www.pwc.lu
A Technical Assistance
Platform to facilitate the use
of Financial Instruments
MS Experts’ Group Meeting
23rd July 2013
Overview of the presentation
• Objectives of the assignment
• Project outline
• Phase 1-bis survey results –preliminary findings
• Key points
• Work plan
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 2
Objectives of the assignment
• Provide a complete intervention logic for the Technical Assistance (TA) Platform and
develop the rationale for prioritising and programming activities
• Describe different options for the creation and dissemination of knowledge base and
capacity building related to Financial Instruments. Perform an applicability
assessment taking into account potential resources, timing and technical possibilities
constraints
• Build a comprehensive inventory of Horizontal Technical Assistance (HA) activities for
the first 3 years of activity of the TA Platform on the basis of TA needs, prioritisation
principles and the exploitation of delivery synergies
• Provide recommendations for defining the processes for different initiation paths of
Multi-Regional Assistance (MRA)
• Recommend a set of monitoring indicators that follow the progress and
implementation of services delivered by the TA Platform
• Contribute to the preparation of a kick-off event for the formal announcement of the
TA Platform
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 3
Project outline
• This assignment is organised around 6 tasks where we will:
• Task 1 – develop the TA Platform intervention logic building on
Phase 1 study and past experience; develop framework for prioritising
and programming TA Platform activities (drawing from Workshop 1)
• Task 2 – identify different options for the preparation and
dissemination of knowledge and capacity building for Financial
Instruments (SWOT analysis and applicability assessment of options)
• Task 3 – build on the options analysis in previous tasks and develop a
list of proposed Horizontal Activities for the first 3 years of the TA
Platform (incorporate findings on delivery synergies from Workshop 2)
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 4
Project outline
• Task 4 – provide recommendations on how calls for Multi-Regional
Assistance activities can be generated and streamlined
• Task 5 – provide a set of indicators to monitor the progress and
implementation of the TA Platform and its delivery of Horizontal
Assistance and Multi-Regional Assistance
• Task 6 – support the preparation of the TA Platform kick-off event
to be held in the last quarter of 2013 (presentation, brochures etc.)
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 5
Objective tree
Operational
Objectives
Intermediate
Objectives
(OO1) To provide X no. of
horizontal technical expert
services and guidance to all
Member States and their
regions on all types of
Financial Instruments
(OO2) To provide X no. of
advisory services and
knowledge exchange
activities, in response to
requests by ESI
stakeholders from multiple
regions sharing common
development objectives
(IO1) To generate a wider
awareness of FIs and
available technical
assistance
Global
Objectives
(IO2) To trigger a larger
adoption of Fis and a larger
pool of projects financed
(GO1) To maximise the
resource-efficient take-up of
ESI Funds within the 20142020
(IO3) To achieve a larger
share of Repayable Finance
in the programming period
2014-2020
(GO2) To promote additional
private-sector project
investment
(GO3) To contribute to the
achievement of Europe 2020
objectives of smart,
sustainable and inclusive
growth
(OO3) To ensure a wide
geographical and thematic
objective representation
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A Technical Assistance Platform to facilitate the use of Financial Instruments
23 July 2013
Slide 6
Intervention logic
Human resources
Financial resources
Contribution from EU budget
EC services will implement the TA
Platform
Need management of Technical
Assistance and capacity building and
organisation of delivering activities
Horizontal Assistance (HA) activities
provided by the TA Platform at the
initiative of the EC
Faster increase in the
number of Financial
Instruments established
and the number of projects
benefitting from non grant
finance assistance
ESI funds are deployed
in a more resourceefficient way
ACTIVITY
Multi-Regional Assistance (MRA)
activities provided by the TA
Platform at the request of regions or
institutions
Financial Instruments
are geographically
distributed and reach
out to all target sectors
INPUTS
Larger share of ESI Funds
disboursed by way of loans,
guarantees, equity and
other risk-bearing
instruments
OUTPUTS
OUTCOMES
Additional financial
resources are mobilised
IMPACTS
Contribution to the achievement of Europe 2020 objectives
PwC
A Technical Assistance Platform to facilitate the use of Financial Instruments
23 July 2013
Slide 7
