Page 12 - ePaper
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Projects will be selected based on their viability, reliability and credibility. The Investment
Plan will also target projects with high economic and societal value. Commercial return is not
the only benchmark. It is important to ensure high quality projects are selected in key
growth-enhancing areas such as: knowledge, innovation and the digital economy; energy
union; transport infrastructure; social infrastructure; and natural resources and the
environment.
18. Who will manage the pipeline of projects?
The Commission and the EIB will develop, update and disseminate, on a regular and
structured basis, information on current and future investments which contribute to
achieving EU policy objectives. Member States will do the same at national level.
19. How will the EFSI intervene concretely to finance investments projects?
The EFSI will reach out directly to project promoters and financial intermediaries in the same
way as the EIB is already doing today.
20. How will the EFSI intervene concretely on long-term investment projects,
notably on projects which demand a large share of public investments
(50% or more)?
The is often the case in the field of energy efficiency, infrastructure and digital agenda (e.g.
broadband in remote areas) for projects to be viable. The EFSI will - as a rule - provide the
riskier tranche of the investment so as to maximise the contribution from private sources of
financing by taking risk out of the equation ("first loss protection"). Member States and
National Promotional Banks can provide co-financing at the level of different projects. In this
way they can ensure a higher level of public financing in a certain project. Clearly, depending
on the sector and the area, some projects will generate higher returns than others. This is
not problematic, since the EFSI will have a vast portfolio of different projects in different
areas, ranging from transport to education, energy to innovation.
In addition, Member States can use Structural Funds to finance projects which need a high
level of public participation and where it may be more difficult to attract private investors,
given the more limited levels of return.
21. What would be the difference between the current EIB-financed projects
and the projects that could be finances by the EFSI?
The activities of the EFSI are additional to the EIB's traditional activities because they target
a different risk profile. The EFSI will for example get involved in cutting-edge new technology
and innovation sectors, as well as finance projects that are perceived as riskier because of
their country risk and due to risk-aversion from the private sector.
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Plan will also target projects with high economic and societal value. Commercial return is not
the only benchmark. It is important to ensure high quality projects are selected in key
growth-enhancing areas such as: knowledge, innovation and the digital economy; energy
union; transport infrastructure; social infrastructure; and natural resources and the
environment.
18. Who will manage the pipeline of projects?
The Commission and the EIB will develop, update and disseminate, on a regular and
structured basis, information on current and future investments which contribute to
achieving EU policy objectives. Member States will do the same at national level.
19. How will the EFSI intervene concretely to finance investments projects?
The EFSI will reach out directly to project promoters and financial intermediaries in the same
way as the EIB is already doing today.
20. How will the EFSI intervene concretely on long-term investment projects,
notably on projects which demand a large share of public investments
(50% or more)?
The is often the case in the field of energy efficiency, infrastructure and digital agenda (e.g.
broadband in remote areas) for projects to be viable. The EFSI will - as a rule - provide the
riskier tranche of the investment so as to maximise the contribution from private sources of
financing by taking risk out of the equation ("first loss protection"). Member States and
National Promotional Banks can provide co-financing at the level of different projects. In this
way they can ensure a higher level of public financing in a certain project. Clearly, depending
on the sector and the area, some projects will generate higher returns than others. This is
not problematic, since the EFSI will have a vast portfolio of different projects in different
areas, ranging from transport to education, energy to innovation.
In addition, Member States can use Structural Funds to finance projects which need a high
level of public participation and where it may be more difficult to attract private investors,
given the more limited levels of return.
21. What would be the difference between the current EIB-financed projects
and the projects that could be finances by the EFSI?
The activities of the EFSI are additional to the EIB's traditional activities because they target
a different risk profile. The EFSI will for example get involved in cutting-edge new technology
and innovation sectors, as well as finance projects that are perceived as riskier because of
their country risk and due to risk-aversion from the private sector.
12
