JESSICA & The European Investment Bank

Matthias Kollatz-Ahnen Vice-President , European Investment Bank

Creative Urban Places for Competitiveness

24/10/2007

Faro, 18th October 2007

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THE LEIPZIG CHARTER

Innovation and education policies Improve physical environment

High quality public spaces

Local economy and labour market policies

SUSTAINABLE COMMUNITIES

Efficient affordable transport

Infrastructure networks and energy efficiency

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Training for children and the young

Regenerate deprived neighbourhoods

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INVESTMENT IN SUSTAINABLE COMMUNITIES

INFRASTRUCTURE KNOWLEDGE

ENVIRONMENT

SOCIAL

SUSTAINABLE
REAL ESTATE

SKILLS

COMMUNITIES
DEMOGRAPHIC

LOGISTICS

TANGIBLE
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CITY ASSETS

INTANGIBLE

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JESSICA COMPONENTS
European Commission European Commission ERDF DG Regio ERDF DG Regio Programming Authority Programming Authority Managing Authority Managing Authority Holding Fund ( HF ) Holding Fund ( HF )
National/regional /Local Level EU Level National /or regional Level

HF HF Manager Manager

Urban Development Urban Development Funds Funds

Regional /Local Level

Projects

Sustainable Urban Development Plan

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EIB APPROACH TO URBAN TRANSFORMATION

An integrative approach, covering: - urban renewal (and development):

infrastructure & environmental social housing cultural heritage, etc.

- urban transport; - related public services infrastructure (health, education, water & wastewater, utilities); - energy efficiency.
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EIB REQUIREMENTS FOR URBAN RENEWAL/REGENERATION PROJECTS

Part of a local or regional strategy

- urban renewal/regeneration plan - sectoral (integrated) plan for transport, water, etc.

Adequate technical definition, supported by clear demand, economically sound and financially sustainable Promoting the sustainability of local communities

Decentralised approach
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JESSICA

Joint European Support for Sustainable Investment in City Areas

Initiative of the European Commission (DG REGIO) launched at end of 2005, and supported by EIB. Applying financial engineering techniques to EU Structural Funds
Revolving Funds for the Member States Leveraging Effects
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WHY JESSICA?

To make Structural Fund support more efficient and effective by using non-grant financial instruments, thus creating stronger incentives for successful project implementation. To mobilise additional financial resources for PPPs and other urban development projects with a focus on sustainability/recyclability. To utilise financial and managerial expertise from international financial institutions such as EIB.
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HOW IS EIB CONTRIBUTING TO JESSICA?

EIB taking a leading role, alongside DGREGIO, in promoting and developing JESSICA. Providing complementary loan financing. Technical assistance and dissemination of best practice, based on established expertise in lending to urban renewal/regenerations projects across the EU. Regulations specifically provide for EIB to act as a Holding Fund Manager (on a not-for-profit basis).
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JESSICA THE SYNERGIES

Cross subsiding Leverage

Re-use of funds
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Integration

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OVERCOMING FRAGMENTATION IN URBAN REGENERATION

Activity Land acquisition and assembly Infrastructure investment Public Realm development Commercial Development Residential - Private Residential - Social Residential Key Worker and Affordable Operation and Management

Traditional Approach Public Public Public Private Private RSL / Public Public Sector Grant ????

New Approach

Integrated Partnership

Source: PriceWaterhouse Coopers 24/10/2007

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JESSICA NEXT STEPS

Clarify and streamline.

Simplify procedures to facilitate embedding Jessica

in the Operational Programmes
Develop Urban Development Funds.

Assist MS in identifying/developing Urban Development

Funds in the various countries Develop Jessicable projects.

Assist MS/MA/UDF in developing a portfolio of Jessicable

projects excellent and sustainable urban transformation Example: Energy Efficiency or Cogeneration may be part of projects

Support the Establishment of a European market 24/10/2007 for Urban Regeneration Operators

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EIB CONTACT INFORMATION

EIB JESSICA Task Force
European Investment Bank 100, Bvd. Konrad Adenauer L-2950 Luxembourg

Tel.: +352 4379 3069 Fax.: +352 4379 3099 E-mail : jessica@eib.org

24/10/2007

www.eib.org
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