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31.7.2012 Official
Journal
of
the
European
Union L
204/1
I
(Legislative acts)
REGULATIONS
REGULATION (EU) No 670/2012 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 11 July 2012
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
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
rules for the granting of Union financial aid in the field
EUROPEAN UNION,
of the trans-European transport and energy networks and
creates also the risk-sharing instrument ‘Loan Guarantee
instrument for TEN-Transport (“TEN-T”) projects’.
Having regard to the Treaty on the Functioning of the European
Union, and in particular Article 172, and Article 173(3) thereof,
Having regard to the proposal from the European Commission,
(3) Over
the
next
decade,
according
to
Commission
esti
mates, unprecedented volumes of investment in
Europe’s transport, energy, information and communi
After transmission of the draft legislative act to the national
cation networks will be needed in order to contribute
parliaments,
to the achievement of the Europe 2020 policy objectives,
in particular climate goals and the transition to a
Having regard to the opinion of the European Economic and
resource-efficient low-carbon economy by developing
Social Committee (
smart, upgraded and fully interconnected infrastructures,

1 ),
and to foster the completion of the internal market.
After consulting the Committee of the Regions,
(4) Debt
capital
market
financing
is
not
readily
available
for
Acting in accordance with the ordinary legislative procedure ( 2 ),
infrastructure projects in the Union. The difficulties for
infrastructure projects in gaining access to long-term
Whereas:
private finance or public funding should not lead to a

deterioration in performance on the part of transport,
telecommunication and energy systems nor the slowing
(1) Decision
No
1639/2006/EC
of
the
European
Parliament
down of broadband penetration. Due to the fragmen
and of the Council ( 3 ) establishes the Competitiveness
tation of the bond markets across the Union, combined
and Innovation Framework Programme (CIP) with
with unknown demand as well as the size and
different types of implementing measures pursued by
complexity of infrastructure projects which require long
specific programmes, of which ‘the Information and
lead times for project preparation, it is appropriate to
Communications Technologies (ICT) Policy Support
address this issue at Union level.
Programme’ provides support for the strengthening of
the internal market for ICT products and services and
ICT-based products and services, and aims at stimulating
innovation through the wider adoption of, and
(5) Financial
instruments,
as
governed
by
Council
Regulation
investment in, ICT.
(EC, Euratom) No 1605/2002 of 25 June 2002 on the
Financial Regulation applicable to the general budget of
the European Communities ( 5 ), can, in some cases,
(2) Regulation
(EC)
No
680/2007
of
the
European
improve the efficiency of budget spending and achieve
Parliament and of the Council ( 4 ) lays down the general
high multiplier effects in terms of attracting private
sector financing. This is particularly relevant in the
( 1 ) OJ C 143, 22.5.2012, p. 134.
context of difficult access to credit, constraints on
( 2 ) Position of the European Parliament of 5 July 2012 (not yet
public finances, and in view of the need to underpin
published in the Official Journal) and decision of the Council of
Europe’s economic recovery.
10 July 2012.
( 3 ) OJ L 310, 9.11.2006, p. 15.
( 4 ) OJ L 162, 22.6.2007, p. 1.
( 5 ) OJ L 248, 16.9.2002, p. 1.

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L 204/2
EN
Official Journal of the European Union
31.7.2012
(6)
In its resolution of 8 June 2011 on Investing in the
Commission and the EIB. That cooperation agreement
future: a new Multiannual Financial Framework (MFF)
should be approved by the Commission and the EIB
for a competitive, sustainable and inclusive Europe, the
according to their respective procedures.
