European Regional Development Funding 2014-2020
Breakfast Briefing
3rd December 2014 – 9-10am
Simon Nokes – Deputy Chief Executive, New Economy
Mark Duncan, Strategic Lead, Manchester City Council
Overview of session
1
3
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.
Northwest European Regional Development Fund Programme –
2007-13
Overview of the 2007-2013 programme and key ERDF investments in
Greater Manchester since April 2012
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:
Creation of 26,700 new jobs
Creation of £1.17bn additional GVA
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
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
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.
Northwest Evergreen Fund
– 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 re-
used
– The scheme will deliver in the region of 910 jobs
Borrower Allied London
Nature of
loan
Senior Debt
Size of Loan £10,000,000 Evergreen
and £5,000,000 Growing
Places
Location Spinningfields,
Manchester
NORTH WEST EVERGREEN FUND - CASE STUDY
•The Cotton Building (iplus), Manchester
NORTH WEST EVERGREEN FUND - CASE STUDY
Logistics North (Cutacre), 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
Borrower Harworth Estates
Nature of loan Infrastructure, senior debt
Size of Loan £7,000,000 Evergreen
£3,000,000 Growing Places
Location Junction 4 of M61, Bolton
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
Science & Innovation (£52m ERDF)
Science tech assets
Tech business base
Science Tech Skills
Competitive Business (£70m ERDF)
Start up & Growth
Business Finance
Internalisation
Leadership & Management
Low Carbon (£50m ERDF)
LC investment vehicle
LC infrastructure e.g. Heat Networks
LC transport
Low Carbon skills
Whole building efficiency
Skills, Employment, Inclusion (£137m
ESF)
Support for young people / long term
unemployed
Employment support
Employer led workforce development
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
Current Planned Calls for Projects
(further calls to be developed) Competitive Places (£22m ERDF)
Financial Instrument
Grant ring fenced to FI
Science & Innovation (£52m ERDF)
1. Asset base science infrastructure
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
Low Carbon (£50m ERDF)
Low Carbon Financial Instrument
Grant ring fenced to FI
EAFRD (£460k)
1. Tourism and Business
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
Managing
Authority
GM LEP -
ESIF
Committee
Publish Call
Prepare and submit
and Application
(Two Stage)
Review and assess
technical appraisal
against gateway and
core criteria
Assess against GM
ESIF, wider portfolio of
investments and VFM
Funding
Agreement issued
Develop Call
Specification Endorse Project Selection
Group discussion
• Questions to be taken on the 2014-20 ESIF Programme.
Thank you
GM 2014-20 European Structural & Investment Funds