Los cronistas
A. JAIME SÁENZ.
1. El otro lado de las cosas
The Connecting Europe Facility (CEF), established in December 2013, supports trans- European networks and infrastructure in the sectors of transport, telecommunications and energy. It aims to act as a catalyst for further private and public funding by giving infrastructure projects credibility and lowering their risk profiles, thereby attracting investors. It also finances technical assistance programmes.
One of the CEF’s key elements is a more systematic use of innovative FIs to provide a funding alternative to traditional grants and fill financing gaps for strategic infrastructure investments. Investment needs identified for the EU transport system, reduction of national infrastructure investments programmes and restrictions of bank lending for long-term or risky projects have been among the catalysts for the demand for FIs’ wider use in the CEF. Regulation No. 1316/2013129 provides for the FIs usage for actions with a clear European added value. The contribution from the EU budget to the FIs should not exceed ten percent of the overall financial envelope of the CEF. It provides support for: equity instruments (such
124 For more information, see:
http://helpingyouinnovate.eib.org
125 Thematic objective 1, Article 9 CPR.
126 The regulatory framework for Cohesion Policy in 2014-2020 (see CPR Articles 9 and 18) envisages thematic
concentration of expenditure on a limited number of objectives in order to maximise the contribution of Cohesion Policy to the priorities of the Union strategy for smart, sustainable and inclusive growth (with 'strengthening research, technological development and innovation' being one of the associated 11 thematic objectives).
127
Regulation (EU) No. 1303/2013 op. cit.
128 Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing
Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC
129
Regulation (EU) No. 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility.
as investment funds with a focus on providing risk capital for actions contributing to projects of common interest); and loans and/or guarantees facilitated by risk-sharing instruments (including the credit-enhancement mechanism for project bonds).
The Europe 2020 Project Bond Initiative (PBI), implemented by the EIB, is one of the CEF FIs. It is a joint initiative by the Commission and the EIB, the pilot phase of which started operations in 2012. It is designed to revive project bond markets and enable eligible infrastructure projects promoters, usually public-private partnerships, to attract additional private finance from institutional investors.
The CEF builds on the experience gained in the implementation of FIs in the 2007-13 period, such as the Loan Guarantee Instrument for Trans-European Transport Networks projects (LGTT), equity investments through the 2020 European Fund for Energy, Climate Change and Infrastructure (the ‘Marguerite Fund’), and the pilot phase of the PBI.
The EIB has been working closely with the Commission as well as other financial institutions to exploit investors’ interest in long-term infrastructure investment opportunities and to develop related FIs. The instruments – predecessors to the CEF FIs – were put in place in cooperation with the EIB. For instance, the LGTT was set up and developed jointly by the Commission and the EIB, aiming to facilitate a larger participation of the private sector in financing TEN-T infrastructure. The EIB and the Commission have also been working together on a number of options to extend the range of debt instruments under the CEF. The EIB has had a role in implementing the PBI (which was the first instrument developed by the EIB and the Commission under the CEF) and in developing further FIs within it (e.g., the Project Bond Credit Enhancement (PBCE) facility as a PBI- subordinated instrument). The activities of the initiative seek to build on the existing experience with joint Commission-EIB instruments and to utilise the EIB’s expertise in EU infrastructure financing. Within the initiative, while the Commission determines general eligibility criteria, the EIB has a role in selecting specific projects and types of support, the Commission and the EIB sharing the associated risk. According to an ad-hoc audit of the pilot phase of the PBI,130 the role of the EIB may also be seen in the fact that its involvement has been assessed as bringing ‘credibility’ and ‘comfort’ to investors, lowering project-associated risks. Additionally, according to Regulation No. 1316/2013,131 the EIB should have a role in providing, at the request of the Commission or Member States, ‘technical assistance, including on financial structuring to projects of common interest’.
According to the Commission,132 ‘synergies and complementarity should be sought’ and FIs through ESIF should take account of and work together when justified with other EU FIs. The CPR133 provides a legal base for such synergies, covering arrangements to ensure coordination between ESIF and other EU programmes in PAs and OPs. The Regulation notes the CEF role in accelerating development of infrastructure across the EU, and states that ERDF and Cohesion Fund interventions should be planned in close cooperation with the support provided from the CEF, to ensure complementarity and optimal linkage of different types of infrastructure at various spatial levels. Appropriate coordination and technical support mechanisms should also be put in place, to ensure complementarity and effective planning. In the context of smart specialisation strategies, the commitment to the Digital Agenda for Europe can also be supported by joining forces of Cohesion Policy with the CEF along with Horizon 2020.134
130 EY (2014) Ad-hoc audit of the pilot phase of the Europe 2020 Project Bond Initiative, Final Report, 17 June 2014. 131
Regulation (EU) No. 1303/2013 op. cit.
132 European Commission (2014e) op. cit. 133 Regulation (EU) No. 1303/2013 op. cit. 134
Within ESIF, the support to trans-European infrastructure networks in the three sectors covered by the CEF has remained important for the achievement of the cohesion objective. Overlaps should be avoided by means of the different application objectives of Cohesion Policy funds and the CEF. For example, in transport, while CEF instruments concentrate on projects of high EU added value, ESIF allocate support to TEN-T projects of more regional and national immediate impact. While the Structural Funds support broadband roll-out projects135 where there is no business case, CEF FIs seek to make specific projects commercially viable.
As of 2014, in conjunction with the CEF, support from Cohesion Fund should be provided to projects implementing core networks for transport infrastructure projects of European added value.136 In total, EUR 10 billion is allocated under the Cohesion Fund for actions in this field.137 Member States are eligible under the specific rules for the Cohesion Fund and the selection of projects has to follow the national allocations under the Cohesion Fund. However, selection of projects will take place under the rules of the CEF regulation. These measures are in line with the ambition to ensure synergies and complementarities between different kinds of interventions targeting transport infrastructure in various spatial contexts. The transferred funds are earmarked exclusively for transport infrastructure projects in the Member States eligible for the Cohesion Fund allocations, and projects thus supported can benefit from more favourable financial support conditions. Such a mechanism aims to eliminate the risk of the CEF becoming an instrument used only by economically more-advanced Member States and to ensure that complex transport projects with high EU added value can be delivered in the Cohesion Member States.
135 The EU recognises the strategic importance of broadband, notably in the Digital Agenda for Europe, a flagship
initiative of the Europe 2020 strategy. This is supported by the Structural Funds, see for example the ERDF investment priority 'Extending broadband deployment and the roll-out of high-speed networks and supporting the adoption of emerging technologies and networks for the digital economy', the ‘Broadband target’, CPR.
136 Regulation (EU) No. 1300/2013 of the European Parliament and of the Council of 17 December 2013 on the
Cohesion Fund and repealing Council Regulation (EC) No 1084/2006, recital 9; Regulation (EU) No. 1303/2013 op. cit., recital 80.
137 For more information, see: