financing jessica projects: the cases of portugal...

Financing JESSICA Projects: the cases

of Portugal and Andalucía

Brussels, 27 June 2012

Nuno Vitorino Secretary General

JESSICA Holding Fund Portugal

Pedro Couto Local Officer – JESSICA Holding Fund Portugal

JESSICA South Western Unit

JESSICA & Investment Funds Division

European Investment Bank

2

Agenda

• Portugal and Andalucía

– Structure

– Investment strategies

– Timeline

– Investment Portfolio

• Portugal in more detail

– Investment Portfolio

– Financed Projects

– Increasing attractiveness towards promoters

• Final Remarks

– Stakeholders/National authorities expectations towards project financing through JESSICA

3

Portugal and Andalucía

Basic Characteristics

PORTUGAL ANDALUCIA

HF

One HF managed by EIB One HF managed by EIB

6 OPs, 5 Regions (same Axis across Regions) 1 OP, 1 Region, 1 Axis

UDFs

3 UDF 2 UDF

Amount Awarded

130 M€ 80 M€

Co-investment at UDF level

61 M€ 0 M€

Co-investment at Project Level

From the UDF: 144 M€ From the project promoter: x2,5 times

From the UDF: At least 40 M€

Investment strategies (1)

PORTUGAL ANDALUCIA

Final recipients

Public, private or public/private

Investment Typologies

• Urban rehabilitation and regeneration, including infrastructure and equipment; • Renewable energy and Energy efficiency; • Urban economic regeneration, specially regarding SME or innovative companies; • Communication and Information Technologies, including broadband and wireless.

• Urban infrastructure, including those aiming at improving mobility and utilities and also cultural, tourist, social and educational infrastructures and the rehabilitation and upgrading of cultural heritage. • Regeneration of derelict industrial areas and the creation of facilities for SMEs and innovative firms.

Investment procurement

UDFs are responsible for selection and financing of Urban Projects.

UDFs have an open pipeline on a first come, first served basis.

UDFs shall prepare and submit a definitive portfolio of eligible urban projects and Business Plan within 12 months from the date of the signature of the Operational Agreement.

Investment strategies (2)

PORTUGAL ANDALUCIA

Focusing the instrument at HF Level

Regional split of the JESSICA 100M€ OP contribution: North 30M€ Center 20M€ Lisbon 5M€ Alentejo 10M€ Algarve 5M€

60% investments in big cities (>50.000 inhabitants) 40% in small/medium cities. Maximum investment of EUR 15 M per project in big cities Maximum investment of EUR 5 M per project in small/medium cities

Focusing the instrument at UDF level

BPI: Only Loans TdP: Only Tourism enhancing investments Maximum JESSICA investment per project of 3,5M€

BBVA: Only Loans ACJA: Equity, Quasi-Equity and Loans

Timelines

Implementation

• Implementation period important to raise awareness from both potential UDFs and

promoters;

• Targeted communication was more effective, by engaging promoters (increasing demand

side of this instrument) before talking with potential UDF promoters (increasing demand

for the management of this financial engineering instrument).

• Andalucía project procurement strategy allowed for closed fund approach.

Notes:

Andalucía Apr-10 Sep-10 Nov-10 Mar-11 May-11 Oct-11 May-12

Call for EoI

Selection of UDFs

Signature of Oas

Construction of Project Portfolio

Portugal Apr-10 Sep-10 Nov-10 Mar-11 May-11 Oct-11 May-12

Call for EoI

Selection of UDFs

Signature of Oas

Construction of Project Portfolio

Start of Project Financing

8

Project portfolio at 31.05.2012

a) Pipeline per typology of project (number of projects ):

9


a) Pipeline per typology of project (amounts in M€):

• Very high demand for touristic accommodation in Portugal.

• Andalucía shows a more balanced procurement across sectors.

Notes:

10

Portugal in more detail

11


a) Pipeline per typology of project:

3%

3%

5%

6%

3%

15%

3%

7%

6%

8%

41%

12


a) Pipeline per typology of project:

Not every region is the same – 3 examples:

13


a) Pipeline per region:

Not every region reveals similar demand:

317%

25%

521%

54%

56%

% Pipeline/JESSICA Funds coverage

14


b) Investment agreements signed with project promoters :

Fundação Eugénio de Almeida: Acrópole XXI

Total Investment: 10M€

JESSICA 1.65M€

UDF Co-financing 1.65M€

1 Arts and culture centre

1 Museum

Impact/multiple factor of 6x

15


b) Investment agreements signed with project promoters:

Terreiro do Paço: Commercial spaces and the Lisbon Story Centre

Total Investment: 10M€

JESSICA 1.1M€

UDF Co-financing 1.1M€

5 restaurants

1 commercial space

1 cultural space

1 showroom on the story of Lisbon

1 event room

1 terrace

Impact/multiple factor of 9x

1. Communication and expectation management

2. Removing uncertainty on eligibility

3. Periodic revision of action plans (HF and UDFs)

Increasing attractiveness towards promoters

Communication plan


Coordination of messages between MAs, HF, UDFs

Roadshows for promoters and municipalities but also below the line

communication action, namely with consultants

Communicating signed projects

More exposure of the instrument and concrete examples of use

Promoters see similar projects approved = more projects submitted

Eligibility clarification


Meetings between National Certifying Authorities and JHFP/UDFs

Establishing direct communication channels between UDFs and MAs

Establishing clear and homogeneous rules under regional OPs for

JESSICA use

Clearer project and eligibility rules

Less risk for HF, UDF, Promoter = more projects submitted/approved

Revision of Action Plans


IB Meetings – coordination of UDF action with MA’s expectations

Periodic analysis of JESSICA implementation

Detailed semi-annual UDF action plans to accelerate implementation

Monitoring and maybe requesting mitigating actions towards project concentration

Stimulus for proactive project procurement

Larger sectorial and geographical scope = more projects submitted

20

Final Remarks

Final Remarks

Difficulties faced and overcomed

Results achieved

Excellent opportunities identified

Prospects for next programming period 2014-2020

22

Contact information

JESSICA & Investment Funds

European Investment Bank 100, Bvd. Konrad Adenauer

L-2950 Luxembourg

email : [email protected] www.eib.org/jessica

JHF Andalucía:

[email protected]

JHF Portugal: [email protected]

mailto:[email protected]

http://www.eib.org/jessica



financing jessica projects: the cases of portugal...

Documents