Brussels, 07/10/2008 (Agence Europe) - On Friday 3 October, the European Investment Bank (EIB) and the Regional Government (Xunta) of Galicia signed a memorandum of understanding establishing the terms of cooperation between the two institutions for implementing the JESSICA (Joint European Support for Sustainable Investment in City Areas) programme in Galicia.
JESSICA is a joint European Commission and EIB initiative, set up in cooperation with the Council of Europe Development Bank, and is designed to foster investment in urban areas, speed up urban regeneration and improve European cities. To be eligible for financing, projects have to form part of integrated urban development programmes that ensure their consistency and environmental quality. The JESSICA mechanism makes it possible to channel money from the EU structural funds into projects that are attractive to private enterprise but need public financial support. Once repaid, the funds, along with the return on the investment, can be re-used to finance further urban projects. The implementation of JESSICA, as an instrument of financial cooperation, is provided for in Galicia's ERDF Operational Programme (detailed strategy agreed between the member state and the Commission for using structural funds) for the period 2007-2013.
In the last five years, the EIB has lent nearly €30 billion for urban transport and urban regeneration projects in various EU member states, in the process gaining broad experience of preparing and financing such projects. If the promoters request it, the Bank will examine the possibility of contributing its own resources to projects receiving JESSICA financing. (O.L./transl.rt)