JASPERS, JEREMIE

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JASPERS, JEREMIE JESSICA3 joint policy
initiativesfor improving investments and access
to financepresented by Pierre Godin, European
Commission, DG Regional Policybased on 3 sets
of slides prepared by- Brendan Smyth, DG Regio
(for Jaspers) - Emilio de la Guardia, EIB (for
Jaspers) - Georges Kolivas, DG Regio (for
Jeremie Jessica)ENEA meeting, 09/06/2006, La
Coruña, Spain
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Part 1 JASPERS

• JASPERS (Joint Assistance to Support Projects in
  European Regions)
• One of the three  J  babies (together with
  Jeremie Urban development Jessica) gt Joint
  effort.
• A technical assistance partnership to prepare
  major projects between DG REGIO, EIB and EBRD
• JASPERS is an additional technical assistance
  resource for the MS and for DG REGIO
• value added drawing on past experience and
  expertise of the EIB and the EBRD in a more
  structured and coordinated way.

Increase beneficiarys absorption capacity
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JASPERS free and voluntary

• JASPERS assistance will be provided free of
  charge to the beneficiary
• There will be no obligation on the Member States
  to use JASPERS
• There will be no obligation on a Member State
  which benefits from JASPERS to borrow from the
  EIB or the EBRD
• There will no obligation on the EIB or the EBRD
  to lend to projects prepared using JASPERS
• There will be no exclusion of EIB or EBRD lending
  to projects benefiting from JASPERS

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LEGAL RESPONSIBILITIES

• JASPERS does not change existing legal
  responsibilities
• JASPERS is an input to the preparation of
  applications for EU funding
• Member States are the 'owners' of the project,
  not JASPERS they submit the standard
  applications as required by the Regulations
• preparation of a project by JASPERS does not
  guarantee approval of the project by the
  Commission
• the ultimate legal responsibility to grant
  assistance to a project will remain with the
  Commission

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JASPERS Activities

• JASPERS concentrates its activities in major
  projects
• Transport gt 50 M
• Environment other gt 25 M
• JASPERS priorities are
• - large projects supported by the Cohesion
  Fund and the ERDF (to be interpreted
  flexibly in the smaller MS)
• - other Cohesion Fund and ERDF projects
• sectors most likely to receive assistance
  roads, rail, public transport, water supply,
  waste water treatment, solid waste but also
  tourism, energy, etc.
• JASPERS will concentrate on New Member States,
  Romania and Bulgaria

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• 2006 ACTION PLANS FINDINGS
• JASPERS is up and starts running
• All beneficiary countries submitted draft Action
  Plans
• 112 project actions identified, and support
  requested in wide range of relevant horizontal
  issues
• Demand in some unexpected sectors (eg. large
  energy, broadband telecom, tourism)
• JASPERS is well received by beneficiary countries
  and DG-REGIO desks
• JASPERS intervention requested for projects
  totaling 57 Bn grant funding by CF and ERDF

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• Main Horizontal Issues
• for which support is requested
• PPPgrant blending approaches
• Support with state aid in new sectors
• Structuring projects in new sectors (eg. power,
  energy efficiency, renewables, urban transport,
  flood protection, rolling stock)
• Grouping small projects (eg. energy efficiency,
  water)
• PPP best practice / model approaches
• Guidance on new Regulations (eg. eligibility,
  revenue generating projects, grant rate
  calculation)

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Applying for assistance from JASPERS

• Managing Authority acts as central coordinator
  for each country
• Phase of Project preparation the Managing
  Authority in the MS can request assistance
  directly from JASPERS in Luxembourg or to the
  regional offices of JASPERS.
• Phase of Project appraisal when an application
  for assistance has been received, DG REGIO can
  request assistance from JASPERS in Luxembourg

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Part 2 JEREMIE

• JEREMIE stands for Joint European REsources for
  MIcro to medium Enterprises
• Joint resources because JEREMIE combines
  resources from ERDF national public sector
  EIB other IFIs, banks fin. intermediaries.
• JEREMIE is not an organisation but a series of
  coherent actions
• JEREMIE gives special emphasis to technology
  transfer, start-ups, technology and innovation
  funds, and micro-credits.

