www pwc lu A Technical Assistance Platform to

www. pwc. lu A Technical Assistance Platform to facilitate the use of Financial Instruments MS Experts’ Group Meeting 23 rd July 2013

Overview of the presentation • Objectives of the assignment • Project outline • Phase 1 -bis survey results –preliminary findings • Key points • Work plan A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 2

Objectives of the assignment • Provide a complete intervention logic for the Technical Assistance (TA) Platform and develop the rationale for prioritising and programming activities • Describe different options for the creation and dissemination of knowledge base and capacity building related to Financial Instruments. Perform an applicability assessment taking into account potential resources, timing and technical possibilities constraints • Build a comprehensive inventory of Horizontal Technical Assistance (HA) activities for the first 3 years of activity of the TA Platform on the basis of TA needs, prioritisation principles and the exploitation of delivery synergies • Provide recommendations for defining the processes for different initiation paths of Multi-Regional Assistance (MRA) • Recommend a set of monitoring indicators that follow the progress and implementation of services delivered by the TA Platform • Contribute to the preparation of a kick-off event for the formal announcement of the TA Platform A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 3

Project outline • This assignment is organised around 6 tasks where we will: • Task 1 – develop the TA Platform intervention logic building on Phase 1 study and past experience; develop framework for prioritising and programming TA Platform activities (drawing from Workshop 1) • Task 2 – identify different options for the preparation and dissemination of knowledge and capacity building for Financial Instruments (SWOT analysis and applicability assessment of options) • Task 3 – build on the options analysis in previous tasks and develop a list of proposed Horizontal Activities for the first 3 years of the TA Platform (incorporate findings on delivery synergies from Workshop 2) A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 4

Project outline • Task 4 – provide recommendations on how calls for Multi-Regional Assistance activities can be generated and streamlined • Task 5 – provide a set of indicators to monitor the progress and implementation of the TA Platform and its delivery of Horizontal Assistance and Multi-Regional Assistance • Task 6 – support the preparation of the TA Platform kick-off event to be held in the last quarter of 2013 (presentation, brochures etc. ) A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 5

Objective tree Pw. C A Technical Assistance Platform to facilitate the use of Financial Instruments 23 July 2013 Slide 6

Intervention logic Pw. C A Technical Assistance Platform to facilitate the use of Financial Instruments 23 July 2013 Slide 7

Illustrative output A catalogue of proposed Horizontal TA activities • We will develop a list of proposed HA activities for the first 3 years of the TA Platform, based on the needs and the intervention logic detailed in the Task 1, and the most suitable TA and capacity building activities listed in Task 2. 2 • HA activities factsheet template for all proposed activities Pw. C A Technical Assistance Platform to facilitate the use of Financial Instruments 23 July 2013 Slide 8

Phase 1 -bis study - survey results What the survey tells us: • Thematic Objectives holding the strongest interest for the use of FIs over the 2014 -2020 programming period are: o TO 1: Strengthening research, technological development and innovation o TO 3: Enhancing the competitiveness of SMEs, agriculture sector (EAFRD) and fisheries (EMFF) o TO 4: Supporting the shift towards a low-carbon economy in all sectors • 60% of respondents envisage using FIs funded from the ERDF over the next programming period from 2014 -2020; the next most popular ESI Fund was the EAFRD with 10% • Majority of respondents indicated a demand for Technical Assistance (TA) to facilitate the use of FIs in the 2014 -2020 programming period • Demand for TA over the FI life cycle is highest during the Set-Up Phase, followed by the Implementation Phase, however this may evolve over time A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 9

Phase 1 -bis study - survey results (cont. ) What the survey tells us: • Most urgent TA needs by topic: legal advice, State aid rules & EU regulations, selection of Funds/FI Managers, project identification & selection, guidelines for conducting ex-ante assessments • Of those wanting TA, higher interest in Horizontal Assistance (69%) than Multi. Regional Assistance (31%) • Respondents who had first-hand experience with the JESSICA/JEREMIE networking platforms also indicated an overall positive experience with these TA products • Preference for collaborative and interactive approaches to knowledge dissemination and the exchange of good practice case studies How we will use the results: • The lessons learned and data will help provide an understanding of where there are the most acute needs for TA, and what form the activities of the TA Platform should take to best respond to these identified needs A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 10

Interest in using FIs to support the 11 Thematic Objectives Thematic Objective 1 Strengthening research, technological development and innovation (RTDI) Thematic Objective 2 Enhancing access to, and use and quality of information and communication technologies (ICT) Thematic Objective 3 Thematic Objective 4 Thematic Objective 5 Thematic Objective 6 Enhancing competitiveness of SMEs, EAFRD and EMFF Supporting the shift to a low- carbon economy in all sectors Promoting climate change adaptation, risk prevention and management Protecting the environment and promoting resource efficiency Thematic Objective 7 Promoting sustainable transport and bottlenecks in key network infrastructures Thematic Objective 8 Thematic Objective 9 Thematic Objective 10 Thematic Objective 11 70% 60% 50% 40% % of Total Respondents who Selected Each Thematic Objective 30% removing 20% Promoting employment and supporting labour mobility Promoting social inclusion and combating poverty 10% Investing in education, skills and lifelong learning Enhancing institutional capacity and an efficient public administration A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 0% 1 4 7 10 Thematic Objectives by number 23 July 2013 Slide 11

