TransportTransport

Opportunities from the New financial schemes for European

transport infrastructure projects

Stéphane Ouaki, Head of Unit Connecting Europe – Investment Strategy, DG Transport and Mobility, European Commission

Journées Ile de France, 21 October 2015

Context

• Level of public and private investment historically low in EU, particularly in infrastructure• Adverse impact on growth and long-term

competitiveness of EU economy

• Investment needs very high, in particular in transport sector• Expected growth of international trade and passenger

traffic, need to adapt infrastructure and fleets• Greening of transport, major EU objective

White Paper, TEN-T policy, Clean Fuels for Transport...Sustainable Urban Transport key for the greening of transport system

Context• Private investors looking for investment

opportunities• High levels of liquidity on capital markets• Very low interest rates on sovereign bonds• Interest in infrastructure investments• But risks & uncertainties

• European Commission & EIB want to unlock investment for transport• Provide additional support in financing projects &

companies• By being able to increase the use of instruments

with more risk bearing capacity

Tools available at EU level• Connecting Europe Facility: grants

• Budget of €22.5bn for 2014 -2020, with 11.3bn reserved for Cohesion MS

1st call in 2014, 2nd call in November 2015, => Most of the grant budget allocated

• Connecting Europe Facility: Financial instruments • Up to €1.5bn available for a wide array of instruments

Project Bonds, LGTT, possibility of other Debt or Equity instruments, dedicated investment funds for specific policies

• Standard EIB lending

• New: European Fund for Strategic Investments

European Fund for Strategic Investments

European Fund for Strategic Investments

• New Fund set up within EIB• with a €16bn EU guarantee to finance through loans or

guarantees with higher risk-profile about €315bn of additional investments in the next 3 years (€240bn for infrastructure and research).

• Set up of a European Investment Advisory Hub• Regrouping and expanding existing Technical Assistance to

help administrations and project promoters prepare projects and use financial instruments

• Set up of the European Investment Projects Portal• to provide governments and investors with a transparent

project pipeline to encourage investment.

Eligibility of financial instruments

• CEF financial instruments• The whole TEN-T network, Core & Comprehensive• All projects eligible under TEN-T Guidelines, including

for TEN-T projects in Urban nodes• Ground and on-board components of traffic

management systems or alternative propulsion systems

• EFSI instruments• For transport infrastructure and equipment (rolling

stock)• TEN-T projects, but also beyond TEN-T• Projects for smart and sustainable urban mobility

Opportunities for Urban projects - grants

• CEF grants• Priority for urban nodes – limited budget, mostly

for studies, Urban nodes long the corridors

including pilot cases for alternative fuels (infra and vehicles)Urban transport projects should made clear the

interconnectivity with stations and airports of the TEN-T (last mile connections)

• Priority for Intelligent Transport SystemUrban/trans-Urban projects

+ ERDF grants – low carbon economy+ Horizon 2020- innovation projects

•

Grand Paris – important beneficiary from CEF

• ARMIS : Air Rail rapid Metro Interconnection System• Part of North Sea Med

Corridor• Preparation of Preliminary

Design Studies for 3 urban express lines serving TEN-T nodes (Gare de Lyon, Orly TGV station and airport, CDG airport

• October 2014 – March 2017• Total eligible costs: €62m• Recommended funding: €31m

Opportunities for Urban projects

• CEF & EFSI financial instruments• Allows the EIB to increase its number of riskier

operations• Available to support projects that are technically and

economically sound• Sustainable urban transport one of the 3 identified

priorities for EFSIRail connections urban center/airports Urban transport networks Infrastructure for alternative fuels…

• EquipmentNew Rolling-stock (metro, clean buses, tramways…)

Grand Paris – important beneficiary of EIB lending

• Ligne 15 Sud• Automatic Metro line

of 33km, 16 stations and 2 maintenance centers

• Approved by EIB board in December 2014

• About €1bn EIB lending, for €5.5bn project

TransportTransport

National Promotional Banks (NPBs) and Investment Platforms

• Small projects could benefit from pooling investors' resources in Investment Platforms, with support of National Promotional Banks (e.g. CDC, BPI).

• By aggregating small projects, investment platforms provide greater diversification, greater deal flow and reduced risk, and could thus represent an efficient way for investors to align interests and achieve larger scale of investments.

• The European Energy Efficiency Fund already financed Electric cars sharing (Autolib scheme) in Paris

• Alternative potential modes of the joint intervention of the NPBs such as co-financing on a single project basis are also envisaged

• To date, several Member States, including France, have committed to provide co-financing to EFSI supported projects and investment platforms, up to a total financing volume of EUR 42.5 billion

European Investment Bank Group 13

Project promoters Public authorities Member States Private sector

Project support (JASPERS/ELENA project preparation and implementation support)

Financial instruments (fi-compass, bilateral services for MAs)

Access to finance (InnovFin Advisory, EPEC, NPST)

EIB’s existing advisory programmes and activities

European Investment Advisory Hub (EIAH)

New investment support also in areas relevant to the scope of EFSI (could be delivered by EIB advisory or operational teams)

Identification of needs as they arise

Network of institutions incl. EIB Group, EC, National Promotional Banks, etc.

Integrated collaboration model

Additional advisory and technical assistance

EIAH’s partner institutions’ expertise

•Web content + Web portal + Help Desk team

European Investment Advisory Hub (EIAH)

www.eib.org/eiah/

Opportunities for Preparing projects

Advisory Services

• Strong ongoing cooperation with EIB• As part of CEF instruments, EIB to intervene on support for

structuring of projects (ex: Calais)• CEF support to JASPERS to assist Cohesion MS in preparing

Corridor projects• H2020 additional support to ELENA for urban project

preparation suitable for financial schemes under consideration

• Under the EIAH• EIB committed to deliver a specific transport team• One-stop shop approach• Focus on preparation and support for the structuring of

projects (PPPs, platforms)• EPEC to be involved

•

Next steps

• CEF grants

• CEF & EFSI financial instruments• CEF financial instruments already available from July• Final text of EFSI adopted by European Parliament in

July • EIB can support projects via EFSI from now on!• Projects can also be submitted to the EIAH!

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Thank you for your attention!