subject northwest urban investment fund selection of urban ...• annex 3 -“technical...
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Call for Expression of Interest:
Ref.: IR - 887
Subject : Northwest Urban Investment Fund
Selection of Urban Development Funds
The European Investment Bank (“EIB”) is launching a Call for Expressions of Interest (“EoI”) with the aim of selecting two Urban Development Fund(s) (“UDF(s)”) to receive resources from the North West Urban Investment Fund (“NWUIF”) under the Joint European Support for Sustainable Investment in Inner City Areas (JESSICA) initiative for the Northwest region of England (the region is defined in the Northwest’s European Regional Development Fund Operational Programme (“NWOP”), which can be found at www.erdfnw.co.uk/resources/northwest-operational-programme).
The UDFs will facilitate the disbursement of EU Structural Funds in the Northwest by making repayable investments in public-private partnerships or other urban regeneration projects included in Integrated Plans for Sustainable Urban Development (“Urban Projects”). One UDF will cover the Merseyside sub-regional area, as defined by the NWOP, the other will focus on the remaining area of the Northwest.
The selection of the UDFs will proceed in two stages as described below. If you wish to participate in this Call for Expressions of Interest, please forward your EoI (prepared in accordance with the instructions in this document) enclosed in two sealed envelopes, the outer envelope bearing instructions not to open the inner envelope, which should be marked:
DO NOT OPEN:
Ref.: IR - 887
Subject: Northwest Urban Investment Fund
Deadline for receipt of expression of interest: 23. 04.2010
and delivered:
(a) either by registered post, to the following address:
EUROPEAN INVESTMENT BANK For the attention of Isabelle Rei Purchasing and Administrative Services Division 98-100 boulevard Konrad Adenauer L-2950 LUXEMBOURG
by midnight on 23 April 2010 at the latest, as evidenced by the postmark,
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(b) or by handing it in (by messenger or courier) at the reception desk of the
EUROPEAN INVESTMENT BANK For the attention of Isabelle Rei Purchasing and Administrative Services Division 98-100 boulevard Konrad Adenauer L-2950 LUXEMBOURG
The EoI (representing the responses to Stage 1 as described below) must be posted or handed in by Friday 23 April 2010 at the latest (up to midnight Luxembourg time in the case of delivery as described in (b) above).
Those applicants who are selected to proceed to Stage 2 will be notified in writing and advised at that time of the submission date for Stage 2 Offers. It is expected at this stage that around six weeks will be allowed for selected applicants to prepare Offers, although this period may be subject to change at EIB’s discretion.
The timetable for this Call for EoI, which may be subject to change, is therefore:
Issue of Call for EoI 31 March 2010
Applicant open session, to be held in Warrington, England 8 April 2010
Deadline for requests for additional information 13 April 2010
Deadline for submission of Stage 1 EoI 23 April 2010
Notification to applicants of outcome of Stage 1 EoI assessment 7 May 2010
Deadline for submission of Stage 2 Offers 18 June 2010
The receipt dated and signed by the employee at the reception desk who receives the EoI (reception desk open 24 hours a day) shall form the evidence of the EoI having been handed in.
Applications will not be accepted if they:
a) are not sent in two sealed envelopes; b) are not sent or delivered by hand to the EIB before the specified deadline (as evidenced by
the postmark or receipt signed and dated by the officer at the reception desk); c) do not conform to the provisions of this Call for Expressions of Interest
Applicants are directed to the important notices below. Unless expressly stated otherwise the terms and expressions used in this document shall have the meanings set out in Appendix C.
The applicants must take account of the following provisions (more detail is provided in Annex 3):
1. The NWUIF is looking to select and enter into Operational Agreements with two UDFs. Applicants can apply for either (but not both) of the following Lots:
a. Lot 1 – Merseyside UDF only
b. Lot 2 – Rest of Northwest UDF only
2. The selection of UDFs will proceed in two stages:
a. Stage 1 (applying the Exclusion and Selection Crite ria): EoIs will first be assessed against the Exclusion Criteria (as outlined in Section X: Evaluation of Expressions of Interest on pages 26 & 27 of Annex 3). EoIs which are not excluded in accordance with the Exclusion Criteria will be assessed on the basis of the Selection Criteria, which are also included in Annex 3.
b. Stage 2 (applying the Award Criteria): any applicant that meets the Selection Criteria will be invited to submit an Offer in the form of a Business Plan. The Offers will be evaluated on the basis of the Award Criteria set out in Appendix A.
