JESSICA: Evaluation Study for Catalonia, Spain (2014-2020) Final report Version 7 – 14 March2014 Original Language: Spanish Translated version – 16 December 2013 1 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. Financial data given in this document has not been audited, the business plans examined for the selected case studies have not been checked and the financial model used for simulations has not been audited. The case studies and financial simulations are purely for theoretical and explanatory illustration purposes. The projects studied in no way anticipate projects that will actually be financed using Financial Instruments. Neither the European Investment Bank, the European Commission, the Managing Authorities of the Structural Funds Operational Programmes, nor Mazars LLP nor Ecorys can be held liable for the accuracy of any of the financial or non-financial data contained in this document. This document is protected by copyright. Any reproduction is strictly prohibited. This study was designed, commissioned and edited by the EIB, co-financed by DG REGIO and assigned to the consulting group Mazars LLP working in collaboration with Ecorys. Version Version 2 - Confidential Produced by Mazars LLP - Ecorys Mazars - Ecorys Review by European Investment Bank Patricia B. Llopis Carlos Ruiz Beneyto Rakesh Bhana Alessandro Bragonzi Goetz von Thadden Delivery date 16/12/2013 Note Translated version from Spanish to English 2 Acronyms and abbreviations Acronym Definition AC Ahorro Corporación ACM Asociación Catalana de Municipios (Catalan Association of Municipalities) ACT Agencia Catalana de Turismo (Catalan Tourism Promotion Agency) CAREC Consejo Asesor para la Reactivación de la Economía (Advisory Council for Economic Development) CEB Council of Europe Development Bank CLLD Community-Led Local Development CPR Common Provisions Regulation CSF Common Strategic Framework DG REGIO Directorate General for Regional and Urban Policy EAFRD European Agricultural Fund for Rural Development EC European Commission ESC(s) Energy Service Company(ies) ESCACC Catalan Strategy for adapting to Climate Change ECAT2020 Catalonia 2020 Strategy ERDF European Regional Development Fund EMFF European Maritime and Fisheries Fund ESF European Social Fund ESI Funds European Structural and Investment Funds EV Electric Vehicle FI(s) Financial Instrument(s) FPSHCS Fundación Privada Hospital de la Santa Creu i Sant Pau (Santa Creu i Sant Pau Hospital Private Foundation) FROB Fondo de Reestructuración Ordenada Bancaria (Fund for Orderly Bank Restructuring) FTA Functional Territorial Areas GTP General Territorial Plan ICAEN Instituto Catalán de la Energía (Catalan Energy Institute) ICO Instituto de Crédito Oficial (Official Credit Institute) ICF Instituto Catalán de Finanzas (Catalan Institute of Finance) ICT(s) Information and Communication Technology(ies) IDAE Instituto para la Diversificacion y Ahorro de la Energía (Institute for Energy Diversification and Saving) IFEM Instrumentos Financieros para Empresas Innovadoras (Financial Instruments for Innovative Enterprises) INCASOL Instituto Catalán del Suelo (Catalan Land Institute) ITI Integrated Territorial Investment M Millions MA(s) Managing Authority(ies) NPU(s) Norma(s) de Planeamiento Urbano (Urban Planning Regulation(s)) OP(s) Operational Programme(s) PDU(s) Plan(es) Director(es) Urbanístico(s) (Urban Development Master Plan(s)) PITC Plan de Infraestructuras de Transporte de Cataluña (Catalan Transport Infrastructure Plan) POUM(s) Plan(es) de Ordenación Urbanística Municipal (Municipal Planning Organisation Programme(s)) PPP Public Private Partnership PTP Partial Territorial Plans 3 RIS3 Research and Innovation Strategies for Smart Specialisation SAREB Sociedad de Gestión de Activos Inmobiliarios procedentes de la Reestructuración Bancaria (Bank Restructuring Asset Management Company) SB(s) Small Business(es) STP Sectoral Territorial Plans SF Structural Funds SEAP Sustainable Energy Action Plans TES Departamento de Territorio y Sostenibilidad de la Generalitat de Catalunya (Generalitat de Catalunya Sustainability and Territorial Planning Department) TO(s) Thematic Objecitive(s) UDF(s) Urban Development Fund(s) 4 Executive Summary JESSICA – Joint European Support for Sustainable Investment in City Areas – is a technical assistance initiative developed jointly with