EUKN - Italy - Model for the implementation of JESSICA using ERDF contributions

Model for the implementation of JESSICA using ERDF contributions - IT.

Introduction

The Ministry of Infrastructure, Department for the Coordination of Territorial Development, is a key actor in the development of urban policies in Italy. To promote new sustainable financial engineering instruments oriented to urban development, the Ministry is putting a great effort into the implementation of JESSICA in Italy.
As Managing Authority of the National OP “Networks and Mobility” for the 2007-2013 programming period, the Ministry is considering earmarking a share of the ERDF for the creation of a JESSICA National Holding Fund (JNHF). This implementation model is intended as a pilot initiative for the future development of JESSICA in Italy. It is indeed a flexible model that can be adjusted during the course of the implementation process.

Description

A thorough analysis of urban regeneration experiences in Italian cities has been carried out with the objective of defining a model for the implementation of JESSICA in Italy. As a result, a number of key issues have been identified and are currently being studied in further detail. A special effort is being put into the definition of:

guidelines for the evaluation of Urban Transformation Initiatives (UTIs) that can be selected and financed. UTIs are eligible for funding if they feature an integrated set of actions and projects coherent with a sustainable urban development strategy. They must be characterized by a strong partnership between public and private players, and be capable of generating adequate economic revenues for the reimbursement of the initial investments
the contents of the Funding Agreement, to be subscribed from the JNHF, that sets out: both the terms and conditions for ERDF contributions from the Operational Programme (OP) to the JNHF and the investment strategy as well as the intended use of the ERDF contribution
a lay out of the mechanisms for financing the UTIs and of the criteria for the selection of the managing body of the fund.

The JNHF could be set up as follows:

as an independent legal entity governed by agreements between the co-financing partners or shareholders
as a separate block of finance within a financial institution such as the EIB (European Investement Bank).

The management of the JNHF provides funding for the selected UTIs through specific UDFs (Urban Development Funds). The terms and conditions for contributions to UDFs from the JNHF are set out in further funding agreements, to be signed between the UDF and the JNHF.

EU involvement

The UDFs can be set up as Asset Management Firms (AMF) or can correspond to other existing financial engineering instruments: Real estate funds, public-private partnerships such as STU (“Società di Trasformazione Urbana”, “Company for Urban Transformation”) or “project financing”. The cities can contribute to this Initiative with own funds or assets while the regions can contribute by turning a share of their grants (share of ERDF from the Operational Programmes 2007-2013, share of ESF or share of national cofinancing and FAS) into equites of the UDFs.

Contact info

Ministry of Infrastructure
Ms. Cinzia Zincone

Publication date

/05/2007

Article info
Author: Ministry of Infrastructure

Links

Ministry of Infrastructure (in Italian)

JESSICA model, English, PDF, 55KB English

JESSICA: proposta modello operativo, Italian, PDF, 125KB Italiano

Document type

policy

Themes

Urban Policy > Economy knowledge & employment > Urban economy

Keywords

Competitiveness