Innovation and Networks Executive Agency

Financial Engineering

The cost of EU infrastructure development needs in order to match the demand for transport has been estimated at over €1.5 trillion for the period 2010-20301, a tremendous investment for public sector budgets to undertake single-handedly. The private sector must be encouraged to play a greater role, notwithstanding the difficult market conditions that have persisted since the economic and financial crisis unfolded in 2008.

 

In order to help find solutions to attract more private sector financing and to contribute to the improvement of the management of the TEN-T programme as a whole, the Agency created a Financial Engineering sector as part of the horizontal services it provides to beneficiaries.

 

The Financial Engineering sector aims to:

  • Promote an increase in the participation of the private sector in the financing of TEN-T projects
  • Encourage TEN-T project screening to identify and develop projects with Public-Private Partnership (PPP) potential
  • Ensure that TEN-T beneficiaries have access to the necessary information and are provided with best practice for developing PPPs. In this context the sector is working directly with EPEC (European PPP Expertise Centre)
  • Support the project preparation phase of the project life cycle in order to optimise the use of private and public funds
  • Offer technical assistance to national, regional or local authorities regarding the financial structure of projects to ensure that projects can pull together EU, national and private funding

Activities

 

In order to fulfil the objectives listed above, the Financial Engineering sector is involved in, amongst others, the following activities:

 

1. Establish PPP coordination framework and project pipeline:

  • Guidance through grant management for successful applicants in the Priority - support to PPPs - projects can be found here)
  • Maintain financial support for PPPs through the annual work programme calls for proposals
  • Conduct workshops on PPPs and project finance: the next PPP event will be associated with the 2011 TEN-T Days
  • Identify TEN-T projects that have a profile suitable for PPPs in order to develop a project pipeline of PPPs
  • Build on the joint initiatives with EPEC to increase the capacity of Member States to enter into PPPs
  • Ensure relationships established with other EU institutions in this field including DG REGIO, EIB, ECFIN are efficient and effective in providing assistance to Member States to implement PPP procurements

2. Expertise concerning the use of EU financial instruments to support PPP procurement

  • Promote the use of the financial instruments developed as part of the 2007-2013 financial perspective:
  • Contribute to the development and implementation of specialised EU-level financial instrumets under the Connecting Europe Facility

3. Increase dialogue with all stakeholders (EU Institutions involved in PPPs, Member States PPP units, private sector project promoters etc) on best practice and encourage:

  • The adoption of common standards of assessment and project preparation across the EU
  • The increased coordination of EU funding and non-financial EU support for PPPs
  • The use of innovative financial instruments to provide access to the capital markets for financially viable EU projects

For any questions specifically relating to this area, please contact the PPP Helpdesk!

Reference documents

 

Seminar on TEN-T Project Finance & PPPs (Tuesday 1 June 2010)

EPEC Guide to Guidance (the “Guide”) seeks to identify the best of breed guidance currently available from PPP guidelines worldwide and selected professional publications.

 

Events and links

 

Financial Engineering Workshop - 27 November 2013

 

 


 

1 COM(2011) 144 final. White Paper: Roadmap to a single European Transport Area – Towards a competitive and resource efficient transport system.