funding opportunities for the maritime sector - thetis · and/or entrepreneurial activities under...

Funding opportunities for the maritime sector

On. Ing. Antonio Cancian – President and CEO RAM S.p.A.

Venezia – Aquae Venice 2015 EXPO – 28.09.2015

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TABLE OF CONTENT


1. Rete Autostrade Mediterranee 2.0: a) Foreword b) Context c) Vision & Mission d) Activities

2. An outlook of the maritime cluster in Italy: a) General context b) Economic impact of the maritime cluster c) Critical outlook and future prospects of maritime transport and logistics d) Funding opportunities: preliminary outline

3. Funding opportunities from IFIs a) World Bank

4. Funding opportunities in Europe a) In general b) Direct funds – EU Programmes c) European Territorial Cooperation d) Indirect funds (NOP – ROP)

5. National funding opportunities a) Centrally managed fund: Fondo di Sviluppo e Coesione (FSC) b) Focus: National programming documents for the transport and infrastructures sector

6. Innovative Financial Instruments a) General outlook b) At international level c) At European level d) At national level e) At regional level

7. Conclusions: towards the financial blending

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SUB INDEX


1. Rete Autostrade Mediterranee 2.0: a) Foreword b) Context c) Vision & Mission d) Activities


3. Funding opportunities from IFIs

a) World Bank





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1. Rete Autostrade Mediterranee 2.0

a) Foreword

Rete Autostrade Mediterranee was founded in 2004, with the aim

of implementing the “Motorways of the Sea” national programme, in accordance with the corresponding European programme, as included in the TEN-T Network General Plan.

The company, whose share capital is now entirely owned by the Ministry

of Economy and Finance, pursues the objective of developing maritime transport services as an essential mean of connecting regions in the Euro-Mediterranean context.

RAM S.p.A., as an implementing body on behalf of the Italian Ministry of Infrastructure and Transport, works on the planning and coordination of activities implementing EU directives on “Motorways of the Sea”, manages national incentives promoting the development of intermodal transport and is involved in the management of European projects.

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The role of RAM is in line with the strategy outlined in the recently approved “National Strategic Plan for Ports and Logistics (PSNPL)

The Council of Ministers finally approved on the 6th August 2015 the “National Strategic Plan for Ports and Logistics” (PSNPL), in accordance with Law No. 164/2014, “Sblocca Italia”;

The plan outlines a new vision for the Italian maritime cluster, developed in 10 goals and corresponding actions, aiming at turning the maritime cluster into a strategic tool for the national economic recovery and the Euro-Mediterranean policy;

The objectives and measures set out in the PSNPL, together with the European funding programming, as well as the guidelines outlined in the Work Plans of the 9 Corridors and by the 2 horizontal priorities (MoS ed ERTMS) of the «Core Network» TEN-T, should guide the future activities of the national ports and logitics system actors;

b) Context

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The «New Ports and Logistic Strategy»: 10 Objectives/10 Actions:

1) Semplification and speed-up of procedures;

2) Boosting the competitivity; 3) Accessibility of transport services; 4) Integration between logistic services and

manifacturing areas; 5) Improvement of the maritime

infrastructure; 6) Promotion of R&I in the maritime

cluster; 7) Environmental and energetic

sustainibility; 8) Enhancing the investment framework; 9) Improving the central coordination; 10) New Governance;

VISION

“Becoming the MIT’s

technical support and

the operational

implementing

company, in particular

on ports and logistic,

providing specialized

skills, operational

flexibility, aiming to

semplify the whole

Sea System»

c) Vision & Mission

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MISSION: Aiming to contribute to the promotion of an efficient maritime

transport network, as an alternative of road transport to make the sea accessible

Working on the management and implementation of EU funded projects aimed at making a concrete contribution to the development of the Motorways of the Sea, with particular reference to the Mediterranean;

Preparing interventions projects, including their economic and

financial analysis and implementation;

Promoting scouting’s actions of potential financial partners and/or entrepreneurial activities under the program Motorways of the Sea, including the realization of project financing initiatives;

Carrying out activities of support and service aiming at the design and implementation of plans, programmes and initiatives promoted by public and private entities



R.A.M. as MIT’s tool to strenghten the maritime cluster

TECHNICAL

OPERATIONAL

ASSISTANCE TO

THE PLAYERS

OF THE

MARITIME

CLUSTER

Support in the

identification of

suitable funding

opportunities

(feasibility

analyses and

financial

engineering)

SUPPORT ON

INCENTIVES FOR

THE MOS

IMPLEMENTATION

Ensuring the design

and the

management of all

the incentive

measures affecting

sea-raiway/sea-road

(delivery, reporting,

monitoring, etc.)