3. Information in respect of both Stages 1 and 2 is included in this document. However the first required submission relates solely to Stage 1, the EoI. Applicants wishing to commence work
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on the Offer (in the form of a Business Plan) required under Stage 2 prior to notification of selection will do so entirely at their own risk.
4. Offers must be firm and non-revisable, quoted in UK pounds sterling (GBP) and free of taxes and duties, the EIB being exempt therefrom under the Protocol on the Privileges and Immunities of the European Communities.
5. Each applicant must declare that it has taken note of the conditions of the Call for EoI and the Terms of Reference contained herein and has had the opportunity to gauge the scope and quality of the services required, as well as the possible difficulties.
6. The applicant cannot invoke any error, inaccuracy or omission in its application and/or Offer to call any contract into question or to attempt to have any contract amended.
7. The EIB reserves the right to reject any application that fails to comply with the specifications of this Call for EoI.
8. The EIB reserves the right to reject any applicant:-
(i) guilty of material misrepresentation;
(ii) who contravenes any of the terms of this document;
(iii) undergoing a change in identity, control, financial standing or other factor impacting on the selection and/or evaluation process affecting the applicant.
9. Applications must be drawn up in writing in English (applications in other languages will not be accepted).
10. Applicants must correspond to the specifications item by item.
11. The EIB reserves the right to award contract(s) to one or several applicants of its choice, (subject to the approval of the Investment Board)in accordance with the Award Criteria set out in the specifications, or not to award a contract to any applicant. The EIB may cancel this procurement procedure or any of the lots without notice at any time. Applicants should only participate in the tendering process on the understanding that they would not be entitled to any form of compensation, should the EIB decide to interrupt the procurement procedure of any of the lots or cancel the procurement process before the contract is signed.
12. Participation in this Call for EoI shall be taken as acceptance of all the terms and conditions mentioned in this Call for EoI and the conditions of the specifications.
13. The following documents shall form an integral part of this Call for EoI:
• Annex 1 -“Template for Expression of Interest” • Annex 2 -“Declaration to be made by the applicant” • Annex 3 -“Technical specifications” (Terms of Reference)
14. Any requests for additional information on Stage 1, the EoI, should be addressed in writing by 17:30 (Luxembourg time) on 13th April 2010 at the latest to Isabelle Rei, fax: +352 437 968 167, e-mail: [email protected]. The EIB will reply to requests before the deadline for submission of applications. Please note that the EIB responses to any queries or clarification requests may be circulated to all applicants at the EIB’s discretion.
15. During Stage 2, a series of clarification meetings may be arranged with selected applicants after submission of Offers. The EIB may arrange these meetings in due course with selected applicants following the completion of the Exclusion and Selection process under Stage 1.
16. EoI must be drawn up on paper in duplicate, i.e. one original and one copy, clearly marked as “Original” and “Copy”. One electronic copy should also be submitted on CD or USB stick.
17. Before the assignment begins, the selected applicant must undertake to comply with all current laws and provisions and to obtain all relevant permits required to provide the services described.
18. Applicants will be informed by post of the outcome of their applications.
19. Applicants may be invited to a presentation, if the EIB so decides. Applicants will not be permitted to modify the terms and conditions of their application during their presentation or at any other time after the application has been submitted to the EIB. The EIB reserves the right to seek additional detail from an applicant to clarify any part of an applicant’s submission.
20. Any dispute concerning procurement conducted by the EIB falls under the jurisdiction of the European Court of Justice.
