EU funds for roads - CEDR

Page 54 / 80
- An analysis of the project’s revenue and cost risks, especially in cases where ‘term of debt’
supply or off-take contracts are not envisaged.
- A description of the project’s financing structure including a detailed breakdown of the
financing sources: equity, mezzanine and senior debt, and the envisaged role of EIB within
the financing structure.
- A financial model, including cash flow forecasts for the life of the project in sufficient detail to
enable analysis of the underlying assumption (e.g. detailed revenue, funding, operating and
maintenance cost forecasts).
- In the case of a PPP project, information on the conceding authority and the procurement
timetable, a summary of the key concession terms and a copy of the concession contract.
- Technical, legal or insurance advice received on the project.
► Application appraisal (by the EIB)
The EIB appraisal procedure for a project application can take any period of time between 6
weeks and 18 months, depending on the project scope, degree of complication, and the
efficiency of the appraisal process on the part of both the EIB and the project promoter. The
bank will review the promoter’s own comprehensive feasibility studies, and make a preliminary
assessment of certain aspects of the project including:
• technical
• environmental
• economic
• financial
• legal
This is then followed up with a detailed appraisal by an EIB project team, consisting of an
economist, an engineer, and a loan or contact officer within the bank.
The project team will make use of all existing available reports, analyses, and documents, and
include a visit to the project’s operating company and the investment’s location.
The EIB forms its own opinion on the basis of available data and documents.
Following a satisfactory outcome from the EIB review, a loan proposal will be put forward for
approval by the Bank’s Management Committee to the Board of Directors, which meets ten
times a year.
Once approved by the board, the loan facility can be drawn down in one or a number of
instalments according to the borrower’s requirements, usually starting within 12 months of the
approval date.
EU funds for roads