European Parliament welcomed the Europe 2020 Project
Bond Initiative, a risk-sharing mechanism with the EIB
providing capped support from the Union budget, that is
designed to leverage the Union funds and attract
(10) The
pilot phase
for the Europe 2020 Project
Bond
additional interest from private investors for participating
Initiative should be launched as soon as possible during
in priority projects that are in line with Europe 2020
the current financial framework and implemented
objectives. In its conclusions of 12 July 2011 on the
without undue delay in order to ascertain whether, and
Single Market Act, the Council recalled that financial
to what extent, such risk-sharing financial instruments
instruments need to be assessed in terms of leverage
offer added value in the area of infrastructure financing
effects in comparison to existing instruments, risks that
and for the development of debt capital market financing
would be added to government balance sheets and
of infrastructure projects.
possible crowding out of private institutions. The
Commission Communication on a pilot for the Europe
2020 Project Bond Initiative and the related impact
assessment, which draw on a public consultation,
should be seen in this context.
(11) The
pilot
phase
should
be
funded
by
means
of
budget

redeployment in the 2012 and 2013 budgets from
existing transport, energy and telecommunication
programmes. For this purpose, it should be possible for
up to EUR 200 million to be redeployed for this initiative
(7) A
pilot
phase
for
the
Europe
2020
Project
Bond
Initiative
from the TEN-T budget, up to EUR 20 million from the
should be launched, the aim of which is to help finance
budget of the Competitiveness and Innovation
priority projects with a clear EU added value, and to
Framework Programme and up to EUR 10 million from
facilitate greater private sector involvement in the long-
the TEN-Energy (‘TEN-E’) budget. The budgetary funds
term capital market financing of economically viable
available limit both the scope of the initiative and the
projects in the field of transport, energy and ICT infra
number of projects that can be supported.
structure. The instrument will benefit projects with
similar financing needs and, thanks to synergies
between the sectors, should produce greater benefits in
terms of market impact, administrative efficiency and
(12) Budgetary
funds
should
be
requested
by
the
EIB
on
the
resource utilisation. It should provide infrastructure stake
basis of a range of projects, which the EIB and the
holders such as financiers, public authorities, infra
Commission deem to be suitable, to be in line with the
structure managers, construction companies and
Union’s long-term policy objectives and likely to be
operators with a coherent instrument and will be
realised. Any such requests and the corresponding
driven by market demand.
budgetary commitments should be made no later than
31 December 2013. Due to the complexity of large infra
structure projects, it should be possible for the actual
approval by the EIB’s Board of Directors to take place
at a later date, but no later than 31 December 2014.
(8)
During the pilot phase for the Europe 2020 Project Bond
Initiative, the Union budget is to be used along with
financing from the EIB in the form of a joint risk-
sharing instrument for project bonds issued by project
(13) Application for support, and selection and implemen
companies. That instrument seeks to mitigate the debt-
tation of all projects should be subject to Union law,
service risk of a project and the credit risk of bond
in particular with regard to state aid, and should seek
holders to such an extent that capital market participants,
to avoid creating or adding to market distortions.
such as pension funds, insurance companies and other
interested parties, are willing to invest in a larger volume
of infrastructure project bonds than would be possible
without Union support.
(14) In
addition
to
the
reporting
requirements
under
point
49
of the Interinstitutional Agreement of 17 May 2006
between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial
(9)
In light of the EIB’s long-standing expertise and given
management ( 1 ), the Commission should, with the
that it is the major financier of infrastructure projects
support of the EIB, report every six months during the
and the EU financial body established by the Treaty,
pilot phase to the European Parliament and the Council
the Commission should involve the EIB in the implemen
after the signature of the cooperation agreement and
tation of the pilot phase. The main terms, conditions and
submit an interim report to the European Parliament
procedures of the risk-sharing instrument for project
and the Council in the second half of 2013. An inde
bonds should be laid down by means of this Regulation.
pendent full-scale evaluation should be carried out in
More detailed terms and conditions, including risk
2015.
sharing, remuneration, monitoring and control, should
be laid down in a cooperation agreement between the
( 1 ) OJ C 139, 14.6.2006, p. 1.

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(15) Drawing
upon
that
independent
full-scale
evaluation,
the
risk-sharing instrument for project bonds referred to in
Commission should assess the relevance of the Europe
Article 31(2a) to (2e), with information on the terms of
2020 Project Bond Initiative as well as its effectiveness in
the bonds issued and the types of current and potential
increasing the volume of investments in priority projects
future investors.’;
and enhancing the efficiency of Union spending.