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DISCLAIMER
The EIB (including any employees, officers, NWUIF Investment Board members, advisers and / or contractors of the EIB or the NWDA who contributed to the preparation of this document ) make no representation, warranty or undertaking of any kind in relation to the accuracy or completeness of any Information.
The EIB will not be liable or responsible to any person in relation to any inaccuracy, error, omission or misleading statements contained in the Information. The EIB will not be liable or responsible to any person in relation to any failure to inform any person of inaccuracy, error, omission or misleading statement contained in such Information of which it becomes aware after the date of release of that Information. The EIB shall not be liable to any person for any damages, losses, costs, liabilities or expenses of any kind which it may suffer as a consequence of relying upon such Information.
Any person considering making a decision to enter into contractual relationships with the EIB, NWUIF and/or any other person on the basis of the Information provided to (or otherwise received by) applicants (whether prior to this Call for EoI or at any point during the UDF selection process) in relation to the selection process should make their own investigations and form their own opinion. In particular, the distribution or receipt of this Call for EoI shall not constitute, or be construed as, the giving of investment advice or a recommendation by the EIB of any kind.
Only the express terms of any written contract (as and when it is executed) shall have any contractual effect in connection with the UDF selection process.
All applicants are solely responsible for their costs and expenses incurred in connection with the UDF selection process including the preparation and submission of submissions and participation in all future stages of this process. Under no circumstances will EIB be liable for any costs or expenses borne by applicants or any of its supply chain, partners or advisors in this process.
For the purposes of the selection process, all advisors of EIB are acting exclusively as the advisors to EIB and will not be responsible or owe any duty of care to anyone other than EIB in respect of the selection process.
CONFLICTS
EIB requires all actual or potential conflicts of interest to be resolved to EIB’s satisfaction prior to the delivery of an applicant's submission. Failure to declare such conflicts and/or failure to address such conflicts to the reasonable satisfaction of EIB could result in an applicant being disqualified at the sole discretion of EIB.
CANVASSING AND NON COLLUSION
EIB reserves the right to disqualify (without prejudice to any other civil remedies available to EIB and without prejudice to any criminal liability which such conduct by an applicant or consortium member (as the case maybe) may attract) any applicant or consortium member who, in connection with this document:-
(i) offers any inducement, fee or reward to any member or officer of EIB or any person acting as an adviser for EIB, or a member of the NWUIF Investment Board, or any employee or officer of the NWDA in connection with this Call for EoI;
(ii) contacts any of the NWUIF Investment Board, employee or officer of EIB or the NWDA about any aspect of this document in a manner not permitted by this document;
(iii) fixes or adjusts the amount of his offer or submission by or in accordance with any agreement or arrangement with any other applicant or consortium member or supply chain member of any other applicant (other than its own consortium members or supply chain);
(iv) enters into any agreement or arrangement with any other applicant or potential applicant or consortium member of any other applicant or potential applicant to the effect that it shall refrain from making a submission or as to the amount of any submission;
(v) causes or induces any person to enter such agreement as is mentioned above or to inform the applicant or a consortium member of the applicant of the amount or approximate amount of any rival submission;
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(vi) canvasses any person connected in connection with this document who is not one of its own consortium members or one of its own team;
(vii) offers or agrees to pay or give or does pay or give any sum of money, inducement or valuable consideration directly or indirectly to any person for doing or having done or causing or having caused to be done in relation to any other submission or proposed submission ; or
(viii) communicates to any person other than EIB the amount or approximate amount of his proposed submission (except where such disclosure is made in confidence in order to obtain quotations necessary for the preparation of a submission).
INTELLECTUAL PROPERTY
The copyright in this document is vested in EIB.
This document may not be reproduced, copied or stored in any medium without the prior written consent of EIB except in relation to the preparation of a submission.
All documentation supplied by EIB in relation to this UDF selection process is and shall remain the property of EIB and must be returned on demand, without any copies being retained. Applicants are not authorised to copy, reproduce, or distribute such documents at any time except as is necessary to produce a submission.
