Presentation on theme: "1 JESSICA Joint European Support for Sustainable Investment in City Areas n Optional use of ERDF money for projects within integrated urban plans n JESSICA."— Presentation transcript:
1 JESSICA Joint European Support for Sustainable Investment in City Areas n Optional use of ERDF money for projects within integrated urban plans n JESSICA offers Managing Authorities the possibility of using ERDF funds for urban projects as non-grant recyclable financing through Urban Development Funds n Commercial approach. Leverage effect n EIB as JESSICA holding fund. n Initiative being developed. First phase evaluation carried out by EIB to finalise end 2006
2 HF Manager European Commission ERDF – DG Regio European Commission ERDF – DG Regio Managing Authority EU Level National /or regional Level Holding Fund (« HF ») Urban Development Funds National/regional /Local Level Regional /Local Level Projects Sustainable Urban Development Structure investments, select Urban Development Funds Administer, monitor & report on investments Attract other investors Closely collaborate with national/regional authorities Role of the HF Manager: Disbursement: Up front Irreversible Holding Fund: Greater delegation to Local Authorities Owned by National Authority Management/administration are outsourced to HF Mgr. THE MANAGER IS SELECTED BY MEMBER STATE / REGION Programming Authority (In tranches if required) JESSICA
3 The Taxonomy of UDFs Spatial focusSingle public Mixed public Public company PPPNon- profit Co- operatives Private National/regional XXXXXX Metropolitan XXXXX Municipal XXXXXX Specific URD area XXXXXX Sector focus Public Services XXXXXX Private Oriented XXXX Social Housing XXXXXXX SPV XXXXXXX
4 JESSICA Preliminary Evaluation Study The study has been designed to establish the efficacy of JESSICA and how the initiative should be taken forward. Work on the study is due to start in early September and initial findings are anticipated before the end of the year. Study Objectives: To establish the rationale for financial engineering actions in the urban sector; To review the potential interest within Member States of using UDFs to accelerate investment in urban areas; To identify and evaluate the problems and gaps within Member States between the supply and demand for financial engineering products targeting urban renewal/regeneration; To propose adapted structures to take the JESSICA initiative forward; To suggest intervention possibilities for the EC and EIB that add value.