Energy Fund The Hague Alternative use of ERDF
- Slides: 9
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 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 Ø Clear rules for setting up Financial Instruments. Advice EIB Ø Independent Fundmanagement Ø Public & Private investment Ø Public Investmentplan Ø Revolving equity investments, loans and guarantees Ø Off balance Project level – Key criteria Ø Project to be part of integrated urban development strategy Ø (Partial) profitability or revenue generation potential Ø Eligibility criteria in accordance with ERDF regulations/OP 7
Difficulties Ø Ex-ante assessment before establishing the fund Ø State aid Ø Competitive procurement of fund managers Ø Let go of control Ø Flexibility investment strategy Ø Pipeline development Ø Phased drawdown of funds into the FI 8
