www.pwc.lu A Technical Assistance Platform to facilitate the use of Financial Instruments Meeting of the technical working group and committee of the European Social Fund (ESF) 24th September 2013

Overview of the presentation Objectives of the assignment Project outline Walk-through example for ESF: Identification of needs  Product Catalogue  Factsheets for horizontal activities Progress update: Ex-ante assessment guidelines Work plan A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Objectives of the assignment Intervention logic based on the identification of most pressing technical assistance and advisory needs regarding the use of Financial Instruments in 2014-2020 Describe different options for the creation and dissemination of knowledge base and capacity building related to Financial Instruments Build a comprehensive inventory of horizontal technical assistance (HA) activities for the first 3 years of activity of the Technical Assistance (TA) Platform on the basis of identified needs, prioritisation principles and the exploitation of delivery synergies Provide recommendations for defining the processes for different initiation paths of multi-region 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 September 2013

Project outline This assignment is organised around 6 tasks where we will: Task 1 – develop the TA Platform intervention logic from the identification of TA needs; develop framework for prioritising and programming TA Platform activities Task 2 – identify different options for the preparation and dissemination of knowledge and capacity building for Financial Instruments Task 3 – build on the needs analysis in previous tasks and develop a list of Factsheets for proposed Horizontal Activities for the first 3 years of the TA Platform 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 September 2013

