JESSICA Holding Fund implementation- lessons learnt from calls and selection of UDFs Frank Lee Head of Holding Funds and Advisory, Northern Europe JESSICA and Investment Funds European Investment Bank

To get to up and running UDFs…. 1.HF establishment Investment Board/Committee establishment High level investment strategy – PMC approval transfer of funds from Managing Authority to HF, treasury policy. Monitoring and reporting templates 2.Preparatory phase Detailed/focused feasibility work Soft market testing Development or not of standardised financial product Development of UDF award criteria 3.Call for Expression of Interest launch 4.Evaluation of Business Plans UDF selection 5.Negotiation and signature of Operational Agreements with UDFs 6.Phased investment into UDFs, monitoring 2

UDF Call for Expression of Interest EU Structural Funds requirements Usually a 2 stage approach Stage 1: Call for expressions of interest exclusion and selection criteria Track record/prior experience Stage 2: Offers in the form of business plans (award criteria) Timetable (usually 2 to 3 months) 3

EIB Holding Funds – implementation progress 4

Clearly defined UDF investment strategy: – Sector focused versus wide-ranging Urban Project eligibility? – UDF size? – Form of Urban Project investment - debt v equity? Engaging the market: – Appetite to undertake role of UDF? – Potential to leverage investment? – Oven ready Urban Projects into which monies can be deployed? 5 Critical success factors – pre procurement

Investment strategy – credible strategy, robust Urban Project pipeline and evidence of quick wins Governance – independent, competent and robust decision making, risk management and compliance processes Leverage and/or risk sharing - committed match funding/co-financing proposals Fees – appropriately incentivised management fee structure 6 Critical success factors – award criteria

7 Contacts JESSICA and Investment Funds Division European Investment Bank 100 Blvd. Konrad Adenauer, L-2950 Luxembourg