SUPPORT TO THE

IMPLEMENTATION

OF SUSTAINABLE

AND ENERGY

SAVING

PROCESSES AND

FACILITIES IN

PORTS

Support in the

tender’s drafting,

assistance to the

AdSP, operational

management of the

related Funds

(Green fund)…

CONTRIBUTION

TO THE SKILLS

AND EXPERTISE

ENHANCEMENT

Support and

realisation of

highly specialized

training

programmes for

the MIT and the

maritime cluster’s

stakeholders

d) Activities

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SUB INDEX

Funding opportunities for the maritime sector 1. Rete Autostrade Mediterranee 2.0:

a) Foreword b) Context c) Vision & Mission d) Activities



a) World Bank





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2. An outlook to the maritime cluster in Italy

a) General context

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Maritime Cluster

Tourims

Fishing

Transport and logistics

Shipbuilding

industry

Natural resources and Energy

Assets:

Infrastructures

Services

Research and Innovation

The maritime cluster and its sectorial activities:


b) Economic impact of the maritime cluster

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In 2014, the blue economy

produced € 43,7 billion and

activated € 81,2 billion, for a total

of € 124,9 billion directly or

indirectly generated, (8,6% of the

overall economy of the Country).

The added value generated and activated by the blue economy in 2014

Source: Unioncamere-SI.Camera

Maritime Cluster – 124,9 Bln. €. (8,6% GDP)

Activated impact – 81,2 Bln. €. (5,6% GDP)

Blue economy – 43,7 Bln.€. (3% GDP)


b) Economic impact of the maritime cluster

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The investments

multiplier of the

Blue economy is

1,85; for transport

and logistics

sector it is

particularly

accentuated (2,9).

Added value generated and activated from the blue economy, 2014

Source: Unioncamere-SI.Camera;

Sport

Fisheries

Restaurants and hotel

Transports

Ship Building

Research

Extracting activities

Multiplier Product


c) Critical outlook and future prospects of maritime transport and logistics

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Today’s critical issues:

Limited public resources for projects;

Projects are not viable from an economic and financial point of view;

Limited involvement of private capital;

Lack of a coherent projects pipeline;

Lack of favourable structural requirements;

Elabouration of sustainable projects from an economic, social and environmental point of view:

MASTERPLAN & BUSINESS PLAN


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Today’s critical issues :






Projects elabouration:

Intermodality

Interconnectivity:

Integration:

Connecting road, sea, inland waterways, railway and air

Relevance of Information and communication technology

Transport network coherent with telecommunication and energy networks



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Limitato coinvolgimento di capitali privati;

Individualismo progettuale;

Mancanza dei requisiti strutturali di esito favorevole;

Elabouration of coordinated projects within integrated logistics platforms:

IT’S IMPORTANT TO THINK IN TERMS OF “CLUSTER”

AND “UNIFORM TERRITORIAL SYSTEMS”









d) Financing opportunities: preliminary outline

Sources of financing from international financing institutions (IFI’s);

European funding sources;

National funding sources;

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In order to identify financing opportunities for the maritime sector, and expecially in the transport and logistics sector, we will follow a dychotomic classification. First, we will anayse grants according different funding institutions:

International;

European;

National;

Regional;

Later on, we will analyse innovative financial instruments at different level :

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SUB INDEX





a) World Bank

4. Funding opportunities in Europe a) General Considerations b) Direct funds – EU Programmes c) European Territorial Cooperation d) Indirect funds (NOP – ROP)




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3. Funding opportunities from IFI’s

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In general:

Investment Projects are regulated by an agreement between the World

Bank and the Government of the beneficiary (borrower). This

agreement also regulates the procurement procedures for the supply

of goods, services, civil works, and consultancy services which are

functional to the project realisation.

Procurement:

- Procurement of goods, works and services other than the

advisory service: through the International Competitive Bidding

(ICB), which applies to procurements over $10 millions (but could also

apply to procurements with lower amount. ICB rules are set by the

World Bank and could be only partially, with the previous consent of

the WB; or through the National Competitive Bidding (NCB), which

applies to procurements for amounts lower than $10 millions for the

purchase of goods, services, civil works. These procurements follow

the rules of the borrower country;

- Advisory services;

a) World Bank

The main investment sectors are energy (14%), transport (13%) and health (12%).

Investments are mainly concentrated in the Asian Region: Investments amount in “South Asia" (India, Sri Lanka) and "East Asia and Pacific" (China, Indonesia) are 37% of the total investment, whereas investments in "Europe and Central Asia" (Romania, Bulgaria, Poland and Balkans) amount at 19%.*

*Source: Il Sole 24 Ore, 2012.

