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Plenary sitting
A7-0150/2012
{02/05/2012}2.5.2012
***I
REPORT
on the 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 Ц C70372/2011 Ц 2011/0301(COD))
{BUDG}Committee on Budgets
Rapporteur: GЎran Fфrm
TITLE \* MERGEFORMAT PR_COD_1amCom
Symbols for procedures * Consultation procedure
*** Consent procedure
***I Ordinary legislative procedure (first reading)
***II Ordinary legislative procedure (second reading)
***III Ordinary legislative procedure (third reading)
(The type of procedure depends on the legal basis proposed by the draft act.)
Amendments to a draft actIn amendments by Parliament, amendments to draft acts are highlighted in bold italics. Highlighting in normal italics is an indication for the relevant departments showing parts of the draft act which may require correction when the final text is prepared Ц for instance, obvious errors or omissions in a language version. Suggested corrections of this kind are subject to the agreement of the departments concerned.
The heading for any amendment to an existing act that the draft act seeks to amend includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend. Passages in an existing act that Parliament wishes to amend, but that the draft act has left unchanged, are highlighted in bold. Any deletions that Parliament wishes to make in such passages are indicated thus: [...].
CONTENTS
Page
TOC \t "PageHeading;1" DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION PAGEREF _Toc323744932 \h 5
EXPLANATORY STATEMENT PAGEREF _Toc323744933 \h 22
OPINION of the Committee on Industry, Research and Energy PAGEREF _Toc323744934 \h 26
OPINION of the Committee on Transport and Tourism PAGEREF _Toc323744935 \h 43
PROCEDURE PAGEREF _Toc323744936 \h 55
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the 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 Ц C70372/2011 Ц 2011/0301(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
Ц having regard to the Commission proposal to Parliament and the Council (COM(2011)0659),
Ц having regard to Articleа294(2) and Articles 172 and 173(3) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C70372/2011),
Ц having regard to Articleа294(3) of the Treaty on the Functioning of the European Union,
Ц having regard to the opinion of the European Economic and Social Committee,
Ц having regard to the opinion of the Committee of the Regions,
Ц having regard to Ruleа55 of its Rules of Procedure,
Ц having regard to the report of the Committee on Budgets and the opinions of the Committee on Industry, Research and Energy and the Committee on Transport and Tourism (A7-0150/2012),
1. Adopts its position at first reading hereinafter set out;
2. Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;
3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Amendment 1
Proposal for a regulation
Recital 3
Text proposed by the CommissionAmendment(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.(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. It should be ensured, however, that EU-funded transport infrastructure takes into account energy-efficiency needs, noise reduction at source, biodiversity and climate-change challenges.
Amendment 2
Proposal for a regulation
Recital 5
Text proposed by the CommissionAmendment(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.(5) Financial instruments as governed by the Financial Regulation1 can in some cases improve the efficiency of budget spending and achieve high multiplier effects in terms of attracting private sector financing, especially in the context of difficult access to credit and the current constraints on public finances. The Commission should, in particular, ensure that the pilot phase for the Europe 2020 Project Bond Initiative offers added value, by achieving higher investment volumes. The expected multiplier effect of the Europe 2020 Project Bond Initiative is 15-20._________________1 Council Regulation (EU, Euratom) Noа1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (OJ L 248, 16.9.2002, p. 1).
Amendment 3
Proposal for a regulation
Recital 5 a (new)
Text proposed by the CommissionAmendment(5a) Given the magnitude of investment needs and the objectives defined in the Europe 2020 strategy over the next decade, the Commission should, if the Europe 2020 Project Bond Initiative proves successful, step up the Union's effort toward leveraging and attracting additional funding.
Amendment 4
Proposal for a regulation
Recital 7
Text proposed by the CommissionAmendment(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.(7) The pilot phase for 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, in particular through providing the requisite credit enhancement to attract capital market investors. It will redirect some EU budget spending towards growth-enhancing areas, particularly transport, energy and telecommunications infrastructure, taking into account the UnionТs budgetary discipline and the ceilings under the current Multiannual Financial Framework.
Amendment 5
Proposal for a regulation
Recital 8
Text proposed by the CommissionAmendment(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.(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, thanks to the possible synergies between the transport, energy and ICT sectors. It will provide a coherent instrument to infrastructure stakeholders such as financiers, public authorities, construction companies and operators.
Amendment 6
Proposal for a regulation
Recital 9
Text proposed by the CommissionAmendment(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.(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, insurance companies and other interested parties.
Amendment 7
Proposal for a regulation
Recital 10
Text proposed by the CommissionAmendment(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.(10) The Union support provided by means of this Regulation 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.
Amendment 8
Proposal for a regulation
Recital 11
Text proposed by the CommissionAmendment(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.(11) Europe's economic recovery should not be compromised by deteriorating performance on the part of transport, missing energy links, outdated energy systems, deficiency in energy supply, a slowing down of broadband penetration and incapacitation of telecommunication services due to infrastructure projects' difficulties in gaining access to long-term private finance or public funding.
