1. EN Regional Policy EUROPEAN COMMISSION JASPERS, JEREMIE & JESSICA 3 joint policy initiatives for improving investments and access to finance presented by Pierre Godin, European Commission, DG Regional Policy based on 3 sets of slides prepared by: - Brendan Smyth, DG Regio (for Jaspers) - Emilio de la Guardia, EIB (for Jaspers) - Georges Kolivas, DG Regio (for Jeremie & Jessica) ENEA meeting, 09/06/2006, La Coruña, Spain

2. Regional Policy EUROPEAN COMMISSION EN 2 –JASPERS (Joint Assistance to Support Projects in European Regions) –One of the three « J » babies (together with Jeremie & Urban development Jessica) > Joint effort. –A technical assistance partnership to prepare major projects between DG REGIO, EIB and EBRD –JASPERS is an additional technical assistance resource for the MS and for DG REGIO –value added: drawing on past experience and expertise of the EIB and the EBRD in a more structured and coordinated way. Increase beneficiarys absorption capacity Part 1 – JASPERS

3. Regional Policy EUROPEAN COMMISSION EN 3 JASPERS: free and voluntary –JASPERS assistance will be provided free of charge to the beneficiary –There will be no obligation on the Member States to use JASPERS –There will be no obligation on a Member State which benefits from JASPERS to borrow from the EIB or the EBRD –There will no obligation on the EIB or the EBRD to lend to projects prepared using JASPERS –There will be no exclusion of EIB or EBRD lending to projects benefiting from JASPERS

4. Regional Policy EUROPEAN COMMISSION EN 4 LEGAL RESPONSIBILITIES JASPERS does not change existing legal responsibilities JASPERS is an input to the preparation of applications for EU funding Member States are the 'owners' of the project, not JASPERS; they submit the standard applications as required by the Regulations preparation of a project by JASPERS does not guarantee approval of the project by the Commission the ultimate legal responsibility to grant assistance to a project will remain with the Commission

5. Regional Policy EUROPEAN COMMISSION EN 5 JASPERS concentrates its activities in major projects : Transport > 50 M Environment & other > 25 M JASPERS priorities are : - large projects supported by the Cohesion Fund and the ERDF (to be interpreted flexibly in the smaller MS) - other Cohesion Fund and ERDF projects sectors most likely to receive assistance: roads, rail, public transport, water supply, waste water treatment, solid waste but also tourism, energy, etc. [JASPERS will concentrate on New Member States, Romania and Bulgaria] JASPERS Activities

6. Regional Policy EUROPEAN COMMISSION EN 6 2006 ACTION PLANS: FINDINGS JASPERS is up and starts running All beneficiary countries submitted draft Action Plans 112 project actions identified, and support requested in wide range of relevant horizontal issues Demand in some unexpected sectors (eg. large energy, broadband telecom, tourism) JASPERS is well received by beneficiary countries and DG-REGIO desks JASPERS intervention requested for projects totaling 57 Bn grant funding by CF and ERDF 6

7. Regional Policy EUROPEAN COMMISSION EN 7 Environment sector 56 actions Water & waste water20 actions Solid Waste16 actions Energy efficiency & renewable12 actions Other sectors (Tourism, telecoms – broadband, health & education) 8 actions Transport sector 46 actions Roads & Motorways15 actions Railways16 actions Urban transport7 actions Other sub-sectors (river, airports)8 actions 7

8. Regional Policy EUROPEAN COMMISSION EN 8 Main Horizontal Issues for which support is requested PPP+grant blending approaches Support with state aid in new sectors Structuring projects in new sectors (eg. power, energy efficiency, renewables, urban transport, flood protection, rolling stock) Grouping small projects (eg. energy efficiency, water) PPP best practice / model approaches Guidance on new Regulations (eg. eligibility, revenue generating projects, grant rate calculation) 8

9. Regional Policy EUROPEAN COMMISSION EN 9 Horizontal issues 32 issues Environment sector5 issues Energy sector5 issues Other sectors2 issues Transport sector11 issues Common issues to all9 issues

10. Regional Policy EUROPEAN COMMISSION EN 10 Applying for assistance from JASPERS Managing Authority acts as central coordinator for each country Phase of Project preparation: the Managing Authority in the MS can request assistance directly from JASPERS in Luxembourg or to the regional offices of JASPERS. Phase of Project appraisal: when an application for assistance has been received, DG REGIO can request assistance from JASPERS in Luxembourg