Structure of the Tasks – Horizontal Assistance A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Identification of technical assistance & advisory needs – the Phase 1-bis Stocktake survey The Thematic Objectives holding the strongest interest for the use of FIs over the 2014-2020 programming period are: TO1: Strengthening research, technological development and innovation TO3: Enhancing the competitiveness of SMEs, agriculture sector (EAFRD) and fisheries (EMFF) TO4: 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% Less interest indicated in Thematic Objectives related to Social Inclusion How can greater interest in FIs under the ESF be generated? A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Interest in using FIs to support the 11 Thematic Objectives – the Phase 1-bis Stocktake survey 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 Enhancing competitiveness of SMEs, EAFRD and EMFF Thematic Objective 4 Supporting the shift to a low- carbon economy in all sectors Thematic Objective 5 Promoting climate change adaptation, risk prevention and management Thematic Objective 6 Protecting the environment and promoting resource efficiency Thematic Objective 7 Promoting sustainable transport and removing bottlenecks in key network infrastructures Thematic Objective 8 Promoting employment and supporting labour mobility Thematic Objective 9 Promoting social inclusion and combating poverty Thematic Objective 10 Investing in education, skills and lifelong learning Thematic Objective 11 Enhancing institutional capacity and an efficient public administration A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Identification of technical assistance & advisory needs – the Phase 1-bis Stocktake survey 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 Most urgent TA needs by topic: legal advice, State aid rules & EU regulations, selection of Fund 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 A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Identification of technical assistance & advisory needs – feedback from shared-management DGs Clear need for Fund, Thematic Objective and sector-specific technical assistance Platform must take into account that experience levels for use of FIs vary greatly among ESI Fund stakeholders Urgent need for awareness raising of FI products in early stages of 2014-2020 period, especially for ESF, EAFRD, EMFF stakeholders TA products need to consider requirements between different stakeholder categories (EC, MS/MAs, FIs, final recipients) Need for technical assistance to help stakeholders exploit new opportunities for drawing financing from across all five ESI Funds, and bottom-up approaches such as CLLD A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Identification of technical assistance & advisory needs – the needs matrix Needs are grouped into 3 columns representing different workstreams: Workstream: Non-financial technical assistance and advisory needs Workstream: Financial technical assistance and advisory needs Workstream: ESI Fund/sector specific technical assistance and advisory needs Needs are grouped into 5 rows representing the FI life-cycle phases: Awareness raising and promotion Design Set-up Implementation Winding-up A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Identification of technical assistance & advisory needs Matrix of identified technical assistance & advisory needs, provides a picture of where needs arise across the FI life-cycle and in which workstream. A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Identification of technical assistance & advisory needs Workstream: ESI Fund/sector specific technical assistance and advisory needs This workstream presents identified technical assistance and advisory needs that are specific to the use of a FIs within a certain ESI Fund or sector. Many of the needs identified in this workstream are emerging needs due to the expanded scope of Financial Instruments in the 2014-2020 programming period and many of the stakeholders who have voiced these needs may have little or no experience in the use of FIs from previous periods. A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Identification of technical assistance & advisory needs Example TA need: State Aid – implications of specific ESI Funds and sectors Description: State Aid rules vary according to specific ESI Funds for which there is a clear and pressing need to inform stakeholders, especially given the envisaged wider scope of FIs. For example, EAFRD regulation has different State Aid rules and support provided under it for agriculture and forestry. Therefore in addition to guidance on State Aid per type of FI, there is likely to be a need for TA from the Platform on State Aid focusing on Fund's specificities (aid intensities; agricultural and forestry State-Aid, etc.). Article 107 (3) of the EC Treaty will also have strong impacts for FIs to be implemented under the ESF and stakeholders drawing from this Fund should be provided with specific guidance on State Aid exemptions. A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Preliminary identification of potential TA Platform activities Product Catalogue: List of technical assistance products that could be delivered through the TA Platform. A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Work programme for TA Platform horizontal technical assistance (HA) services - Factsheets First section of the Factsheet template contains: A high-level SWOT analysis Brief description of the objective, target audience, prioritising considerations and any prerequisite or complementary activities Description on the content of the proposed ta product and how it will work to address the corresponding identified need A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Additional example not yet in the TA Platform – Ex-ante Assessment Methodology for Financial Instruments in the 2014-2020 Programming Period Objectives of the assignment: Provide Member States and Managing Authorities with a sound methodology for conducting ex-ante assessments in order to comply with Article 32 of the draft Common Provisions Regulation when implementing FIs in the 2014-2020 programming period More specifically: Task 1: Provide a General Methodology for ex-ante assessment covering all 11 Thematic Objectives and integrated approaches to territorial development Task 2: Define detailed ex-ante assessment methodologies for the following sectors: Research, technological development and innovation (RDI) SMEs competitiveness including microcredit and agriculture Transition to a low carbon economy Integrated approaches to territorial development including urban development A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Progress update – Ex-ante assessment methodology Proposed structure of general methodology 8.1 Measuring and monitoring (Further reference : Article 32 ( 2) b) 5.1 Estimate the expected leverage and how to attract leverage Chapter 1: Financial instruments strategy and options Chapter 2: The rationale behind Article 32 (2) CPR Part 1: Strategic overview of available options for the use of Financial Instruments Part 2: Market assessment Part 4: Getting ready for implementation Analysis of market failures, suboptimal investment situations and investment needs Assessment of the value added of the FI (including State Aid) Additional public and private resources to be potentially raised by the FI (blending and leverage) Lessons learned from similar instruments and ex-ante assessments carried out in the past Proposed investment strategy and financial products to be offered Specification of expected results and coherence with OP Provisions allowing the ex-ante assessment to be reviewed and updated Chapter 3 (Main reference: Article 32 ( 2) a) 3.1. Examine strategic framework 3.2 Outline market failure 3.3 Conduct a demand analysis for the FI (Further reference : Article 32 (1) Article 32 ( 2) b, Article 32 (3) , Article 32 (5) and Article 32 (8)) 4.1 Examine and provide a high level assessment of the potential value added of the FI 4.2 Assess why combining FI with other forms of public intervention 4.3 Carry out an assessment of the State Aid implications 4.4. Lessons learned (Further reference : Article 32 ( 2) c, Article 32 ( 6)) 7.1 Scale and focus of the FI 7.2 Implementation options 7.3 Identify the targeted final recipients 7.4 Identify preferred FI 7.5 Assess the possibilities of combining with other forms of public intervention (Further reference : Article 32 ( 2) b and c, Article 32 (5)) Chapter 4 (Main reference: Article 32 ( 2) b) Chapter 5 (Main reference: Article 32 ( 2) c) Chapter 6 (Main reference: Article 32 ( 2) d) Chapter 7 (Main reference: Article 32 ( 2) e) Chapter 8 (Main reference: Article 32 ( 2) f) Chapter 9 (Main reference: Article 32 ( 2) g) Part 3: Delivery and management Article 32 Completeness Checklist Chapter 10 Further reference : Article 32 ( 2) bis and Article 32 ( 4) ) The proposed paragraphs might be subject to changes based on the comments received. We will ensure that the methodology fully reflects the content of Article 32. Cross-references to other parts of article 32 and other regulatory references will be clearly indicated in the main document. A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Work schedule – TA Platform A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Project team A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

Contact list Role Names & Contact details Project Leader Fabio D’Aversa fabio.daversa@lu.pwc.com +352 494848 5454 Project Manager Francesco Gargani francesco.gargani@it.pwc.com Core team Roberta Odoardi roberta.odoardi@it.pwc.com Julie Pellegrin pellegrin@csilmilano.com Silvia Vignetti vignetti@csilmilano.com Andrea Fernandez andrea.fernandez@arup.com Jamie Morgan jamie.morgan@arup.com Julien Bollati julien.bollati@lu.pwc.com James Weaver james.weaver@lu.pwc.com A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

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 with relation to the ESF? Are you involved with the ex-ante assessment process for 2014-2020 programming period, and how are you approaching these? A Technical Assistance Platform to facilitate the use of Financial Instruments September 2013

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