Amendment 9
Proposal for a regulation
Recital 12
Text proposed by the CommissionAmendment(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.(12) The reassessment of infrastructure investment programmes by Member States in the context of their fiscal austerity and structural reforms will not facilitate the acceleration of the pace of infrastructure investment needed to meet the policy objectives of the Europe 2020 strategy, in particular a shift towards a resource-efficient, low-carbon economy to achieve sustainable growth, as laid down in the Europe 2020 resource efficiency flagship initiative. In addition, long-term bank lending for infrastructure projects continues to be insufficient and expensive, calling for alternative and competitive sources of debt financing.
Amendment 10
Proposal for a regulation
Recital 14
Text proposed by the CommissionAmendment(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.(14) Therefore, a pilot phase for the Europe 2020 Project Bond Initiative should be launched during the current financial framework in order to ascertain whether, and to what extent, such risk-sharing financial instruments offer additional benefits in the area of infrastructure financing.
Amendment 11
Proposal for a regulation
Recital 15
Text proposed by the CommissionAmendment(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.(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 a clear European added value and commercial potential in the transport, energy and ICT sectors, which, despite their commercial potential, do not receive adequate financing from the market.
Amendment 12
Proposal for a regulation
Recital 16
Text proposed by the CommissionAmendment(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.(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. It is necessary to lay down the specific terms and conditions of the co-operation, including risk-sharing and remuneration of the EIB, in an agreement between the Commission and the EIB.
Amendment 13
Proposal for a regulation
Recital 17
Text proposed by the CommissionAmendment(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.(17) The pilot phase of the Europe 2020 Project Bond Initiative is without prejudice to the decision concerning the UnionТs Multiannual Financial Framework (MFF) after 2013 and should be launched no later than 31 July 2012 in preparation for the proposed Connecting Europe Facility. This pilot phase, should it prove successful, and following appropriate analysis and independent evaluation, will help to pave the way for the risk-sharing financial instrument under the Connecting Europe Facility.
Amendment 14
Proposal for a regulation
Recital 20
Text proposed by the CommissionAmendment(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.(20) Budgetary funds should be requested by the EIB on the basis of a range of projects, which the EIB and the Commission would deem suitable, in line with the Union's long term policy objectives 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.
Amendment 15
Proposal for a regulation
Recital 20 a (new)
Text proposed by the CommissionAmendment(20a) It is desirable that the Commission should perform an independent, in-depth assessment of the pilot phase of the risk-sharing instrument for project bonds. That assessment must, if appropriate, be accompanied by legislative proposals on innovative financial instruments in the context of the Multiannual Financial Framework for the period 2014-2020.
Amendment 16
Proposal for a regulation
Recital 20 b (new)
Text proposed by the CommissionAmendment(20b) Since, in the conclusions of the European Council of 1-2 March 2012, a deadline of June 2012 was set for reaching an agreement on the pilot phase of the Europe 2020 Project Bond Initiative, the Commission needs to start implementing that pilot phase without further delay.
Amendment 17
Proposal for a regulation
Article 1 Ц point -1 (new)
Decision No 1639/2006/EC
Article 8 Ц paragraphs 5 a and 5 b (new)
Text proposed by the CommissionAmendment-1. In Article 8, the following paragraphs are added:"5a. A full-scale independent evaluation of the pilot phase of the risk-sharing instrument for project bonds referred to in paragraphs 2a to 2db of Article 31 shall be undertaken, which shall cover, inter alia, its added value, including the impact on the financial viability of the project, additionality compared to other Union or Member State instruments and any other long-term debt financing, and the multiplier effect achieved. It shall include general observations on market developments, including the creation or correction of distortive effects, if any, and an assessment of the risks involved including project and partner risk. It shall also consider whether a maximum rate of return would be appropriate for private-sector investor funding of public projects, and shall provide a cost comparison with alternative means of project finance including bank loans and equity.5b. Furthermore, on the basis of that evaluation, the Commission shall carry out an assessment of future steps to be taken in order to enhance the efficiency of Union spending as well as to increase investment volumes towards priority projects. That assessment shall examine, inter alia, how to make the project bond instrument even more attractive to a wider range of long-term investors, including public-sector investors."
Amendment 18
Proposal for a regulation
Article 1 Ц point 2 Ц point a
Decision No 1639/2006/EC
Article 31 Ц paragraph 2 Ц subparagraph 3
Text proposed by the CommissionAmendmentAlternatively, 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.Alternatively, the Union may make, during a pilot phase in 2012 and 2013, 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 2db.
Amendment 19
Proposal for a regulation
Article 1 Ц point 2 Ц point b Ц introductory wording
Text proposed by the CommissionAmendment(b) The following paragraphs 2a to 2d are inserted:(b) The following paragraphs 2a to 2db are inserted:
Amendment 20
Proposal for a regulation
Article 1 Ц point 2 Ц point b
Decision No 1639/2006/EC
Article 31 Ц paragraph 2a
Text proposed by the CommissionAmendment2a. Risk-sharing instrument for project bonds means a credit enhancement which fulfils the following criteria:2a. Risk-sharing instrument for project bonds means a joint instrument by the Commission and the EIB providing 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;(a) takes the form of a loan or a guarantee granted by the EIB, with the support of a Union budget contribution, in favour of financing provided to projects of common European interest in the field of ICT and broadband, complementing financing by Member States or private investors and addressing sub-optimal investment situations when projects do not receive adequate financing from the market;(b) covers the debt service risk of a project and mitigates the credit-risk of bond holders;(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.(c) is used only for projects whose financial viability is based on project revenues.
