A Memorandum of Understanding related to the creation of a JESSICA Holding Fund has been signed today in Bratislava between the European Investment Bank (EIB) and the Regional Self-government of the Wielkopolska Region.

Wielkopolska is the first region in Central Europe that has signed such a Memorandum leading to the implementation of JESSICA (Joint European Support for Sustainable Investment in City Areas). It has been signed by Mr Leszek Wojtasiak, Deputy Marshall of the Wielkopolskia Region, and Mr Matthias Kollatz-Ahnen, EIB Vice-President, on the occasion of an EIB conference dealing with a New Generation of Instruments in European Regional Policy organised in cooperation with the European Commission.

JESSICA is focused on the promotion of sustainable investment and growth in urban areas. It is being developed by the European Commission and the EIB, in collaboration with the Council of Europe Development Bank. This initiative enables the EU Member States and their regions to use some of their EU Structural Fund allocations, to make repayable investments in projects forming part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds and, if required, Holding Funds.

Background

The task of the EIB, the European Union’s financing institution, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investment. 

Between 2007 and 2013, some EUR 350 billion have been slated for EU cohesion policy, representing nearly 36% of the Union’s total budget. This puts the allocation for this finance stream ahead of the common agricultural policy for the first time. To help to increase the absorption capacity of EU Member States and improve the use of structural funds across a wide range of projects by speeding up processes and management of funds the European Commission joined forces with the European Investment Bank Group and other international financial institutions (European Bank for Reconstruction and Development, Council of Europe Development Bank and KfW Bankengruppe) to launch the JASPERS, JEREMIE and JESSICA initiatives in 2005.

The Vojvodship of Wielkopolska, with its capital city of Poznan (600 000 inhabitants), is one of the key Polish regions. With the population of 3.4 million, of which almost 60% live in towns, Wielkopolska is the third largest region in the country and the second largest in terms of territory.