Urban development and regeneration investments in Wielkopolska Region will be supported thanks to an agreement signed today between the European Investment Bank (EIB), as manager of the JESSICA Holding Fund for Wielkopolska, and Bank Gospodarstwa Krajowego (BGK), as manager of the Urban Development Fund (UDF).
The Wielkopolska Managing Authority was the first regional authority in Europe to establish a JESSICA Holding Fund (HF) within EIB with the aim to deploy EU Structural Funds for city investments in a more efficient manner. The respective Funding Agreement was signed on 29 April 2009 and its main objectives were to support urban regeneration and development in deprived, post-military and post-industrial areas as well as to strengthen business environment institutions.
The urban projects to be financed by the UDF are expected to focus on supporting initiatives employing local potential and enhancing local entrepreneurship, regenerating degraded town centers and houses with significant historic or architectural value and reinforcing the creation and development of entrepreneurship incubators and industrial parks. The JESSICA investment portfolio in Wielkopolska may include projects such as conversion of old or unused industrial buildings, regeneration of train stations and city regeneration projects.
Today, the first Operational Agreement, amounting to approximately PLN 293m, was signed in Poznań between EIB and BGK, represented by Mr E. Leanza (Head of JESSICA) and Mr T. Mironczuk (President of BGK), respectively, in the presence of Mr L. Wojtasiak (Deputy Marshal of the Wielkopolska Region).
BGK is a reliable financial institution operating as a state-owned bank whose mission includes supporting self-government programmes for regional development. This bank was chosen to act as intermediary in funding urban development projects in both large cities as well as in small and medium towns in the Wielkopolska Region. Investments will be implemented through loans or equity in projects of urban area revitalization and enhancement of business environment institutions.
The JESSICA operational agreement with BGK is the first agreement of this type to be signed in Poland (another two agreements have been entered into in Lithuania with financial institutions to provide funding in energy efficiency in housing).
Background notes:
The mission of the EIB, the European Union’s bank, is to contribute to the integration, balanced development and economic and social cohesion of the EU Member States by financing sound investments.
JESSICA (Joint European Support for Sustainable Investment in City Areas) is one of the Cohesion Policy Joint Initiatives that were developed by the European Commission to contribute to making EU Cohesion Policy more efficient and sustainable. The JESSICA mechanism is based on cooperation between the Commission, the EIB and the Council of Europe Development Bank (CEB) and supports investments in sustainable urban development and regeneration.
This initiative, designed to increase the use of financial engineering instruments, allows Managing Authorities to use part of their European Structural Funds allocations to invest in revolving funds rather than providing one-off grant financing. By so doing, the Authorities can recycle financial resources in order to enhance and accelerate investment in urban areas. 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.
BGK is a state-owned bank, with its primary objective being to provide banking services for the public finance sector, in particular through supporting government economic programs, as well as local government and regional development programs implemented with the use of public funds, including those of the European Union.
The Wielkopolska Managing Authority was the first regional authority in Europe to establish a JESSICA Holding Fund (HF) within EIB with the aim to deploy EU Structural Funds for city investments in a more efficient manner. The respective Funding Agreement was signed on 29 April 2009 and its main objectives were to support urban regeneration and development in deprived, post-military and post-industrial areas as well as to strengthen business environment institutions.
The urban projects to be financed by the UDF are expected to focus on supporting initiatives employing local potential and enhancing local entrepreneurship, regenerating degraded town centers and houses with significant historic or architectural value and reinforcing the creation and development of entrepreneurship incubators and industrial parks. The JESSICA investment portfolio in Wielkopolska may include projects such as conversion of old or unused industrial buildings, regeneration of train stations and city regeneration projects.
Today, the first Operational Agreement, amounting to approximately PLN 293m, was signed in Poznań between EIB and BGK, represented by Mr E. Leanza (Head of JESSICA) and Mr T. Mironczuk (President of BGK), respectively, in the presence of Mr L. Wojtasiak (Deputy Marshal of the Wielkopolska Region).
BGK is a reliable financial institution operating as a state-owned bank whose mission includes supporting self-government programmes for regional development. This bank was chosen to act as intermediary in funding urban development projects in both large cities as well as in small and medium towns in the Wielkopolska Region. Investments will be implemented through loans or equity in projects of urban area revitalization and enhancement of business environment institutions.
The JESSICA operational agreement with BGK is the first agreement of this type to be signed in Poland (another two agreements have been entered into in Lithuania with financial institutions to provide funding in energy efficiency in housing).
Background notes:
The mission of the EIB, the European Union’s bank, is to contribute to the integration, balanced development and economic and social cohesion of the EU Member States by financing sound investments.
JESSICA (Joint European Support for Sustainable Investment in City Areas) is one of the Cohesion Policy Joint Initiatives that were developed by the European Commission to contribute to making EU Cohesion Policy more efficient and sustainable. The JESSICA mechanism is based on cooperation between the Commission, the EIB and the Council of Europe Development Bank (CEB) and supports investments in sustainable urban development and regeneration.
This initiative, designed to increase the use of financial engineering instruments, allows Managing Authorities to use part of their European Structural Funds allocations to invest in revolving funds rather than providing one-off grant financing. By so doing, the Authorities can recycle financial resources in order to enhance and accelerate investment in urban areas. 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.
BGK is a state-owned bank, with its primary objective being to provide banking services for the public finance sector, in particular through supporting government economic programs, as well as local government and regional development programs implemented with the use of public funds, including those of the European Union.