Amendment 21
Proposal for a regulation
Article 1 Ц point 2 Ц point b
Decision No 1639/2006/EC
Article 31 Ц paragraph 2b
Text proposed by the CommissionAmendment2b. 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.2b. The Union exposure to the risk sharing instrument for project bonds, including management fees and other eligible costs, shall in no case exceed the amount of the Union contribution to the risk-sharing instrument for project bonds. There shall be no further liability on the general budget of the Union. The residual risk inherent in all operations shall always be borne by the EIB.
Amendment 22
Proposal for a regulation
Article 1 Ц point 2 Ц point b
Decision No 1639/2006/EC
Article 31 Ц paragraph 2c
Text proposed by the CommissionAmendment2c. 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.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. The Commission shall inform the European Parliament and the Council without delay of the basic elements of that agreement.Risk assessment by the EIB shall be guaranteed in accordance with the EIB Credit Risk Policy Guidelines, and the EIB's selection criteria in the social, environmental and climate field shall be duly taken into account.The main terms, conditions and procedures of the risk-sharing instrument for project bonds are laid down in an Annex to this Decision.
Amendment 23
Proposal for a regulation
Article 1 Ц point 2 Ц point b
Decision No 1639/2006/EC
Article 31 Ц paragraph 2 d a (new) and 2 d b (new)
Text proposed by the CommissionAmendment2da. In addition to the reporting requirements set out in point 49 of the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management, and without prejudice to any other regulatory reporting requirements, the Commission shall report to the European Parliament and the Council every six months during the pilot phase. Such reporting shall include the provision of information regarding the performance of the risk-sharing instrument for project bonds and recommendations regarding ways of enhancing its effectiveness.2db. On the basis of the evaluation referred to in Article 8(5a) of this Decision, the Commission shall propose appropriate regulatory changes, including legislative ones, in particular if the predicted market uptake is not satisfactory or in the event that alternative sources of long-term debt financing become sufficiently available.
Amendment 24
Proposal for a regulation
Article 2 Ц point 1
Regulation (EC) No 680/2007
Article 2 Ц point 14
Text proposed by the CommissionAmendment14. '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.14. 'risk-sharing instrument for project bonds' means a joint instrument by the Commission and the EIB which provides a credit enhancement to projects of common interest with European added value, complementing financing by Member States or private investors and addressing sub-optimal investment situations when projects do not receive adequate financing from the market. 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.
Amendment 25
Proposal for a regulation
Article 2 Ц point 1
Regulation (EC) No 680/2007
Article 2 Ц point 15
Text proposed by the CommissionAmendment15. 'Credit enhancement' means the use of an EIB loan or an EIB guarantee to improve the credit quality of the project debt.15. 'Credit enhancement' means the use of an EIB loan or an EIB guarantee, supported by a contribution from the Union budget, to improve the credit quality of the project debt.
Amendment 26
Proposal for a regulation
Article 2 Ц point 3 Ц point a
Regulation (EC) No 680/2007
Article 6 Ц paragraph 1 Ц point d Ц last sentence
Text proposed by the CommissionAmendmentIn 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.In 2012 and 2013, an amount of up to EUR 200 million may be redeployed for the pilot phase of the risk-sharing instrument for project bonds in the transport sector.
Amendment 27
Proposal for a regulation
Article 2 Ц point 3 Ц point b
Regulation (EC) No 680/2007
Article 6 Ц paragraph 1 Ц point g
Text proposed by the CommissionAmendment(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.(g) during a pilot phase in 2012 and 2013, 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 in no case exceed the amount of the Union contribution to the risk-sharing instrument for project bonds, nor extend beyond the duration of the bonds. There shall be no further liability on the general budget of the Union. The residual risk inherent in all operations shall always 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. The Commission shall inform the European Parliament and the Council without delay of the basic elements of that agreement. Risk assessment by the EIB shall be guaranteed in accordance with the EIB Credit Risk Policy Guidelines, and the EIB's selection criteria in the social, environmental and climate field shall be duly taken into account.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. In addition to the reporting requirements set out in point 49 of the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management, and without prejudice to any other regulatory reporting requirements, the Commission shall report to the European Parliament and the Council every six months during the pilot phase. Such reporting shall include the provision of information regarding the performance of the risk-sharing instrument for project bonds and recommendations regarding ways of enhancing its effectiveness.On the basis of the evaluation referred to in Article 16(2a) of this Regulation, the Commission shall propose appropriate regulatory changes, including legislative ones, in particular if the predicted market uptake is not satisfactory or in the event that alternative sources of long-term debt financing become sufficiently available.Interest and other revenue generated by the risk-sharing instrument for project bonds in the form of commission paid by the beneficiaries which is received before 31 December 2013 may be reused for new loans and guarantees. After 1 January 2014, if the risk-sharing instrument for project bonds is not extended into the next financial framework, any remaining funds shall be returned to the revenue side of the general budget of the Union.
