Use of Financial Instruments in Pomorskie Region JESSICA Urban Development Fund example

Transcription

1 Use of Financial Instruments in Pomorskie Region JESSICA Urban Development Fund example Patrycja Szczygieł Department of Regional and Spatial Development Office of the Marshal of the Pomorskie Voivodeship ERRIN Innovation and Investment Working Group Meeting Brussels, 19 th April 2018

2 Pomorskie compared to the EU Indicator Pomorskie (EU=100) 2005 Last available GDP per capita (PPS) 50.2% 66% (2016) Selected EUROPE 2020 objectives Employment rate (2016) R&D as % of GDP (2015) Renewable energy as % of total energy consumption (2016) 2020 TARGET CURRENT STATUS EU-28 PL EU-28 PL Pomorskie 75% 71% 71.0% 69.3% 70.6% 3% 1.7% 2.03% 1.0% 1.12% 20% 15% 17.0% 11.3% 26.4% GDP per capita in EU regions (EU-28=100), 2016 Source: Central Statistical Office of Poland, Eurostat

3 Pomorskie compared to the EU Indicator Pomorskie (EU=100) 2005 Last available GDP per capita (PPS) 50.2% 66% (2016) Selected EUROPE 2020 objectives Employment rate (2016) R&D as % of GDP (2015) Renewable energy as % of total energy consumption (2016) 2020 TARGET CURRENT STATUS EU-28 PL EU-28 PL Pomorskie 75% 71% 71.0% 69.3% 70.6% 3% 1.7% 2.03% 1.0% 1.12% 20% 15% 17.0% 11.3% 26.4% GDP per capita in EU regions (EU-28=100), 2016 Source: Central Statistical Office of Poland, Eurostat

4 Scale of transformation in Pomorskie Regional GDP: +60% ( ) Disposable income per capita: +51% ( ) New jobs created: ~ (the highest dynamics in PL) ( ) Number of unemployed: 25% ( people) ( ) Employers demand to employ foreigners: 2 616% ( people) ( ) Export flows: +82% ( ) FDIs: +71% ( ) R&D expenditures: % of regional GDP ( ) Cargo turnovers in seaports: +54.3% (up to 51.1 million tons) ( ) Airport passengers: +171% (up to more than 4.6 million) Number of tourists: +37% ( ) Renewable energy in electricity consumption: 6.9% 26.4% ( )

5 Pomorskie challenges and needs 1. Employment and population health 2. Educational services and competitiveness of universities 3. Economic links (incl. Pomorskie Smart Specializations) 4. Social capital and regional identity 5. Transport accessibility 6. Areas with no fully launched potentials 7. Access to public services 8. Energy security and environmental technologies 9. Spatial management 10. Institutional capacity

6 Financial Engineering Instruments in Pomorskie ROP JESSICA Loans JEREMIE Loans / guarantees / equity ROP contribution (ERDF+National) Additional financial resources 61.2 meur 57.9 meur 81.5 meur meur No. of projects Total (county cities) 13 (ramaining cities) 7.5 th (incl. 1.7 th start-ups)

7 Financial Engineering Instruments in Pomorskie ROP Scope Financial Intermediaries Qualitative effects JESSICA Loans entrepreneurship regeneration and urban functions public transport, energy efficiency Lot 1 70% funds National Development Bank county cities: Gdańsk, Gdynia, Sopot, Słupsk Lot 2 30% funds Bank of Environmental Protection all remaining cities in Pomorskie PPP (rail station Sopot) FEI supporting grants (regeneration) reflows invested real social effect institutional capacity JEREMIE Loans / guarantees / equity SMEs suport R&D 16 Fis no territorial restrictions many operate locally significant increase of assets double use (reflows, CAP) wide distribution network (regional, local, outside of the region) Seed-Capital Fund institutional capacity

8 JESSICA in Pomorskie (1) Photos included in the report JESSICA Initiative support for sustainable investment in city areas within Pomorskie Viovodeship published by the Office of the Marschal of Pomorskie Voivodeship

9 JESSICA in Pomorskie (2) TOTAL value of Urban Projects Private resources 46% 65.4 meur JESSICA funds (ROP contribution) 43% 61.2 meur 45 Urban Projects 61.2 meur JESSICA loan Public resources 11% 16.1 meur 65.4 meur private resources (including UDF co-financing) 16.1 meur public resources meur total Urban Projects value

10 Urban Projects (1) SOPOT CITY CENTRE TOTAL VALUE: 28.6 meur JESSICA LOAN: 10.0 meur regeneration of the rail station and surrounding area improvement in traffic organization (incl. carpark) commercial buildings (offices, hotel, stores) green areas investment in PPP formula

