Press Release: European Commission and European Investment Bank Launch new Instrument to Finance European Transport Network

On 11 January, 2007, the European Commission and the European Investment Bank (EIB) signed a Cooperation Agreement establishing the Loan Guarantee Instrument for trans-European transport network projects (LGTT). This new instrument will facilitate greater participation of the private sector in the financing of transport infrastructure of European significance, especially for investments in TENs projects where there is a high level of revenue risk in the early operational period of a project. The LGTT, which forms part of the Trans-European Transport Network (TEN-T) programme and the EIB's Action for Growth initiative, will partially cover this risk and thereby significantly improve the financial viability of TENs investments. The capital contribution of €1 billion (€500 million each from the Commission and the EIB) is intended to support up to €20 billion of total capital investment.

European Commission: MEMO/08/12: The Loan Guarantee Instrument for Trans-European Transport Network Projects - Frequently Asked Questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/12&format=HTML&aged=0&language=EN&guiLanguage=en

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