Urban dimension of financial instruments – meeting in Strasbourg on April 14th
Frank Lee, Head of Financial Instruments Advisory Division from the European Investment Bank, made the presentation “What next after JESSICA? The urban dimension of financial instruments in 2014-2020“. At the beginning of the meeting some reasons of using FI was underlined which are: a more efficient use of public sector resources, especially for revenue generation or cost saving projects; good leverage potential, also through recycling of funds; added financial discipline into the project; possibility of combining them with technical support and/or capital grants to overcome market barriers. In reference to the last point, it has been stressed that particularly in the urban environment there is a need to combine grants with FI and the balance between both is very important.
During the presentation JESSICA initiative was summed up as well as different urban models of using FI in the 2007-2013 financial perspective. Lithuanian case study was highlighted in which combination of loans and grants let renovate multi-apartment buildings. Moreover, Northwest England case study showed how 16 local authorities run Urban Development Fund which provides debt funding for urban regeneration projects. During the debate, MEPs agreed that the FI must be tailored into the local needs. In conclusion, Jan Olbrycht, President of the URBAN Intergroup, underlined that ex-ante conditionality is the way to choose best instrument for concrete challenge and that in general there is a growing debate about the financial instruments inside the cohesion policy.