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The Urban Development Funds in the State of Brandenburg Pertti Hermannek, Brussels, 23. October 2009 Your Speaker
Pertti Hermannek Department Corporate Steering Phone: +49 331 660-1605 E-Mail: [email protected]
Internal Consultant Business Development and European Affairs Project Manager „Further Development of the Urban Development Funds“
Pertti Hermannek
Seite 2 The State of Brandenburg
Brandenburg forms together with Berlin the German Capital Region
Six millions inhabitants
Located between the Western European business locations and the emerging markets in Eastern Europe
Berlin-Brandenburg has the highest concentration of R&D institutes in Germany
Biggest city in Brandenburg is Potsdam with app. 150.000 people
Majority of cities in Brandenburg are smaller than 50.000 inhabitants
Seite 3 ILB – Objectives and Tasks
The promotional bank of the state of Brandenburg
Implementation of the grant programs of the state in the fields of Economy Infrastructure Housing
Instruments Grants Loans at favourable interest rates Guarantees Venture and equity capital
ILB hat ein zukunftsfähiges Geschäfts
Seite 4 Promotional offers for Brandenburg
Grant programs from Agency for the ministries of the state of Brandenburg budgetary funds Budgets come from public sources: State of Brandenburg Federal Republic of Germany European Union
Promotional programs Loan programs with favourable interest rates from own ressources Refinancing with funds from Kreditanstalt für Wiederaufbau (KfW) Landwirtschaftliche Rentenbank (LR) European Investmentbank (EIB) Council of Europe Bank (CEB) Capital Market
Seite 5 ILB is Service Provider for Ministries and Customers
Ministries of the state as funds provider
Agency for grant programs Advice for elaboration and further development of guidelines for grants, Documentation and reporting
InvestitionsBank
Advice, assessment of the applications, approval and payment of the grants Administration of grant, check of reports on expenditure
Investores as target groupes of the promotional measures Municipalities/State Enterprises Farmers Private People
Seite 6 Objectives of the ERDF - Urban Development Funds in Brandenburg
Brandenburg seized the suggestion of the JESSICA-Initiative and developed a concept for an urban development funds
Three objectives:
Establishing a revolving funds for urban development over the end of the running structural funds period
stronger consideration of the profitability of projects
Mobilisation of public and private capital for urban development
Seite 7 ERDF - Urban Development Funds in Brandenburg
Within the directive „Sustainable Urban Development“ 15 cities in Brandenburg can be funded Prenzlau Schwedt/Oder Condition for acceptance in the ERDF-program: Wittenberge Neuruppin Elaboration of an integrated urban development Eberswalde concept Oranienburg Brandenburg a.d. Havel Fürstenwalde Frankfurt (Oder) These 15 cities in Brandenburg can also make Potsdam use of the urban development funds. Königs-Wusterhausen Eisenhüttenstadt
Cottbus
Senftenberg
Spremberg
Seite 8 ERDF - Urban Development Funds: An Overview
Who can get financing? 15 municipalities from the state of Brandenburg (see map)
What will be financed? Elimination of deficits in urban planning Improvement of inner city traffic Adaption of social infrastructure Adaption of infrastructure for education City management and -marketing "Urban-Culture"
How will be financed? 100% of the investment Interest rate 1 - 1,5% p.a. Instalment credit with a maturity of 10 years No repayment for the first two years possible
Seite 9 Basic Model of the ERDF - Urban Development Funds in Brandenburg
JESSICA EU-Commission EIB
ERDF funding Global Loans
State of MIR Program contract ILB Brandenburg for implementation
15 Mio. EUR ERDF funds 5 Mio. EUR
Urban Development Funds Brandenburg
Loans Loans
Urban Development Projects
Seite 10 Possible Projects for the Urban Devlopment Funds
Strengthening local economy Centers for local handcraft and creative industries
Seite 11 Possible Projects for the Urban Devlopment Funds
Development of inner city areas Speicherstadt Potsdam: inner city brownfield on the waterfront, area for housing, commercial uses and science and research Science Park Golm: development of new business areas in a science park (pre- and bridgeover financing)
MPI
Business Area Fraunhofer GO:IN
Station Golm University
Seite 12 Possible Projects for the Urban Devlopment Funds
Strengthening inner cities Development of train stations for retail trade, gastronomy and train affine services (bike rental stations, tourist information etc.)
Development of space for retail trade locations in historic centers
Seite 13 Possible Projects for the Urban Devlopment Funds
Devopment of public areas as an initial investment to mobilize private partners
Gardencity Drewitz in Potsdam Upgrading of green space, social infrastructure Energetic rehabilitation New building of flats Objective: sustain socially accepted rents
Seite 14 Outlook
ILB and Ministry for Infrastructure participate in a project co-financed by the Federal Ministry for Housing and Urban Development
Objectives: further development of the Urban Development Funds Integration of private investors under consideration of the specific situation of the small and medium sized cities in Brandenburg
Subject matter for analysis will be: Objectives of a future funds Market analysis decision criteria financial and legal conditions implementation of a funds
Seite 15 Platz für Foto
Thank you very much for your attention!