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The urban development funds in t

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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: pertti.hermannek@ilb.de


  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
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Thank you very much for your attention!