Presentation on theme: "2014-02-18 Marshal Office of the Wielkopolska Region 1 Implementation of the JESSICA initiative in the Wielkopolska Region Radosław Krawczykowski Director."— Presentation transcript:
Marshal Office of the Wielkopolska Region 1 Implementation of the JESSICA initiative in the Wielkopolska Region Radosław Krawczykowski Director of Department Marshal Office of the Wielkopolska Region
Wielkopolska Region Second biggest region in Poland in terms of surface km2(9,53%) Third biggest region in Poland in terms of population thou. (8,9%) 55,5% of population live in cities 109 cities and 226 communes Poznań –capital of Wielkopolska (580 thou. inhabitants)
Marshal Office of the Wielkopolska Region 3 implementation of the JESSICA initiative Objectives of the JESSICA initiative are reflected in: Measure 4.1. Revitalisation of urban areas and Measure 1.4. Support for the investments linked to Regional Strategy for Innovation, Scheme III Investments in support of business environment institutions in urban areas of the Wielkopolska Regional Operational Programme for years (WROP)
Marshal Office of the Wielkopolska Region 4 implementation of the JESSICA initiative JESSICA Funds: approx. EUR contributed from the ERDF and State Budget geographical split of allocation: 60% - Large cities > 50 thousand of inhabitants 40% - Small cities < 50 thousand of inhabitants
Marshal Office of the Wielkopolska Region 5 implementation of the JESSICA initiative Managing Authority Board of Directors of the Wielkopolska Region Holding Fund – European Investment Bank Urban Development Fund Bank Gospodarstwa Krajowego Urban Projects
Marshal Office of the Wielkopolska Region 6 implementation of the JESSICA initiative European Investment Bank was appointed as a Manager of the JESSICA Holding Fund on the basis of Article No 44 of Council Regulation (EC) No 1083/2006 of 11 July 2006 Bank Gospodarstwa Krajowego was selected as an Urban Development Fund on the basis of the appraisal of offers conducted by a panel of experts of the European Investment Bank.
Marshal Office of the Wielkopolska Region 7 Timetable for the implementation September 2008Legal analysis 16 October 2008Memorandum of Understanding November 2008Preliminary identification of potential urban projects 29 April 2009Funding Agreement between the Board of Directors of the Wielkopolska Region and European Investment Bank. September 2009Guidelines regarding the rules of developing revitalisation programmes
Timetable for the implementation 22 March 2010Call for expression of interest to select urban development fund(s) – launched by the EIB. 9 April - 30 June 2010appraisal of offers conducted by the panel of experts of the European Investment Bank. 29 September 2010Agreement between the European Investment Bank and Bank Gospodarstwa Krajowego. First such an agreement in Poland and the second in Europe. October 2010Call for applications for loans for urban projects - launched by BGK. December 2010?First agreements with investors.
Revitalisation programmes Requirement for developing revitalisation programmes- according to art. 43 of the Commission Regulation (EC) no. 1828/2006 the JESSICA Initiative funds investments in public and private partnerships as well as other urban projects included in Integrated Development Plan for Urban Areas Guidelines regarding the rules of developing revitalisation programmes enabling to apply for support within the framework of the JESSICA Initiative were adopted by MA in September 2009.
Ways of recognizing dysfunctional areas: The choice of dysfunctional areas based on at least three of the criteria applicable within the framework of Integrated Regional Operational Programme (ZPORR); The choice of dysfunctional areas based on at least three of the criteria applicable within the framework of URBAN II community initiative; The identification of dysfunctional areas based on the criteria of the support for actions related to housing; A detailed description indicating reasons for which the areas should be subject to revitalization measures.
Urban Projects (expected by MA) Revitalization projects are expected to ensure combination of: commercial components designed to yield return on investments and social components leading to: quality of life improvements, reducing adverse social factors and having a favourable environmental impact. Revitalization projects should be aiming at strengthening of local development potential. The assistance of these projects will include such problems as: social exclusion, high level of crime total decrease of life level in handicapped town parts.
Thank you for your attention Radosław Krawczykowski
Marek Szczepański Director of European Programmes Department Conference on JEREMIE and JESSICA Brussels, 29 th - 30 th November 2010 Urban Development Fund in Wielkopolska Region - first lessons learned
15 Established in 1924, operating as a state- owned bank whose mission includes supporting local authorities programmes for regional development Supervised by the Ministry of Finance of Poland Leader in local governments financing (15.5% market share in municipal loan market) The largest state development bank in Central and Eastern Europe Branch network covering the whole country (branches in all regions) Key klients: - Central Government - Local governments - SMEs and strategic enterprises Bank Gospodarstwa Krajowego (BGK)
16 Basic information about the UDF in Wielkopolska Signing of Operation Agreement with EIB: 29 th September 2010 Available amount: approx. 74.7m (PLN 293m) Financial product currently available: loans Loan maturity: maximum 20 years Grace period: maximum 4 years Loan interest rate: set on the basis of the reference rate of the National Bank of Poland (currently 3.5%), reduced by the Revitalization Index Revitalization Index: determined on the basis of superiority of economic elements over the commercial nature of the project (maximum – 2 percentage points)
17 Basic information about the UDF in Wielkopolska Share of loans in investment costs: maximum 75% of the total eligible investment cost (state aid rules – Regional Investment Aid) Potential investors: local governments, municipal companies, private investors, public-private partnerships, universities, NGOs, churches Launching call for applications for loans: 29 th October 2010 All potential projects should be covered by Integrated Plans for Sustainable Urban Development
18 Potential urban projects to be financed by the UDF Business Centre Former barracks built in the 70s of the XIX century A project includes revitalization, modernization and reconstruction of three historic buildings, construction of two new buildings referring to the art style in the surrounding area, preservation and arrangement of the historic trees avenue, modernization and improve the road system Proposal loan of approx. 6.5m - 7.5m Estimated value of the first stage of investment approx. 30.5m Private Investor
19 Potential urban projects to be financed by the UDF Business incubator A three-stage investment, each step involves renovation of one historic building In each building there will be a separate technology part and typical office part The first phase has received grant from Regional Operational Programme for Wielkopolska, the second might be implemented with the JESSICA assistance (loan ranging from 4.8m to 8.6m) Public investor Bowling alley and a swimming pool Two projects at the end of modernization and adaptation the city to the role of a local tourism center The first of the projects include renovation of the building in the park and opening of the bowling alley and small restaurant, while the second - the renovation of the historic, former German swimming pool Need for loan of approx. 0.4m - 1.1m Public investor
20 First observations High interest of investors (over 50 contacts in 3 weeks) Comparable number of investors from private and public sector (both self-governments and public companies) Diversity of project types (swimming pool, bowling alley, shopping center, office space, business incubator, dormitory, investment sites, parking lots) Diversity of project sizes (min. 0.27m, max. 50m) Diversity of the expected financial support (min. 0.2m, max. 8,6m) No PPP projects ready to be financed Main problems observed: Inability to finance projects in the form of equity contributions (lack of relevant state aid rules) Sustainability of projects (doubts about the ability to sell the investment after the completion of the project)
21 Signing the first investment agreements with investors: December 2010 Review and potential modification of loans/equity conditions: January - February 2011 Conference summarizing the first phase of the operation activities of UDF: March 2011 Futher work over potential projects (including railway stations): 2011 Next steps
22 European Programmes Department Bank Gospodarstwa Krajowego Phone Thank you for your attention! Contact details