The European Investment Bank (EIB), acting as a Fund of Funds Manager under Regional Operational Programmes, signed three operational agreements for the amount of PLN 378m (approx. EUR 85 m. equivalent) with Bank Gospodarstwa Krajowego, Poland’s national promotional bank, to support urban regeneration projects in the Polish regions of Pomerania, Mazovia and Silesia.

Based on the previous experience in the implementation  of the EIB-managed Financial Instruments under the JESSICA Initiative, four Polish Regions (i.e. Pomerania, Mazovia, Silesia and Kujawsko-Pomorskie) have each established their respective Financial Instruments for which the EIB is acting as Fund of Funds Manager.

The main task of the EIB is to invest the European Structural and Investment Fund (“ESIF”) resources in projects:

  • providing support to disadvantaged communities through  regeneration projects in urban and rural areas;
  • supporting energy efficiency plans, smart energy management and renewable energy development   undertaken by enterprises and the housing sector;
  • promoting the production and distribution of the energy from renewable sources.

These operations are conducted through one or more Financial Intermediaries, which will have the task  to provide loans to eligible projects in urban regeneration and energy infrastructure.

During the selection process Bank Gospodarstwa Krajowego was chosen as a Financial Intermediary to operate in the area of urban revitalisation in Pomerania, Mazovia and Silesia. The PLN 378 million are to be disbursed for long term, preferential loans for financing projects in deprived city areas, which aim to revive them socially, economically and environmentally by restoring their historical functions or assigning new ones. First tranches of financing were transferred to BGK in February and April 2018.

In March 2018, BGK opened the call for expression of interest for the projects in the Pomerania region, with the other two regions following in April this year. The potential final recipients include i.a. local governments, public institutions, NGOs, cultural and educational institutions, entrepreneurs, housing cooperatives and associations and many others.

By acting as Fund of Funds Manager, the EIB increases its level of support for urban regeneration and development projects in Poland, for which it is already active in the form of loans granted to municipalities and other local authorities.