Brussels, 27/11/2008 (Agence Europe) - In Lisbon on 14 November, the European Investment Bank (EIB) and Portugal signed an agreement to increase co-operation in financing sustainable urban development. The agreement is part of the JESSICA (Joint European Support for Sustainable Investment in City Areas) initiative set up by the European Commission and the EIB, in collaboration with the Council of Europe Development Bank.
The Agreement of Principles outlines ways in which: - there can be financial and non-financial cooperation to promote joint financing of projects and programmes; - further coordination and exchange of information can be enhanced to ensure complementarity, cohesion and coordination and promote joint activities; - joint technical work and policy dialogue can be promoted and the link between analysis, policy and investment initiatives enhanced at all levels. The agreement with Portugal follows the agreements signed by the EIB in October 2008 with the regions of Wielkopolska in Poland, and Galicia in Spain.
The JESSICA initiative focuses on the promotion of sustainable investment and growth in urban areas. It enables EU member states and their regions to use some of their EU Structural Fund allocations, to make repayable investments in projects which form part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds and, if required, Holding Funds. In Portugal, the contribution from the European Regional Development Fund (ERDF) is expected to be €100 million. (O.L./transl.rt)