Blending EU Structural and Investment Funds and PPPs in the 2014-2020 Programming Period
The new regulations provide a number of significant improvements to the blending process. They provide more choice, greater simplification and better compatibility between the ESI Fund grant application and PPP processes than were previously available. Undoubtedly, the regulations cannot be expected to cover every eventuality. It will remain to be seen in practice how the regulations will be implemented by procuring authorities and Managing Authorities and how they will work in practice. EPEC will seek to revise and update its blending guidance to reflect the collective experience gained once Blended Projects materialise under the new regulations.
Combining European Structural and Investment Funds (ESI Funds) with private financing resources in a PPP structure is often referred to as ‘blending’. Around EUR 450 billion of ESI Funds are potentially available over the current 2014-2020 programming period to support public investment and help deliver EU regional and cohesion policy. While most of these resources can be expected to be deployed in more traditional, purely grant-funded structures, blending these resources with private finance can generate additional benefits in certain circumstances.