the European Commission and European Investment Bank (EIB) in conjunction with the Council of Europe Development Bank (CEB) with the aim of supporting sustainable urban development and regeneration through the use of Financial Instruments (FI). The initiative aims at assisting Managing Authorities (MAs) to use part of their Structural Funds allocation to set up FIs in order to make viable investments in urban development projects which otherwise would not be feasible due to market failures and sub- optimal performance. JESSICA is an investment tool, not a grant, for stimulating private sector investment in integrated urban development through the use of market-driven instruments to mitigate some of the risks associated with complex urban development projects. In March 2013, this study was commissioned by the European Investment Bank and co-financed by the European Commission following a request made by the MA of the European Regional Development Fund (ERDF) Operational Programme (OP) for Catalonia. The primary aim of the study is to assist the MAs in Catalonia in preparing the programming period 2014-2020 OP in relation to the use of FIs for urban development, and determine how, and to what extent FIs in this area could strengthen, facilitate, accelerate and/or extend the deployment of European Structural and Investment (ESI) Funds resources through FIs within the Catalonia region. Analysis of the current environment and recent experiences To set the analysis in the appropriate context, firstly the main fundamental strategic plans and instruments for territorial development were considered. This review includes a description of the instruments and legislation related to territorial and urban organisation in Catalonia. It also includes an analysis of strategic plans developed by Generalitat de Catalunya that have an impact on territorial development including in areas of economic competitiveness, housing, infrastructures and transportation, environment, urban regeneration and tourism. The conclusions from the in-depth policy analysis indicate considerable opportunities for Catalonia to deploy FIs to support a range of strategic objectives. In particularly, 1. Catalonia has a well-developed and integrated territorial and urban planning system which provides an excellent starting point for implementing FIs for urban development. The policy framework includes the General Territorial Plan of Catalonia; Partial Territorial Plans; Sector Territorial Plans; and the Municipal Planning Organisation Programmes (POUMs). 2. Among its relevant strategic policy areas, Catalonia has identified the use of FIs as a priority for the region. These include urban regeneration, housing, infrastructure and mobility, environment, energy efficiency and tourism. Catalonia also has strategic plans in place to support the low carbon economy, namely through the Catalan 2012-2020 Energy and Climate Change Plan and 2011-2014 Generalitat de Catalunya Building and Services Energy Saving and Efficiency Plan and Catalan Energy Plan for 2016-2015. In addition there is strong support to improve the transportation infrastructure detailed in the Catalan Transport Infrastructure Plan; as well as a strong economic strategic plan through the Catalonia 2020 Strategy (ECAT 2020) which seeks to promote social and economic policies based on smart, sustainable, and inclusive growth. 5 3. Catalonia has benefited from a positive experience from various successive URBAN programmes since the 1990s focusing on integrated, partnership-based approach interventions. During the 1994-1999 and 2000-2006 programming periods, 41 cities in Spain benefited from URBAN I and URBAN II for implementing urban regeneration projects. The key success factors which were later identified as best practices, were the following: an integrated approach with strong partnership collaboration; flexibility in designing and implementing activities to achieve added value and impacts on the local economy; and created a catalytic effect on new investments. 4. Catalonia has considerable experience in using FIs through the implementation of JEREMIE in the 2007-2013 programming period. This has enabled the region to identify key learned lessons, which will be integrated into the design and implementation of future FIs during the 2014-2020 programming period. The key learning