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SUB INDEX





a) World Bank





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4. Funding opportunities in Europe

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Regulation (EU) No. 1311/2013, which entails the European Multi-Annual Financial Framework (MFF) 2014-2020, identifies the financial instruments necessary to achieve the objectives of the “Europe 2020” strategy. In this framework the european funds play a crucial role in order to implement the european policies, in particular in the transport and infrastructure sector : Direct Funding and European Programmes: managed by the European Commission with the

allocation of financial resoucers to Multi-Annual Framework Programmes in several sectors, (e.g. trasport, research and innovation, business, environment), and directly delivered to end beneficiaries through the Directorates General or agencies delegated by the European Commission. The funds under direct management follows the procedure of Grants, namely co-financing focus on different thematics (e.g.: research, environment, business, etc.) assigned to european projects according to call for proposals, published periodically under the Multi Annual Framework Programs of the Eu. For each projects the grants cover a percentage of eligible costs. The co-financing should be integrated by the beneficiary's own resources;

Indirect Funds or Structural Funds: they are managed by Member States through their respective administrations at national, regional and local level. Financing resources are transferred from the EU budget to the Member States, or to the Regions and managed on the basis of National and Regional Operative Programmes (PON and POR), which regulate the assignment of the funds to the end beneficiaries and integrate the EU financing amount with national resources.

a) General Considerations


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Financial instruments: The European Union offers several financial instruments (loans,

guarantees…), available through financial intermediaries. Many of them are managed by the European Investment Bank (EIB) and European Investment Fund (EIF) through financial intermediaries.

Moreover, the EU contributes to funding through contracts/Tenders in order to purchase goods, services or works. The funds are provided under call for tenders published periodically and cover 100% of the value of the service, supply or work performed including profit business.

The present work will primarly focuse the main EU’s programmes in the maritme field (CEF, Horizon 2020, Life, COSME) and then will list other direct funds that contribute to a partial funding for maritime’s projects.


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b) Direct funds (European programmes)

CONNECTING EUROPE FACILITY (CEF)

Description Financing Programme aiming at improving trans-European transport, Energy and Telecommunication networks, at the same time

catching up private capital investments in infrastructures.

Sector Energy, Transport and Telecommunication

Beneficiaries Member States, public and private entities

Eligible countries EU Member States.

Specific objectives

and actions

Transport:

- Removing bottlenecks, improving interoperability, building missing links and improving cross-border routes;

- Ensuring sustainable and efficient transport systems, in order to enable decarbonisation of transport;

- Improving integration, interconnection, interoperability of transport services, thus enhancing the accessibility of transport

systems.

Energy:

- Promoting the integration of EU energy market and ensuring trans-national interoperability of gas and energy networks;

- Improving security of EU wide energy supply;

- Increasing renewable energy and develop smart grid;

Telecommunications:

- Fast and ultra fast broadband networks;

- Pan-European digital services;

Budget and co-

financing

€. 29.891.602.000 of which:

- Transport: €. 24.050.000.000 (of which €. 11 305 500 000 EUR from the European cohesion Fund);

- Telecommunications: €. 1.141.602.000;

- Energy: €. 4.700.000.000

Co-financing between 20% (works) and 50% (studies and pilot actions).


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b) Direct Funds (European programmes)

EU FUNDING PROGRAMME FOR ENVIRONMENT AND CLIMATE ACTION (LIFE)

Description Financing instrument aiming at supporting EU projects in the field of environmental protection

and climate change mitigation

Sector Environment

Beneficiaries Public and private entities

Eligible countries EU Member States, EFTA countries, EEA Member States, candidate countries, membri SEE,

Paesi candidati, Countries to which the EU neighbourhood policy applies, EEA member coutries

Sub-programmes and

priority actions

Sub-programme Environment:

- Environment and efficient use of resources;

- Nature and biodiversity;

- Environmental governance and information;

Sub-programme Climate Action:

- Climate change mitigation;

- Climate change adaptation;

- Climate governance and information;

Budget & cofinancing

€. 3.456.000.000 of which €. 2.592.000.000 for the sub-programme “Environment” and €.

864.000.000 for the sub-programme “Climate Action”

Cofinancing: 60%


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FRAMEWORK PROGRAMME FOR RESEARCH AND INNOVATION (HORIZON 2020)

Description Financial instrument for sustaining investments in research and development in order to

improve competitivity of EU enterprises

Sector Research

Beneficiaries Legal entities from EU Member State, international organisations and Member States

Authorities

Eligible countries EU Member States, EFTA countries, EEA member States, candidate countries, third

countries on the basis of agreements

Priorities and specific objectives

– Focus Transport

Priority III Societal Challenges:

- Secure, clean and efficient energy;

- Smart, Green and Integrated Transport

Budget and cofinancing Priority Societal Challenges: €. 29.679.000.000

Cofinancing 100% for R&S projects and 70% for innovation projects


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EU PROGRAMME FOR THE COMPETITIVITY OF SMALL AND MEDIUM SIZED ENTERPRICES (COSME)

Description

Cosme aims at improving SME’s competitivity, strengthening their economic competitiveness and

sustainability, encouraging an entrepreneurial culture and promoting the creation and growth of

SMEs

Sector SMES’s competitivity

Beneficiaries

Entrepreneurs, expecially SMEs, which benefit from easier access to funding for their business;

citizens who whant to start their own business and face difficulties in starting or developing their

business; Member States Authorities

Eligible countries EU Member States, EFTA countries, EEA Member States, Candidate countries, third countries on

the basis of agreements.