PUBLICITY
Applicants shall not undertake (or permit to be undertaken) at any time, any publicity activity with any section of the media in relation to the UDF selection process other than with the prior written agreement of EIB. Such agreement shall extend to the content of any publicity. In this paragraph the word "media" includes (but without limitation) radio, television, newspapers, trade and specialist press, the internet and email accessible by the public at large and the representatives of such media.
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TABLE OF CONTENTS
ANNEX 1 - TEMPLATE FOR EXPRESSION OF INTEREST ........................................................ 7 ANNEX 2 – DECLARATION TO BE MADE BY THE APPLICANT............................................... 10 ANNEX 3 – TECHNICAL SPECIFICATIONS (TERMS OF REFERENCE) ................................... 13 APPENDIX A - AWARD CRITERIA .......................................................................................... 27 APPENDIX B – MATCH FUNDING GUIDANCE ....................................................................... 33 APPENDIX C – DEFINITIONS AND ABBREVIATIONS ............................................................ 35
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ANNEX 1
TEMPLATE FOR EXPRESSION OF INTEREST
____________________________________________ (name of an applicant)
EXPRESSION OF INTEREST
____________________________________________ (place of signature)
________________________________ (date)
(Stamp of the applicant – if available)
1. Information about the applicant 1.1. General information about the applicant.
Expressions of Interest may be submitted by a consortium that, if awarded the contract, may assume a legal form by incorporation, partnership or otherwise which would enable the members of the consortium to contract as a single entity. Where such a consortium exists the applicant shall be responsible towards the EIB and shall act as the interface between the EIB and the members of the consortium.
Name of the applicant
Address (registered office)
Registration number (copy of certificate to be attached)
Telephone No.
Fax
Names and organisation registration numbers of proposed subcontractors / consortium members, if applicable
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1.2. Person authorised to submit the EoI*
Name, surname
Position
Contact:
Address
Telephone No
Fax
* In case of the EoI being submitted by a consortium, a declaration, power of attorney or cooperation agreement authorising the attorney to submit the EoI and the Offer and to represent the consortium at all stages of the selection procedure on behalf of the partners jointly applying for the contract is required.
1.3. Person for communications (if different from paragraph 1.2)
Name, surname
Position
Contacts:
Address
Telephone No
Fax
1.4. Lot for which the applicant wishes to express interest, as defined in Annex 3. Applicants (including any consortium members and/or subcontractors) may express interest in one Lot only. (please tick one box only)
Lot 1 – Merseyside UDF only
Lot 2 – Rest of North West UDF only
By submitting this EoI, the undersigned declare(s) that:
1. the applicant is fully aware that resources of the NWUIF, which aims to finance urban regeneration/development projects, via UDFs, included in Integrated Plans for Sustainable Urban Development, are provided from the NWOP and NWDA resources;
2. the information contained in this EoI and accompanying Annex 2 is complete and correct in all its elements.
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ENCLOSED:
1. Declaration to be made by the applicant in Annex 2
2. Supporting documents relating to Annex 2 (to be completed by the applicant):
a) …
b) …
c) …
…
3.. Evidence relating to the Exclusion Criteria as set out in section X.1 (Exclusion Criteria) below.…
_______________ ______________ _________________ (position) (name, surname) (signature)
• having taken note of this Call for EoI,
• having taken note of the specifications and the documents referred to therein,
• and having completed the requisite declaration (see Annex 2), hereby undertake unconditionally, in accordance with the provisions of the aforementioned documents, to supply the services on the terms set out below in this Call for EoI, this application being binding upon the organisation, however, only if its acceptance is notified by the EIB within 180 days of the date of opening of applications.
• Is authorised to do so on behalf of any subcontractors / consortium members listed in 1.1 of Annex 1 and in doing so commits those subcontractors / consortium members to supply the services on the terms set out below in this Call for EoI, for 180 days from the date of opening of applications.
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ANNEX 2
DECLARATION TO BE MADE BY THE APPLICANT
1. Name of the applicant .....................................................................................
2. Type of business .............................................................................................
3. Represented by (name and position):
..........................................................................................................................