11. Regional Policy EUROPEAN COMMISSION EN 11 JEREMIE stands for Joint European REsources for MIcro to medium Enterprises Joint resources because JEREMIE combines resources from ERDF + national public sector + EIB+ other IFIs, banks & fin. intermediaries. JEREMIE is not an organisation but a series of coherent actions JEREMIE gives special emphasis to technology transfer, start-ups, technology and innovation funds, and micro-credits. Part 2 – JEREMIE

12. Regional Policy EUROPEAN COMMISSION EN 12 Why JEREMIE? Because … Why JEREMIE? Because … Better access to finance for SMEs in the regions is needed Renewed Lisbon Strategy and CSG stress the need to improve financial products and instruments

13. Regional Policy EUROPEAN COMMISSION EN 13 Main Actors of JEREMIE Commission: DG REGIO with ENTR and ECFIN EIF + EIB (EIB as loan capital provider) Other IFIs, mainly the EBRD for the 8 new MS, Council of Europe Dev. Bank (CEB) Other specialized financial intermediaries, I.E. KfW (DE), Caisse des dépots (FR),etc

14. Regional Policy EUROPEAN COMMISSION EN 14 Main Actors of JEREMIE MS, Regions and managing authorities National and regional banks and financial intermediaries, investors SMEs, including Micro credit (up to 25.000 EUR) beneficiaries ( Unemployed,Young or old first time entrepreneurs,Women,minorities)

15. Regional Policy EUROPEAN COMMISSION EN 15 JEREMIE PHASES JEREMIE PHASES Phase 1 : Preparation (action plans and Ops) Evaluations (2006-2007): gap analysis in access to finance (demand/supply) and action plans. Action plans are used for the preparation of OPs. Phase 2: Implementation (HF and FI) A Managing Authority (MA) signs a funding agreement with a selected Holding Fund (HF). The HF selects Financial Intermediaries (FI), gives accreditation to FI and provides funds to FI. Phase 3: Support from FI for SMEs and micro-credit Equity & venture capital, loans, guarantees, advice.

16. Regional Policy EUROPEAN COMMISSION EN 16 Recycling JEREMIE resources At the closure of OPs at the end of 2015, ERDF grants transferred to Holding Funds must have been used at least once, paid out of FI to finance SMEs and micro-credit beneficiaries (if not, money is recovered). Contributions from OP invested in SMEs under JEREMIE, when repaid to funds or holding funds, belong to the MS or MA. Such Repaid resources must be invested again in favour of SMEs.

17. Regional Policy EUROPEAN COMMISSION EN 17 Part 3 - JESSICA JESSICA stands for Joint European Support for Sustainable Investment in City Areas JESSICA is an optional facility JESSICA offers Member States (MS) and Managing Authorities (MA) the possibility to "transform" grants from Operational Programmes (OPs), into repayable and recyclable assistance, to PPPs and other projects for urban renewal and development JESSICA and JEREMIE are complementary: –JEREMIE can support SMEs in urban areas, –JESSICA can support urban infrastructure projects and networks, energy efficiency or ICT projects, not relating to access to finance to SMEs.

18. Regional Policy EUROPEAN COMMISSION EN 18 WHAT IS JESSICA ? Under Jessica, MS and MAs have the possibility to allocate and contribute resources from OPs, to: - Urban Development Funds (UDF), - Holding Funds (HF) Urban Development Funds invest in PPPs or projects included in Integrated Urban Development Plans (IUDP) Holding Funds invest in several UDFs

19. Regional Policy EUROPEAN COMMISSION EN 19 WHY JESSICA? Because … Investment needs for sustainable cities and towns are increasing Available public funds are scarce-need for private and banking sector contribution Existing administrative and technical capacity within Urban authorities often does not correspond to investment needs Innovative schemes not aggravating public finance and debt are necessary Sustainable urban investments require technical, financial and managerial expertise of IFIs, banks and private sector.

20. Regional Policy EUROPEAN COMMISSION EN 20 JESSICA supports projects MAs negotiate and sign funding agreements with selected funds or holding funds (+detailed rules) Contributions from OPs to UDFs must be paid at least once in the period 2007-15, UDF invest in PPPs or other urban projects, providing them with equity, loans or guarantees projects supported by UDF could also receive grant assistance from OPs (e.g. grants + loans), Grant assistance from OPs could finance the equity gap of projects When paid back to the fund, before or after 2015, must be reinvested in urban projects. Thank you for your attention !