Illustrative output
A catalogue of proposed Horizontal TA activities
• We will develop a list of proposed HA activities for the first 3 years of
the TA Platform, based on the needs and the intervention logic
detailed in the Task 1, and the most suitable TA and capacity building
activities listed in Task 2.2
Horizontal Technical Assistance Activity 1
• HA activities factsheet template
for all proposed activities
Detailed description
Objective
Target audience
Deliverable/Output
SWOT Summary
Delivery options
Strengths
Weaknesses
Opportunities
Threats
Resource
requirement
Preparatory
time
Proposed
time for
delivery
Existing
knowledge
Option 1
Option 2
Fund specific relevance
PwC
A Technical Assistance Platform to facilitate the use of Financial Instruments
Thematic objective
relevance
Life cycle relevance
23 July 2013
Slide 8
Phase 1-bis study - survey results
What the survey tells us:
• The Thematic Objectives holding the strongest interest for the use of FIs over the
2014-2020 programming period are:
o
TO1: Strengthening research, technological development and innovation
o
TO3: Enhancing the competitiveness of SMEs, agriculture sector (EAFRD)
and fisheries (EMFF)
o
TO4: Supporting the shift towards a low-carbon economy in all sectors
• 60% of respondents envisage using FIs funded from the ERDF over the next
programming period from 2014-2020; the next most popular ESI Fund was the
EAFRD with 10%
• Majority of respondents indicated a demand for Technical Assistance (TA) to
facilitate the use of FIs in the 2014-2020 programming period
• Demand for TA over the FI life cycle is highest during the Set-Up Phase, followed
by the Implementation Phase, however this may evolve over time
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 9
Phase 1-bis study - survey results (cont.)
What the survey tells us:
• Most urgent TA needs by topic: legal advice, State aid rules & EU regulations,
selection of Fund of Funds/FI Managers, project identification & selection,
guidelines for conducting ex-ante assessments
• Of those wanting TA, higher interest in Horizontal Assistance (69%) than MultiRegional Assistance (31%)
• Respondents who had first-hand experience with the JESSICA/JEREMIE
networking platforms also indicated an overall positive experience with these TA
products
• Preference for collaborative and interactive approaches to knowledge
dissemination and the exchange of good practice case studies
How we will use the results:
• The lessons learned and data will help provide an understanding of where there
are the most acute needs for TA, and what form the activities of the TA Platform
should take to best respond to these identified needs
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 10
Interest in using FIs to support the 11 Thematic
Objectives
Thematic
Objective 1
Strengthening research, technological development and
innovation (RTDI)
Thematic
Objective 2
Enhancing access to, and use and quality
information and communication technologies (ICT)
Thematic
Objective 3
Thematic
Objective 4
Thematic
Objective 5
Thematic
Objective 6
Enhancing competitiveness of SMEs, EAFRD and
EMFF
Supporting the shift to a low- carbon economy in all
sectors
Promoting climate change adaptation, risk prevention
and management
Protecting the environment and promoting resource
efficiency
Thematic
Objective 7
Promoting sustainable transport and
bottlenecks in key network infrastructures
Thematic
Objective 8
Thematic
Objective 9
Thematic
Objective 10
Thematic
Objective 11
of
removing
70%
60%
50%
% of Total
Respondent 40%
s who
Selected
Each
30%
Thematic
Objective
20%
Promoting employment and supporting labour mobility
Promoting social inclusion and combating poverty
10%
Investing in education, skills and lifelong learning
0%
Enhancing institutional capacity and an efficient public
administration
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
1
2
3
4
5
6
7
8
9
10
11
Thematic Objectives by number
23 July 2013
Slide 11
Indicative Financial Products to be used via FIs
for 11 Thematic Objectives
11) Enhancing institutional capacity and an efficient public…
10) Investing in education, skills and lifelong learning
9) Promoting social inclusion and combating poverty
8) Promoting employment and supporting labour mobility
7) Promoting sustainable transport and removing bottlenecks in…
6) Protecting the environment and promoting resource efficiency
5) Promoting climate change adaptation, risk prevention and…
4) Supporting the shift to a low- carbon economy in all sectors
3) Enhancing competitiveness of SMEs, EAFRD and EMFF
2) Enhancing access to, and use and quality of information and…
1) Strengthening research, technological development and…
0%
Loans/
Interest Rate Subsidies
Equity
10%
20%
Guarantees/Fee Subsidies
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
30%
40%
50%
60%
Combination of Grants/FIs
70%
80%
90%
100%