Amendment 28
Proposal for a regulation
Article 2 Ц point 3 a (new)
Regulation (EC) No 680/2007
Article 16 Ц paragraphs 2 a and 2 b (new)
Text proposed by the CommissionAmendment(3a) In Articleа16, the following paragraphs are added:"2a. A full-scale independent evaluation of the pilot phase of the risk-sharing instrument for project bonds referred to in point (g) of Article 6(1) shall be undertaken, which shall cover, inter alia, its added value, including the impact on the financial viability of the project, additionality compared to other Union or Member State instruments and any other long-term debt financing, and the multiplier effect achieved. It shall include general observations on market developments including the creation or correction of distortive effects, if any, and an assessment of the risks involved including project and partner risk. It shall also consider whether a maximum rate of return would be appropriate for private sector investor funding of public projects and shall provide a cost comparison with alternative means of project finance, including bank loans and equity.2b. Furthermore, on the basis of that evaluation, the Commission shall carry out an assessment of future steps to be taken in order to enhance the efficiency of Union spending as well as to increase investment volumes towards priority projects. That assessment shall examine, inter alia, how to make the project bond instrument even more attractive to a wider range of long-term investors, including public-sector investors."
Amendment 29
Proposal for a regulation
Article 2 Ц point 3 b (new)
Regulation (EC) No 680/2007
Article 17 Ц paragraph 1 Ц subparagraph 1 a (new)
Text proposed by the CommissionAmendment(3b) In Article 17(1), the following subparagraph is added:'Before 30 June 2013, the Commission shall submit to the European Parliament and the Council a report containing a list of the projects selected for the financial aid referred to in point (g) of Article 6(1), specifying the contribution, the financing institutions and the investors involved. The Commission shall include in that report a good practice guide and a list of investors potentially interested in innovative financial instruments.'Justification
Precise information from the pilot Project Bonds phase is needed to identify the changes that might be made to the Connecting Europe Facility. The Commission should inform Parliament which investors are involved and how the selected projects can be improved.
EXPLANATORY STATEMENT
Introduction: why a pilot phase for project bonds?
A modern and effective infrastructure is of key importance for achieving the Europe 2020 objectives of smart, sustainable and inclusive growth as well as reducing unemployment through the completion of the internal market. Investment needs in the field of transport, energy and Information and Communication Technologies (ICT) infrastructure in Europe are estimated at EUR 1.5 trillion for 2010-2020. While the private sector should finance the main part of these - mostly profitable - investments, the public sector's role in Europe will be crucial for achieving the above targets.
To this aim, the EU Commission has proposed a 'Connecting Europe Facility' (CEF) for the next financial framework in order to accelerate infrastructure development in the fields of transport, energy and ICT networks, with particular emphasis on strategic cross-border parts.
In addition to equity instruments and grants, CEF includes a new financial instrument to mobilise more private sector funding, project bonds. In order for project bonds to become fully operational in 2014, the Commission proposes a pilot phase for 2012-2013, mainly aiming at:
- testing financial markets' acceptance and reactions to the initiative, since new instruments take time to be incorporated in private sector investment decisions;
- testing the functioning and optimisation of project bonds in practice in order to fine-tune the initiative.
Through amending the current CIP and TEN rules, the proposal extends and upgrades the present Loan Guarantee Facility for TEN Transport (LGTT). It is upgraded to cover other sectors than transport, including energy and ICT-projects, whilst at the same time being extended to cover not only traffic risk, but all risks possibly leading to a shortfall of revenues in the lifecycle of a project. The time horizon of the instrument is prolonged from 3-7 years to up to 30 years. Furthermore, the new instrument addresses some shortfalls in attracting investments to which the LGTT has been unable to respond. Being set up before the crisis, the LGTT is neither designed, nor adapted to the current economic climate.
The establishment of this new instrument has often been strongly called for by the European Parliament, notably in its resolutions of 8 June 2011 on 'Investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe', 17 February 2011 on Europe 2020 and most recently in its resolution of 2 February 2012 on the European Council of 30 January 2012 and in its 15 February 2012 contribution to the Annual Growth Survey 2012.
Furthermore, the European Council in its conclusions 1/2 March 2012 sets this ambitious target for the pilot phase: 'Given the need to stimulate the private financing of key infrastructure projects, work on the pilot phase of the Europe 2020 project bond initiative should be stepped up with a view to reaching agreement by June'.
Technical background: how do project bonds work?
Project bonds are a debt instrument issued by private project companies, with the backing of an EU/EIB contribution which will make the bonds safer and more attractive to capital market investors otherwise not normally investing in infrastructure, such as pension funds. By reducing the risk taken by investors, it should stimulate the flow of private funds towards priority infrastructure investments, for which uncertain risk perceptions block the flow of finance. This is particularly important in a context of constrained bank financing resulting from the crisis and new regulatory requirements.
