1. 1 Procedure of combining ESIF with PPP -Croatian Experience- Damir Juricic, PhD Agency for Investment and Competitiveness Deputy Managing Director www.aik-invest.hr damir.juricic@ajpp.hr Vienna, 20.-22. May 2015.

2. 2 Content 1.Importance of combining financing for stakeholders 2.Procedure of combining financing in Croatia 3.Programming documents 4.Procedure as an accelerator of realization of the projects – potential market in Croatia 5. Pilot project

3. 3 Content 1.Importance of combining financing for stakeholders 2.Procedure of combining financing in Croatia 3.Programming documents 4.Procedure as an accelerator of realization of the projects – potential market in Croatia 5. Pilot project

4. 4 Benefits for client Without grant, client is not affordable for carrying out the project

5. 5 Benefits for grantor Acting rationality and accountable, grantor should grant those projects which produce same effect for less grant Juricic, D; Kusljic, D. (2014): The Economics of Combining Subsidy with PPP, Economical Review, Vol. 65, No1., Zagreb

6. 6 Benefits for lenders SPV Debt Equity Eq D Grant Eq D Capex Lenders reduce credit risk after construction phase regarding grant reimbursement Eligible costs

7. 7 Content 1.Importance of combining financing for stakeholders 2.Procedure of combining financing in Croatia 3.Programming documents 4.Procedure as an accelerator of realization of the projects – potential market in Croatia 5. Pilot project

8. 8

9. 9 Content 1.Importance of combining financing for stakeholders 2.Procedure of combining financing in Croatia 3.Programming documents 4.Procedure as an accelerator of realization of the projects – potential market in Croatia 5. Pilot project

10. 10 1. Accession Agreement 2. Partnership Agreement Republic of Croatia 2014HR16M8PA001 Operational program - Cohesion Operational program - Competitiveness Common Rules for Grant Allocation 7.2.4. Allocation Procedure for PPP Projects 7.6. Preparation and application of direct allocation 7.6.1. Procedure of allocation for strategic projects 7.6.1.1. Preparation and allocation to PPP Projects

11. 11 Selection of the adviser to public partner Project proposal preparation Project proposal approval Assessing the suitability of the project for PPP model of delivering Assessing the ability of the client (public partner) for develop the pre-feasibility study. The client is responsible for drafting the pre- feasibility study Consultation with JASPERS Acceptable probability exists for achieving VfM in case of application PPP model with EU grant Acceptable probability non exists for achieving VfM in case of application PPP model with EU grant Proceeding with traditional investment procurement Process continue in line with PPP Act Grant decision Grant allocation agreement Private partner selection in line with Public procurement law

12. 12 Content 1.Importance of combining financing for stakeholders 2.Procedure of combining financing in Croatia 3.Programming documents 4.Procedure as an accelerator of realization of the projects – potential market in Croatia 5. Pilot project

13. 13 Public partner consultant become consortium of standard consultant with ESIF consultant PPP Agency in the beginning of preparation increase administrative capacity of staff in public partner team Regarding transparent procedure, every participant knows when they act and how, so every one can be prepared for they role Private sector efficiency in combination with well known and transparent procedure could speeding up the time for whole process of preparation

14. 14 Potential of Croatian PPP+ESIF market Million €

15. 15 Content 1.Importance of combining financing for stakeholders 2.Procedure of combining financing in Croatia 3.Programming documents 4.Procedure as an accelerator of realization of the projects – potential market in Croatia 5. Pilot project

16. 16 Museum and City Library Rijeka – Project scope Building I: - concert and conference hall; - education rooms; - specialized cinema projections. Building II: - library; - specialised cultural and educational events. Building III - permanent and periodic exhibitions; - presentation rooms; - reading room; - museum shops. Building IV - childern home; - creative and educational programs; - films projections. Public area – parking - commercial area.

17. 17 Museum and City Library Rijeka CAPEX – 38 million € Expected EU grant (up to) – 85% Yearly number of visitors – 180 000 Increasing number of tourists in Rijeka – 57 000 New jobs – 77 Revenues – 1.1 million €

18. 18 Museum and City Library Rijeka Where we are now in the procedure?

19. 19 Thank you for your attention Damir Juricic, PhD Agency for Investment and Competitiveness Deputy Managing Director www.aik-invest.hr damir.juricic@ajpp.hr Vienna, 20.-22. May 2015.