Indicative Financial Products to be used via FIs for 11 Thematic Objectives 11) Enhancing institutional capacity and an efficient public administration 10) Investing in education, skills and lifelong learning 9) Promoting social inclusion and combating poverty 8) Promoting employment and supporting labour mobility 7) Promoting sustainable transport and removing bottlenecks in key network infrastructures 6) Protecting the environment and promoting resource efficiency 5) Promoting climate change adaptation, risk prevention and management 4) Supporting the shift to a low- carbon economy in all sectors 3) Enhancing competitiveness of SMEs, EAFRD and EMFF 2) Enhancing access to, and use and quality of information and communication technologies 1) Strengthening research, technological development and innovation 0% Loans/ Interest Rate Subsidies Equity 10% Guarantees/Fee Subsidies A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 20% 30% 40% 50% 60% Combination of Grants/FIs 70% 80% 90% 100% Others 23 July 2013 Slide 12

Horizontal Assistance vs. Multi-Region Assistance for TAP 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Design From Horizontal Assistance Set Up Implementation From Multi-region Assistance A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C Winding Up Do not see a need or Not Applicable 23 July 2013 Slide 13

Design Phase: Task by Task Guidance on specific issues related to the Thematic Objectives Guidance on non State Aid related Regulatory issues Guidance on State Aid related Regulatory issues Advice on potential co-financing/co-investment sources Advice on FI governance structures 0% From Horizontal Assistance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% From Multi Region Assistance A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 14

Set-Up Phase: Task by Task Advice on negotiation with Fund Managers of FIs Other Legal Advice Guidance on non State Aid related Regulatory issues Guidance on contractual agreements with Fund Managers of FIs Guidance on appropriate indicators for measurement and monitoring of fund outputs Advice on options for FI management costs and fees Advice on FI financial products Assistance with FI business plans/investment strategies (for the 11 Thematic Objectives) Guidance on the selection of Fund Managers of FIs Guidance on action plans for FI implementation 0% From Horizontal Assistance 20% 40% 60% 80% 100% 120% From Multi Region Assistance A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 15

Implementation Phase: Task by Task Guidance on Fund Marketing and Promotion of FIs Guidance for Monitoring, Auditing, and Reporting for FIs Guidance on the detection and settlement of irregularities Financial Management guidance (treasury, disbursements, repayments, follow-on investments) Advice on financing agreements with Final Recipients Assessment guidelines on scoring project applications Guidance on business plan and application support for project types Guidance on legal agreements with Fund Managers of FIs Guidance on FI investment process 0% From Horizontal Assistance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% From Multi Region Assistance A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 16

Winding Up Phase: Task by Task Advice on how to handle Defaults/Delayed Repayments Guidance on legacy requirements Advice on Exit Strategies 0% 10% From Horizontal Assistance 20% 30% 40% 50% 60% 70% 80% 90% 100% From Multi Region Assistance A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 17

Highlighted key points • In order to facilitate knowledge exchange and communication during this study, we have proposed to hold several participatory workshops with EC and other Cohesion Policy stakeholders • DG REGIO has recommended potentially involving a select number of MS/MAs (4 -5) in a later workshop to speak about their past experiences with FIs in order to test whether the proposed TA platform activities will address relevant TA needs; • Ideally the participants will represent a good cross-section of those using FIs (e. g. drawing from different Funds, centralised/decentralised governance arrangements) • The assignment takes place in the context of on-going MFF negotiations and the publication of Delegated and Implementing Acts (e. g. relevant to Off the Shelf instruments) - therefore requires an appropriate degree of flexibility A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 18

Key questions Do you have any comments about the results of the phase 1 -bis survey regarding future TA needs? Are there any further elements to add regarding the key needs for the TA Platform to address? At what stage in the ex-ante assessment process are you, and how are you approaching these? A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 19

Work schedule Month 2 Month 1 1 2 3 4 5 6 7 Month 3 8 9 10 Month 4 11 12 13 14 15 Month 6 Month 5 16 17 18 19 20 21 22 23 Month 7 24 25 27 28 Draft Interim Report 26 Draft Final Report Event Preparation Workshop 1 19 July Kick-off Meeting Workshop 2 16 September Workshop 3? TBC if required Interim Meeting Final Meeting Project management Please note: Additional ad-hoc workshops/meetings TBC if required A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 5 th July 2013 20

Immediate next steps • Development and validation of TAP Objective Tree and Intervention Logic (August/September 2013) Your initial feedback on perceived TA needs is important! • Should you have any initial observations or recommendations on specific MS/MA needs or TA platform activities that would better enable MS/MAs in deploying FIs, please provide your feedback to the organisers of this meeting. CONTACT: fabio. daversa@lu. pwc. com A Technical Assistance Platform to facilitate the use of Financial Instruments Pw. C 23 July 2013 Slide 21

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