Their functioning can be summarised as follows.
Through the use of an EIB facility, supported by an EU contribution, as subordinated debt or guarantee, the credit rating of private senior debt (bonds) of infrastructure projects would be enhanced, to the target rating of A-, a sufficient level to enhance the bonds' attractiveness to capital markets. The subordinated debt tranche, not exceeding 20% of the project total debt, will take a funded (loan) or unfunded (guarantee) form.
Project bonds should be considered as one tool out of a large variety of financing instruments, and can be mixed with other public and private instruments, ranging from public grants (European and national), loans (bank, bonds), guarantees, equity etc. It should however be noted that project bonds only can be used for projects expected to generate sufficient revenue. They will not replace traditional grants which instead can be focussed to those projects most in need. Project bonds are an addition to existing funding, and should not distort competition in the internal market, nor replace present private funding or any other national or EU public intervention.
Budgetary impact of the proposal
For the pilot phase, the Commission proposes an EU budget contribution of 230 million, financed through redeployment within existing programmes. Of the EUR 500 million available for LGTT in 2012-13, up to 200 million would be redeployed for supporting project bonds in the transport area. There will be no impact on the funding to other EU support like grants. In order to include investments in energy and ICT, 10 and 20 million respectively are also redeployed from the TEN-E and CIP budget lines.
2012 Budget201220132014Total06 03 03 - Financial support for projects of common interest in the TEN-T (from LGTT budget allocation)CA1.275100100200PA714406010020032 03 02 - Financial support for projects of common interest in the TEN-E CA211010PA12101009 03 01 - Competitiveness and Innovation Framework Programme - ICT Policy Support Programme CA1332020PA1092020TOTAL appropriationsfor DG MOVE, ENER and INFSOCA100130230PA4090100230
EUR 230 million is a small sum compared to infrastructure needs, but an expected multiplier effect of up to 15 to 20 may mobilize investments of up to 4.6 billion.
The EU support will consist of loans / guarantees to cover any type of revenue shortfalls, for instance due to lower use than foreseen, construction delays etc. Should EU support need to be mobilised following initial revenue shortfall, it will turn into subordinated debt, still to get repaid after senior debt but before equity, meaning that any final loss for the EU budget would only occur in case of a project failure.
As explicitly mentioned in the legislative proposal, the risk to the EU budget would be strictly limited, with no contingent liabilities, the maximum EU contribution being capped to the amount of EUR 230 million. As to revenue stemming from the instrument, the Commission's proposal envisages that potential returns should be reinvested in the facility in order to maximise the number of supported projects. Your Rapporteur supports this line.
Some points of concern
From the budget authority's point of view a crucial point is to find the right balance between the delegated powers granted to the Commission and EIB and the reporting requirements and accountability mechanisms. In your Rapporteur's view, the proposed arrangements need some clarifications, but are sufficient for the pilot phase since:
- the selection of projects is already restricted by numerous binding criteria that the EIB will need to respect when proposing projects (EU economic policy objectives, criteria presented in the basic TEN and CIP acts, EU policy guidelines, EIB standard eligibility and environmental criteria, credit risk policies, etc),
- under both CIP and TEN, approval will follow the same procedure as traditional grants, namely through committees (see art. 15(2) in TEN and art. 46 in CIP basis acts),
- the instrument will be in force for less than 2 years and should finance only a small number of projects.
Further discussions in this regard may be left to the CEF proposal, leaving in the meantime the Commission and the EIB to work on fine-tuning the design of the initiative. Furthermore, given the time needed for the expected volume of projects to reach financial close and start maturing, it will take time before a proper evaluation of the initiative can be performed.
Given the changing economic and financial environment, we should not set too many additional criteria and implementation arrangements, in order to give greater flexibility for this new market to develop. On reporting however, and considering that the ongoing revision of the Financial Regulation is likely not to enter into force before the start of the pilot phase, your Rapporteur believes that the proposed provisions should be adjusted to ensure sufficient accountability and adequate monitoring by the legislator. He therefore proposes specific amendments aiming at a more frequent (every 6 months) and detailed reporting.
While it is important that adequate reporting is ensured so that well-founded conclusions can be drawn before the setting-up of the CEF, your Rapporteur underlines that the main aim of this pilot phase is to test financial markets' acceptance towards this new initiative. Against this background, and considering that the pilot phase is already limited to 18 months, your Rapporteur does not consider that an 'exit' strategy is needed for the pilot phase as the agreement and implementation of the pilot phase should in no way pre-empt the upcoming negotiations on the CEF.