(in case of the EoI being submitted by a consortium provide evidence of a declaration, a power of attorney or a cooperation agreement authorizing the attorney to submit the EoI and the Offer and to represent the consortium at all stages of the selection procedure on behalf of the partners jointly applying for the contract)
4. The applicant certifies that it, or one of its consortium members, is regulated by the Financial Services Authority (FSA) in the UK as a Financial Services Firm under the Financial Services and Markets Act 2000 ("FSMA") and that the applicant has all appropriate permissions under FSMA to carry out all FSMA regulated activities stated to be carried out by it in its Stage 2 Offer (in the form of a Business Plan).
The applicant further warrants that an investment grade credit rated custodian bank (i.e. having a minimum Fitch/Standard & Poors BBB or Moody’s Baa rating) will be used for deposits and transfers of any funds provided by, or to be returned to, the NWUIF.
(provide company number and FSA registration number)
..........................................................................................................................
Questions 5 to 11 should be answered on behalf of the applicant and any proposed subcontractors / consortium members. These questions will be assessed on a pass/fail basis. Responses should be stated in the form of “Yes” / “No” or “Certified” with accompanying detail provided where requested, either in the space provided or on separate sheets which should be referenced by the applicant.
5. Are there any liens or charges outstanding against the organisation at a commercial court (or any other relevant authority)?
..........................................................................................................................
6. Is the applicant in receivership (or the subject of equivalent proceedings)?
..........................................................................................................................
If so:
(a) date of the receivership order: ............................................................
(b) on what terms is the applicant authorised to carry on its activity?
Specify in particular:
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the name and address of the receiver(s):
............................................................................................................
the date and period of validity of the authorisation given by the official receiver or the court to continue the business or activity:
............................................................................................................
7. The applicant certifies that neither the organisation nor any of the persons authorised to act on its behalf are in liquidation:
..........................................................................................................................
..........................................................................................................................
8. Has the applicant been the subject of any sentence, disqualification or penalty regarding the proper pursuit of commercial or industrial occupations, or under the rules on prices and competition?
..........................................................................................................................
..........................................................................................................................
9. Has the applicant or any of the persons authorised to act on its behalf a conflict of interest that may affect the performance of the tasks referred to into this Call for EoI?
..........................................................................................................................
..........................................................................................................................
10. The applicant certifies that it has complied with its tax and social obligations:
..........................................................................................................................
..........................................................................................................................
11. The applicant certifies its relevant experience in the targeted market of Urban Projects.
(a) Using no more than 2 sides of A4 per example (in Arial 10 pt font), provide three examples of the applicant / consortium’s recent experience in funding sustainable urban regeneration of the type envisaged as being eligible for funding under both Priority 3.2 and 4.3 of the NWOP. For each project, the applicant’s response should highlight the following:
• Name of project and period of execution/financing of the project.
• Description and estimated value of the project including information on private and/or public partners engaged in the project (if applicable)
• Applicant’s role in the project and type of financing provided, including key terms and conditions of financing provided and legal structures used, security taken, etc.
• Relevance of the project to the NWOP
• Explanation of how the applicant’s project team was structured, governed and the technical expertise and competencies brought to the project by the key individuals involved
• Project outcome and returns (projected if applicable)
• Contact name and details where the EIB can seek a reference for each presented case study
(b) The applicant also explain, using no more than three sides of A4, its experience of and approach to:
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• Working with its proposed team of subcontractors / consortium members
• Working with key public and private sector stakeholders
• Applying for and managing ERDF funds, including the monitoring and reporting of performance metrics
• Experience of establishing, appraising and managing a portfolio of regeneration investments
..........................................................................................................................
..........................................................................................................................
12. Applicant certifies that the information given above is correct.
..........................................................................................................................
Done at ................................................. (date) .................................................
