JE S S IC A : A n I nno va tive T o o l fo r S us ta ina ble I nves tm ent in U rba n A rea s

JE S S IC A : A n I nno va tive T o o l fo r S us ta ina ble I nves tm ent in U rba n A rea s Virgilio Martins DG Regional Policy - Unit D3 Financial Engineering OPEN DAYS 2010 Workshop on JASPERS, JEREMIE, JESSICA - progress and future perspectives, 5th October 2010 1

JESSICA = Joint European Support for Sustainable Investment in City Areas Joint initiative developed by the Commission with the EIB and CEB Objective: To promote sustainable investment in urban development and regeneration Commission partners: Member States, regions, cities, EIB, national and regional financial institutions, other investors 2

R a tio na le Financial Engineering Instrument: promoting investment in revolving funds EUROPEAN CITIES: drivers for economic development and competitiveness A high quality urban environment contributes to the objectives of the renewed Lisbon Agenda for Growth and Jobs Growing emphasis on the need for an Integrated Urban Development Policy 3

C a ta lys t fo r P a rtners hips JESSICA P a r t n e r sh ip : C o m m issio n, EIB, C EB P a r t n e r sh ip s: M e m b e r St a t e s, Re g io n s, C it ie s, EIB, C EB, B a n k s, In v e st o r s 4

I nno va tive E lem ents JESSICA: some innovative features R epa ya ble inves tm ents ins tea d o f o nc e-o ff pa ym ent o f g ra nts I ntro duc tio n o f H o lding Fund c o nc ept (O ptio na l) F le x ib ilit y, Ex p e r t ise, L e v e r a g e, I ntro duc tio n o f U rba n D evelo pm ent Funds 5

J E S S I C A in O pera tio n Operational Programme Holding Fund for Urban Investment (EIB or other Financial Institution) Contributions to the holding fund from OP, Urban Authority, EIB, IFIs, etc. Urban Dev. Funds MS, Regions, municipal enterprises, banks, investors, etc. PROJECT PROJECT PROJECT UDFs support PROJECTS for sustainable urban development Participations in PPPs, equity, loans, guarantees 6

I m plem enta tio n pha s es Phase 1 Evaluation Studies Phase 2 Selection of HF (optional) Phase 3 Establishment / selection of UDFs Phase 4 Selection of investment projects and actual investments/disbursements 7

JES S ICA should be targeted at those projects that are just failing to be commercial and provide necessary equity, loans or guarantees to encourage other investors to fund projects. S c oping the us e of J E S S I C A in London Fina l R eport - D eloitte - S eptem ber 2008 8

S ta te o f P la y 9

J E S S IC A E va lua tion S tudies 14 J E S S I C A eva lua tio n s tudies la unc hed w ith na tio na l s c ope: B ulg a ria C yprus Fra nc e G erm a ny G reec e I ta ly L ithua nia L ux em bo urg P o la nd P o rtug a l S lova k ia S pa in S w eden T he N etherla nds 10

J E S S IC A E va lua tion S tudies 38 J E S S I C A eva lua tion s tudies la unc hed w ith reg io na l or s ec toria l s c ope in 12 M S : Fla nders, W a llonia, B rus s els ; M o ra via S iles ia, C zec h S o uth E a s tern R eg io ns, C entra l M o ra via ; W es tern Finla nd; N o rd-p a s de-c a la is ; B erlin, H a m burg, N o rth R hine W es tpha lia, S a a rla nd; G reek reg io ns ; T us c a ny, L ig uria, P ug lia, M a rc he, A bruzzo, C a m pa nia, S ic ily; L ithua nia ; S o uth P o la nd, W es t P o la nd, S iles ia, P o m era nia ; B ra s o v R eg io n; A nda luc ía, G a lic ia, C a s tilla -L a M a nc ha ; L o ndo n, W a les, N o rthern I rela nd, N o rth W es t 11 E ng la nd, N o rth E a s t

M em ora nda of U nders ta nding 19 M o U s ig ned in M em ber S ta tes B ulg a ria C yprus G reec e P o rtug a l L ithua nia a nd reg io ns M o ra via -S iles ia (C Z ) S a x ony (D E ) W ielk opo ls k a (P L ) W es tern P o m era nia (P L ) S iles ia (P L ) G a lic ia (S P ) A nda luc ía (S P ) C a s tilla la M a nc ha (S P ) L o ndo n (U K ) N o rthw es t E ng la nd (U K ) E a s t M idla nds (U K ) S c o tla nd (U K ) M a rc he (I T ) 12 A bruzzo (I T )