Calendar and upcoming negotiations
Your Rapporteur shares the European Council's ambition to reach a first reading agreement with the Council by June at the latest and proposes the following steps in this perspective:
Presentation draft report29 MarchDeadline AM3 AprilVote BUDG 25 AprilNegotiation period25/04 - 24/05BUDG vote on political agreement31 May (tbc)Vote Plenary July
{27/03/2012}27.3.2012
OPINION of the Committee on Industry, Research and Energy
for the Committee on Budgets
on the 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 Ц C70372/2011 Ц 2011/0301(COD))
Rapporteur: Werner Langen
SHORT JUSTIFICATION
The Europe 2020 Project Bond Initiative is to be launched as a pilot phase in 2012-2013 to step up private sector participation in financing infrastructure measures in the areas of transport, energy and ICT/broadband networks. At present, EU countries spend between 0.5% und 2% of GDP on infrastructure investments. In future, private investors are to be involved through public-private partnerships. The Europe 2020 Project Bond Initiative will supplement existing sources of financing.
General remarks
The financing of project bonds in the pilot phase 2012-2013 will be guaranteed and capped through the redeployment of existing budget lines 06 03 03 TEN Transport (up to EUR 200 m), 32 03 02 TEN Energy (up to EUR 10 m for TEN-E projects) and 09 03 01 CIP (up to EUR 20 m for ICT and broadband projects).
The selection of between five and 14 different projects will be made by the EIB, on the basis of the TEN and CIP guidelines. Market distortions and quasi-subsidies are to be avoided. The purpose of the pilot phase is to test the market and assess implementation. Initial reports from the EIB to the Commission and the European Parliament on the experience gained with the implementation and market acceptance of project bonds will therefore play an important role. The EIB has an obligation to report to the Commission under the Interinstitutional Agreement. The Commission must forward these annual reports to the Council and European Parliament. The use of funds amounting to a maximum of EUR 230 m may act as a catalyst for the implementation of infrastructure measures and have a multiplier effect of around EUR 15-20 for each euro invested from the EU budget.
However, the EIB must ensure that financing is in fact provided only for those projects which are genuinely in need of funding. It must therefore select projects which are not commercially viable on their own and which consequently require financing to enable them to be implemented. In this light, some criticism might be made of the fact that, in the pilot phase, co-financing in the form of project bonds is to be provided only for projects that have been completed but require refinancing, or for projects on which work is about to start, since considerable financial planning will already have been in place for these projects before the Project Bond Initiative comes into force.
The way in which project bonds operate is illustrated in the following diagram:
AMENDMENTS
The Committee on Industry, Research and Energy calls on the Committee on Budgets, as the committee responsible, to incorporate the following amendments in its report:
Amendment 1
Proposal for a regulation Ц amending act
Recital 10
Text proposed by the CommissionAmendment(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.(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. Project bonds should be extended to innovation and demonstration projects as well.
Amendment 2
Proposal for a regulation Ц amending act
Recital 11
Text proposed by the CommissionAmendment(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.(11) Europe's economic recovery should not be compromised by growing transport congestion, missing energy links, outdated energy systems, deficiency in energy supply and a slowing down of broadband penetration, incapacitation of telecommunication services due to infrastructure projects' difficulties in gaining access to long-term private finance or public funding.The Project Bonds Initiative in the framework of the EU 2020 partnership agreement shall provide a clear eligibility framework subject to enhanced democratic scrutiny as a proper means for achieving sustainable and countercyclical investments programmes consistent with EU social, climate and environmental objectives, while playing a catalytic role aiming at attracting private capital for long-term project.
Amendment 3
Proposal for a regulation Ц amending act
Recital 12
Text proposed by the CommissionAmendment(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.(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 needed to meet the policy objectives of the Europe 2020 strategy, in particular a shift towards a resource-efficient, low-carbon economy to achieve sustainable growth, as laid down in the Europe 2020 resource efficiency flagship initiative. In addition, long-term bank lending for infrastructure projects continues to be insufficient and expensive, calling for alternative and competitive sources of debt financing.
Amendment 4
Proposal for a regulation Ц amending act
Recital 14
Text proposed by the CommissionAmendment(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. (14) Therefore, a pilot phase for the Europe 2020 Project Bond Initiative should be launched during the current financial framework in order to ascertain whether and to what extent such risk-sharing financial instruments offer additional benefits in the area of infrastructure financing.
Amendment 5
Proposal for a regulation -- amending act
Recital 14 a (new)
Text proposed by the CommissionAmendment(14a) Nonetheless, it should be borne in mind that project securities can only supplement existing financing models and cannot entirely replace them.
Amendment 6
Proposal for a regulation Ц amending act
Recital 15
Text proposed by the CommissionAmendment(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. (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.
Amendment 7
Proposal for a regulation Ц amending act
Recital 16
Text proposed by the CommissionAmendment(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. (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 EIB should also be increasingly used for innovation projects. 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 and the rules on the introduction of the loan guarantee instrument laid down in Article 6(1)(d) and the annex to Regulation (EC) No 680/2007 of the European Parliament and of the Council of 20 June 2007 laying down general rules for the granting of Community financial aid in the field of the trans-European transport and energy networks1. The Commission should inform the European Parliament and the Council of the wording of the agreement without delay.____________1 OJ L 162, 22.6.2007, p. 1.
