There are many projects, especially in transport, which are revenue generating, but where revenues are weak and can contribute only a part of the funding gap. Also, there may be cases where, even with substantial grant funding, the co-financing is difficult to raise. In such cases, it may be beneficial to combine Structural Fund grants with co-financing made available via financial engineering (e.g. grant + LGTT, or grant + JESSICA-backed soft equity). Although financial engineering instruments are exempt from the funding gap requirements, the Structural Fund grant funding is not, and the "grant equivalent" of the Structural Fund element may need to be taken into account in the financial analysis. It would be useful to explore how such co-financing could be achieved, especially as a precursor to the next programming period in which grant rates might reduce and the use of financial engineering instruments increase.