Brussels, October 10th, 2006 1 Patrick Walsh - EIB Head of Jaspers Brendan Smyth - DG REGIO Co-ordinator Gerry Muscat - EBRD Co-ordinator.

1Brussels, October 10th, 2006

Patrick Walsh - EIB Head of JaspersPatrick Walsh - EIB Head of JaspersBrendan Smyth - DG REGIO Co-ordinatorBrendan Smyth - DG REGIO Co-ordinator

Gerry Muscat - EBRD Co-ordinatorGerry Muscat - EBRD Co-ordinator

2Brussels, October 10th, 2006

Brendan Smyth - DG REGIO Co-ordinatorBrendan Smyth - DG REGIO Co-ordinator

3

The Challenge – A New Context After 2006The Challenge – A New Context After 2006 10 New Member States + Romania & Bulgaria

Significant gaps in quality and quantity of Infrastructure – need for development

Greatly increased EU Resources available 2007-2013

Problems with the quality of projects remain

High and sustained rate of absorption needed by new Member states

Lessons learnt from previous include:• Need for permanent “step change” improvement in new Member States’

administrations: external consultancy support is not enough• Ensure quality of projects presented for support from start of process

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What is JASPERS ?What is JASPERS ? ‘Joint Assistance to Support Projects in European Regions’

A technical assistance partnership to prepare major projects between DG REGIO, EIB and EBRD

Objective: increasing the capacity of the beneficiary countries to make the best use of EU funding

‘J’ is for ‘joint’: three new ‘J’ new instruments (together with JEREMIE and Urban Development JESSICA) Joint effort between the Commission and IFIs.

Value added: drawing on past experience and expertise of the EIB and the EBRD in a more structured and coordinated way than in the past.

For administrative reasons, JASPERS will be a unit within the EIB but separated from its lending activities

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Concentrate on priority countries: the 10 ‘new’ member states plus Romania and Bulgaria JASPERS concentrates on major projects :

•Transport €50 M >•Environment and other sectors €25 M >

JASPERS priorities are :

• large projects supported by the Cohesion Fund and the ERDF (to be intepreted flexibly in the smaller countries)

• other Cohesion Fund projects

• other ERDF projects horizontal issues covering more than one country/sector

JASPERS activitiesJASPERS activities

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How will JASPERS operate?How will JASPERS operate? Assistance can be provided as required from the early stages

of a project through to the decision to grant assistance (by the Commission or the Member State depending on the size of project)

Preparatory work required to deliver a mature project e.g.• Advice on conceptual development and project structuring• Advice on project preparation e.g. cost-benefit analysis,

financial analysis, environmental issues, procurement planning.

• Review of documentation: feasibility studies, technical design, tender documents.

• Advice on compliance with EU law (environmental, competition and others) and conformity with EU policies

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JASPERS: free and voluntaryJASPERS: free and voluntary

JASPERS assistance will be provided free of charge to the beneficiary

There is no obligation on the Member States to use JASPERS

There is no obligation on a Member State which benefits from JASPERS to borrow from the EIB or the EBRD

There is no obligation on the EIB or the EBRD to lend to projects prepared using JASPERS

There is no exclusion of EIB or EBRD lending to projects benefiting from JASPERS

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Legal ResponsibilitiesLegal Responsibilities

JASPERS does not change existing legal responsibilities

JASPERS is an input to the preparation of applications for EU funding

Member States are the 'owners' of the project, not JASPERS; they submit the standard applications as required by the Regulations

Preparation of a project by JASPERS does not guarantee approval of the project by the Commission

The ultimate legal responsibility to grant assistance will remain with the Commission

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Action PlansAction Plans

Priorities and objectives of JASPERS will be set out each year in an Action Plan agreed between JASPERS and the beneficiary country

Close coordination of JASPERS operations with DG REGIO country desks

Horizontal issues may also be included in the Action Plan

Action Plans for the twelve priority countries (the 10 plus Romania and Bulgaria) now agreed

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Management of JASPERSManagement of JASPERS

Managing Authority acts as central co-ordinator for each country

The Managing Authority in the Member State can request assistance directly from JASPERS in Luxembourg or from the regional offices of JASPERS

JASPERS will be actively managed by a SteeringSteering CommitteeCommittee with members from DG REGIO, EIB and EBRD.

