Supporting Cities and Regions through Projects and Programmes Gianni Carbonaro Policy Support Department European Investment Bank The presentation will be an opportunity to stimulate discussion and an exchange of experiences on how the instruments of cost-benefit analysis and programme evaluation can be usefully employed in the context of the European structural policies, and more specifically to improve the quality of structural expenditures.   Themes addressed in the presentation will be the following: Projects and programmes - the risk of going from projects without strategy to strategies without projects: to what extent can the logic of structural programmes be reconciled with selection and assessment tools for project-based instruments, such as the Cohesion Fund, ISPA and the like? Striking a difficult balance - challenges in project design, assessment and control: -          sector vs. multi-sector operations; -          the appropriate spatial level (e.g. Regional Operational Programmes vs. URBAN); -          conflict between speed of absorption (compliance with the N+2 rule) vs. securing investment quality; -          delegation vs. centralisation in decision and control processes; -          standardisation vs. flexibility in evaluation methods and parameters; -          specific issues in PPP structures. EIB experience in the current programming period – use of CBA tools, co-operation with the Commission in project appraisal, combining loans and grants; some illustrations. EIB in the coming programming period: -          reinforced emphasis on project preparation, sound evaluation, promoting best practice and quality; -          new initiatives to reinforce co-operation between the EIB, the Commission and Member States – JASPERS (Joint Assistance in Supporting Projects in European Regions) and JEREMIE (Joint European Resources to Micro and Medium Enterprises). 12/10/2018 EPC Policy Dialogue 28 September 2006

EIB and SF working together … How to combine in the best way market instruments and community grants Important to achieve maximum leverage The broad principle is incorporated in SF… … but the devil is in the details … … which often requires early involvement … … and may clash with political feasibility constraints 12/10/2018 EPC Policy Dialogue 28 September 2006

Co-operation with structural actions 2000-06 Systematic co-op within 2000-2006 programme The 2000 agreement with the Commission: Intensify participation in the preparation phase Consultation on co-financed projects Paid technical services for large projects (as requested by DG-Regio even without co-financing) Continue with well-established forms of cooperation On a project-by project basis Focus on certain sectors (transport, water cycle…) Cohesion Fund, ISPA, PHARE … 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 3 Pillars of Value Added Adopted from 2004 as the result of a period of internal consultation Each operation must be judged on the basis of: Pillar 1 Policy coherence (EU objectives) Pillar 2 Investment quality Pillar 3 Banking value 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 EIB – 2007-2013 What’s new The three J’s PPP Centre of Expertise 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 JASPERS - the problem… Enlargement has greatly added to the requirement to prepare projects One third of budget for Cohesion Fund Greatly enlarged resources for new MS REGIO country desks identified (early 2006) 525 large projects that require preparation in the coming years Problems with quality of projects remain 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 JASPERS Joint Assistance to Support Projects in European Regions ( + s) 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: experience and expertise of EIB / EBRD in a more structured and coordinated way than in the past 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 Aims of JASPERS technical assistance from early stages of a project through to the final application for Grant Support to cover the technical, economic and financial aspects and any other preparatory work required to deliver a mature project objective is to ensure a flow of high quality project applications for rapid approval of Grant Support by the Commission 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 JASPERS Managing Authority acts as central coordinator for each country Project preparation: the Managing Authority in the MS can request assistance directly from JASPERS in Luxembourg or to the regional offices of JASPERS (being established) Project appraisal: when an application for assistance has been received, DG REGIO can request assistance from JASPERS in Luxembourg 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 JEREMIE Joint European Resources for Micro to Medium Enterprises JESSICA Joint European Support for Sustainable Investment in City Areas Financial engineering instruments (based on Investment Funds) for: Microfinance and SME’s Urban development 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 JEREMIE / JESSICA Design-to-Operation cycle through Investment Funds different from grant giving / lending, but : quality and evaluation remain central CBA classical ex-ante approach not enough have to include institutional building, long-term management capability which need to feed durably into: micro-enterprise and SME business plans strategic framework for sustainable urban developmen 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 12/10/2018 EPC Policy Dialogue 28 September 2006

EPC Policy Dialogue 28 September 2006 12/10/2018 EPC Policy Dialogue 28 September 2006

EPEC European PPP Expertise Centre Recently completed consultation on the proposal to establish EPEC PPP units in Member States, Commission and EBRD Questions: need for EPEC, its mandate and services, resources General objective is to capitalise on EIB and other partners’ skills to support high-quality PPP proposals of European interest. 12/10/2018 EPC Policy Dialogue 28 September 2006