JESSICA Holding Fund for Mazowieckie Voivodship Steps towards establishing Urban Development Funds Preparation of urban development projects European Investment Bank JESSICA and Investment Funds Division 2010

Creation expected in Q XXX million EUR contributed into the HF from Regional Operational Programme (ROP) These OP resources will no longer be used as grants EIB as manager of the OP contributions: – Conducts a tender in order to select managers of UDFs – Enters into contracts with the UDFs – Assists the Managing Authority in meeting its obligations under Structural Funds rules JESSICA Holding Fund for Mazowieckie 2

Implementation structure Managing Authority EIB (JESSICA HF for Mazowieckie Voivodship) Urban Development Fund XXX million EUR contribution from OPs (2011) Projects included in integrated plans for sustainable urban development Investment into UDF (2011) Loans, equity for projects ( ) Resources repaid from projects to UDF (2012  ) During 2011, EIB will be selecting UDF manager(s) Interested UDF Candidates must submit a Business Plan  Setting-up of financial structure and project preparation must take place in parallel 3

UDF selection process Who could be the UDF manager? – Financial institution (e.g. bank) – Real estate developer – Another type of actor if proven competence Call for Expressions of Interest – To be launched by EIB – Will include requirements for UDF Business Plan and the award criteria (basis for evaluation of offers) Selection of UDF manager Negotiation and signature of Operational Agreement between HF and UDF expected shortly thereafter – Reflecting the UDFs’ offers submitted during tender 4

UDF selection process – step by step (1) 1.HF established (signature of Funding Agreement) 2.EIB prepares Call for Expressions of Interest (CEoI) 3.HF Investment Board approves the CEoI 4.EIB launches the CEoI 5.Interested UDF managers submit Expressions of Interest 6.EIB pre-selection 7.EIB invites pre-selected candidates to submit Offers 8.UDF candidates submit Offers 5

UDF selection process – step by step (2) 9.EIB evaluation of Offers 10.EIB recommendation to HF Investment Board concerning UDF selection 11.HF Investment Board decision on selection of UDFs 12.EIB negotiates Operational Agreements with selected UDFs 13.Operational Agreements submitted for HF Investment Board approval 14.HF Investment Board authorizes conclusion of Operational Agreements 15.EIB signs Operational Agreements with UDFs 6

Key part of an Offer submitted by the UDF candidate to EIB Can be focused on one or more cities, one or more sectors – City regeneration – Clusters – Renewable energy sources…  Interested UDF managers should start preparing a project pipeline and the Business Plan soon UDF Business Plan 7

UDF Business Plan – minimum required content a)The investment strategy and targeted market of the UDF and the proposed Urban Projects, the underlying integrated urban development plans and the criteria, terms and conditions for financing them; b)The cash flow forecasts and operational budget of the UDF; c)The ownership of the UDF; d)The co-financing partners or shareholders; e)The by-laws of the UDF; f)The governance structure; g)The justification for, and intended use of, the contribution from the EU Structural Funds; h)The policy of the UDF concerning exit from investments in Urban Projects; i)The winding-up provisions of the UDF. 8

What should cities do…? … if they want “their” projects to be financed by UDF? Discuss project concepts with EIB or the Managing Authorities Prepare the project (in cooperation with private partners, if relevant) Present the project to potential UDF candidates (banks, developers) Work on definition and preparation of integrated urban development plans Start project preparation now 9

What should interested UDF managers do? Familiarize themselves with the Operational Programmes Build a portfolio (pipeline) of projects to be submitted in their Business Plan during the tender for UDFs Discuss with cities their integrated urban development plans and the possibilities for including revenue-generating projects in them Start project preparation now 10

What should individual project promoters do? Familiarize themselves with the Operational Programmes Prepare initial documentation of the revenue- generating project – Feasibility study / project business plan Discuss with the given city the possibilities for including the projects in an integrated urban development plan Discuss the project concept with EIB or the relevant Managing Authority Start project preparation now 11

JESSICA and Investment Funds Division European Investment Bank 100 Blvd. Konrad Adenauer, L-2950 Luxembourg Christos Kontogeorgos Tel: (+352) Kamila Kaleta Tel: (+352) Agata Matusiak Tel: (+48) Contacts for Poland Contacts