1. Brussels, October 10th, 2006 1 Patrick Walsh - EIB Head of Jaspers Brendan Smyth - DG REGIO Co-ordinator Gerry Muscat - EBRD Co-ordinator

2. Brussels, October 10th, 2006 2 Brendan Smyth - DG REGIO Co-ordinator

3. 3 The Challenge – A New Context After 2006 10 New Member States + Romania & Bulgaria Significant gaps in quality and quantity of Infrastructure – need for development Greatly increased EU Resources available 2007-2013 Problems with the quality of projects remain High and sustained rate of absorption needed by new Member states Lessons learnt from previous include: Need for permanent step change improvement in new Member States administrations: external consultancy support is not enough Ensure quality of projects presented for support from start of process

4. 4 What is JASPERS ? Joint Assistance to Support Projects in European Regions A technical assistance partnership to prepare major projects between DG REGIO, EIB and EBRD Objective: increasing the capacity of the beneficiary countries to make the best use of EU funding J is for joint: three new J new instruments (together with JEREMIE and Urban Development JESSICA) Joint effort between the Commission and IFIs. Value added: drawing on past experience and expertise of the EIB and the EBRD in a more structured and coordinated way than in the past. For administrative reasons, JASPERS will be a unit within the EIB but separated from its lending activities

5. 5 C oncentrate on priority countries: the 10 new member states plus Romania and Bulgaria JASPERS concentrates on major projects : Transport 50 M > Environment and other sectors 25 M > JASPERS priorities are : large projects supported by the Cohesion Fund and the ERDF (to be intepreted flexibly in the smaller countries) other Cohesion Fund projects other ERDF projects horizontal issues covering more than one country/sector JASPERS activities

6. 6 How will JASPERS operate? Assistance can be provided as required from the early stages of a project through to the decision to grant assistance (by the Commission or the Member State depending on the size of project) Preparatory work required to deliver a mature project e.g. Advice on conceptual development and project structuring Advice on project preparation e.g. cost-benefit analysis, financial analysis, environmental issues, procurement planning. Review of documentation: feasibility studies, technical design, tender documents. Advice on compliance with EU law (environmental, competition and others) and conformity with EU policies

7. 7 JASPERS: free and voluntary JASPERS assistance will be provided free of charge to the beneficiary There is no obligation on the Member States to use JASPERS There is no obligation on a Member State which benefits from JASPERS to borrow from the EIB or the EBRD There is no obligation on the EIB or the EBRD to lend to projects prepared using JASPERS There is no exclusion of EIB or EBRD lending to projects benefiting from JASPERS

8. 8 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 will remain with the Commission

9. 9 Action Plans Priorities and objectives of JASPERS will be set out each year in an Action Plan agreed between JASPERS and the beneficiary country Close coordination of JASPERS operations with DG REGIO country desks Horizontal issues may also be included in the Action Plan Action Plans for the twelve priority countries (the 10 plus Romania and Bulgaria) now agreed

10. 10 Management of JASPERS Managing Authority acts as central co-ordinator for each country The Managing Authority in the Member State can request assistance directly from JASPERS in Luxembourg or from the regional offices of JASPERS Steering Committee JASPERS will be actively managed by a Steering Committee with members from DG REGIO, EIB and EBRD.

11. Brussels, October 10th, 2006 11 Patrick Walsh - EIB Head of Jaspers

12. 12 JASPERS 54 professional STAFF 30 professionals + 10 support + 10 support 16 professionals 5 to 8 professionals LUXEMBOURG WARSAWVIENNABUCHAREST

13. 13 Organisation & Recruitment Regional hubs for JASPERS: North (Poland, Estonia, Latvia, Lithuania): Warsaw Central (Czech Republic, Slovakia, Hungary, Slovenia): Vienna South (Romania, Bulgaria): Bucharest Internally: EIB and EBRD core teams in place External recruitment: candidates already interviewed for Luxembourg, Warsaw, Bucharest New offices and staff will be fully operational in late 2006/early 2007

14. 14 Framework consultancy contracts Two large framework contracts to support JASPERS in Luxembourg and in the regional offices Transport and environment/other sectors Teams of expert for assignments on call Preparation of large infrastructure projects and analysis of horizontal issues (e.g. state aid, grant blending etc.) Tenders published in May; framework contracts will be operational shortly

