Brussels, 12/07/2011 (Agence Europe) - The European Investment Bank (EIB) and the Spanish Energy Saving and Diversification Institute (IDAE) concluded a finance agreement at the start of the month to launch a JESSICA holding fund designed to finance energy efficiency and renewable energy projects in an innovative use of EU structural funds.
The agreement lays down the operational mechanisms of the fund, which will be initially endowed with €127.6 million and managed by the EIB. The capital contributions of FIDAE (the Energy Saving and Diversification Investment Fund) will come from the 2007-2013 ERDF Regional Operational Programmes for Andalusia, the Canaries, Castilla y León, Castilla-La Mancha, Ceuta, the Valencia Region, Extremadura, Galicia, Melilla and the Murcia Region, where the investments will be made. Of that amount, €87.8 million will come from the EU's European Regional Development Fund (ERDF).
The available resources will be channelled through urban development funds (UDFs) managed by financial entities that will act as intermediaries selected by competitive tendering once the fund has been launched. The financial products to be deployed will take the form of mainly loans but also venture capital and participating loans.
Energy efficiency, renewable energy and clean transport projects in the construction, industry, transport and energy-related public service infrastructure sectors will be eligible for financing by this facility. The fund's decision-making and governing bodies will include representatives of the above-mentioned Spanish Regions and IDAE. The fund will also be designed to leverage private finance to achieve a total investment target of up to €600 million by the end of December 2015. (O.L./transl.rt)