European Regional Development Funding 2014-2020 Breakfast Briefing 3 rd December 2014 9-10am Simon Nokes Deputy Chief Executive, New Economy Mark Duncan, Strategic Lead, Manchester City Council
Overview of session 1 Northwest European Regional Development Fund Programme 2007-13 Overview of the 2007-2013 programme and key ERDF investments in Greater Manchester since April 2012 2 European Regional Development Funding 2014-2020 Overview of the GM European and Structural Funds (ESIF) 2014-20 Programme including progress to date and anticipated timescales. 3 Group discussion Questions to be taken on the 2014-20 ESIF Programme.
GM s LEP Area Bury
Northwest European Regional Development Fund Programme 2007-13 Over the Period 2007-13 the Northwest will have received a total of c 630m of European Regional Development Funding (ERDF). The vision was for the ERDF Programme to support, A dynamic, sustainable international economy which competes on the basis of knowledge, advanced technology and an excellent quality of life for all. Main targets of the ERDF Programme: The Programme has 5 Priorities. Priority 1 Stimulating Enterprise and Supporting Growth in Target Sectors and Markets. Priority 2 Exploiting Innovation and Knowledge Priority 3 Creating the Conditions for Sustainable Growth Priority 4 Growing and Accessing Employment Creation of 26,700 new jobs Creation of 1.17bn additional GVA Priority 5 Technical Assistance
Northwest European Regional Development Fund Programme 2007-13 Quick recap - How much ERDF has been available for investment In this programme? The 630m ERDF for the Northwest ERDF Programme was split between Merseyside ( 261m) and the Rest of the North West ( 380m) Rest of the North West consists of the Local Enterprise Partnership areas of, Greater Manchester Lancashire Cumbria Cheshire and Warrington.
Northwest European Regional Development Fund Programme 2007-13 How much has Greater Manchester secured from ERDF? Of the 380m available in the Rest of the North West the amount secured for GM Only projects (ie excluding projects led by GM but delivered across the Northwest and projects funded through Financial Instruments) is 120m or 32%. Including funding in Evergreen to GM projects this investment increases to 158.5m or 42% of the 380m for the Rest of North West.
Northwest European Regional Development Fund Programme 2007-13 What progress and changes have been made since April 2012? Transfer of the managing authority function from the NWDA to CLG Growth Delivery Teams. Re-quantification of the remaining balance of the NWOP programme to determine project calls including input from Local Enterprise Partnerships (LEPs). Agreement from EC for NWOP in the RONW to support clean urban transport. Role of LEPs to identify, prioritise and endorse ERDF project applications. Use of ERDF for investment using Financial Instruments like JESSICA (North West Evergreen Fund) and JEREMIE (North West Fund) Establishment of a new GM ERDF Technical Assistance team based at New Economy and AGMA/GMCA.
Northwest European Regional Development Fund Programme 2007-13 Project Calls supported April 2012: P1 - Manufacturing Advisory Service April 12 P1 - Business Growth Hubs May 12 P1 & P4 - Business Incubators and Managed Workspace Oct 12 P3.2 Clean & Sustainable Urban Transport and Investment in Key Strategic Sites Jul 12 P1.3 - Increasing SME s Sustainable Consumption & Production and activity in the Low Carbon Environmental Goods and Services Sector Nov 12 Speculative Call June 13
Northwest European Regional Development Fund Programme 2007-13 Major Project Graphene Institute The project is to construction and fit out of the National Graphene Institute (NGI). Europe s leading Graphene research/commercialisation centre at the University of Manchester. The NGI will provide clean room and laboratory facilities across four floors in a new building within the University campus. It will not provide rentable space to businesses. Construction timescales: 1st Jan 2013 to 31st March 2015 The total cost is 61m:- 38m from the Engineering & Physical Science Research Council (EPSRC), national government 23m ERDF This was an EC major project as total project costs were over 50million. This meant that approval was required from HM Government and the EC.
