Brussels, 01/06/2012 (Agence Europe) - The European Parliament has completed one of the formalities required for the launch of the first project bond pilot phase for raising capital to fund big infrastructure projects. The EP's budgets committee voted recently in favour of the pilot phase, after reaching a compromise deal in inter-institutional talks on 22 May on the fringes of the EP's plenary (see EUROPE 10618). The plan is to get the European Parliament to endorse the deal before the summer break, at the July plenary, after which the final formality, formal agreement at the EU Council of Ministers, should enable the pilot phase to start up in July 2012 and allow the European Commission to raise €230 million-worth of guarantees for transport, energy and telecoms projects. The public guarantee will reduce the financial risk and should act as leverage to get the private sector to invest €4 billion, a breath of fresh air at a time when banks are reluctant to loan. A dozen projects could be launched in the first 18 months, under the aegis of the European Investment Bank, and if the pilot phase pays off, it will be expanded upon. (MD/transl.fl)