11 Urban Projects (2) GDYNIA FILM CENTRE TOTAL VALUE: 9.4 meur JESSICA LOAN: 5.2 meur main building of Gdynia Film School 3 screening studios, movie club, restaurant, arts galery, library, open-access student forum venue for Gdynia Film Festival area for residents and tourists

12 Urban Projects (3) EMIGRATION MUSEUM IN GDYNIA TOTAL VALUE: 7.15 meur JESSICA LOAN: 5.3 meur museum dedicated to the history of Polish emigration regeneration of Marine Station and Transit Warehouse exhibition area (incl. multimedia) conference facilities

13 Urban Projects (4) CULTURE GARRISON IN GDAŃSK TOTAL VALUE: 7.7 meur JESSICA LOAN: 4.6 meur regeneration of the post-military area arts and culture promotion centre conference facilities gallery and music club meeting place for the local community

14 Urban Projects (5) THE OLD BREWERY KOŚCIERZYNA TOTAL VALUE: 6.0 meur JESSICA LOAN: 1.8 meur regeneration of the post-industrial building modern retail and service centre exhibition dedicated to brewery history theatre and concerts venue WATER PARK IN REDA TOTAL VALUE: 20.3 meur JESSICA LOAN: 4.8 meur water park swimming pool spa&wellness area, fitness centre

15 Urban Projects (6) KOGA OFFICE BUILDING GDAŃSK TOTAL VALUE: 9.7 meur JESSICA LOAN: 4.8 meur regeneration of the north port area administration and service building surrouding area exhibition of maritime economy SWIMMING POOL PRUSZCZ GD. TOTAL VALUE: 4.9 meur JESSICA LOAN: 2.1 meur recreation and rehabilitation centre, swimming pool squash courts, gym, sauna,

16 Urban Projects (7) THERMOMODERNIZATION OF MULTIFAMILY RESIDENTIAL BUILDINGS AND PUBLIC BUILDINGS (20 projects) TOTAL VALUE: 5.1 meur JESSICA LOAN: 3.6 meur improving heating system regeneration and insulation of roofs, external walls, doors and windows buildings owned by housing cooperatives, housing communities, social housing associations, municipalities

17 Award for JESSICA Holding Fund 13th January 2013 The Adam Smith Center 6th edition of the INNOVATOR COMPETITION best self-government INFRASTRUCTURE project

18 Pomorskie Development Fund Exit strategy (from 2016) Contracts with FIs revolving funds POM ROP after 2020 (2023) JEREMIE Pomorskie Development Fund (est. 2015) FI Pomorskie Development Fund (est. 2015) JESSICA ~85 meur ~250 meur

19 Financial Instruments Priority Axis 1. Knowledge Commercialisation seed capital and inno-loans 2. Enterprises (micro-)loans & guarantees for SMEs ROP contribution (ERDF + National co-financing) meur 39,86 54,16 8. Conversion 10. Energy urban regeneration energy efficiency & RES 18,49 45,64 TOTAL 158,15

20 Expected effects of FI companies supported including 15 cooperating with R&D sector 1700 companies supported 120 products new for the company, 10 products new for the market 54.7 meur value of additional financial resources involved Knowledge Commercialisation Energy At least final recipients Enterprises Conversion 90 thermomodernised buildings Additional capacity of RES production 5-6 MW 1200 households with improved Energy consumption classification Annual decrease of GHG 20,5-22,5 CO 2 thousand tonne equivalent Surface of regenerated area ha 4-5 meur value of additional financial resources involved

21 FIs successful story 1. we like FIs long-term, stable, self-financing, flexible system 2. capital-base for regional development (EU-funds independence) 3. happy with the results of J&J both material and institutional: high quality urban projects, strong social effect, private capital engagement large number (7 times more than grants) & economic effects for SME S institutional change in region (MA a capacity, POM Development Fund set up) 4. market conditions orientation 5. potential (and demand) for revolving funds (urban, SME s, R&D, energy, other) 6. (to some extend) grants not a competition BUT

22 There are problems 1. the FI s implementation system used to be flexible 2. current implementation system ( ) not optimal: lots of guidelines (EU, national) selection of FIs public procurement not helping (no flexibility, difficult, time consuming, administrational capacity) vs. calls of proposals limited possibility of change (Investment Strategy, financial products, FIs,) certification of payments in tranches ( security clauses needed) 3. limited interest among FIs (due to difficult selection process, ambitious scope e.g. renewable energy) 4. increasing competition (national, EC instruments) CONCLUSION We need to return to roots more flexibility, simplification, more market oriented implementation

23 Thank You