Download Jessica funding philosophy

Energy Fund The Hague
Alternative use of ERDF to support energy efficiency measures
Making financial
instruments work for
cities
Ton Overmeire,
Holding Fund manager and ERDF programme manager
Riga 23 February 2016
Why JESSICA
Joint European Support for Sustainable Investment in City Areas
Grant
Financial Instrument
Why Jessica
Joint European Support for Sustainable Investment in City Areas
• Increased investment needs while public resources are scarce
• Growing emphasis on the need for an Integrated Urban
Development Policy
JESSICA key components
EU
level
European Commission
ERDF – DG Regio
National /
regional level
ERDF Managing Authority / OP resources
€
€
flexible customisation / tailored structure
Fund level
€
Project level
Equity
Loan
Guarantee
Projects
€
€
Urban Development
Fund («UDF»)
€
HF manager
Holding Fund (option)
Other
€
€
Grant financing
(public or
private)
Investors /
partners
PPPs
SPVs
€
Projects
Grant
Integrated urban development plan / strategy
5
Financial Instruments Structure for The Hague
ERDF
Fund Manager
Fund Manager enters into
a management agreement
with the UDF and serves
as sole member on the
board of the stichting
Fund Manager enters into
a management agreement
with the UDF and serves
as sole member on the
board of the stichting
€
Programme
Authority
Fund Manager
€
Holding Vehicle
The Hague
€
foundation
managing partner
Advisory
Committee
Managing Authority
appoints member in
Advisory Committee
limited partner
Limited Partnership
(U D F)
€€
project developer /
bank
ERDF + Match
foundation
€
limited partner
Limited Partnership
(U D F)
JESSICA-FINANCING
(equity, loan /
guarantee)
€€
project developer /
bank
managing partner
Advisory
Committee
Managing Authority
appoints member in
Advisory Committee
Fund level – Key criteria
 Clear rules for setting up Financial Instruments. Advice EIB
 Independent Fundmanagement
 Public & Private investment
 Public Investmentplan
 Revolving equity investments, loans and guarantees
 Off balance
Project level – Key criteria
 Project to be part of integrated urban development strategy
 (Partial) profitability or revenue generation potential
 Eligibility criteria in accordance with ERDF regulations/OP
7
Difficulties
 Ex-ante assessment before establishing the fund
 State aid
 Competitive procurement of fund managers
 Let go of control
 Flexibility investment strategy
 Pipeline development
 Phased drawdown of funds into the FI
8