Others
23 July 2013
Slide 12
Horizontal Assistance vs. Multi-Region Assistance
for TAP
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
Design
From Horizontal Assistance
Set Up
Implementation
From Multi-region Assistance
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
Winding Up
Do not see a need or Not Applicable
23 July 2013
Slide 13
Design Phase: Task by Task
Guidance on specific issues related to the Thematic Objectives
Guidance on non State Aid related Regulatory issues
Guidance on State Aid related Regulatory issues
Advice on potential co-financing/co-investment sources
Advice on FI governance structures
0%
From Horizontal Assistance
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
From Multi Region Assistance
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 14
Set-Up Phase: Task by Task
Advice on negotiation with Fund Managers of FIs
Other Legal Advice
Guidance on non State Aid related Regulatory issues
Guidance on State Aid related Regulatory issues
Guidance on contractual agreements with Fund Managers of FIs
Guidance on appropriate indicators for measurement and…
Advice on options for FI management costs and fees
Advice on FI financial products
Assistance with FI business plans/investment strategies (for the…
Guidance on the selection of Fund Managers of FIs
Guidance on action plans for FI implementation
0%
From Horizontal Assistance
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
From Multi Region Assistance
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 15
Implementation Phase: Task by Task
Guidance on Fund Marketing and Promotion of FIs
Guidance for Monitoring, Auditing, and Reporting for FIs
Guidance on the detection and settlement of irregularities
Financial Management guidance (treasury, disbursements,
repayments, follow-on investments)
Advice on financing agreements with Final Recipients
Assessment guidelines on scoring project applications
Guidance on business plan and application support for project
types
Guidance on legal agreements with Fund Managers of FIs
Guidance on FI investment process
0%
From Horizontal Assistance
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
From Multi Region Assistance
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 16
Winding Up Phase: Task by Task
Advice on how to handle Defaults/Delayed Repayments
Guidance on legacy requirements
Advice on Exit Strategies
0%
10%
From Horizontal Assistance
20%
30%
40%
50%
60%
70%
80%
90%
100%
From Multi Region Assistance
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 17
Highlighted key points
• In order to facilitate knowledge exchange and communication during this
study, we have proposed to hold several participatory workshops with EC
and other Cohesion Policy stakeholders
• DG REGIO has recommended potentially involving a select number of
MS/MAs (4-5) in a later workshop to speak about their past experiences with
FIs in order to test whether the proposed TA platform activities will address
relevant TA needs;
• Ideally the participants will represent a good cross-section of those using FIs
(e.g. drawing from different Funds, centralised/decentralised governance
arrangements)
• The assignment takes place in the context of on-going MFF negotiations and
the publication of Delegated and Implementing Acts (e.g. relevant to Off the
Shelf instruments) - therefore requires an appropriate degree of flexibility
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 18
Key questions
Do you have any comments about the results of the phase 1-bis survey
regarding future TA needs?
Are there any further elements to add regarding the key needs for the
TA Platform to address?
At what stage in the ex-ante assessment process are you, and how are
you approaching these?
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 19
Work schedule
Month 2
Month 1
1
2
3
4
5
6
7
Month 3
8
9
10
Month 4
11
12
13
14
15
Month 6
Month 5
16
17
18
19
20
21

22
23
Month 7
24
25

Draft
Interim
Report
26
27
28

Draft
Final
Report
Final
Report
Event
Preparation
Workshop 1
19 July
Kick-off
Meeting
Workshop 2
16 September
Workshop 3?
TBC if required
Interim
Meeting
Final
Meeting
Project management
Please note: Additional ad-hoc workshops/meetings TBC if required
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
5th July 2013
20
Immediate next steps
• Development and validation of TAP Objective Tree and Intervention Logic
(August/September 2013)
Your initial feedback on perceived TA needs is important!
• Should you have any initial observations or recommendations on specific
MS/MA needs or TA platform activities that would better enable MS/MAs in
deploying FIs, please provide your feedback to the organisers of this meeting.
CONTACT: [email protected]
A Technical Assistance Platform to facilitate the use of Financial Instruments
PwC
23 July 2013
Slide 21
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