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Why JEREMIE? Because

• Better access to finance for SMEs in the regions
  is needed
• Renewed Lisbon Strategy and CSG stress the need
  to improve financial products and instruments

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Main Actors of JEREMIE

• Commission DG REGIO with ENTR and ECFIN
• EIF EIB (EIB as loan capital provider)
• Other IFIs, mainly the EBRD for the 8 new MS,
  Council of Europe Dev. Bank (CEB)
• Other specialized financial intermediaries, I.E.
  KfW (DE), Caisse des dépots (FR),etc

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Main Actors of JEREMIE

• MS, Regions and managing authorities
• National and regional banks and financial
  intermediaries, investors
• SMEs,
• including Micro credit (up to 25.000 EUR)
  beneficiaries (Unemployed,Young or old first time
  entrepreneurs,Women,minorities)

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JEREMIE PHASES

• Phase 1 Preparation (action plans and Ops)
• Evaluations (2006-2007) gap analysis in access
  to finance (demand/supply) and action plans.
• Action plans are used for the preparation of OPs.
• Phase 2 Implementation (HF and FI)
• A Managing Authority (MA) signs a funding
  agreement with a selected Holding Fund (HF).
• The HF selects Financial Intermediaries (FI),
  gives accreditation to FI and provides funds to
  FI.
• Phase 3 Support from FI for SMEs and
  micro-credit
• Equity venture capital, loans, guarantees,
  advice.

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Recycling JEREMIE resources

• At the closure of OPs at the end of 2015, ERDF
  grants transferred to Holding Funds must have
  been used at least once, paid out of FI to
  finance SMEs and micro-credit beneficiaries (if
  not, money is recovered).
• Contributions from OP invested in SMEs under
  JEREMIE, when repaid to funds or holding funds,
  belong to the MS or MA.
• Such Repaid resources must be invested again in
  favour of SMEs.

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Part 3 - JESSICA

• JESSICA stands for Joint European Support for
  Sustainable Investment in City Areas
• JESSICA is an optional facility
• JESSICA offers Member States (MS) and Managing
  Authorities (MA) the possibility to "transform"
  grants from Operational Programmes (OPs), into
  repayable and recyclable assistance, to PPPs and
  other projects for urban renewal and development
• JESSICA and JEREMIE are complementary
• JEREMIE can support SMEs in urban areas,
• JESSICA can support urban infrastructure projects
  and networks, energy efficiency or ICT projects,
  not relating to access to finance to SMEs.

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WHAT IS JESSICA ?

• Under Jessica, MS and MAs have the possibility to
  allocate and contribute resources from OPs, to
• - Urban Development Funds (UDF),
• - Holding Funds (HF)
• Urban Development Funds invest in PPPs or
  projects included in Integrated Urban
  Development Plans
• (IUDP)
• Holding Funds invest in several UDFs

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WHY JESSICA? Because

• Investment needs for sustainable cities and towns
  are increasing
• Available public funds are scarce-need for
  private and banking sector contribution
• Existing administrative and technical capacity
  within Urban authorities often does not
  correspond to investment needs
• Innovative schemes not aggravating public finance
  and debt are necessary
• Sustainable urban investments require technical,
  financial and managerial expertise of IFIs, banks
  and private sector.

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JESSICA supports projects

• MAs negotiate and sign funding agreements with
  selected funds or holding funds (detailed rules)
• Contributions from OPs to UDFs must be paid at
  least once in the period 2007-15,
• UDF invest in PPPs or other urban projects,
  providing them with equity, loans or guarantees
• projects supported by UDF could also receive
  grant assistance from OPs (e.g. grants loans),
• Grant assistance from OPs could finance the
  equity gap of projects
• When paid back to the fund, before or after 2015,
  must be reinvested in urban projects.
• Thank you for your attention !