1. JESSICA Holding Fund in Lithuania for Sustainable Investment in City Areas
Daiva Matonienė
Alternative member of EU CoR
ECR political group member
Member of Šiauliai City Council in Lithuania
, Brussels

2. John D. Rockefeller
I would rather earn 1% off a 100 people's efforts than 100% of my own efforts

3. Strategic view EU funds over 2 periods

4. How to achieve the best result with limited resources?
Lithuanian experience
– first experience setting up Jessica for EE in residential housing, Jeremie for SMEs
– strategic focus on the continuation of established FIs and expansion to other sectors

5. Facts about Lithuanian Housing
Population ~ 3,00 million
More than 38,000 apartment blocks
More than 800,000 apartments
66 % of population lives in multi family buildings built before 1993

6. JESSICA Fund in Lithuania 2007-2013

7. How the JESSICA Mechanism Was Set Up?
~9 months ~4 months
Negotiations and signing of Financing Agreement with EIB to manage Investment Fund
EIB for 1st call for Expressions of Interest
EIB selects financial intermediaries

8. Main Features Borrower: House-owner association
Fixed interest rate at 3%
Maturity up to 20 years
2 years grace period (during construction)
No collateral
15% written-off if 20 % savings attained and energy efficiency Class D achieved (upon completion)
Extra 25% written-off if savings reach 40% (limited duration – until end of 2014)
100% of costs to prepare renovation documentation reimbursed (paid from national funds)
100% of reimbursement of installments to low income families

9. No collateral, however:
Statutory protection mechanism which may have an effect of quasi-security:
The loans are included into the register of legal persons;
In case of sale of the apartment, under the law, the proceeds must firstly be used to cover outstanding amounts of the loan. This is ensured through notarization of the sale agreement;
The payments under the modernization loans for the highest-risk final beneficiaries (socially disadvantaged persons) are 100% covered by the State.

10. How it works from beneficiaries side?
~18 months

11. Big Disappointment: The Program didn’t fly…
Chronic distrust of population in Government
Failed public relations program
Apartment owners poorly organized
Large share of owners on fixed income
Many low income people were eligible for heating bill compensations, and had no incentive to join the program

14. The Challenges A number of challenges were encountered
Possible state aid issues – need to identify and register
Legality of personal data handling
Turning the apartment owners into borrowers (possibly) against their will, and as a consequence:
Questioning the constitutionality of entire scheme
Constraint: limitations within construction sector, as mostly small companies bid for contracts
Success in battling „Gazprom“ on gas prices backfires

15. What next in ?

16. Design and set-up

17. JESSICA STRUCTURE

18. JESSICA Holding Fund in Lithuania for Sustainable Investment in City Areas Environmental Social cohesion Economic

19. Investments for Sustainability in City Areas
structured to attract additional funds from private sources (banks, financial institutions, etc.) to create leverage in energy efficiency sector

20. IT IS VERY GOOD IDEAS, BUT IS IT POSSIBLE TO DO?
„Whether you think that you can, or you think you will not be able to do, both options are correct“
Henry Ford

21. Thank you for your attention!