SELECTION OF UDFs OR HFs

- MA publish call for expression of interest, evaluate and select UDFs or holding funds

- MS or MA may select the EIB as holding Fund

Funding Agreements

- MAs negotiate and sign funding agreements

- with selected holding funds or funds

- FA Should be flexible, allowing for initial and supplementary contributions

- They Set out:
-conditions for OP contributions,
- planning, implementing projects, monitoring and reporting,
-exit policy for OPs, etc

- UDFs select projects based on their Business Plan

- Projects could also receive grant assistance from OPs,

- Grants from OPs could finance the equity gap of projects

- Projects fall within the ERDF scope of intervention

- Contributions from OPs to UDFs must be invested at least once in the period 2007-15,

- OUT of UDFs, for investment in PPPs or other urban projects;

- UDFs invest in projects, supporting them with equity, loans or guarantees

Closing OPs end 2015

- OPs contributions to UDFs:
- are eligible for interim ERDF payments
- They must be invested out of the UDFs in projects, before end 2015,
- In this case, they are eligible for final ERDF payments

Recycling OP resources

- When OP resources are paid back to the UDF,

- before or after 2015,

- they must be reinvested in urban projects

- possibly by the same UDF

JESSICA’s ADDED VALUE

- MAs delegate implementation tasks

- MAs simplify their financial management

- Contr. from OPs to UDFs or HFs are eligible for ERDF interim payments

- Sustainability of investment: recyclable ERDF contributions to UDFs or HFs

- Leverage: loan capital contributed by the EIB, CEB, other banks, investors

- Technical and financial expertise from the IFIs and private sector

MAs and Urban Authorities encouraged to:
- use innovative and sustainable financing schemes,
- avoid aggravating public debt and finance
- promote the relevant institution building measures to allow for JESSICA