STAMP NAME(S) SIGNATURE(S)
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ANNEX 3
TECHNICAL SPECIFICATIONS (TERMS OF REFERENCE)
I. GENERAL INFORMATION
a. Background
JESSICA is an initiative developed by the European Commission and the EIB, in collaboration with the Council of Europe Development Bank (“CEB”). Under new procedures, Member States and regions are being given the option of using part of their EU Structural Fund allocation to make repayable investments in projects forming part of relevant Integrated Plans for Sustainable Urban Development. JESSICA responds to the request by several Member States and the European Parliament to give special attention to the need for urban regeneration and urban investments, and is based on the scarcity of investment funds to finance integrated urban renewal and regeneration projects in pursuit of more sustainable urban communities. JESSICA has therefore been launched with a view to providing new opportunities for managing authorities responsible for the current generation of cohesion policy programmes by:
• ensuring long-term sustainability through the revolving character of the EU Structural Funds contribution to UDFs specialising in investing in Urban Projects;
• creating stronger incentives for successful implementation of Urban Projects by beneficiaries, by combining grants with loans and other financial instruments;
• leveraging additional resources for Urban Projects with a focus on sustainability/recyclability in the regions of the EU;
• contributing financial and managerial expertise from specialist institutions such as ElB, CEB, other lFIs and financial institutions.
More on the EU Structural Fund Regulations specifically related to JESSICA can be found at: http://ec.europa.eu/regional_policy/funds/2007/jjj/jessica_en.htm
The Northwest Development Agency (NWDA) is one of nine English Regional Development Agencies (RDAs) set up by Government in April 1999 to help improve the quality of life and economic prosperity in the English regions. They aim to achieve this through driving economic development and regeneration, developing business competitiveness and improving the skills base. To help the region achieve its potential, the NWDA is tasked with developing a Regional Economic Strategy (“RES”), which is reviewed every three years to ensure it remains relevant to the changing needs of the region’s economy – soon to be updated by the ‘North West Strategy’. The RES sets out the twenty-year economic strategy, together with the specific actions required in the next three years. It sets a framework for regional, as well as sub-regional and local action. The vision for the Northwest is to achieve a dynamic, sustainable international economy which competes on the basis of knowledge, advanced technology and an excellent quality of life for all where:
1. Productivity and enterprise levels are high, in a low carbon economy, driven by innovative leadership excellence and high skills.
2. Manchester and Liverpool are vibrant European Cities and, with Preston, are key drivers of city-regional growth.
3. Growth opportunities around Crewe, Chester, Warrington, Lancaster and Carlisle are fully developed.
4. Key growth assets are fully utilised (priority sectors, the higher education and science base, ports/airports, Strategic Regional Sites, the natural environment especially the Lake District, and the rural economy).
5. The economies of East Lancashire, Blackpool, Barrow and West Cumbria are regenerated. 6. Employment rates are high and concentrations of low employment are eliminated.
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The RES has been developed from a sound evidence base. This identifies three major drivers to achieving the strategy’s vision and to closing the output gap with the average for England.
• Growing the size and capability of the workforce • Creating and maintaining the conditions for sustainable growth and financial investment • Improving productivity and growing the market
For a full copy of the Northwest Regional Economic Strategy 2006, please visit http://www.nwda.co.uk/PDF/RES06v2.pdf where you can download a PDF version. The RES will be superseded in 2011 with the Single Regional Strategy (RS2010).
b. The Northwest ERDF Operational Programme 2007-20 13 (NWOP) The NWDA manages the NWOP. In the Northwest, ERDF is one of two EU Structural Fund programmes; the other is the European Social Fund, which in the Northwest is administered by the Department of Work & Pensions and the Learning & Skills Council. ERDF funding aims to strengthen economic and social cohesion in the European Union by supporting regional economic development. ERDF funding is just one way in which the region is funded by the European Union. The European Union is an important source of funding for economic regeneration, markets and job growth, through business opportunities for companies, R&D budgets or the Common Agricultural Policy. The Northwest has been allocated €755 million of ERDF funding over the 2007 to 2013 programming period.
