IMPLEMENTATION LEVEL

IFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 12 Apr 2016 | Removal date: open ended
Still in force

State loan

 On 12 April 2016, the European Investment Bank agreed to provide 250 million EUR for the Danish offshore wind farm Rentel, as part of the European Fund for Strategic Investments (henceforth: EFSI).
The project's costs are estimated at 1114.8 million EUR, with a total proposed EIB financing of 400 million EUR. It remains unclear under what financial vehicle the EIB would provide the remaining 150 million EUR.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.
As described in the European Commission's Fact Sheet form 20 July 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities".
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support proposed here is discriminatory.

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

171 Electrical energy
2716 Electrical energy. (optional heading)
271600 Electrical energy. (optional heading)

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