JESSICA Holding Fund
for Mazowieckie Voivodship
Steps towards establishing Urban Development Funds
Preparation of urban development projects
European Investment Bank
JESSICA and Investment Funds Division
2010
JESSICA Holding Fund for Mazowieckie
• Creation expected in Q1 2011
• XXX million EUR contributed into the HF from
Regional Operational Programme (ROP)
• These OP resources will no longer be used as grants
• EIB as manager of the OP contributions:
– Conducts a tender in order to select managers of UDFs
– Enters into contracts with the UDFs
– Assists the Managing Authority in meeting its obligations
under Structural Funds rules
2
Implementation structure
• During 2011, EIB will be
selecting UDF
manager(s)
Managing Authority
XXX million EUR
contribution from OPs
(2011)
EIB
(JESSICA HF for Mazowieckie
Voivodship)
Investment into UDF
(2011)
Urban Development Fund
Loans, equity for projects
(2011-2012)
Resources repaid from
projects to UDF
(2012  )
Projects included in integrated plans for
sustainable urban development
• Interested UDF
Candidates must submit
a Business Plan
 Setting-up of financial
structure and project
preparation must take
place in parallel
3
UDF selection process
• Who could be the UDF manager?
– Financial institution (e.g. bank)
– Real estate developer
– Another type of actor if proven competence
• Call for Expressions of Interest
– To be launched by EIB
– Will include requirements for UDF Business Plan and the
award criteria (basis for evaluation of offers)
• Selection of UDF manager
• Negotiation and signature of Operational Agreement between
HF and UDF expected shortly thereafter
– Reflecting the UDFs’ offers submitted during tender
4
UDF selection process – step by step (1)
1.
HF established (signature of Funding Agreement)
2.
EIB prepares Call for Expressions of Interest (CEoI)
3.
HF Investment Board approves the CEoI
4.
EIB launches the CEoI
5.
Interested UDF managers submit Expressions of
Interest
6.
EIB pre-selection
7.
EIB invites pre-selected candidates to submit Offers
8.
UDF candidates submit Offers
5
UDF selection process – step by step (2)
9.
EIB evaluation of Offers
10. EIB recommendation to HF Investment Board
concerning UDF selection
11. HF Investment Board decision on selection of UDFs
12. EIB negotiates Operational Agreements with
selected UDFs
13. Operational Agreements submitted for HF
Investment Board approval
14. HF Investment Board authorizes conclusion of
Operational Agreements
15. EIB signs Operational Agreements with UDFs
6
UDF Business Plan
• Key part of an Offer submitted by the UDF candidate
to EIB
• Can be focused on one or more cities, one or more
sectors
– City regeneration
– Clusters
– Renewable energy sources…
 Interested UDF managers should start preparing a
project pipeline and the Business Plan soon
7
UDF Business Plan – minimum required content
a) The investment strategy and targeted market of the UDF and the
proposed Urban Projects, the underlying integrated urban development
plans and the criteria, terms and conditions for financing them;
b) The cash flow forecasts and operational budget of the UDF;
c) The ownership of the UDF;
d) The co-financing partners or shareholders;
e) The by-laws of the UDF;
f) The governance structure;
g) The justification for, and intended use of, the contribution from the EU
Structural Funds;
h) The policy of the UDF concerning exit from investments in Urban Projects;
i) The winding-up provisions of the UDF.
8
What should cities do…?
… if they want “their” projects to be financed by
UDF?
• Discuss project concepts with EIB or the
Managing Authorities
• Prepare the project (in cooperation with private
partners, if relevant)
• Present the project to potential UDF candidates
(banks, developers)
• Work on definition and preparation of
integrated urban development plans
• Start project preparation now
9
What should interested UDF managers do?
• Familiarize themselves with the Operational
Programmes
• Build a portfolio (pipeline) of projects to be
submitted in their Business Plan during the
tender for UDFs
• Discuss with cities their integrated urban
development plans and the possibilities for
including revenue-generating projects in them
• Start project preparation now
10
What should individual project promoters do?
• Familiarize themselves with the Operational
Programmes
• Prepare initial documentation of the revenuegenerating project
– Feasibility study / project business plan
• Discuss with the given city the possibilities for
including the projects in an integrated urban
development plan
• Discuss the project concept with EIB or the
relevant Managing Authority
• Start project preparation now
11
Contacts
JESSICA and Investment Funds Division
European Investment Bank
100 Blvd. Konrad Adenauer, L-2950 Luxembourg
www.eib.org/jessica
Contacts for Poland
Christos Kontogeorgos
Tel: (+352) 43 79 83071
kontogeo@eib.org
Kamila Kaleta
Tel: (+352) 43 79 83071
k.kaleta@eib.org
Agata Matusiak
Tel: (+48) 22 310 05 06
a.matusiak@eib.org