11Brussels, October 10th, 2006

Patrick Walsh - EIB Head of JaspersPatrick Walsh - EIB Head of Jaspers

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JASPERSJASPERS

54 professional STAFF54 professional STAFF

30 professionals30 professionals + 10 support+ 10 support

16 professionals16 professionals

5 to 8 professionals5 to 8 professionals

LUXEMBOURGLUXEMBOURG

WARSAWWARSAW VIENNAVIENNA BUCHARESTBUCHAREST

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Organisation & RecruitmentOrganisation & Recruitment Regional hubs for JASPERS:

• North (Poland, Estonia, Latvia, Lithuania): Warsaw• Central (Czech Republic, Slovakia, Hungary, Slovenia):

Vienna• South (Romania, Bulgaria): Bucharest

Internally: EIB and EBRD core teams in place

External recruitment: candidates already interviewed for Luxembourg, Warsaw, Bucharest

New offices and staff will be fully operational in late 2006/early 2007

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Framework consultancy contractsFramework consultancy contracts Two large framework contracts to support JASPERS

in Luxembourg and in the regional offices

Transport and environment/other sectors

Teams of expert for assignments ‘on call’

Preparation of large infrastructure projects and analysis of horizontal issues (e.g. state aid, grant blending etc.)

Tenders published in May; framework contracts will be operational shortly

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2006 action plans: Status2006 action plans: Status

All beneficiary countries submitted draft Action Plans 10 Action Plans signed as of 1st September 2006 (Cyprus,

Estonia, Slovak Republic, Czech Republic, Latvia, Malta, Poland, Slovenia, Bulgaria & Romania)

Over 100 projects actions identified, and support requested in wide range of relevant horizontal issues

Demand in some unexpected sectors (e.g. large energy, broadband telecom, tourism)

JASPERS is well-received by beneficiary countries and DG-REGIO Desks

JASPERS intervention requested for projects totaling €57 Bn grant funding by CF and ERDF

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Environment sectorEnvironment sector 44 actions44 actions

Water and waste water 22 actions

Solid Waste 10 actions

Energy efficiency and renewables 7 actions

Other sectors (Tourism, telecoms – broadband, health, education) 6 actions

Transport sectorTransport sector 39 actions39 actions

Roads and motorways 12 actions

Railways 15 actions

Urban transport 5 actions

Other sub-sectors (river, airports) 7 actions

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Example ActionsExample Actions

POLAND – Warsaw Ring Road, Public Transport in Krakow and Lublin, Flood Protection, Broadband

ROMANIA – Rolling Stock, River Navigation, Multi-modal terminals, Regional Airports, Regionalisation of Water Companies

BULGARIA – PPP Motorway, River Navigation

HUNGARY – Provincial Urban Transport, 8 Water schemes

SLOVENIA – ERTMS installation

SLOVAKIA – Motorways, Water Supply and Treatment

MALTA – Ports upgrades

CYPRUS – New Urban Transport in Nicosia

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Main Main Horizontal IssuesHorizontal Issues

9 horizontal issues identified

PPP best practice / model approaches

PPP+EU grant blending approaches

Support with state aid in new sectors

Structuring projects in new sectors (eg. power, energy efficiency, renewables, urban transport, flood protection, rolling stock)

Grouping small projects (eg. energy efficiency, water)

Guidance on new Regulations (eg. eligibility, revenue generating projects, grant rate calculation)

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JASPERS development phase – from Autumn 2006JASPERS development phase – from Autumn 2006