Actions and specific objectives

1. Actions to improve access to finance for SMEs’: at early stage, in the start-up and growth

phase.

2. Actions to improve access to markets: actions to improve SMEs’ access to the EU market, also

through informatisation of information; awareness raising actions, in particular on Programmes, EU

law and regulations; to improve SMEs’ access on extra-EU markets, for example disseminating

information on obsatacles, commercial opportunities, on public procurements and custom

procedures.


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EU PROGRAMME FOR THE COMPETITIVITY OF SMALL AND MEDIUM SIZED ENTERPRICES (COSME)

Actions and specific objectives

3. Enterprise Europe Network: A single window to support SMEs and offers integrated services

to SMEs.

4. Actions to improve framework conditions for competitivity and sustainability of EU

enterprices, in particular SMEs (reduction of the administrative burdens, job creation)

5. Actions for promoting entrepreneurship: through improvement of framework conditions that

enhance its development (including removing obstacles).

Promoting an economic environment and entrepreneur culture which favour the development of

sustainable enterprises, their growth, transfer, re-start, spin-off and spin-out.

Budget and cofinancing 2.300.000.000 €, of which 60% in form of financial instruments.

Grants cofinancing between 40% and 60%


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b) Other Direct Funds (European programmes)

Erasmus+ Customs

2020 Creative Europe

Employment and social Innovation

(EASI)


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c) European Territorial Cooperation

Regulated by Reg. (EU) No. 1299/2013, it’s one of the objectives of the Cohesion Policy. For each programme, at least 80% of the budget must be allocated on no more than 4 thematic objectives, taken from the following 11 EU’s priorities :

1) Cross-Border Cooperation It finances projects between neighbouring regions, to promote integrated regional development between neighbouring land and maritime border regions from two or more Member States or between neighbouring border regions from at least one Member State and a third country (ENI, IPA II).

The European Territorial Cooperation is divided in 3 different components:

2) Transnational Cooperation It finances projects on broad territories, involving national, regional, local partners. It also includes transnational maritime cooperation.

3) Interregional Cooperation Promotes sharing of best-bractices in the field of innovation, energy efficiency, urban development and other sectors, between the EU geographical regions.

4. European Funding Sources

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c) European Territorial Cooperation

Programmes interesting the italian territory:

Cross-Border Cooperation

• Italy-France Maritime

• Italy-France Alcotra

• Italy-Switzerland

• Italy-Austria

• Italy Slovenia

• Italy-Croatia

• Greece-Italy

• Italy-Malta

External Cross-Border Cooperation

• IPA II Italy-Albania-Montenegro;

• Italy-Tunisia;

• Mediterranean Sea Basin;

Transnational Cooperation

• Central Europe

• Alpine Space

• Med

• Adriatic-Ionian

Interregional Cooperation

• Interreg Europe

• Urbact III

• Interact

• Espon

NOP INFRASTRUCTURES AND NETWORK 2014-2020

Description The ONP Infrastructures and Networks 2014-2020 aims at improving the infrastructure asset in less developed regions, i.e.: Campania, Puglia, Basilicata, Calabria, Sicilia.

Managing entity Ministry for Infrastructures and Transport

Beneficiaries Large firms and SMEs, Public administrations, groupings of undertakings, investors, port authorities, customs authorities

Eligible areas Regioni meno sviluppate: Basilicata, Calabria, Campania, Puglia, Sicilia

Axes, priorities, specific objectives and actions

AXIS 1 – European Transport Space - Priorities: Promote the creation of a single multimodal european transport area, through TEN-T investments. Spcific objectives: - Enhancement of railway services and improving of the services in terms of quality and travel time; optimisation of air traffic Actions: a. Completion of strategic infrastructures related to links and nodes of the core network, in particular “large railway projects”, by concentrating interventions of the four corridors across Italy, according to the TEN-T regulation and removing bottlenecks (infrastructure, technologies and ERTMS on the core network); b. Completion of the strategic infrastructures on national links to the TEN-T railway corridors (infrastructure, technologies and ERTMS on the core network); c. Contributing to the implementation of SESAR.