Northwest European Regional Development Fund Programme 2007-13 Transport Project - Second City Crossing Enhancement Scheme The project delivers enhancements to the Metrolink network, improving the system s capacity, flexibility and reliability. Investment will improve the existing Deansgate-Castlefield stop and its pedestrian access and accelerate delivery of the Exchange Square stop. All works are additional to the core Second City Crossing programme. Practical completion June 15. ERDF 10.8m and Public match 10.8m
Northwest European Regional Development Fund Programme 2007-13 Northwest Evergreen Fund The North West Evergreen Fund provides debt funding for commercial property and regeneration projects in the North West of England at highly competitive commercial rates. Funding is provided by the HCA and ERDF. Targets development projects in Greater Manchester, Cumbria, Cheshire and Lancashire. JESSICA Funding requires that projects must be: Employment creating Offices & industrial, possibly mixed use Meet the requirements of cross-cutting themes Invested alongside other funding sources Once initial round of funding has been invested, it can be recycled and reused for further projects.
NORTH WEST EVERGREEN FUND - CASE STUDY The Cotton Building (iplus), Manchester Borrower Nature of loan Allied London Senior Debt Speculative Development 15m loan from Evergreen and Growing Places Total development costs of 40m Mezzanine funding by Pramerica Due to commence March 2014 and complete March 2016 Match funding - 10million Private Sector Investment 13,660 sq/m commercial floorspace BREEAM Excellent 22,000 sq ft of existing brownfield land will be reused The scheme will deliver in the region of 910 jobs Size of Loan 10,000,000 Evergreen and 5,000,000 Growing Places Location Spinningfields, Manchester
NORTH WEST EVERGREEN FUND - CASE STUDY Logistics North (Cutacre), Bolton Borrower Nature of loan Size of Loan Location Harworth Estates Infrastructure, senior debt 7,000,000 Evergreen 3,000,000 Growing Places Junction 4 of M61, Bolton Joint Evergreen and Growing Places loan Match funding provided by Growing Places Fund Manufacturing & Distribution scheme with associated office, hotel, convenience store, café / restaurant uses occupying c.100ha of the site a significant North West industrial scheme allied to the delivery of a c. 200ha Country Park The overall scheme can deliver up to 400,000sqm of employment floor space in large format buildings and has the potential to deliver over 7,000 new jobs and 335m in GVA to Greater Manchester (Source: Ekosgen) Investment has funded front infrastructure in order to unlock the value of the scheme and to make the whole site immediately available; these works are ongoing and will be completed in the Spring of 2015 Aldi is on-site building a 600,000 sq ft distribution centre that will act as the company s North West HQ and distribution hub this will be complete by the end of 2015 ready for occupation in 2016 MBDA is on-site building a 100,000 sq ft facility following receipt of planning permission this will be complete by the end of 2015 ready for occupation in 2016
GM 2014-20 European Structural & Investment Funds GM ERDF funded Technical Assistance team key achievements Helped to secure NGI Major Project approval with the University of Manchester. Worked with partners to develop the GM ERDF project pipeline in alignment with colleagues in GM Core Investment Team. Secured EC approval for Clean Urban Transport Projects outside Merseyside. Communicated key messages and opportunities associated with NWOP ERDF programme across GM. Facilitated GM LEP endorsement process for new and extended ERDF projects. Liaised closely with DCLG and GM Stakeholders to support the wider programme to meet it s targets and GM to maximise the amount of ERDF secured. Developed the GM 2014-2020 Investment Plan
GM 2014-20 European Structural & Investment Funds European Structural and Investment Funds 2014-2020 Overview of the GM European and Structural Funds (ESIF) 2014-20 Programme including progress to date and anticipated timescales.
