European Regional Development Funding 2014-2020 Breakfast ...€¦ · Overview of the GM European...

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

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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


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


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.


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’.


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.


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


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.


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


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


• 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.


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.


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 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


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


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


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


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