Download JESSICA and the Urban Dimension

JESSICA:
Mainstreaming Urban Dimension
JESSICA Task Force
Prague, March 2009
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JESSICA and Urban Mainstreaming 1
•Urban actions are vital elements of 2007-2013
Operational Programmes
•In the time of recession EU institutions support MS and
regions in their recovery efforts by accelerating
investments in cohesion policy programmes
•public resources are scarce ►need to create mechanism
ensuring sustainability
•cities are key players to boost economy and create
dynamic and competitiv environment for investments
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What are the key problems of the european cities?
Threat of demographic decline
Aging population
EU 27: by 2050 48 mln fewer 15-64 year olds/
58 mln more citizens over 65
Labour gaps
The number of working age citizens will
stagnate or shrink while the number of
retirees explodes
►household financial power may slow
►from 2017 shrinking workforce may reduce
overall employment and slow down
potential growth in the EU
Outmigration of young people
Urban migration
Consequences:
►low growth potential due to the shrinking labour force
►regions in demographic decline will face difficulties in
financing essential public goods and services
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How to respond to this situation?
In theory...
Cities and regions have to make strategic and targeted investments in order to:
 prevent demographic decline in some regions/cities,
 make urban areas more attractive in order to stop outmigration of qualified
workforce
 ensure sustainable development of urban areas
In practice... GO FOR JESSICA (Joint European Support for
Sustainable Investment in City Areas)!
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JESSICA IMPLEMENTATION MODEL
EUROPEAN COMMISSION
Structural Funds
Grant (not repayable as long as
EC Regulations adhered to)
OTHER INVESTORS
(Public & Private)
MEMBER STATE
Via a designated Managing Authority
CITIES
Holding Fund
optional
Contribution (repayable or non-repayable)
URBAN DEVELOPMENT FUND
Investment (equity, loan or guarantee)
IFIs/Public
Agencies/
Banks
Projects forming part of an Integrated Plan
for Sustainable Urban Development
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JESSICA as URBAN mainstreaming instrument
and... FACING the Financial Crisis
Benefits for the cities
 Revolving financial instrument – sustainable investments in urban
projects by the UDFs
 Promotion of the PPPs, loan capital contributed by the EIB, CEB,
other finantial institutions and investors
 Once launched will enable exchange of experience/ knowledge networking,
and thus easier implementation of JESSICA in other regions
 Will promote long-term thinking as regards use of structural funds for
urban investments
 „Pay-back” character of JESSICA’s investments should ensure better
use of structural funds
Benefits for the banks
 Possibility to provide lending to businesses hit by the global
economic crisis by the means of revolving instrument
 Managing UDFs
Benefits for investors (other than banks UDF managers)
 Influence on the investment portfolio
 Cooperation with adequate public institutions
 Remuneration for the managment of UDFs
 Long term participation in the programme aiming at development of
urban infrastructure of the regions
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JESSICA in C&E Europe – state of play
POLAND
 JESSICA legal study completed (Analysis of Legal Conditions
for the Implementation of the JESSICA Initiative in Poland)
 JESSICA business study completed (Evaluation Study on the
implementation of JESSICA Instruments in South/West Poland
 First strategic decision has been taken by Wielkopolska Region
to establish a JESSICA Holding Fund together with EIB.
Zachodniopomorskie, as second region, to follow shortly.
 Wide-spread interest from other regions and cities, but- “wait
and see approach.
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JESSICA in practice: Wielkopolska
Wielkopolskie
voivoidship
Measure
Preparation of investment
areas
10M EUR
Marshall Office - WRPO
Revitalisation of city areas
40M EUR
HF
Subsidy Fund
HF
EIB
JESSICA Fund
50M EUR
Cities with population above
50 000: Poznań, Kalisz, Konin,
Ostrów Wielkopolski, Piła,
Gniezno, Leszno
Cities with population below
50 000
Repayment
Loan
Equity
Guarantee
Repayment
Loan
Equity
Guarantee
Projects
UDF
Projects
JESSICable projects in Poland
Regeneration of Old Gas-Works
buildings in Poznań, Wielkopolska
►tranformation of the 19th century GasWorks into cultural centre
Reconstruction of ten tenement houses
in Szczecin, Zachodniopomorskie
►The houses will be modernised, with ground
floors changed into commercial area, first floors
into offices, and the remaining floors – into
apartments.
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JESSICA in C&E Europe – state of play
Lithuania
Great interest in JESSICA although limited amount can be
invested in urban projects
JESSICA Evaluation Study for Lithuania completed
Talks with Ministry of Finance are advancing and it is
expected that an urban development fund supporting
energy efficiency projects in the housing sector in
Lithuania will be created in the nearest future.
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JESSICA in C&E Europe - brief overview
Czech Republic
Moravia-Silesia Cohesion Region and the city of
Ostrava are the most interested in implementing
JESSICA. Further actions will focus on launching a
pilot JESSICA scheme in Moravia-Silesia region
JESSICA study is ongoing
Several other enquiries from both public and
private sectors in the Czech Republic indicating
growing interest in JESSICA
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PAN-European Brief overview
JESSICA-current and anticipated operations in MS
Most advanced
countries/HF +UDFs
to be set up
United Kingdom
Germany
Italy
Poland
Lithuania
Greece
Portugal
Catching up
countries
Preliminary Interest
Belgium
(Wallonia / Flanders)
Czech Republic
Bulgaria
France
Luxembourg
Spain
Sweden
Cyprus
Hungary (HF + UDF)
Malta
Romania (HF)
Slovak R.
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