P. 1
2011-05-15 - Konferencja Miasto 2011 - Eugenio Leanza - JESSICA Urban Development Funds. Impact Funds - A Concept for Urban Policy Delivery

2011-05-15 - Konferencja Miasto 2011 - Eugenio Leanza - JESSICA Urban Development Funds. Impact Funds - A Concept for Urban Policy Delivery

|Views: 1,860|Likes:
Published by Paweł Wyszomirski

More info:

Categories:Topics, Art & Design
Published by: Paweł Wyszomirski on May 30, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

07/10/2013

pdf

text

original

JESSICA Urban Development Funds

Impact Funds: A concept for urban policy delivery
V International Conference “City 2011 – city space management” Katowice, 17 May 2011
Eugenio Leanza JESSICA and Investment Funds Division European Investment Bank
European Investment Bank

UDFs as “impact funds” for urban transformation
The terms “impact funds” or “impact investors” refer to investors and  investment vehicles that have an interest, in addition to achieving remuneration  to their investment, in achieving measurable “impacts” (in our definition  “sustainable ERR target”) on policy‐defined, non‐financial objectives,  constituting a key dimension in the investment vehicle performance assessment.

Urban Development Fund (UDF) as an urban impact fund:
• a specific policy tool within the wider financial engineering concept in the  programming period 2007‐2013; • to promote, by employing Structural Funds in close cooperation with                    DG‐REGIO, the development of a system of financial engineering instruments             (so‐called Urban Development Funds) for urban development; • policy‐driven, geographically‐focused and planning‐led investment vehicle  supporting the sustainable transformation processes of city areas; • impact investing to be seen as a new asset class requiring specific investment  skills, organisational structures, metrics and benchmarks.
European Investment Bank 2 2 2

Which types of UDFs?
• Urban regeneration funds  (mainly area‐based)
• “Place making” locations / incubators /  creative class attractors • Brownfield locations, mostly in inner  city areas • Deprived city districts, urban sprawl  voids

• Energy‐focused funds                       (regional or city‐based)
• EE / RE and energy / emission audit  /certification systems • Climate action strategies (EU 20/20/20  targets in urban areas) • Regional upgrade of green technology and  transmission systems

• City infrastructure  transformation funds                        (for city systems)
• Addressing infra / urban imbalances  from changes in city hierarchy • Focusing on the provision of capital in  less competitive areas • Focusing on transformation of  strategic urban infrastructure  • IT broadband, waste to energy, water,  electric public transport, etc.

European Investment Bank

3 3 3

Functional urban areas and metropolitan areas
Integrated urban investment strategy  for highly dense functional areas Holistic Approach      Urban wealth 
(Natural, Fixed, Human, Economic)

Jobs & economic activity Financials / Fiscal  Sustainability  Capital & enterprise transfers Human capital ageing / migration Asset value creation processes

Main drivers of sustainable transformation/growth of those areas :
EMPLOYABILITY 
(employment and unemployment  structures,  job creation in local  population clusters,  social enterprise, skills)

SOCIAL COHESION AND INCLUSION
(migration flows, educational  capabilities and re‐training,  disability, impact of ageing,  urban poverty, etc.)
European Investment Bank

GREEN GROWTH  (technological change for  sustainable urban transformation,  green development/ jobs  and smart city concept).
4 4

The Central EU demographic scenario
Falling fertility in CEE after 1980 ‐ Fewer families from 2010‐15 onwards & Migration effects
Livebirths in Germany and Central-Eastern Europe, 1970-2007
1100000

Births and Deaths in Poland 1985 - 2035
700,000

1980
1000000

DE

1989

PL + Baltics CZ + SK + HU RO + BG
600,000

900000

2005
800000
500,000

700000

-21%
400,000

600000

500000

-47%

300,000

400000
200,000

1985

1999

2004

2009

2014

2019

2024

2029

200000

19 70 19 73 19 76 19 79 19 82 19 85 19 88 19 91 19 94 19 97 20 00 20 03 20 06

-36%

Births

Deaths

2034

300000

-45%

European Investment Bank

5 5 5

Increased levels of migration and mobility
Increased mobility
Youngsters  jobs Elderly  quality for money Women  opportunities Cold  temperate  East  West North  South Inland  littoral Countryside  urban poles Centre  sprawl East DE: compacting 6

European Investment Bank

6 6 6

Demographic impacts on city infrastructure performance

Retirement Dependency Ratio (65%+ / 15‐64)

7

European Investment Bank

7 7 7

Impact of ageing on population/labour market

Urban managers  should control  inertial socio‐ demographic  changes as well as  labour market  transformation in  order to  successfully  revitalize urban  areas, and develop  policy action  targeted at specific  clusters of city  population.

TOTAL POPULATION

POPULATION

Emigration/ Immigration Balance Disability Active population Participation rate Unemployment Employed Work Force Frictional unemployment

Providing tax base                           for common infrastructure

European Investment Bank

8 8 8

UDF governance structure for impact investing
City Manager’s Office SF Managing Authority
Chief Financial Officer Head of Spatial Planning Chief Sustainability Officer Head of Attraction + Value Creation

Co-investors
(IFIs, promotional banks, institutional investors)

UDF Board

UDF Manager

UDF investments into revenue‐generating urban projects should not be based  on “cherry‐picking” lucrative projects
• • Manage the externalities, ensure qualitative sustainability of projects Positive economic returns for the city have to be “enforced” in project design and selection
European Investment Bank 9 9 9

Conclusions
Urban management in EU will be increasingly difficult, however, conditions  for sustainable development can be created in local urban poles.
• The core element is to have efficient, productive, attractive and livable cities characterized by low  maintenance/management costs and low “break‐even point” on fixed assets
• Competitive cities in a shrinking/restructuring environment

• •

Can be achieved by rationalization, reprocessing, restructuring and optimization at the urban level  with a focus on sustainability Cities need clear objectives, strategic planning, a roadmap, governance, technical data and          systems to tackle market distortions/ long‐term risks ‐ managed through strategic impact investors.

JESSICA Urban Development Funds as strategic impact investors
• Policy‐driven financial instruments
• • • Enabling to address LOCAL implications of GLOBAL problems  Through a LOCAL integrated strategy for urban investment Reconciling a bottom‐up approach with a global vision Geographically neutral policies are not conducive to economic growth

• •

Bundesbank study of post‐reunification transfers:

A strategy cannot be implemented without a financial instrument ‐ but a financial instrument is  meaningless without an adequate and focused strategy for value creation in cities.
European Investment Bank 10 10 10

Contact

JESSICA and Investment Funds
European Investment Bank
98‐100 Bvd Konrad Adenauer, L‐2950 Luxembourg www.eib.org/jessica   

European Investment Bank

11 11 11

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->