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d) Indirect Funds


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d) Indirect Funds

NOP INFRASTRUCTURES AND NETWORKS 2014-2020


AXIS 2 – Sustainable Transport Systems – Priorities: Developing and improving sustainable transport systems from environmental point of view, reducing also noise and CO2 emissions, including inland waterways, maritime transport, ports, multimodal connections in order to promote sustainable regional and local mobility. Specific objective: Enhancement of competitivity of port and freight village systems Actions: a. Improving ports infrastructures and assets as well as freight village infrastructure of national interest, including their adaptation to the highest environmental, energy and operational standards; improving MoS services for Ro-Ro in order to enhance competitivity of the maritime transport system (infrastructures and technologies of the core network); b. Optiomise operations, including custom operations, also through the improvement of ICT platforms (UIRNet, Single Window Custom, etc.); c. Enhancing multimodal connections of ports, airports and freight villages with the global network (last mile connections); Specific objective: Improvement of regional mobility, modal integration and improvement of multimodal connections Actions: a. Improving multimodal connections of airports with the global network and

enhancing connections on the core network nodes; b. Developing platforms and info-mobility tools for the monitoring and management

of freight trasport flows.


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d) Indirect Funds

NOP INFRASTRUCTURES AND NETWORK 2014-2020


AXIS 3 – Technical Assistance – Priority: Strengthening of the institutional and capacity building of public authorities and stakeholders. Actions a. Actions of mentoring aimed to expand the management, the monitoring and the reporting capacities; b. Definition and sharing of reporting methodolgies with the beneficiaries, enhancing the best practices of the 2007–2013 programming period; c. Support to the definition of methodologies targeted to reduce administrative burdens; d. Actions to improve the quality of expenditure invoiced and the acceleration of the expenditure.

Implementation strategy

In areas defined by the Government: - Sicilian South est frame; - Gioia Tauro logistic hub; - Puglia’s logistic system; - Campania’s logistic area; - Sicilian west frame;

Budget

€. 1.843.000.000 divided in: - Axis I: €. 1.094.000.000 - Axis II: €. 684.000.000 - Axis III: €. 65.000.000


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d) Indirect Funds

ROP ERDF

The italian Regions and Autonomous Provinces have presented 39 Regional Operational Programmes (ROP) funded by ESF and ERDF, except Calabria, Molise and Puglia who opted for multi-fund ROP, while all other regions and autonomous provinces provide two separate programs under the ESF and ERDF funding. Especially the ROP ERDF, which amount to about 20 billion €. (EU plus national resources), explicitly provide the funding of projects related to the transport sector as a priority issue:

OT 4: Supporting the transition to a low-carbon economy in all sectors;

OT 7: Transport systems and network infrastructures;

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SUB INDEX





a) World Bank





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5. National funding opportunities

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a) Centrally managed fund: Fondo di Sviluppo e Coesione

THE «SVILUPPO E COESIONE» FUND

Overview

The «sviluppo e coesione» Fund is the new name of the Fund for underdeveloped areas (FAS), under Article 61 of Law 289/2002. It represents the financial tool for strategic and operational projects, aimed to the economic and social balance between the different areas of the country under art. 119 Constitution.

Functioning

The fund is articulated in a period of seven years, coincident with the programming period of the EU structural funds, in order to ensure the unity and the complementarity of the activated procedures with those provided by the EU fundings.

Funding targets

In particular, the Fund allocates resources on government projects:

Both in infrastructures and immaterial investments; In national, inter-regional or regional level; On major investment projects or in investments articulated in single

lots functionally linked. The Fund’s planning is approved by the CIPE


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THE «SVILUPPO E COESIONE» FUND

A co-funding tool The FSC allocates allowances also to the national co-financing for the National Operational Programmes

Budget 54 Billion €. for 2014-2020 period

a) Centrally managed fund: Fondo di Sviluppo e Coesione


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b) Focus: National Planning Documents in transports and infrastructures sector

Documento Pluriennale di Pianificazione

(DPP)

Documento di Economia

e Finanza (DEF)

Allegato Infrastrutture al DEF – Programma

delle Infrastruttu

re Strategiche

Allegato Infrastrutture alla Nota

di aggiornamento del DEF

Programma Operativo Nazionale

(PON) Infrastruttu

re e Reti 2014 - 2020

National Strategic Plan on

Ports and Logistic

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6. Innovative financial instruments

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a) General Outlook

In addition to the grants and subsidies mentioned above, the investments in the maritime field could be also promoted through innovative or facilitated financial instruments. The analysis will, therefore, focus on the innovative financial instruments in different institutional contexts, articulated for delivering body and for funding features:

Level and delivering body

International Level Worl Bank, Marguerite Fund, Inframed Fund, European Bank for Reconstruction and Development, African Development Bank Group, WBIF and other Regional Development Banks

European Level EIB and EIF with both «horiziontal instruments» and specific financial tools for each funding programme