(2) in Article 26(2), point (b) is replaced by the following:
(16) The
pilot phase of the Europe 2020 Project Bond
Initiative should be launched in preparation for the
‘(b) stimulation of innovation through the wider adoption
Connecting Europe Facility proposed by the Commission.
of, and investment in, ICT and broadband;’;
It is without prejudice to any decisions concerning the
Union’s Multiannual Financial Framework (MFF) after
2013 and concerning the possible re-use of reflows
(3) Article 31 is amended as follows:
from financial instruments in the context of the negoti
ations on the proposal for a regulation of the European
Parliament and of the Council on the financial rules
(a) paragraph 2 is replaced by the following:
applicable to the annual budget of the Union.
‘2. The
projects
referred
to
in
paragraph
1(a)
shall
aim to promote innovation, technology transfer and
(17) In order to implement the pilot phase of the Europe
the dissemination of new technologies that are ready
2020 Project Bond Initiative, Decision No 1639/2006/EC
for market uptake.
and Regulation (EC) No 680/2007 should be amended
accordingly.
The Union may award a grant to contribute to the
budget of those projects.
(18) In
order
for
the
measures
provided
for
in
this
Regulation
to be effective, in view of the limited duration of the
pilot phase, this Regulation should enter into force on
The Union may, alternatively, make, during a pilot
the day following its publication,
phase in 2012 and 2013, a financial contribution to

the EIB towards the provisioning and capital allocation
for debt instruments or guarantees to be issued by the
EIB from its own resources under the risk-sharing
HAVE ADOPTED THIS REGULATION:
instrument for project bonds.’;
Article 1
(b) the following paragraphs are inserted:
Amendments to Decision No 1639/2006/EC
Decision No 1639/2006/EC is hereby amended as follows:
‘2a. The
risk-sharing
instrument
for
project
bonds
referred to in the third subparagraph of paragraph 2
is a joint instrument by the Commission and the EIB
(1) in Article 8, the following paragraph is added:
which provides added value as a Union intervention,
addresses sub-optimal investment situations when
projects do not receive adequate financing from the
market, and provides additionality. It avoids distortion
‘5a. Without
prejudice
to
paragraphs
1
to
5,
for
projects
of competition, aims to secure a multiplier effect and
carried out under the risk-sharing instrument for project
aligns interests in the form of a credit enhancement. The
bonds referred to in Article 31(2), the Commission and
risk-sharing instrument for project bonds shall:
the European Investment Bank (EIB) shall submit an
interim report to the European Parliament and the
Council in the second half of 2013. An independent full-
(a) take the form of a debt instrument or a guarantee
scale evaluation shall be carried out in 2015.
granted by the EIB with the support of a Union
budget contribution in favour of financing
provided to projects in the field of ICT and
On the basis of that evaluation, the Commission shall assess
broadband, complementing or attracting financing
the relevance of the Europe 2020 Project Bond Initiative
by Member States or the private sector;
and its effectiveness in increasing the volume of investments
in priority projects and enhancing the efficiency of Union
spending. In the light of that assessment, taking into
(b) mitigate the debt service risk of a project and the
account all options, the Commission shall consider
credit risk of bond holders;
proposing appropriate regulatory changes, including legis
lative changes, in particular if the predicted market uptake
(c) be used only for projects whose financial viability is
is not satisfactory or in the event that alternative sources of
based on project revenues.
long-term debt financing become sufficiently available.