Amendment 8
Proposal for a regulation Ц amending act
Recital 17
Text proposed by the CommissionAmendment(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.(17) The pilot phase of the Europe 2020 Project Bond Initiative is without prejudice to the decision about the UnionТs Multiannual Financial Framework (MFF) after 2013 and, in particular, the Commission proposal for the establishment of the Connecting Europe Facility (CEF). The pilot phase should therefore be launched to test whether this risk-sharing financial instrument can offer an added value to be implemented under the proposed Connecting Europe Facility. The decision about the continuation of the Europe 2020 Project Bond Initiative after the end of the pilot phase will only be taken after an independent evaluation of the pilot phase has taken place. The Commission should provide for an exit from the initiative if the predicted market uptake is not satisfactory or when sufficient alternative sources of long-term debt financing become available.
Amendment 9
Proposal for a regulation -- amending act
Recital 18
Text proposed by the CommissionAmendment(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.(18) The application for support, selection and implementation of all projects should be made on equal conditions for all projects and be subject to Union law, in particular with regard to state aid and shall seek to avoid creating or adding to market distortions.
Amendment 10
Proposal for a regulation -- amending act
Recital 20
Text proposed by the CommissionAmendment(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.(20) Budgetary funds should be requested by the EIB on the basis of a range of projects, which the EIB would deem suitable, in line with the Union's long term policy objectives 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.
Amendment 11
Proposal for a regulation Ц amending act
Article 1 - point 2 - point a
Decision No 1639/2006/EC
Article 31 - paragraph 2 - subparagraph 3
Text proposed by the CommissionAmendmentAlternatively, 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.Alternatively, the Union may make a financial contribution to the EIB during the pilot phase in 2012 and 2013 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."
Amendment 12
Proposal for a regulation Ц amending act
Article 1 Ц paragraph 1 Ц point 2 Ц point (b)
Decision No 1639/2006/EC
Article 31 Ц paragraph 2a
Text proposed by the CommissionAmendment2a. 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;2a. takes the form of a loan or a guarantee granted by the EIB in favour of financing provided to projects of common European interest in the field of ICT and broadband;Justification
For subsidiarity reasons only projects of common interest should be covered.
Amendment 13
Proposal for a regulation Ц amending act
Article 1 - point 2 - point b
Decision No 1639/2006/EC
Article 31 - paragraph 2a - point c a (new)
Text proposed by the CommissionAmendment (ca) is used to support investments which do not receive adequate financing from the market;
Amendment 14
Proposal for a regulation Ц amending act
Article 1 - point 2 - point b
Decision No 1639/2006/EC
Article 31 - paragraph 2a - point c b (new)
Text proposed by the CommissionAmendment (cb) is complementary to financing by Member States or private investors;
Amendment 15
Proposal for a regulation Ц amending act
Article 1 - point 2 - point b
Decision No 1639/2006/EC
Article 31 - paragraph 2a - point c c (new)
Text proposed by the CommissionAmendment (cc) does not distort competition in the internal market;
Amendment 16
Proposal for a regulation Ц amending act
Article 1 - point 2 - point b
Decision No 1639/2006/EC
Article 31 - paragraph 2a - point c d (new)
Text proposed by the CommissionAmendment (cd) is used only for projects which generate added value for the Union, which means that projects should be implemented at European level only where this is justified by the scope and effects of the project's implementation, and the objectives of the project can be better achieved at Union level than at national level.
Amendment 17
Proposal for a regulation Ц amending act
Article 1 - point 2 - point b
Decision No 1639/2006/EC
Article 31 - paragraph 2b
Text proposed by the CommissionAmendment2b. 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. 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. The precise definition of the rules shall be laid down in accordance with the rules on the introduction of the loan guarantee instrument laid down in Article 6(1)(d) and the annex of Regulation (EC) No 680/2007.The Commission shall inform the European Parliament and the Council of the wording of the agreement referred to in the first subparagraph without delay.
Amendment 18
Proposal for a regulation Ц amending act
Article 1 - point 2 - point b
Decision No 1639/2006/EC
Article 31 - paragraph 2c
Text proposed by the CommissionAmendment2c. 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.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 and disclosed to the European Parliament and the Council . Risk assessment by the EIB shall be guaranteed in accordance with the Banking Directives.