National Level Guarantees, equity and debt support funds

Regional Level Financial Institution and Regional Development Agencies


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a) General Outlook

The innovative financial instruments managed by the various institutions could be clustered as in the following schema:

Funding Instruments

Soft Loans Medium/Long term funding with a lower interest rate respect to the medium market interest rate

Guarantees on Loans Legal instrument which enables the supplier to minimize the risk of insolvency of the debtor

Risk Capital Instruments

Private Equity/Venture Capital: Contribution of financial resources by specialized operators, in the form of equity participation or subscription of convertible bonds, in a medium – long term period, in companies with an important development potential; Quasi equity: Investment class that consists in those financial instruments whose repayment or performance is closely connected with the trend of the cash flows of the project. Typical examples are the subordinated loan respect to the so-called senior bank loan and the mezzanine loan. Those tools are therefore hybrid instruments, having a high risk feature as the risk capital instruments, and a return fixed rate, albeit conditional, just as a normal loan.

Debt Instruments Support for debt capital through the issuance of debt securities, securitization, structured products and covered bonds


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Overview: The African Development Bank Group,

headquartered in Abidjan (Ivory Coast), is constituted by the

African Development Bank (AfDB), the African Development

Fund (AfDF) and the Nigeria Special Fund (NSF);

Objectives: The institutional mission is to contribute to the

economic and social development of African countries through

the provision of loans and technical assistance.

Financial Instruments:

- Loans - up to 20 years (with a warrant period of 5 years) in

local or foreign currency;

- Guarantees - the partial risk or partial risk of long-term credits;

- Subordinated debt - subordinated loans or bonds in local

currency (up to 15 years: 10 + 5);

- Investments, direct investments in banks, development finance

institutions, microfinance institutions, etc.. up to a maximum of

25%;

- Technical assistance - grants for studies and capacity building

operations (up to a maximum of 1 million USD);

b) International Level

African Development Bank Group


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TEN-T Energy

Networks (TEN-E)

Production, energy saving and storage

of renewable sources

Marguerite Fund

Membership: 6 core Sponsors (EIB, CDC, CDP, ICO, PKO, e KfW), European Commision and other private investors.

Funding means and target: Equity Investor; Focus on long term investiments (20 years); Major focus on greenfield projects; Investment focus area: Ten-T, TEN-E and production, savings and storage of renewable energy; Fund Ticket > 10Mln.€ for single investment project;


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InfraMed Overview: The Fund pursues the development of investment in infrastructure,

mainly greenfield, in transport, energy, with particular attention to renewable energy and urban development in the countries of the Mediterranean area.

Membership: Participated by: - Cassa Depositi e prestiti (Italy) - Caisse des Dèpôts (France) - EIB - Caisse des Dèpôts of Morocco - EFG- Hermes (Egypt)

Nature and features: Equity and quasi-equity investment fund targeted on investments in infrastructure in the South and East Mediterranean: investment policy according to long-term return (14-15 years), with great focus towards transport infrastructure: roads, bridges, airports, ports, railway lines, logistics and urban mobility.


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Overview: The WBIF was founded in 2009 as a joint initiative of the European Commission in cooperation with the Development Bank of the Council of Europe (CEB), the EBRD and the European Investment Bank (EIB) in order to support the socio-economic development and the EU membership of the Western Balkans by providing funding and technical assistance for strategic investment, especially in infrastructure, energy efficiency and private sector development.

Western Balkans Investment Framework (WBIF)

The «Financial Arm»: Within the WBIF, the Western Balkans Enterprise Development and Innovation Facility (WB EDIF) provides a range of innovative financial instruments that meet the needs of SMEs in the geographical context. The selection of the WB EDIF consists of:

- a guarantee mechanism (Guarantee Facility);

- two investment funds (Enterprise Expansion Fund and Enterprise Innovation Fund);


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Other International Financial Institutions In addition to the above mentioned bodies, there are other institutions that provide innovative financial services in the trasport/infrastucture maritime field, at the international level.

Asian Development Bank (ASB)

Asian Infrastructure

Investment Bank (AIIB)

Islamic Development Bank (IDB)

Arab Fund for Economic and

Social Development

(AFESD)

Interamerican Development Bank (IDB)

Regional Development Banks:


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c) European Level

The European Investment Bank (EIB) role

Established in 1958, the European Investment Bank contributes to the realization of european interest projects, through a joint management with the European Investment Fund (EIF) or through an indirect management of its products, with the following activities:

LOANS AND FINANCIAL OPERATIONS - The main activity of the EIB is to provide funding in the form of loans, but also offering guarantees, microfinance, equity etc ...;

BLENDING - The EIB unlocks and provides supplement funding from other sources, primarily EU funds, integrating them with other financial tools owned by the EIB or with regional or interregional investment funds in which the EIB participates, in order to cover the financial needs of a given project.

