
Entry into force This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Union. It shall apply as from 1 January 2007. Actions underway in the field of transport and energy on the date of application of this Regulation shall continue to be subject to Regulation (EC) No 2236/95 in the version in force on 31 December 2006. This Regulation shall be binding in its entirety and directly applicable in all Member States.