2b. The Union exposure to the risk-sharing
The interim report referred to in the first subparagraph shall
instrument for project bonds, including management
include a list of the projects which have benefited from the
fees and other eligible costs, shall in no case exceed

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L 204/4
EN
Official Journal of the European Union
31.7.2012
the amount of the Union contribution to the risk-
instrument for project bonds may reuse any revenues
sharing instrument for project bonds nor extend
received before 31 December 2013 for new debt
beyond the maturity of the underlying portfolio of
instruments and guarantees within the same risk-
credit enhancement facilities. There shall be no further
sharing facility and for projects fulfilling the same eligi
liability on the general budget of the Union. The
bility criteria in order to maximise the volume of
residual risk related to project bond operations shall
investments supported. In the event that the risk-
always be borne by the EIB.
sharing instrument for project bonds is not extended
into the next multiannual financial framework, any
2c. The
main
terms,
conditions
and
procedures
of
remaining funds shall be returned to the revenue side
the risk-sharing instrument for project bonds are laid
of the general budget of the Union.
down in Annex IIIa. The detailed terms and conditions
for implementing the risk-sharing instrument for project
bonds, including risk sharing, remuneration, monitoring
2e. In
addition
to
the
reporting
requirements
set
out
and control, shall be laid down in a cooperation
in point 49 of the Interinstitutional Agreement of
agreement between the Commission and the EIB. That
17 May 2006 on budgetary discipline and sound
cooperation agreement shall be approved by the
financial management, and without prejudice to any
Commission and the EIB according to their respective
other regulatory reporting requirements, the
procedures.
Commission shall report to the European Parliament
and the Council every six months during the pilot
2d. In
2013,
an
amount
of
up
to
EUR
20
million
phase on the performance of the risk-sharing instrument
may be used from the budget allocated for the
for project bonds, including the financial terms and
pursuance of ICT and broadband policy in accordance
placement of any project bonds issued.’;
with the rule set out in point (b) of Annex I. Given the
limited duration of the pilot phase, the risk-sharing
(4) the following Annex is added:
‘ANNEX IIIa
Main terms, conditions and procedures of the risk-sharing instrument for project bonds referred to in Article 31(2c)
The EIB shall be a risk-sharing partner and shall manage the Union contribution to the risk-sharing instrument for project
bonds on behalf of the Union. More detailed terms and conditions for implementing that instrument, including its
monitoring and control, shall be laid down in a cooperation agreement between the Commission and the EIB, taking into
account the provisions laid down in this Annex.
(a) The EIB facility
1. The risk-sharing instrument for project bonds will be designed for each eligible project as a subordinated facility, in
the form of a debt instrument or a contingent (guarantee) facility or both, in order to facilitate the issue of a
project bond.
2. Should the EIB be or become a creditor to a project, the EIB’s rights under the risk-sharing instrument for project
bonds shall rank behind the debt service of the senior debt and ahead of equity and any financing related to equity.
3. The facility shall not exceed 20 % of the total amount of the senior debt issued.
(b) Budget
ICT:
2013: Up to EUR 20 million.
The request for transfer of the sums above shall be issued by 31 December 2012 and shall be supported by a forecast
of the need for the scheduled Union contribution.
If necessary, that forecast may serve as the basis for a demand-based reduction of the 2013 amount which shall be
decided in accordance with the procedure referred to in Article 46(2).
(c) Fiduciary account
1. The EIB shall set up a fiduciary account to hold the Union contribution and revenues resulting from the Union
contribution.
2. Given the limited duration of the pilot phase, the interest earned on the fiduciary accounts and other revenues
resulting from the Union contribution, such as guarantee premiums, interest and risk margins on sums disbursed
by the EIB, shall be added to the resources of the fiduciary account. However, the Commission may decide, in
accordance with the procedure referred to in Article 46(2), that they are to be returned to the CIP ICT budget line.

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(d) Use of the Union contribution
The Union contribution shall be used by the EIB:
1. towards risk provisioning on a first-loss basis for the subordinated facilities of the eligible project portfolio, in
accordance with the relevant rules of the EIB and a risk assessment performed by the EIB under its applicable
policies;
2. to cover any non-project-related eligible costs associated with the establishment and administration of the risk-
sharing instrument for project bonds, including its evaluation.