ADVISORY - The Bank supports the implementation of projects, providing administrative, financial and management support;

The potential projects are selected by their "added value", defined on the basis of the following three pillars: the contribution to the objectives set by the EU, the quality and soundness of the project, with reference to the economic and environmental sustainability of the project and the financial or otherwise contribution asked to the EIB. Generally, the EIB loan is less than the 50% of the project costs, but it can reach the 75% in specific cases (TEN-T and TEN-E Projects). This support is complementary to the use of European Funds.


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c) European Level

The European Investment Bank (EIB) role

Innovative funding tool for high quality projects (EU priority), with stable cash flows. Improvement of the credit rating to support the PB by guarantee instruments (unfunded) and/or subordinated loans. Debt financing through the capital market with a mitigation risk in the various phases of the project due to a first loss guarantee of the 20% secured debt for the entire duration of the senior debt.

Guarantee on loans for projects related to the Trans-European Transport (LGTT): guarantee for a liquidity reserve that does not exceed, generally, the 10% of the total amount of the senior debt, but which can reach 20% in exceptional cases. The duration is up to 7 years of the project implementation.


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c) European Level

Project Bond

LGTT

ESIF

Financial Instruments in CEF Programme


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c) European Level

InnovFin includes a wide range of integrated and complementary financial instruments (debt and equity facilities), as well as consulting services targeted to the research and innovation (R&I) area, in order to support private investments. InnovFin is available for all areas covered in the H2020 Programme, in EU Member States and associated countries.

Financial Instruments in Horizon 2020 Programme

Financial Instrument Objective Target Managing body

InnovFin Large Projects Loans/Guarantees

Enhancing access to finance for innovative businesses

Large enterprises, medium and large to mid-cap innovative companies, universities, public research institutes, PPP, SPV

EIB € 25-300 mln

InnovFin MidCap Grow Finance Long term and subordinated loans, mezzanine capital and equity investment

Enhancing access to finance for innovative businesses

Large midcap companies (up to 3000 employees), SMEs, small midcap companies

EIB € 7.5-25 mln

InnovFin MidCap Guarantee Guarantees

Enhancing access to finance for innovative businesses, provide guarantees to financial intermediaries

Large innovative companies (up to 3000 employees) that don’t fill in the InnovFin SME Guarantee

Financial intermediaries (banks/financial institutions) in partnership with EIF Until €. 50 mln

InnovFin SME Guarantee Guarantees and counter-guarantees on debt fundings

Enhancing access to finance for innovative businesses, provide guarantees to financial intermediaries

Innovative SME and small MIDCAP companies (<500 employees)

Financial intermediaries (banks/financial institutions) in partnership with EIF € 25000-7.5 mln


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c) European Level

• Loan Guarantee Facility

LGF

• Equity Facility for Growth

EFG

Financial Instruments in the COSME Programme The COSME Programme, whose budget will be allocated about 60% on innovative financial instruments, provides two main financial instruments focused on the funding of growth-oriented companies that aim to expand abroad and on their cross-border activities:

It focuses on funds that provide venture capital and mezzanine finance, such as subordinated and participating loans, to companies in growth and expansion process.

It provides subordinated loans, guarantees and other risk sharing arrangements, securitization of SME’s loans portfolios, in order to reduce the difficulties faced by small businesses companies in accessing to finance


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c) European Level

• Private Finance for Energy Efficiency

PF4EE

• Natural Capital Financing Facility

NCFF

Financial Instrument in LIFE Programme

The LIFE Programme also provides two important innovative financial instruments such as:

- The instrument combines direct and indirect funding of projects through debt or equity;

- The operations will be carried out through indirect financial intermediaries (banks, investment funds) that will finance a pipeline of projects;

- It provides tools of support to ensure that the projects achieve an adequate degree of maturity sufficient to obtain the fundings;

- Projects funded will have amounts between 5 and 15 million euro;

- A portfolio-based credit risk protection provided by means of cash-collateral (Risk Sharing Facility);

- Long-term financing from the EIB (EIB Loan for Energy Efficiency);

- Expert support services for the Financial Intermediaries (Expert Support Facility)

- Funding for projects between the 40.000€. and 5 Mln. €.


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c) European Level

An «horizontal» financial instrument: the European Strategic Investment Fund (ESIF)

Established with Reg. (EU) 2015/1017 of 06.25.2015, the ESIF is a joint initiative of the European Commission, the European Investment Bank with the participation of the Member States, of the National Development Banks and private investors.

