Article 55 of Regulation (EC) no 1083/2006 which refers to revenue-generating projects raises a number of issues if the respective revenue-generating project is a PPP. Financial engineering instruments on the other hand are exempted from the application of paragraphs 1 to 5 of Article 55 of Regulation (EC) no 1083/2006. "[…] the very aim of financial engineering operations is to provide financial support through financial engineering instruments to enterprises and public-private partnerships (PPP) and urban development projects, and for such financial support to be repaid, with interest or with a gain, so that resources returned can be re-used for the benefit of enterprises, PPPs or projects. [ ] Thus, instead of applying the rationale in paragraphs 1 to 5 of Article 55 to financial engineering operations, which would have entailed a reduction in the financing given by the amount of any resulting interest or gain, the legislator has set out a specific regime for such operations which instead involves resources returned being re-used to finance other enterprises, PPPs or projects"20. The main difference between the use of EU Funds under Article 55 of Regulation (EC) No 1083/2006 and the use of EU Funds via a financial engineering instrument is that while the profitability of financial engineering support is relevant to the decision to contribute that financial engineering instrument to an enterprise, PPP or project, it is not a determining factor when establishing the level of that contribution from the EU Funds, as is the case for projects subject to paragraphs 1 to 5 of Article 55 of the Regulation (EC) No 1083/2006.
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20 COCOF 08/0002/01-EN.