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JESSICA and EIB financing of JESSICA and EIB financing of CitiesCities

Working with the EIB

Katowice, January 11 and 12, 2007

Frank Lee

January 2007

THINK REGIONALLY AND ACT LOCALLYTHINK REGIONALLY AND ACT LOCALLY

Towards More Resilient CitiesTowards More Resilient Cities

Brian FieldUrban Planning and Development Adviser

European Investment Bank

The Urban Dimension of Cohesion Policy

European Week of Cities and Regions Open Days

Brussels, 11th October 2011

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PLANNING, SUSTAINABILITYPLANNING, SUSTAINABILITY&&

THE URBAN AGENDATHE URBAN AGENDA

Sustainable development has finally moved from the periphery to the mainstream of the urban agenda.

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THE LEIPZIG CHARTERTHE LEIPZIG CHARTER

SUSTAINABLE

COMMUNITIES

Innovation and education policies

High quality public spaces

Infrastructure networks and

energy efficiency

Regenerate deprived

neighbourhoods

Improve physical

environment

Training for children and the

young

Local economy and labour market

policies

Efficient affordable transport

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INVESTMENT IN INVESTMENT IN SUSTAINABLE COMMUNITIESSUSTAINABLE COMMUNITIES

SUSTAINABLE

COMMUNITIES

INFRASTRUCTURE KNOWLEDGE

ENVIRONMENT

REAL ESTATE

LOGISTICS

TANGIBLE INTANGIBLE

DEMOGRAPHIC

SOCIAL

SKILLS

CITY ASSETS

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OVERCOMING FRAGMENTATION OVERCOMING FRAGMENTATION INTEGRATED PLANNINGINTEGRATED PLANNING

An integrated approach to urban development for the effective improvement in the socio-economic conditions of regions requires the identification of cooperating elements of infrastructure investments with the evolution of social capital that should be developed simultaneously in the areas where applied.

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THE BANK RESPONSETHE BANK RESPONSE

An Implicit Action Plan for Cities 2007-2013

Traditional Lending

Structured Finance

Financial Engineering

Technical Assistance

Networking/Partnering

Targeted investmentin more sustainableurban regeneration

and renewal

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Technical Assistance.

Provide technical support to prepare bankable projects, e.g. JASPERS, ELENA etc.

THE FOUR KEY ELEMENTSTHE FOUR KEY ELEMENTS

Traditional Lending.

Increase lending by encouraging greater use of framework and global loans, as well as project-specific investment loans.

Financial Engineering.

Support the use of new financial instruments such as JESSICA and JEREMIE.

Structured Finance.

Taking more risk by extending the scope of the Bank’s Structured Finance Facility (SFF) to include urban investments.

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A project assessment with many facets

SUSTAINABLE PROJECTSSUSTAINABLE PROJECTS The EIB’s «  The EIB’s « three pillarsthree pillars » »

Eligibility = consistency with

EU priorities

Technical quality and economic

soundness

Financial viability and adequate

security

Complies with EU procurement and environmental and social protocols

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FLEXIBILITY & RESILIENCEFLEXIBILITY & RESILIENCE

The sustainable cities paradigm increasingly includes much stronger emphasis on the concept of resilience, i.e. the ability of cities and city systems to respond and/or rebound quickly from global shock and other unforeseen eventualities.

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PRINCIPLES FOR RESILIENT PRINCIPLES FOR RESILIENT CITIESCITIES

Resilient cities are prepared, i.e. they are able to attract long-term investors who can continue to build value over the long-term as they adjust and succeed in changing environments.

The debate has focussed on the twin track of “continuity” and “adaptability”, where continuity relates to a city’s ability to avoid and manage major shocks while adaptability constitutes a city’s ability to respond to major trends while spreading and managing their risks.

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COMMUNITIES, GOVERNANCECOMMUNITIES, GOVERNANCE&&

LEADERSHIPLEADERSHIP

Truly sustainable and resilient cities and communities will be those where informed political leadership and municipal governance are accompanied by a balanced approach to environmental, economic and social well-being.

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THE COMPETITIVE CITY CIRCUSTHE COMPETITIVE CITY CIRCUS

Two themes appear to permeate the resilience debate and have obviously informed policy-makers, i.e. an economic imperative for cities to compete in what is fast becoming something of a circus, and the perceived importance of big/mega projects often designed by signature architects (so-called global destination projects).

City leaders need to avoid an ill-considered rush to compete and, when eventually doing so, should focus on their comparative advantage and give priority to investment in projects that differentiate their offer from that of their competitors.

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COMMUNITIESCOMMUNITIES MATTERMATTER

The sustainability and resilience debate is not just about economic advantage, even when tempered with a slick gloss of eco-branding, it’s about communities. It’s about changing the way people and societies behave. The sustainability debate ignores the societal content at its peril.

Sustainable cities need sustainable communities, and to engage communities in the sustainability agenda, people need to feel involved and have a genuine say in decision-making. Astute leaders will ensure that they do so.

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THINK REGIONALLY AND ACT THINK REGIONALLY AND ACT LOCALLYLOCALLY

Resilience will be founded, as it always has been in the past, upon strength and quality of political leadership, and the collective, mutually supportive response of urban communities and neighbourhoods, and this will flow directly from new and emerging governance structures which genuinely involve everybody in setting the agenda…(after Charlie Hughes of Smart Futures, The Future Cities Forum, December 2010).

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EIB CONTACT INFORMATIONEIB CONTACT INFORMATION

Brian G. FieldUrban Planning and Development Adviser

European Investment Bank100 boulevard Konrad Adenauer

L-2950 LuxembourgTel: +352 4379 83063Fax: + 352 4379 62599Email: b.field@eib.org