This paper focuses mainly on Structural and TEN-T Funds, but the principles also apply to other existing funding for EU policy priorities (e.g. Environment, European competitiveness, New Generation Access). It is concerned primarily with the impact of EU level regulations on PPPs; it does not cover the issue of the interfaces between these regulations and national law, regulation and practice. These interfaces are important and should be considered carefully by those EPEC Members wishing embark on a programme of grant / loan blending3.
The structure of the paper is as follows. Following this introduction:
• Section 1 examines the principal instruments available for blending EU Funds with PPPs;
• Sections 2 and 3 analyses some of the main difficulties encountered related to both the application of EU regulations (section 2) and wider policy and procurement issues (section 3);
• Section 4 examines further the scope for developing PPP within the current framework of regulations;
• Section 5 considers the changes to the regulations which may be desirable to maximise the potential for PPPs.
Three Annexes give more details on some of the main topics of this paper:
• Annex I on financial engineering instruments as a means of combining EU Funds and PPPs;
• Annex II on how to blend PPPs with TEN-T Grants and the TEN-T grant application process;
• Annex III on how to blend PPPs with Structural Funds4 grants and in particular the issue of the funding gap and of the grant application for Structural Funds.
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3 EPEC will be looking to issue further guidance on this issue in due course.
4 Structural Funds in this paper means the funds regulated through Council Regulation (EC) No 1083/2006 of 11 July, 2006, laying down general provisions on the European Regional Development Fund, European Social Fund and the Cohesion Fund (the General Regulation).