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Learn about EIB funds for e-INS, challenges in financing, market gaps, and delivering value-added in e-infrastructures, networks, and services at APA Conference. Discover beneficiaries, costs, and conclusions.
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EIB Value-added to e-infrastructures, data networks and e-services Presentation APA Conference 6-7 November 2012 European Space Agency/ESRIN - Frascati A.Calvia-Götz
Table of Contents • Beneficiaries of EIB funds • Eligible costs to EIB financing • Main challenges in financing e-INS • Key issues on the “market-gaps” of e-INS • How to create value • How to deliver value-added • Conclusions • Most of the e-INS are located in EU.
1.Beneficiaries of EIB funds for e-Infrastructures, Network and Services (e-INS) • Public and private counterparts must meet a suitable credit rating • They must be legal entities with borrowing capacity • The e-INS project must be Technically/economically and financially viable • If projects are over EUR 50 million – direct appraisal
Timing/sufficiency of public budget commitments High uncertainty in financial commitments at the outset Gaps in “full cost financing” strategy Project definition and costs: the “uncertain value” Estimates are very optimistic Significant cost overruns possible Technical changes impact financial sustainability Short horizons of operating budgets e-INS require long-term financial planning Public budget approvals are multi-annual Mismatch of financing needs/requirements 3. Main challenges in financing e-INS
4. Key market gaps for financing e-INS • e-INS organised as “weak” legal entity (University or Consortia) • These are not financially acceptable counterparts, without public support to reinforce financial sustainability • Complexity to deal with private e-INS • Financial risks could be very high • Not well-defined funding models • Funding partners provide often in-kind contributions • Annual memberships are limited funds • Only few national partners commit funds over long time horizon • EU funds support only initial phase • Investments might be not sufficient, as financially these are not profitable projects and pose high risks
6. How to deliver Value-added • EIB value-added • Allow to spread financing over time • Avoid that austerity “blocks” e-INS projects • Provide expertise and not only funding • Define “tailored e-INS engineering solutions”. For example the new RSFF (Risk Sharing Financing Facility) • Bridge a gap between vision in many fields of science and delivery of advanced e-services
7. Conclusions • If all hurdles are managed, EIB Financing could contribute to success stories • To impose financial/technical/economic feasibility at the outset • To finance/monitor project performance until completion • To ensure long-term commitment of stakeholders • To promote good e-INS projects