Transport 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 , with 11.3bn reserved for Cohesion MS 1 st call in 2014, 2 nd 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

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 System Urban/trans-Urban projects + ERDF grants – low carbon economy + Horizon 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 EFSI Rail connections urban center/airports Urban transport networks Infrastructure for alternative fuels … Equipment New 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

Transport 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 promotersPublic authoritiesMember StatesPrivate 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) 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!

Transport Thank you for your attention!