GM 2014-20 European Structural & Investment Funds National Update & Key timings The GM Investment Plan was submitted to Government in January 2014. At the national level the English Operational Programme (OP) and UK Partnership Agreement (PA) is being agreed with the European Commission and was originally anticipated by the end of 2014. The UK Partnership Agreement has been signed off by the European Commission, but it is looking increasingly likely that the Operational Programmes (OPs) for ERDF and ESF will not be signed off until June 2015 at the earliest. This is a later start date than anticipated and would mean the prospect of a real gap between the 2007 and 2014 programmes. The potential for an informal agreement of the OP in February, with formal adoption in June would hopefully allow GM and DCLG to agree projects, at risk, from February onwards, with contracts formally issued after formal adoption of the OPs.
GM 2014-20 European Structural & Investment Funds Greater Manchester Update Greater Manchester is continuing to develop our programme and but the delays do have implications for our overall strategy of getting an early start on spend in the programme, our ability to achieve N+3 targets and early achievement of outputs. The programme would not hit the ground running. Governance Structures have been established for the Greater Manchester LEP to deliver the ESIF 2014-20 Programme, Managing Authority Department of Communities and Local Government Greater Manchester Local Management Committee
GM 2014-20 European Structural & Investment Funds GM EU Structural and Investment Funds 2014 2020 Types of investment Competitive Places ( 22m ERDF) Sites / premises Critical infrastructure Competitive Business ( 70m ERDF) Start up & Growth Business Finance Internalisation Leadership & Management Skills, Employment, Inclusion ( 137m ESF) Support for young people / long term unemployed Employment support Employer led workforce development Science & Innovation ( 52m ERDF) Science tech assets Tech business base Science Tech Skills Low Carbon ( 50m ERDF) LC investment vehicle LC infrastructure e.g. Heat Networks LC transport Low Carbon skills Whole building efficiency Reform ( 24m ESF) Employment & skills linked to public sector reform Support those affected by welfare reform Support those with health related matters Tacking other barriers to work / low skills
GM 2014-20 European Structural & Investment Funds Competitive Places ( 22m ERDF) Financial Instrument Grant ring fenced to FI Competitive Business ( 70m ERDF) 1. Inward Investment and Trade 2. Sector Programmes / Manufacturing Advisory Service / Low Carbon Support 3. Growth Hub & Services 4. Start Up Support 5. Access to Finance 6. Innovation 1. Tourism and Business Current Planned Calls for Projects (further calls to be developed) EAFRD ( 460k) Science & Innovation ( 52m ERDF) 1. Asset base science infrastructure Low Carbon ( 50m ERDF) Low Carbon Financial Instrument Grant ring fenced to FI
GM 2014-20 European Structural & Investment Funds Planned Lots Skills, Employment, Inclusion ( 161m ESF) A1. Early intervention progs for 15-18 yrs olds (NEET) A2. High quality information, advice and guidance and career provision for young people (15+) A3. GM young residents progress into employment A4. Ensure the supply and demand meet future requirements 19-24 yr olds B1. GM residents progress into employment B2. Innovative to support marginalised groups to help bring them towards economic activity B3. Working Well extension C1. Skills provision responsive to the needs of the local economy and employers C2. Support for providers to better meet the needs of residents and employers C3. Skills investment and provider staff development to increase engagement with business and wider community C4. Develop recruitment and responsible practices to support disadvantaged groups C5. Activities to start and grow a business D1. Provision to up-skill the existing workforce D2. Increase access to advanced (higher level) skills for the most disadvantaged D3. Provide skills support at all level jobs for GM priority and growth sectors D4. Skills provision relating to removing the barriers some people face when entering employment E1. Social enterprise to adapt to the needs of GM E2. Develop the capacity of community and voluntary sector
GM 2014-20 European Structural & Investment Funds Applicant Prepare and submit and Application (Two Stage) Managing Authority Publish Call Review and assess technical appraisal against gateway and core criteria Funding Agreement issued GM LEP - ESIF Committee Develop Call Specification Assess against GM ESIF, wider portfolio of investments and VFM Endorse Project Selection
GM 2014-20 European Structural & Investment Funds Group discussion Questions to be taken on the 2014-20 ESIF Programme. Thank you