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£100 Million JESSICA fund for Northwest regeneration
Published: 2009-12-14 10:25:20
The Northwest Regional Development Agency (NWDA), European Regional Development Fund (ERDF) and the European Investment Bank (EIB) have launched a new £100 million fund to finance urban development projects across the Northwest of England. The NWDA expects these projects to create or safeguard several thousand jobs.
Robert Hough, Chairman of the NWDA, said: “This initiative is an opportunity for the region to put a mechanism in place that will ensure we can prolong the benefit of our ERDF Programme. The Northwest Urban Investment Fund will allow us to invest in revolving funding, in addition to the normal single use grants.
"This investment will be in the form of equity, loan or guarantee. The returns from these investments can be re-used on other projects again, and again, extending the life of our European funding and helping us to maintain a level of physical regeneration during the challenging economic climate.”
Pawel Samecki, European Commissioner for Regional Policy, said: "I am delighted that the Northwest Urban Investment Fund is being launched today. The European Regional Development Fund will grant £50 million to the Northwest Urban Investment Fund to boost regeneration and long-term economic development. The Fund is part of our 'JESSICA' (Joint European Support for Sustainable Investment in City Areas) initiative and will provide the Northwest with a revolving source of investment that pays for itself. When loans are re-paid, the fund is re-cycled and then re-invested. This means the money goes much further than a one-off grant and will continue to enhance the competitiveness of the regional economy for years to come. I congratulate everyone involved in this innovative scheme."
Simon Brooks, European Investment Bank Vice President responsible for the United Kingdom said:: “This collaboration between the EIB and the Northwest Regional Development Agency builds on the EIB's reinforced commitment to support SME activities and sustainable urban regeneration in the current financial and economic crisis. We intend to use EIB financial resources to their full advantage, and where appropriate, to complement the investment of European Structural Funds in the region.”
Liz Meek, chair of the European Regional Development Fund's Programme Monitoring Committee said: "I am delighted to welcome today's announcement. European funding has helped to regenerate many parts of the region over the last 15 years and this is a guarantee that this important work will continue at a time when the support is more needed than ever."
The JESSICA initiative will be branded as the Northwest Urban Investment Fund from 2010. Set up by the NWDA with funding from the ERDF programme this new fund has been made possible with the cooperation and support of the European Investment Bank (EIB).
The £100 million fund includes £50 million from the ERDF and the equivalent match of £50 million from the NWDA and will be managed by the EIB. The EIB will be able to add to this holding fund in the future.
Today's agreement between the EIB and the NWDA will be followed by the formal procurement of the UDFs which will commence during March 2010, with UDFs expected to be selected by the end of the Summer 2010.
With the current challenging economic conditions it can be difficult for urban projects to secure finance from traditional commercial sources. This fund will provide debt, equity and guarantee investment to support projects that will help unlock and regenerate sustainable development in the Northwest's urban areas and make a difference to our towns and cities. By providing funding support in this way, the public sector will be able to obtain a return from the investment and reinvest the returns in future projects, thereby creating a sustainable revolving investment fund.
Read the full story - and notes on the structure of JESSICA - here.