1. JESSICA Joint European Support for Sustainable Investment in City Areas
Optional use of ERDF money for projects within integrated urban plans
JESSICA offers Managing Authorities the possibility of using ERDF funds for urban projects as non-grant recyclable financing through Urban Development Funds
Commercial approach. Leverage effect
EIB as JESSICA holding fund.
Initiative being developed. First phase evaluation carried out by EIB to finalise end 2006

2. JESSICA Sustainable Urban Development € € € € € Disbursement:
European Commission
ERDF – DG Regio
EU Level
Up front
Irreversible
(In tranches if required) €
Programming Authority
Holding Fund:
Greater delegation to Local Authorities
Owned by National Authority
Management/administration are outsourced to HF Mgr.
National /or regional Level
Managing Authority
Holding Fund (« HF »)
HF Manager
Role of the HF Manager: € € € €
Structure investments, select Urban Development Funds
Administer, monitor & report on investments
Attract other investors
Closely collaborate with national/regional authorities
Urban Development Funds
National/regional /Local Level € € € €
Regional /Local Level
Projects
Sustainable Urban Development
THE MANAGER IS SELECTED BY MEMBER STATE / REGION

3. JESSICA The Taxonomy of UDFs X Spatial focus Single public
Mixed public
Public company
PPP
Non-profit
Co-operatives
Private
National/regional X
Metropolitan
Municipal
Specific URD area
Sector focus
Public Services
Private Oriented
Social Housing
SPV

4. JESSICA Preliminary Evaluation Study Study Objectives:
The study has been designed to establish the efficacy of JESSICA and how the initiative should be taken forward. Work on the study is due to start in early September and initial findings are anticipated before the end of the year.
Study Objectives:
To establish the rationale for financial engineering actions in the urban sector;
To review the potential interest within Member States of using UDFs to accelerate investment in urban areas;
To identify and evaluate the problems and gaps within Member States between the supply and demand for financial engineering products targeting urban renewal/regeneration;
To propose adapted structures to take the JESSICA initiative forward;
To suggest intervention possibilities for the EC and EIB that add value.