JESSICA Evaluation Study for Slovenia

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JESSICA Evaluation Study for Slovenia JESSICA JOINT EUROPEAN SUPPORT FOR SUSTAINABLE INVESTMENT IN CITY AREAS Evaluation Study for Slovenia Final Report DISCLAIMER: 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. Sole responsibility for the views, interpretations or conclusions contained in this document lies with the authors. No representation or warranty express or implied will be made and no liability or responsibility is or will be accepted by the European Investment Bank or the European Commission or the Managing Authorities of Structural Funds Operational Programmes in relation to the accuracy or completeness of the information contained in this document and any such liability is expressly disclaimed. This document is provided for information only. Neither the European Investment Bank nor the European Commission gives any undertaking to provide any additional information or correct any inaccuracies in it. This study was commissioned by the EIB, co-financed by DG REGIO and assigned to the consulting group PWC. JESSICA Evaluation Study - Slovenia Glossary Bank Warranty A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. CF Cohesion Fund COCOF Note 3 Refers to European Commission (Directorate-General Regional Policy) Guidance Note on Financial Engineering Instruments under Article 44 of Council Regulation (EC) No 1083/2006 (ref: COCOF_10-0014-05-EN) as revised. EBRD European Bank for Reconstruction and Development EC European Commission EIB European Investment Bank EIF European Investment Fund ERDF European Regional Development Fund EU European Union Factoring Factoring is a financial transaction whereby a business sells its accounts receivable to a third party at a discount Financial An organisation that provides financial services for its clients or members. Institution Broadly speaking financial institutions are deposit taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies. Fina ncial Leasing Financing the purchase of tangible assets. The leasing company is the legal owner of the goods, but ownership is effectively conveyed to the lessee, who incurs all benefits, costs, and risks associated with ownership of the assets Funding When FEIs are organised through HFs, this is either a written agreement Agreement concluded between (i) the duly mandated representative of a Member State or Managing Authority and an HF, or (ii) between the HF and a UDF. When FEIs are not organised through HFs, then this is a written agreement concluded by a duly mandated representative of a Member State or Managing Authority and a UDF. The Funding Agreement should include the terms and conditions governing contributions to be made from Operational Programmes to the UDF or HF. (See also “Level I Funding Agreement” and “Level II Funding Agreement”) GDP Gross Domestic Product Grant Agreement An agreement made between a direct user of state budget (the MA) and a public institution as the outcome of a (direct) grant award procedure is a grant agreement an agreement between a JESSICA HF and a MA setting out HF tasks and related parameters. For the sake of clarity, where Articles 43 (3) and 44 of the European Regulation 1828/2006 provide for the conclusion of funding agreements at two levels: • Level I between the Member State or the Managing Authority and the Holding Fund, where financial engineering instruments are organised through Holding Funds; and Level II between the Member State or the Managing Authority (or the Holding Fund where applicable) and the individual financial engineering instruments, a funding agreement in the context of this document is a level I agreement JESSICA Evaluation Study - Slovenia HF Holding Fund Intermediate Body Performs the tasks transferred to it by the Managing Authority that issued a decision. Investment Bank An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities Investment Board A governing body, established in accordance with a Level I Funding Agreement, entrusted with the responsibility of supervising and guiding the investment operations managed by the Holding Fund. Investment A committee, normally established in accordance with the provisions of a Committee Level II Funding Agreement, entrusted with responsibilities including supervision, guidance and approval of the investment activities managed by the UDF. IPSUD Integrated Plan for Sustainable Urban Development JESSICA Joint European Support for Sustainable Investment in City Areas JESSICA FIs JESSICA financial instruments Level I Funding Funding Agreement between a Member State or a Managing Authority and Agreement the Holding Fund, where UDFs are organised through Holding Funds Level II Funding Funding Agreement between a Member State or a Managing Authority (or Agreement the Holding Fund where applicable) and a UDF. Currently, the terminology for Level II Funding Agreements most widely used in the market is ‘Operational Agreements’. This is particularly the case when the EIB acts as the Holding Fund. MA Managing Authority MEDT Ministry of Economic Development and Technology Monitoring Is supervising the implementation of the programme Committee OP Operational Programme OP DETI Operational Programme for the Development of Environmental and Transport Infrastructure OP SRDP Operational Programme for Strengthening Regional Development Potentials OPPN A detailed municipal spatial plan is a spatial plan with which spatial arrangements in the areas from paragraph 5 of Article 39 of the Spatial Planning Act are planned in more detail, and also in other areas if so required after the adoption of a municipal spatial plan. A detailed municipal spatial plan is a basis for the drafting of a project for the acquisition of a building permit. Operation Article 2 (3) of the General Regulation defines an Operation as “a project or group of projects selected by a Managing Authority ... allowing achievement of the goals of the priority axis to which it (the project/s) relates.” Section 1.2 a) of COCOF Note 3 clarifies further the definition of the term ‘Operation’ stating that “…in respect of assistance implemented through financial engineering instruments, the operation is constituted by the financial contributions from an Operational Programme to financial engineering instruments (including holding funds) and the subsequent investments made by the financial engineering instruments, which ultimately constitute eligible expenditure in accordance with Article 78(6) of the General Regulation.” Operational See Level II Funding Agreement. Agreement JESSICA Evaluation Study - Slovenia PA Priority axis POSAM Regulation Regulation on the Procedure of Standards and Manners to Allocate Means for the Promotion of the Evolutional Programme and Preferential Tasks PPP Public Private Partnership Regional Regional Development Programme allignes the development objectives of a Development Region and defines the instruments and sources for their realisation. The Programme programme consists of two parts: strategic and programme. The strategic part includes the analysis of the regional development potentials, key development hurdles, regions advantages, development goals and regions priorities in the programming period. The programme part includes the programmes for the promotion of the development in the region with the financial evaluations, implementation timeline and monitoring system of the Regional Development Programme execution. Retail Bank A financial institution and financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. In Slovenia, Retail Banks are private-sector organisations that provide financial services to individual customers, small to medium sized businesses and large organisations. SF Structural Fund Slovene Public A Slovene public legal entity established by the state, a region or a Fund municipality for implementation of their policy in a particular area, such as sustainable development with regard to a particular area. Spatial Planning (1) This Act regulates spatial planning as part of physical planning so that it Act lays down types of spatial planning documents, their content and mutual relations, and procedures for their drafting and adoption. (2) This Act also regulates the provision of utility services to building sites and the setting-up and functioning of a spatial information system. (3) This Act also transposes into the legislation of the Republic of Slovenia the requirements of Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment (OJ L, no. 197 of 21. 7. 2001, page 30) which relate to the obligation to ensure that environmental reports are of a sufficient quality. UDF Urban Development Fund Urban Project Is any project or action carried out by the Final Recipients and supported by Urban Development Funds JESSICA Evaluation Study - Slovenia List of figures Figure 1: Construction industry as a percentage of GDP Figure 2: Index of real value of built construction in Slovenia, July 2007
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