The European Commission confirms the use of the funding gap method for determining the necessity and proportionality of State aid for infrastructural projects (Port of Capo d’Orlando)

Management of Port Infrastructure through a very long Concession Contract: Is the Funding Gap Method Meaningful?* Main points Competitive selection of the operator of an infrastructural facility normally eliminates State aid. However, modifications to the contract after the operator is selected may confer an advantage that constitutes State aid. Public funding that is calculated on the basis of the “funding gap” method ensures that the aid is necessary and proportional. Introduction Several recent articles in the blog have examined State aid to infrastructural projects such as ports, airports, stadiums and arenas. Although the analysis of the existence and compatibility of aid follows in all cases the same logic and is based on the same principles, each project has its own

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Phedon Nicolaides, The European Commission confirms the use of the funding gap method for determining the necessity and proportionality of State aid for infrastructural projects (Port of Capo d’Orlando), 18 December 2013, e-Competitions Bulletin December 2013, Art. N° 68585

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