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

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 Why Jessica Joint European Support for Sustainable Investment in City Areas

5 JESSICA key components HF manager European Commission ERDF – DG Regio European Commission ERDF – DG Regio ERDF Managing Authority / OP resources EU level National / regional level Holding Fund (option) Urban Development Fund ( « UDF » ) Fund level Project level Projects € PPPs SPVs Equity Loan Guarantee Integrated urban development plan / strategy Other (public or private) Investors / partners Other (public or private) Investors / partners Projects € € € € € € € Grant financing Grant € flexible customisation / tailored structure

foundation Fund Manager managing partner JESSICA-FINANCING (equity, loan / guarantee) ERDF Financial Instruments Structure for The Hague € € €€ project developer / bank Fund Manager enters into a management agreement with the UDF and serves as sole member on the board of the stichting Limited Partnership (U D F) Advisory Committee Holding Vehicle The Hague Managing Authority appoints member in Advisory Committee ERDF + Match € Programme Authority Limited Partnership (U D F) €€ foundation managing partner Fund Manager enters into a management agreement with the UDF and serves as sole member on the board of the stichting Fund Manager Advisory Committee Managing Authority appoints member in Advisory Committee limited partner € project developer / bank

7  Project to be part of integrated urban development strategy  (Partial) profitability or revenue generation potential  Eligibility criteria in accordance with ERDF regulations/OP Project level – Key criteria Fund level – Key criteria  Clear rules for setting up Financial Instruments. Advice EIB  Independent Fundmanagement  Public & Private investment  Public Investmentplan  Revolving equity investments, loans and guarantees  Off balance

8 Difficulties  Ex-ante assessment before establishing the fund  State aid  Competitive procurement of fund managers  Let go of control  Flexibility investment strategy  Pipeline development  Phased drawdown of funds into the FI