JESSICA Evaluation Study for Silesia Disclaimer
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Developed for the European Investment Katowice ul. Karłowicza 13 Bank Tel: 32 730 2510, 32 730 2509, 32 730 2511 Fax: 32 730 2512, [email protected] JESSICA Evaluation Study for Silesia Disclaimer This report takes into account the particular instructions and requirements of our client. It is not intended for and should not be relied upon by any third party and no responsibility is undertaken to any third party. This document has been produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union. City Consulting Institute Sp. z o.o. C i t y C o nsulting Institute Page 2 Table of Contents 1. Review of the market for urban regeneration projects in the Silesia region ................................ 14 1.1. Regeneration projects implemented in Silesia ...................................................................... 14 1.1.1. Financing sources of regeneration projects .................................................................. 14 1.1.2. Principles of financing regeneration projects ............................................................... 14 1.1.3. Formal conditions necessary to implement regeneration projects .............................. 16 1.1.4. Availability of resources for regeneration projects ....................................................... 18 1.1.5. Characteristics of the completed projects .................................................................... 19 1.1.6. Conclusions for JESSICA ................................................................................................. 26 1.2. Possibility of financing regeneration projects within ROP SL ................................................ 26 1.2.1. Project eligibility criteria ................................................................................................ 26 1.2.1.1. Formal conditions .................................................................................................. 26 1.2.1.2. Eligibility of costs ................................................................................................... 27 1.2.1.3. Beneficiaries .......................................................................................................... 29 1.2.2. Analysis of the existing lists of project selection criteria and indicators as regards their relevance for JESSICA .................................................................................................................... 29 1.2.3. List of key potential projects to be implemented in the years 2010-2013 ................... 39 1.2.4. List of key projects financed after a restricted call of proposals ................................... 41 1.2.5. Conclusions for JESSICA ................................................................................................. 45 1.3. Analysis of strategic documents ............................................................................................ 45 1.3.1. Local Revitalisation Programmes .................................................................................. 45 1.3.2. Multi-annual Investment Plans ..................................................................................... 50 1.3.3. Conclusions for JESSICA ................................................................................................. 53 1.4. Identification and evaluation of specific potential JESSICA projects .................................... 55 1.4.1. Projects reported in a survey research ......................................................................... 55 1.4.2. Other potential projects ................................................................................................ 60 C i t y C o nsulting Institute Page 3 1.4.3. Assessment of the interest of potential beneficiaries in a revolving financial instrument 60 1.5. SWOT analysis for JESSICA ..................................................................................................... 61 1.6. Conclusions for JESSICA ......................................................................................................... 63 2. Financial and social analysis for JESSICA implementation ........................................................... 64 2.1. Present financial instruments for urban regeneration projects ........................................... 64 2.2. Budgetary implications of JESSICA for the Silesia Managing Authority ................................ 74 2.2.1. Cash flow in case of the traditional donation system - variant 0 .................................. 75 2.2.2. Cash flow in case of JESSICA implementation – V1 – one UDF. .................................... 77 2.2.3. Cash flow in case of JESSICA implementation – V2 – 1 UDF created from the ROP and investors (JST) funds. ..................................................................................................................... 83 2.2.4. Cash flow in case of JESSICA implementation – Variant 3 – HF, 2 UDFs from the ROP and shareholders (JST, banks) funds. ............................................................................................ 89 2.2.5. Cash flow in case of JESSICA implementation – Variant 4 – 1 HF/EIB and >2 UDFs created from the ROP and shareholders’ funds (JST, banks). ....................................................... 96 2.3. Non-budgetary effects of JESSICA implementation ............................................................ 104 2.4. PPP as a method of optimising the JESSICA implementation process. ............................... 105 2.5. Summary. Conclusions for JESSICA implementation. .......................................................... 112 3. Institutional analysis of JESSICA implementation. ...................................................................... 114 3.1. Description of potential market participants in JESSICA. .................................................... 114 3.1.1. Public administration................................................................................................... 114 3.1.2. Public institutions ........................................................................................................ 118 3.1.3. Financial sector institutions ......................................................................................... 122 3.1.4. Private sector ............................................................................................................... 126 3.2. Ability and willingness of the private and public sectors to support urban regeneration in Silesia through JESSICA .................................................................................................................... 131 3.2.1 Conclusions: willingness to engage in JESSICA projects and institutional structure of the Programme. ................................................................................................................................. 134 3.3. Analysis of institutional models of JESSICA operation ........................................................ 136 C i t y C o nsulting Institute Page 4 3.3.1 Potential JESSICA organizational structures ................................................................ 136 3.3.2. Establishment of a Holding Fund ................................................................................. 139 3.3.2.1. Basic tasks of holding funds (HF) ......................................................................... 145 3.3.2.2. Benefits resulting from the HF establishment..................................................... 147 3.3.2.3. Entities that may potentially establish a HF ........................................................ 147 3.3.3. Establishment of Urban Development Funds ............................................................. 152 3.3.3.1. UDF business models ........................................................................................... 156 3.3.3.2. UDF operating as a credit – guarantee institution .............................................. 156 3.3.3.3. UDF operating as a capital investor ..................................................................... 157 3.3.4. HF/UDF model ............................................................................................................. 157 3.3.4.1. Advantages and disadvantages of the full model of JESSICA implementation. .. 158 3.3.5. One UDF model ........................................................................................................... 159 3.3.5.1. Conditions and advantages of the one UDF model ............................................. 159 3.3.5.2 Institutions that may establish one UDF ..................................................................... 160 3.3.6. Institutional model and project financing possibility .................................................. 162 3.3.6.1. One UDF model ................................................................................................... 162 3.3.6.2. HF and 2 UDFs model .......................................................................................... 162 3.3.6.3. HF and a greater number of UDFs ....................................................................... 162 3.3.6.4. EBI involvement and possibility of project financing ......................................... 163 3.3.7. Institutional model and participation ability ............................................................... 163 3.3.7.1. One UDF model ..................................................................................................