(e) Risk and revenue sharing
The risk-sharing pattern resulting from point (d) shall be reflected in an appropriate sharing between the Union and
the EIB of the risk remuneration charged by the EIB to its counterpart in respect of each facility within the project
portfolio.
(f) Pricing
The pricing of the project bond facilities is based upon the risk remuneration in accordance with relevant standard
rules and criteria of the EIB.
(g) Application procedure
Applications for risk coverage under the risk-sharing instrument for project bonds shall be addressed to the EIB in
accordance with the EIB’s standard application procedure.
(h) Approval procedure
The EIB shall carry out risk, financial, technical and legal due diligence and shall decide upon the use of the risk-
sharing instrument for project bonds and select the appropriate type of subordinated facility in accordance with its
standard rules and criteria, notably EIB Credit Risk Policy Guidelines, and the EIB’s selection criteria in the social,
environmental and climate field.
(i) Duration
1. The Union contribution to the risk-sharing instrument for project bonds shall be committed no later than
31 December 2013. The actual approval of project bond facilities by the EIB’s Board of Directors shall be
finalised by 31 December 2014.
2. In the event of termination of the risk-sharing instrument for project bonds during the current multiannual
financial framework, any balances on the fiduciary account, other than funds committed and funds needed to
cover other eligible costs and expenses, shall be returned to the CIP ICT budget line.
3. Funds allocated to the risk-sharing instrument for project bonds shall be reimbursed to the relevant fiduciary
account as facilities expire or are repaid, provided risk coverage remains sufficient.
(j) Reporting
Annual reporting methods on the implementation of the risk-sharing instrument for project bonds shall be agreed
between the Commission and the EIB.
In addition, the Commission shall, with the support of the EIB, report on implementation every six months to the
European Parliament and the Council, starting six months after the signature of the cooperation agreement referred to
in Article 31(2c).
(k) Monitoring, control and evaluation
The Commission shall monitor the implementation of the instrument, including through on-the-spot controls as
appropriate, and shall perform verification and controls in line with Council Regulation (EC, Euratom) No 1605/2002
of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (*).
The EIB shall manage subordinated facilities in accordance with EIB’s own rules and procedures, including appropriate
audit, control and monitoring measures. Furthermore, the EIB’s Board of Directors, on which the Commission and
Member States are represented, shall approve each subordinated facility and monitor that the EIB is managed in
accordance with its Statute and with the general directives laid down by its Board of Governors.

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L 204/6
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Official Journal of the European Union
31.7.2012
The Commission and the EIB shall submit an interim report on the functioning of the pilot risk-sharing instrument
for project bonds to the European Parliament and the Council in the second half of 2013 with a view to optimising
the design of that instrument.
A full-scale independent evaluation shall be undertaken in 2015 after approval of the final project bond operations. It
shall cover, inter alia, the value added, additionality compared to other Union or Member State instruments and other
existing forms of long-term debt financing, the achieved multiplier effect, an assessment of the risks involved as well
as the creation or correction of distortive effects, if any. The evaluation shall also cover the impact on projects’
financial viability, volume, terms and costs of bond issuance, the effect on the wider bond markets as well as
controlling creditor and procurement aspects. It shall also provide, if possible, a cost comparison with alternative
means of project finance including bank loans. During the pilot phase, each selected project shall be assessed.
___________
(*) OJ L 248, 16.9.2002, p. 1.’.
Article 2
(b) the following point is added:
Amendments to Regulation (EC) No 680/2007
Regulation (EC) No 680/2007 is hereby amended as follows:
‘(g) during a pilot phase in 2012 and 2013, a financial
contribution to the EIB towards the provisioning
and capital allocation for debt instruments or guar
(1) in Article 2 the following points are added:
antees to be issued by the EIB from its own
resources under the risk-sharing instrument for
project bonds in the field of TEN-T and TEN-E.