J E S S IC A O pera tions 15 H o lding Fund a g reem ents s ig ned betw een the E I B a nd: L ithua nia W ielk o po ls k a (P L ) W es tern P o m era nia (P L ) P ortug a l A nda luc ía (S P ) L o ndo n (U K ) N orthw es t E ng la nd (U K ) S ic ily (I T ) M ora via S iles ia (C Z ) C a m pa nia (I T ) S c o tla nd (U K ) G reec e S iles ia (P L ) P om era nia (P L ) B ulg a ria 4 o pera tio ns im plem ented w ith na tio na l fina nc ia l ins titutio ns : E s to nia (K rede x ) B ra ndenburg (I L B ) 3 E a s t M idla nds (K ing S turg1 e)

J E S S I C A O pera tio ns JESSICA Funds HF EIB Wielkopolska (PL) Andalucía (SP) Western Pomerania (PL) Lithuania Portugal London (UK) Northwest England (UK) Sicily (IT) Moravia Silesia (CZ) Campania (IT) Scotland (UK) Greece Silesia (PL) Pomerania (PL) Bulgaria UDF Other institutions Estonia (KredEx loan and export guarantee fund) Brandenburg (DE) (ILB regional development bank) East Midlands (UK) (King Sturge Financial Services) Wales (UK) 14

J E S S I C A O pera tio ns Fund Fund Type of Interventions Type of Interventions Wielkopolska (PL) Urban Development and Regeneration Estonia Energy Efficiency (Housing) Andalucía (SP) Urban Regeneration (tourism, culture / sports) Brandenburg (DE) Urban Development and Regeneration Western Pomerania (PL) Urban Regeneration / Urban Infrastructure Wales (UK) Urban Regeneration (Brownfield revitalisation) Lithuania Energy Efficiency (Housing) East Midlands (UK) Urban Regeneration Scotland (UK) Urban Regeneration, Workspace creation, Energy Efficiency Portugal Urban Regeneration, Energy Efficiency London (UK) Energy Efficiency in Urban Infrastructure Greece Urban regeneration, solid waste management Northwest England (UK) Urban Regeneration Silesia (PL) Brownfield and city regeneration Sicily (IT) Urban Development / Energy Efficiency Pomerania (PL) Campania (IT) Urban Regeneration Moravia Silesia (CZ) Urban Regeneration (Brownfield revitalisation) Brownfield and city reg, public transport, energy infrastructure, energy efficiency Bulgaria Urban regeneration 15

P ers pec tives Legal commitments under JESSICA funds are over EUR 1.65 billion: 5 funds a t na tio na l level a nd 14 a t reg io na l level 16 H Fs a nd 3 U D Fs w itho ut H F a m a jo rity o f funds a nd a g reem ents (15 o ut o f 19) m a na g ed by the E I B Other JESSICA HF agreements under negotiation; Next steps: UDFs under preparation / establishment; Continuation of co-operation and exchange of experiences in the framework of the JESSICA Networking Platform 16

J E S S I C A N etw o rk ing P la tfo rm A Tool to foster the development and implementation of JESSICA A Forum of Exchange JESSIC A : In n o v a t iv e in st r u m e n t u se d f o r t h e f ir st t im e in t h e 2 0 0 7 /1 3 St r u c t u r a l Fu n d s p r o g r a m m in g p e r io d Ex c h a n g e o f in f o r m a t io n, e x p e r ie n c e s a n d b e st p r a c t ic e : e sse n t ia l e le m e n t s f o r su c c e ssf u l im p le m e n t a t io n o f t h e in it ia t iv e Launched by the Commission in co-operation with the EIB and the CEB 17

H o rizo nta l S tudies in s upport of the a c tivities o f the J E S S I C A N etw o rk ing P la tform Objective: Provide guidance on procedural aspects and operational matters relevant to stakeholders in all Member States, based on most recent experiences H olding Fund H a ndbook U D F T ypolo g ies a nd G overna nc e S truc tures H a ndbo ok for s etting up U rba n D evelo pm ent Funds E nerg y Foc us ed U rba n D evelo pm ent Funds 18

For further information: W e b sit e s: h t t p ://je r e m ie.e u r o p a.e u h t t p ://je ssic a.e u r o p a.e u h t t p ://ja sp e r s.e u r o p a.e u DG REGIO Unit D3 Financial Engineering 19