ESIF Objectives:

Support investments and projects in the strategic area

(infrastructure, R&I…)

Mobilising investments avoiding new public

debt

Remove barriers to investments

ESIF Main Activities:

Mobilising finance for investment

Making finance

reach the real

economy

Enhance investments

in the european context


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c) European Level


The endowment of the ESIF:

The strategic investments: Strategic infrastructures (trasports, ICT, energy), urban and environment development, support to MIDCAP and SME, innovation, research and development, education and training


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c) European Level


Financial Instruments: Subordinated Loans; Equity and quasi equity instruments; Loans Guarantees; Funding support through the capital market;

Leverage:


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c) National Level

As a non-exhaustive list, we mention some of the most important italian agencies and funds that provide innovative financial products for investments in infrastructure and transport in the maritime sector:

Financial Instrument Function

Invitalia Ventures - Invitalia Collects Privaty Equity and Venture Capital Funds

Fondo per l’innovazione - MISE Provides risk and debt capital

Fondo italiano di investimento – FII sgr

Promotes the debt instrument market for italian SME’s (i.e. minibond) with CDP financial resources

Fondo per la Finanza di impresa - MISE

Aims to facilitate the access to credit and to venture capital by companies, especially the medium and small size ones. To achieve this objective, the Fund intends to carry out transactions involving the adoption of new instruments to mitigate credit risk and private equity investments, offered by banks and /or financial intermediaries.

Fondo di garanzia - MISE

The fund’s guarantee is a facility of the Ministry of economic development which could be implemented just in case of loans granted by banks, leasing companies and other financial intermediaries in favor of companies and professionals.

Fondi italiani per le infrastrutture – F2I – CDP

It mainly invests in brownfield projects in the sectors of transport infrastructure, transport networks, distribution of electricity, gas and water supply, telecommunication networks and media systems, renewable energy, health, local public services and social infrastructure .

Fondo Strategico Italiano – CDP

FSI acquires shares of “relevant national interest” companies, in economic and financial equilibrium and with significant prospects for profitability and development. Among the “strategic” sectors, the infrastructure and public services one is highly funded.


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d) Regional Level

THE REGIONAL FINANCIAL INSTITUTION

Overview

The Regional Financial Institution are technical bodies that support and assist the Regions to plan, to define and to implement the policies and the projects aimed to promote the development of the economic, entreprenuerial and labour regional environment. Those institution are generally publicly or mixed owned.

Objectives

The Agencies share the common purpose to promote the local private companies growth and development, removing the barriers to the credit access and supporting their investment project in the area, following the strategic plan delivered by the regional public administration

Main activities

Financial activities: Management of regional, state or EU funds to support regional development

and the strengthening of businesses; provision of soft loans drawn on specific regional measures;

Investments in local businesses private equity; Granting medium and long term loans, in cooperation with other local

banks; Provision of guarantees or interest rate subsidies on loans; Provision of innovative financial instruments such as leasing, factoring, pool

fundings; Provision of equity loans and contracts of association in participation.


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d) Regional Level

THE REGIONAL FINANCIAL INSTITUTION

Main activities

Consultancy and Service activities: • Provision of support and counseling services, assistance to private companies, public regional administrations and other public entities (financial management, innovative finance, administrative advice, research and studies); • Initiatives aimed to the promotion and the development of the entrepreneurial and employment regional environment (incentives for research and innovation, the internationalization of the economy and the regional production, local marketing projects); • Design and management of large infrastructure, recovery and regeneration of abandoned industrial areas or industrial facilities projects

List of the italian Regional Financial Institution/

Development Agencies

REGION Financial Inst./Dvlpt. Agencies

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SUB INDEX





a) World Bank





Gra

nts

Fin

ancia

l In

str

um

ents

7. Conclusion: Towards the financial blending

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Regard to the funding opportunities in the maritime-related projects, specifically in the transport and logistics segment, there is a clear need to go beyond the traditional pattern of the public funding. The reduction of the public funding investments, as well as the budgetary constraints, requires therefore the promotion of the access of private capitals to these projects. In this context, the public-private partnership (PPP) seems to be actually the only possible way in order to boost investments in the national and in the european frame. So far, in this report we have tried to highlight not just the grants and subsidies funding opportunities, but also those financial instruments that facilitate the collection and the involvement of private resources to long-term investments in infrastructure, services and innovation in the maritime sector. In the QFP 2014-2020, the European Commission itself recommended the combined use of EU funds with innovative financial instruments, through forms of financial blending and funding mix from multiple sources, as the establishment of the EISF demonstrates. The leverage effect that can be produced, in fact, mitigates a restrictive public resources framework. In addition to that, the risk-sharing as well as the sharing-profitability of the project, the possibility to develop and promote common expertise and resources between public and private partners, are all factors that explain how important is to establish advanced forms of PPP in order to implement investment projects in the maritime sector .

Many Thanks for your attention

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On.Ing. Antonio Cancian – President and CEO

mailto:[email protected]

mailto:[email protected]