icfi.com | ghkint.com Presentation Two – Next Steps and Developing Projects

icfi.com | ghkint.com Next Steps  Following the January 31 st submission there may be further clarifications (e.g. the opt-in position)  There will not be a separate SEMLEP programme – the ESIF feeds into the operational programmes for England  The programme cannot begin yet - the overarching UK Partnership Agreement and the England Operational Programmes have yet to be submitted and approved  Government is hopeful of an Autumn start (projected spend for 2014 is adjusted accordingly)  The approved ESIF will provide a strategic justification for projects

icfi.com | ghkint.com Next Steps  Applicants will bid directly to government (as the Managing Authority) not SEMLEP  Appraisal and approvals will be undertaken by government  Government also addresses issues of risk (e.g. state aids issues)  The role of LEPs in this process has yet to be agreed  Some projects will be part of pan-LEP or national programmes

icfi.com | ghkint.com Project Development  The process can start now – there are no guarantees of funding and development costs are costs to the applicant  The ESIF provides a strategic rationale, financial and output parameters and supporting information to trigger specific projects  An application process will be developed by government with appraisal criteria set out

icfi.com | ghkint.com Project Development New projects will address similar issues to existing and previous projects including the following (not comprehensive):  Secured match funding  Contributions to economic growth and strategic policy objectives (meeting multiple objectives can be a positive)  Value for money  Implementation plan and timescales  Market failure assessment  Identification and management of risks  Involvement of partners (and their levels of commitment)

icfi.com | ghkint.com Project Development  Checks against duplication  Demand/need (including stakeholder and survey evidence)  Match with other funds and programmes (including ERDF/ESF integration)  State aids compliance (will need legal opinion where it is relevant  Scale (easier to fund larger than micro-projects – greater efficiencies, impacts etc.)  Governance and management arrangements  Income generation (if applicable)  Longer term sustainability  Planning permission, building regulations and designs approved (if applicable)  Options analysis (especially for larger projects)

icfi.com | ghkint.com Project Development  Complex projects can take 12 months or more to develop and all projects rarely take less than 4-6 months  2014 funding is likely to support ideas already advanced  ESIF will provide an evidence base for supporting project applications