‘(14) The “risk-sharing instrument for project bonds” means
The Union exposure to the risk-sharing instrument,
a joint instrument by the Commission and the EIB
including management fees and other eligible costs,
which provides added value as a Union intervention,
shall in no case exceed the amount of the Union
addresses sub-optimal investment situation when
contribution to the risk-sharing instrument for
projects do not receive adequate financing from the
project bonds, nor extend beyond the maturity of
markets, and provides additionality, by comple
the portfolio of underlying credit enhancement
menting or attracting financing by Member States or
facilities. There shall be no further liability on the
the private sector. It avoids distortion of competition,
general budget of the Union. The residual risk
aims to secure a multiplier effect and aligns interests.
related to these project bond operations shall
The risk-sharing instrument for project bonds takes
always be borne by the EIB.
the form of a credit enhancement to projects of
common interest, mitigates the debt service risk of a
project and the credit risk of bond holders and is used
The main terms, conditions and procedures of the
only for projects whose financial viability is based on
risk-sharing instrument for project bonds are laid
project revenues.
down in Annex Ia. The detailed terms and
conditions for implementing the risk-sharing
(15) “Credit enhancement” means the improvement of the
instrument for project bonds, including risk-
credit quality of a project debt by means of a
sharing, remuneration, monitoring and control,
subordinated facility in the form of an EIB debt
shall be laid down in a cooperation agreement
instrument or of an EIB guarantee or both,
between the Commission and the EIB. This
supported by a contribution from the Union budget.’;
cooperation agreement shall be approved by the
Commission and the EIB according to their
respective procedures.
(2) in the first paragraph of Article 4 the following sentence is
added:
In 2012 and 2013, an amount of up to EUR
210 million, of which up to EUR 200 million for
‘Applications for risk coverage under the risk-sharing
transport projects and up to EUR 10 million for
instrument for project bonds under Article 6(1)(g) shall be
energy projects, may be redeployed for the risk-
addressed to the EIB in accordance with the EIB’s standard
sharing instrument for project bonds in accordance
application procedure.’;
with the procedure referred to in Article 15(2) from
the budget lines for the loan guarantee instrument
for TEN-T projects, referred to in Annex I, and for
(3) Article 6(1) is amended as follows:
TEN-E respectively.
(a) in point (d), the following sentence is added:
In addition to the reporting requirements set out in
point 49 of the Interinstitutional Agreement of
‘In 2012 and 2013, an amount of up to EUR
17 May 2006 on budgetary discipline and sound
200 million may be redeployed for the pilot phase of
financial management, and without prejudice to
the risk-sharing instrument for project bonds in the
any other regulatory reporting requirements,
transport sector.’;
the Commission shall report to the European

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Parliament and the Council every six months
On the basis of that evaluation, the Commission shall assess
during the pilot phase on the performance of the
the relevance of the Europe 2020 Project Bond Initiative
risk-sharing instrument, including the financial
and its effectiveness in increasing the volume of investments
terms and placement of any project bonds issued.
in priority projects and enhancing the efficiency of Union
spending. In the light of that assessment, taking into
Given the limited duration of the pilot phase,
account all options, the Commission shall consider
interest and other revenue generated by the risk-
proposing appropriate regulatory changes, including legis
sharing instrument for project bonds which is
lative changes, in particular if the predicted market uptake
received before 31 December 2013 may be
is not satisfactory or in the event that alternative sources of
reused for new debt instruments and guarantees
long-term debt financing become sufficiently available.’;
within the same risk-sharing facility and for
projects fulfilling the same eligibility criteria in
order to maximise the volume of investments
(5) in Article 17(1), the following subparagraph is added:
supported. If the risk-sharing instrument for
project bonds is not extended into the next
financial framework, any remaining funds shall be
‘The interim report referred to in Article 16(2a) shall also
returned to the revenue side of the general budget
contain a list of the projects which have benefited from the
of the Union.’;
risk-sharing instrument for project bonds referred to in
Article 6(1)(g), with information on the terms of the
bonds issued and the types of current and potential future
(4) in Article 16, the following paragraph is added:
investors.’;
‘2a. Without
prejudice
to
paragraphs
1
and
2,
for
projects carried out under the risk-sharing instrument for
(6) the Annex is renumbered Annex I and the words ‘the
project bonds referred to in Article 6(1)(g), the Commission
Annex’ in Article 6(1)(d) are accordingly replaced with
and the EIB shall submit an interim report to the European
‘Annex I’;
Parliament and the Council in the second half of 2013. An
independent full-scale evaluation shall be carried out in
2015.
