PPPs for TEN-T projects in which the private sector takes on risk relating to the possible variations in demand often face difficulties in attracting competitively priced private financing. The LGTT is a guarantee facility that helps by partially covering these risks by making up shortfalls in revenue that result from lower than expected traffic growth in the early operational periods of projects. In this way, it improves the financial viability of a project and its overall credit quality. Individual LGTT guarantees are available through the EIB. Three PPP schemes have already benefited25 and in total the LGTT facility is expected to support 25-35 TEN-T projects by 2013. Planned projects include a high speed rail line, an airport express, motorway concessions in some new Member States and innovative freight projects.
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25 Motorway schemes 'IP4 Amarante - Villa Real' and 'Baixo Alentejo' in Portugal, and the A5 Autobahn A-model PPP in Germany.