BRUSSELS, Aug. 27 (Xinhua) -- The European Investment Bank (EIB) is providing some 170 million euros (224 million U.S. dollars) for a European transport network in Germany, according to a European Union (EU) statement on Wednesday.
The operation will finance the main road link between Denmark and Germany, namely the A7 motorway.
Part of the trans-European road network, the A7 is a key component of Europe's transport network, the statement said. The project is one of the pilot projects for credit enhancement under the EU’s 2020 Project Bond Initiative.
EIB Vice-President Wilhelm Molterer stated that the conclusion of the financing agreement sends an important signal to private investors in particular. “To make Europe's infrastructure competitive, investments of a scale that cannot be effected by the public sector alone are required," he said.
The project will be implemented as a public-private partnership (PPP) in the German transport sector.
The EIB is the long-term lending institution of the EU and its shareholders are the EU member states. Its remit is to make long-term finance available for viable projects in order to contribute towards EU policy objectives.