(7) the following Annex is added:
‘ANNEX Ia
Main terms, conditions and procedures of the risk-sharing instrument for project bonds referred to in Article 6(1)(g)
The EIB shall be a risk-sharing partner and shall manage the Union contribution to the risk-sharing instrument for project
bonds on behalf of the Union. More detailed terms and conditions for implementing that instrument, including its
monitoring and control, shall be laid down in a cooperation agreement between the Commission and the EIB, taking into
account the provisions laid down in this Annex.
(a) The EIB facility
1. The risk-sharing instrument for project bonds will be designed for each eligible project as a subordinated facility, in
the form of a debt instrument or a contingent (guarantee) facility or both, in order to facilitate the issue of a
project bond.
2. Should the EIB be or become a creditor to a project, the EIB’s rights under the risk-sharing instrument for project
bonds shall rank behind the debt service of the senior debt and ahead of equity and any financing related to equity.
3. The facility shall not exceed 20 % of the total amount of the senior debt issued.
(b) Budget
TEN-T:
— 2012: Up to EUR 100 million
— 2013: Up to the cumulated amount of EUR 200 million
to be reallocated from the TEN-T budget dedicated to the loan guarantee instrument for TEN-T projects, referred to in
Annex I, but unspent.
TEN-E:
2013: Up to EUR 10 million.
The request for transfer of the 2012 amount shall be issued without undue delay following the signature of the
cooperation agreement.

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The transfer requests in subsequent years shall be issued by 31 December of the preceding year.
In all cases the transfer request shall be supported by a forecast of the need for the scheduled Union contribution.
If necessary, that forecast may serve as the basis for a demand-based reduction of the amounts which shall be decided
in accordance with the procedure referred to in Article 15(2).
(c) Fiduciary account
1. The EIB shall set up two fiduciary accounts (one for projects under TEN-T, the other for projects under TEN-E) to
hold the Union contributions and revenues resulting from the Union contributions. The fiduciary account for TEN-
T may be merged with the fiduciary account set up for the loan guarantee instrument for TEN-T projects, referred
to in Annex I, provided such measure does not impede the quality of reporting and monitoring as stipulated under
points (j) and (k).
2. Given the limited duration of the pilot phase, the interest earned on the fiduciary accounts and other revenues
resulting from the Union contribution, such as guarantee premiums, interest and risk margins on sums disbursed
by the EIB, shall be added to the resources of the fiduciary account. However, the Commission may decide, in
accordance with the procedure referred to in Article 15(2), that they are to be returned to the TEN-T or TEN-E
budget lines.
(d) Use of the Union contribution
The Union contribution shall be used by the EIB:
1. towards risk provisioning on a first-loss basis for the subordinated facilities of the eligible project portfolio, in
accordance with the relevant rules of the EIB and a risk assessment performed by the EIB under its applicable
policies;
2. to cover any non-project-related eligible costs associated with the establishment and administration of the risk-
sharing instrument for project bonds including its evaluation.
(e) Risk and revenue sharing
The risk-sharing pattern resulting from point (d) shall be reflected in an appropriate sharing between the Union and
the EIB of the risk remuneration charged by the EIB to its counterpart in respect of each facility constituting the
portfolio.
Notwithstanding the provisions applying to risk sharing for the loan guarantee instrument for TEN-T projects, referred
to in Annex I, the risk-sharing pattern for project bonds shall also apply to that instrument including the operations
of its existing portfolio.
