Platz für Foto The Urban Development Funds in the State of Brandenburg Pertti Hermannek, Brussels, 23. October 2009 Your Speaker Pertti Hermannek Department Corporate Steering Phone: +49 331 660-1605 E-Mail: firstname.lastname@example.org Internal Consultant Business Development and European Affairs Project Manager „Further Development of the Urban Development Funds“ Pertti Hermannek Seite 2 The State of Brandenburg Brandenburg forms together with Berlin the German Capital Region Six millions inhabitants Located between the Western European business locations and the emerging markets in Eastern Europe Berlin-Brandenburg has the highest concentration of R&D institutes in Germany Biggest city in Brandenburg is Potsdam with app. 150.000 people Majority of cities in Brandenburg are smaller than 50.000 inhabitants Seite 3 ILB – Objectives and Tasks The promotional bank of the state of Brandenburg Implementation of the grant programs of the state in the fields of Economy Infrastructure Housing Instruments Grants Loans at favourable interest rates Guarantees Venture and equity capital ILB hat ein zukunftsfähiges Geschäfts Seite 4 Promotional offers for Brandenburg Grant programs from Agency for the ministries of the state of Brandenburg budgetary funds Budgets come from public sources: State of Brandenburg Federal Republic of Germany European Union Promotional programs Loan programs with favourable interest rates from own ressources Refinancing with funds from Kreditanstalt für Wiederaufbau (KfW) Landwirtschaftliche Rentenbank (LR) European Investmentbank (EIB) Council of Europe Bank (CEB) Capital Market Seite 5 ILB is Service Provider for Ministries and Customers Ministries of the state as funds provider Agency for grant programs Advice for elaboration and further development of guidelines for grants, Documentation and reporting InvestitionsBank Advice, assessment of the applications, approval and payment of the grants Administration of grant, check of reports on expenditure Investores as target groupes of the promotional measures Municipalities/State Enterprises Farmers Private People Seite 6 Objectives of the ERDF - Urban Development Funds in Brandenburg Brandenburg seized the suggestion of the JESSICA-Initiative and developed a concept for an urban development funds Three objectives: Establishing a revolving funds for urban development over the end of the running structural funds period stronger consideration of the profitability of projects Mobilisation of public and private capital for urban development Seite 7 ERDF - Urban Development Funds in Brandenburg Within the directive „Sustainable Urban Development“ 15 cities in Brandenburg can be funded Prenzlau Schwedt/Oder Condition for acceptance in the ERDF-program: Neuruppin Wittenberge Elaboration of an integrated urban development Eberswalde concept Oranienburg Brandenburg a.d. Havel Fürstenwalde Frankfurt (Oder) These 15 cities in Brandenburg can also make Potsdam use of the urban development funds. Königs-Wusterhausen Eisenhüttenstadt Cottbus Senftenberg Spremberg Seite 8 ERDF - Urban Development Funds: An Overview Who can get financing? 15 municipalities from the state of Brandenburg (see map) What will be financed? Elimination of deficits in urban planning Improvement of inner city traffic Adaption of social infrastructure Adaption of infrastructure for education City management and -marketing "Urban-Culture" How will be financed? 100% of the investment Interest rate 1 - 1,5% p.a. Instalment credit with a maturity of 10 years No repayment for the first two years possible Seite 9 Basic Model of the ERDF - Urban Development Funds in Brandenburg JESSICA EU-Commission EIB ERDF funding Global Loans State of MIR Program contract ILB Brandenburg for implementation 15 Mio. EUR ERDF funds 5 Mio. EUR Urban Development Funds Brandenburg Loans Loans Urban Development Projects Seite 10 Possible Projects for the Urban Devlopment Funds Strengthening local economy Centers for local handcraft and creative industries Seite 11 Possible Projects for the Urban Devlopment Funds Development of inner city areas Speicherstadt Potsdam: inner city brownfield on the waterfront, area for housing, commercial uses and science and research Science Park Golm: development of new business areas in a science park (pre- and bridgeover financing) MPI Business Area Fraunhofer GO:IN Station Golm University Seite 12 Possible Projects for the Urban Devlopment Funds Strengthening inner cities Development of train stations for retail trade, gastronomy and train affine services (bike rental stations, tourist information etc.) Development of space for retail trade locations in historic centers Seite 13 Possible Projects for the Urban Devlopment Funds Devopment of public areas as an initial investment to mobilize private partners Gardencity Drewitz in Potsdam Upgrading of green space, social infrastructure Energetic rehabilitation New building of flats Objective: sustain socially accepted rents Seite 14 Outlook ILB and Ministry for Infrastructure participate in a project co-financed by the Federal Ministry for Housing and Urban Development Objectives: further development of the Urban Development Funds Integration of private investors under consideration of the specific situation of the small and medium sized cities in Brandenburg Subject matter for analysis will be: Objectives of a future funds Market analysis decision criteria financial and legal conditions implementation of a funds Seite 15 Platz für Foto Thank you very much for your attention!