Amendment 19
Proposal for a regulation Ц amending act
Article 1 Ц point 2 Ц point b
Decision No 1639/2006/EC
Article 31 Ц paragraph 2d a (new)
Text proposed by the CommissionAmendment2da (new) The Commission shall, in coordination with the EIB, submit annual reports to the European Parliament containing a breakdown by project of the utilisation of the amounts referred to in paragraph 2d. The report shall also contain information regarding the performance of the risk-sharing instrument for project bonds and recommendations regarding ways of enhancing its effectiveness. By the end of the pilot phase a consultation of directly involved stakeholders shall be undertaken.Amendment 20
Proposal for a regulation Ц amending act
Article 2 - point 1
Regulation (EC) No 680/2007
Article 2 - point 14 - introductory part
Text proposed by the CommissionAmendment14. '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.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:
Amendment 21
Proposal for a regulation Ц amending act
Article 2 - point 1
Regulation (EC) No 680/2007
Article 2 - point 14 - point a (new)
Text proposed by the CommissionAmendment (a) for projects whose financial viability is based on project revenues;
Amendment 22
Proposal for a regulation Ц amending act
Article 2 - point 1
Regulation (EC) No 680/2007
Article 2 - point 14 - point b (new)
Text proposed by the CommissionAmendment (b) to support investments which do not receive adequate financing from the market;
Amendment 23
Proposal for a regulation Ц amending act
Article 2 - point 1
Regulation (EC) No 680/2007
Article 2 - point 14 - point c (new)
Text proposed by the CommissionAmendment (c) as a complementary tool to financing by Member States or private investors;
Amendment 24
Proposal for a regulation Ц amending act
Article 2 - point 1
Regulation (EC) No 680/2007
Article 2 - point 14 - point d (new)
Text proposed by the CommissionAmendment (d) without distorting competition in the internal market;
Amendment 25
Proposal for a regulation Ц amending act
Article 2 - point 1
Regulation (EC) No 680/2007
Article 2 - point 14 - point e (new)
Text proposed by the CommissionAmendment (e) for projects which generate added value for the Union, which means that projects should be implemented at European level only where this is justified by the scope and effects of the project's implementation and the objectives of the project can be better achieved at Union level than at national level;
Amendment 26
Proposal for a regulation Ц amending act
Article 2 - point 1
Regulation (EC) No 680/2007
Article 2 - point 15
Text proposed by the CommissionAmendment15. 'Credit enhancement' means the use of an EIB loan or an EIB guarantee to improve the credit quality of the project debt.deleted
Amendment 27
Proposal for a regulation Ц amending act
Article 2 - point 3 - point b
Regulation (EC) No 680/2007
Article 6 - paragraph 1 - point g
Text proposed by the CommissionAmendment(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.(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 and disclosed to the European Parliament and the Council. 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 precise definition of the rules shall be laid down in accordance with the rules on the introduction of the loan guarantee instrument laid down in Article 6(1)(d) and the annex to Regulation (EC) No 680/2007. The Commission shall inform the European Parliament and the Council of the wording of these rules without delay.The risk-sharing instrument for project bonds may reuse any revenues received within the investment period for new loans and guarantees.
Amendment 28
Proposal for a regulation Ц amending act
Article 2 a (new)
Text proposed by the CommissionAmendmentArticle 2a The Commission shall report to the European Parliament and the Council each year on the implementation reports submitted by the EIB, in accordance with point 49 of the Interinstitutional Agreement of 17 May 2006.
PROCEDURE
TitleAmendment of Decision No 1639/2006/EC establishing a Competitiveness and Innovation Framework Programme (2007-2013) and of 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 networksReferencesCOM(2011)0659 Ц C7-0372/2011 Ц 2011/0301(COD)Committee responsible
аааааааDate announced in plenaryBUDG
17.11.2011Committee(s) asked for opinion(s)
аааааааDate announced in plenaryITRE
17.11.2011Rapporteur(s)
аааааааDate appointedWerner Langen
14.12.2011Discussed in committee28.2.2012Date adopted21.3.2012 R e s u l t o f f i n a l v o t e + :
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y t i s , J a n B Ye z i n a , R e i n h a r d B № t i k o f e r , M a r i a D a G r a ч a C a r v a l h o , G i l e s C h i c h e s t e r , J № r g e n C r e u t z m a n n , C h r i s t i a n E h l e r , V i c k y F o r d , G a s t o n F r a n c o , A d a m G i e r e k , N o r b e r t G l a n t e , A n d r с s G y № r k , F i o n a H a l l , J a c k y H щ n i n , R o m a n a J o r d a n , K r i aj n i s K a r i Fa, L e n a K o l a r s k a - B o b i Ds k a , B щ l a K o v с c s , B o g d a n K a z i m i e r z M a r c i n k i e w i c z , M a r i s a M a t i a s , J u d i t h A . M e r k i e s , A n g e l i k a N i e b l e r , J a r o s l a v P a ak a , V i t t o r i o P r o d i , M i l o s l a v R a n s d o r f , H e r b e r t R e u l , M i c h ш l e R i v a s i , J e n s R o h d e , P a u l R № b i g , A m a l i a S a r t o r i , S a l v a d o r S e d є i A l a b a r t , F r a n c i s c o S o s a W a g n e r , B r i t t a T h o m s e n , P a t r i z i a T o i a , E v ~e n T o ae n o v s k ¤ , I o a n n i s A . T s o u k a l a s , C l a u d e T u r m e s , Marita Ulvskog, Vladimir Urutchev, Kathleen Van Brempt, Alejo Vidal-Quadras, Henri WeberSubstitute(s) present for the final voteAntєnio Fernando Correia de Campos, Jolanta Emilia Hibner, Yannick Jadot, Seсn Kelly, Bernd Lange, Werner Langen, Alajos Mщs z с r o s , M a r i o P i r i l l o , A l y n S m i t h , H a n n u T a k k u l a , S i l v i a - A d r i a n a bi c u
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