(f) Pricing
The pricing of the project bond facilities is based upon the risk remuneration in accordance with relevant standard
rules and criteria of the EIB.
(g) Application procedure
Applications for risk coverage under the risk-sharing instrument for project bonds shall be addressed to the EIB in
accordance with the EIB’s standard application procedure.
(h) Approval procedure
The EIB shall carry out risk, financial, technical and legal due diligence and shall decide upon the use of the risk-
sharing instrument for project bonds and select the appropriate type of subordinated facility in accordance with its
standard rules and criteria, notably EIB Credit Risk Policy Guidelines, and the EIB’s selection criteria in the social,
environmental and climate field.
(i) Duration
1. The last tranche of the Union contribution to the risk-sharing instrument for project bonds shall be committed no
later than 31 December 2013. The actual approval of project bond facilities by the EIB’s Board of Directors shall
be finalised no later than 31 December 2014.
2. In the event of termination of the risk-sharing instrument for project bonds during the current multiannual
financial framework any balances on the fiduciary accounts, other than funds committed and funds needed to
cover other eligible costs and expenses, shall be returned to the TEN-T, TEN-E budget lines.

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EN
31.7.2012 Official
Journal
of
the
European
Union L
204/9
3. Funds allocated to the risk-sharing instrument for project bonds shall be reimbursed to the relevant fiduciary
account as facilities expire or are repaid provided risk coverage remains sufficient.
(j) Reporting
Annual reporting methods on the implementation of the risk-sharing instrument for project bonds shall be agreed
between the Commission and the EIB.
In addition, the Commission shall, with the support of the EIB, report on implementation every six months to the
European Parliament and the Council, starting six months after the signature of the cooperation agreement referred to
in Article 6(1)(g).
(k) Monitoring, control and evaluation
The Commission shall monitor the implementation of the instrument, including through on-the-spot controls as
appropriate, and shall perform verification and controls in line with Regulation (EC, Euratom) No 1605/2002.
The EIB shall manage subordinated facilities in accordance with EIB’s own rules and procedures, including appropriate
audit, control and monitoring measures. Furthermore, the EIB’s Board of Directors, on which the Commission and
Member States are represented, shall approve each subordinated facility and monitor that the EIB is managed in
accordance with its Statute and with the general directives laid down by its Board of Governors.
The Commission and the EIB shall submit an interim report on the functioning of the pilot risk-sharing instrument
for project bonds to the European Parliament and the Council in the second half of 2013 with a view to optimising
the design of that instrument.
A full-scale independent evaluation shall be undertaken in 2015 after approval of the final project bond operations. It
shall cover, inter alia, the value added, additionality compared to other Union or Member State instruments and other
existing forms of long-term debt financing, the achieved multiplier effect, an assessment of the risks involved as well
as the creation or correction of distortive effects, if any. The evaluation shall also cover the impact on projects’
financial viability, volume, terms and costs of bond issuance, the effect on the wider bond markets as well as
controlling creditor and procurement aspects. It shall also provide, if possible, a cost comparison with alternative
means of project finance including bank loans. During the pilot phase, each selected project shall be assessed.’.
Article 3
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the
European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 11 July 2012.
For the European Parliament
For the Council
The President
The President
M. SCHULZ
A. D. MAVROYIANNIS

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L 204/10
EN
Official Journal of the European Union
31.7.2012
Statement by the Commission
Under point 49 of the Interinstitutional Agreement on budgetary discipline and sound financial
management, the Commission reports to the budgetary authority once a year on the financial instruments.
The 2012 report will also include the EU-EIB Project Bond Initiative.
Against this background and considering the short-lived nature of the project bond pilot phase, the
Commission wishes to clarify that the expression ‘report every six months during the pilot phase’ used
in recital 14, in Article 1(3)(b), Article 1(4), Article 2(3)(b) and Article 2(7), is that the Commission will
inform Council and Parliament by appearing before either institution with suitable support material rather
than completing an official Commission report, which would require disproportionate effort compared to
the limited scope of the pilot phase.

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