Significant increase in available resources over next 6 months• Additional professional staff• Opening of regional offices

Will allow wider range of project assistance and work on horizontal issues

Assistance beginning to many key projects, e.g. (2*transport, 2* water, Broadband telecommunications – E. Poland)

First grant applications from projects assisted by JASPERS expected to be submitted in (1st half 2007)

Maintain momentum through 2007 Action Plan – Development begins shortly

JASPERS will reach full strength in 2007

20Brussels, October 10th, 2006

Gerry Muscat - EBRD Co-ordinatorGerry Muscat - EBRD Co-ordinator

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Case 1: Grant Rate Case 1: Grant Rate calculation for Water Projectscalculation for Water Projects

Project: Puszcza Zielonka Landscape Protection Area Sewerage - Poland (Cohesion Funds)

JASPERS task:• Review financing gap

analysis in already-submitted application

• Remodel financial analysis• Recommend grant co-

financing rate JASPERS output:

• Recommend adjusting grant rate from 81% to 76%

• Application resubmitted by Polish authorities to EC

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Case 2: Complex Solid Waste Case 2: Complex Solid Waste Project (Sofia Waste)Project (Sofia Waste)

Current Situation:• City has closed existing landfill; waste is baled and stored• Waste incineration being considered by City

JASPERS recommendations• Identify long term landfill

solution (needed whether or not incineration proceeds)

• Identify landfill for temporary storage or re-open existing facility

• Treat project as a national as well as local priority

Next steps:• Project now included in Operational Programme• Once landfill site identified, JASPERS will support further project

preparation on a phased basis

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Case 3: Broadband telecom Case 3: Broadband telecom Concept DevelopmentConcept Development

Project: Broadband development in Eastern Poland (covers 9 million people)

JASPERS on-going actions:• Help prepare project outline• Consultant recruited to

develop project concept • Review meeting with DG

Regio / Competition / Infso re structuring and state aid

JASPERS 2007 actions:• Draft ToR for feasibility study• Help supervise feasibility

study• Help prepare ERDF

application

OP Development of Eastern Poland

80.0 – 70.0

100.0 – 80.1 Poland =100

155.0

Polish average = PLN 22,048 Average for eastern Poland = PLN 16,501.6

110.0 – 100.1

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Case 4: Rail Rolling Stock Project SupportCase 4: Rail Rolling Stock Project Support

Project: Romania Rail Rolling Stock Funding (ERDF)

JASPERS task completed: Support Romanian authorities prepare ToR for:

• Rolling stock needs assessment• Feasibility study• Prepare ERDF application• Prepare tender documentation

JASPERS on-going activity: support supervision of selected consultant, review outputs, review draft application.

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Case 5: horizontal issue – PPP and grant blendingCase 5: horizontal issue – PPP and grant blending

JASPERS task:• Review impact of new regulations• Identify models for CF/ERDF blended projects• Identify potential cases from Ops• Input to structuring for selected projects

On-going actions:• Working paper on implication of new regulations

under development

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Contact DetailsContact Details

Patrick Walsh - EIB Head of JaspersPatrick Walsh - EIB Head of JaspersEuropean Investment BankEuropean Investment Bank

100, boulevard Konrad Adenauer

L-2950 Luxembourg

Phone: +352 4379 7782

E-mail: [email protected]

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Contact DetailsContact Details

Brendan Smyth - DG REGIO Co-ordinatorBrendan Smyth - DG REGIO Co-ordinator EEuropeanuropean Commission Commission

Directorate-General for Regional PolicyBrussels Belgium

Phone: +32 2 295 7307E-mail: [email protected]

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Contact DetailsContact Details

Gerry Muscat - EBRD Co-ordinatorGerry Muscat - EBRD Co-ordinator EBRDEBRD

WarsawPoland

Phone: +48 22 520 5824E-mail: [email protected]