15. 15 2006 action plans: Status All beneficiary countries submitted draft Action Plans 10 Action Plans signed as of 1 st September 2006 (Cyprus, Estonia, Slovak Republic, Czech Republic, Latvia, Malta, Poland, Slovenia, Bulgaria & Romania) Over 100 projects actions identified, and support requested in wide range of relevant horizontal issues Demand in some unexpected sectors (e.g. 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

16. 16 Environment sector 44 actions Water and waste water22 actions Solid Waste10 actions Energy efficiency and renewables7 actions Other sectors (Tourism, telecoms – broadband, health, education) 6 actions Transport sector 39 actions Roads and motorways12 actions Railways15 actions Urban transport5 actions Other sub-sectors (river, airports)7 actions

17. 17 Example Actions POLAND – Warsaw Ring Road, Public Transport in Krakow and Lublin, Flood Protection, Broadband ROMANIA – Rolling Stock, River Navigation, Multi-modal terminals, Regional Airports, Regionalisation of Water Companies BULGARIA – PPP Motorway, River Navigation HUNGARY – Provincial Urban Transport, 8 Water schemes SLOVENIA – ERTMS installation SLOVAKIA – Motorways, Water Supply and Treatment MALTA – Ports upgrades CYPRUS – New Urban Transport in Nicosia

18. 18 Main Horizontal Issues 9 horizontal issues identified PPP best practice / model approaches PPP+EU 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) Guidance on new Regulations (eg. eligibility, revenue generating projects, grant rate calculation )

19. 19 JASPERS development phase – from Autumn 2006 Significant increase in available resources over next 6 months Additional professional staff Opening of regional offices Will allow wider range of project assistance and work on horizontal issues Assistance beginning to many key projects, e.g. (2*transport, 2* water, Broadband telecommunications – E. Poland) First grant applications from projects assisted by JASPERS expected to be submitted in (1 st half 2007) Maintain momentum through 2007 Action Plan – Development begins shortly JASPERS will reach full strength in 2007

20. Brussels, October 10th, 2006 20 Gerry Muscat - EBRD Co-ordinator

21. 21 Case 1: Grant Rate calculation for Water Projects Project: Puszcza Zielonka Landscape Protection Area Sewerage - Poland (Cohesion Funds) JASPERS task: Review financing gap analysis in already- submitted application Remodel financial analysis Recommend grant co- financing rate JASPERS output: Recommend adjusting grant rate from 81% to 76% Application resubmitted by Polish authorities to EC

22. 22 Case 2: Complex Solid Waste Project (Sofia Waste) Current Situation: City has closed existing landfill; waste is baled and stored Waste incineration being considered by City JASPERS recommendations Identify long term landfill solution (needed whether or not incineration proceeds) Identify landfill for temporary storage or re- open existing facility Treat project as a national as well as local priority Next steps: Project now included in Operational Programme Once landfill site identified, JASPERS will support further project preparation on a phased basis

23. 23 Case 3: Broadband telecom Concept Development Project: Broadband development in Eastern Poland (covers 9 million people) JASPERS on-going actions: Help prepare project outline Consultant recruited to develop project concept Review meeting with DG Regio / Competition / Infso re structuring and state aid JASPERS 2007 actions: Draft ToR for feasibility study Help supervise feasibility study Help prepare ERDF application OP Development of Eastern Poland

24. 24 Case 4: Rail Rolling Stock Project Support Project: Romania Rail Rolling Stock Funding (ERDF) JASPERS task completed: Support Romanian authorities prepare ToR for: Rolling stock needs assessment Feasibility study Prepare ERDF application Prepare tender documentation JASPERS on-going activity: support supervision of selected consultant, review outputs, review draft application.

25. 25 Case 5: horizontal issue – PPP and grant blending JASPERS task: Review impact of new regulations Identify models for CF/ERDF blended projects Identify potential cases from Ops Input to structuring for selected projects On-going actions: Working paper on implication of new regulations under development

26. 26 Contact Details Patrick Walsh - EIB Head of Jaspers European Investment Bank 100, boulevard Konrad Adenauer L-2950 Luxembourg Phone: +352 4379 7782 E-mail: Walsh@eib.org

27. 27 Contact Details Brendan Smyth - DG REGIO Co-ordinator European Commission Brendan Smyth - DG REGIO Co-ordinator European Commission Directorate-General for Regional Policy Brussels Belgium Phone: +32 2 295 7307 E-mail: Brendan.Smyth@cec.eu.int

28. 28 Contact Details Gerry Muscat - EBRD Co-ordinator EBRD Warsaw Poland Phone: +48 22 520 5824 E-mail: MuscatG@waw.ebrd.com