Three financial instruments designed for TEN-T projects were introduced under the current TEN Financial Regulation, all of which aim to increase private participation. These new instruments are designed to benefit projects by targeting specific needs (such as optimal risk transfer, financing cost). Not only do they allow a targeted response, they also guarantee the highest leverage effect of the available EU funds.
The value of such EU level financial support to PPP projects often goes beyond simple capital provision. They are also an expression of a political commitment by the EU that often makes financing institutions look more favourably at the risk profile of a project and therefore make it easier to secure its financing at more favourable conditions. EU level guarantees serve the same function.