A copy of the NWOP can be downloaded from http://www.erdfnw.co.uk/resources/northwest-operational-programme. It sets out the region’s strategy for delivering ERDF funds for the 2007 – 2013 period. The overall vision for the NWOP, which is based on that of the region’s current RES, is: “A dynamic, sustainable international economy which competes on the basis of knowledge, advanced technology and an excellent quality of life for all”, and where;
• Productivity and enterprise levels are high, in a low carbon economy, driven by innovation, leadership excellence and high skills.
• Employment rates are high and concentrations of low employment are eliminated There are relatively limited resources in the NWOP for what is a large region with many needs. The NWOP is therefore focused on areas where it can make the biggest impact, in conjunction with other funding for economic development and with the European Social Fund (ESF) programme in the region. Public sector partners have agreed on the following 5 Priorities and overall resource allocations:
• Priority 1 – Stimulating Enterprise and Supporting Growth in Target Sectors and Markets: This priority provides business support and funds financial instruments which help improve the competitiveness of the region’s businesses, especially in high value target sectors. It also supports work with the region’s businesses in all sectors to improve resource efficiency and reduce their carbon footprint.
• Priority 2 – Exploiting Innovation and Knowledge: This priority aims to make full use of the
region’s knowledge base in Higher Education Institutes, research institutes and private sector firms. It encourages the exploitation of this knowledge and innovation amongst all firms.
• Priority 3 – Creating the Conditions for Sustainabl e Growth: There is still the need for
some underpinning investment in infrastructure in the region to support the development of successful economies. This priority supports investment in strategically significant sites and premises and, in Merseyside, access to and exploitation of key transport gateways.
• Priority 4 – Growing and Accessing Employment: There is a need to ensure that the fruits
of economic success delivered by the NWOP and in the wider economy are shared and that economic exclusion is tackled. This priority, in conjunction with other programmes, is focused
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on creating employment which is accessible to areas of disadvantage and to help residents in these areas access economic opportunity as employees or in self-employment.
In addition these priorities are supported by Priority 5 – Technical Assistance - This supports the management of the programme, trans-national and inter-regional co-operation and specific sector support where necessary. Within the NWOP there is the capacity to utilise the JESSICA mechanism to invest in and support urban regeneration activity, provided it is brought forward within the framework of an Integrated Plan for Sustainable Urban Development.
II. JESSICA in the Northwest region of England
Urban Regeneration in the Northwest is an explicit aspect of the RES. As such the NWDA and EIB have set up the NWUIF. The NWUIF has been established as a “separate block of finance” within EIB, as permitted by EU Structural Fund Regulations. As a result, the NWUIF is not a separate legal entity, with the EIB to be the legal counterparty in financing agreements that the NWUIF enters into with UDFs. The initial allocation to the NWUIF is £100 million – comprising £50 million of ERDF resources from the NWOP and an equivalent Match of £50 million (comprising £22 million of cash and £28 million of land and building contributions) from the NWDA. The NWUIF was launched in December 2009. The NWUIF’s investment strategy requires UDFs to source £50 million of Match funding. Once this is provided at UDF level, the original Match funding provided by the NWDA will be treated as follows:
• £10 million from the cash allocation will be invested in the Lot 2 - Rest of North West UDF (this is explained further on page 19);
• The remaining £12 million of cash will be retained by the NWUIF and may be used in due course to provide further funding to UDFs or Urban Projects (see below);
• The NWDA has indicated it is willing to consider utilising some of its £28 million land asset contributions (currently invested in the NWUIF as Match) in viable Urban Projects coming forward within UDF Business Plans once they are substituted out of the NWUIF.
The requirements in relation to Match are outlined further in Appendix B. Going forward, EIB in consultation with the NWDA and upon agreement of the Investment Board (see below), may make recommendations on the further use of the £12 million cash resources contributed by NWDA to the NWUIF. Such recommendations might include making further investments into well performing UDFs at a later stage; allowing for the funds to be provided as grant by NWDA to Urban Projects included in the Business Plans of UDFs; or utilising these funds to meet management costs of the NWUIF or UDF fund managers in the medium to longer term. The NWDA, as part of its work reviewing the efficacy of JESSICA in the North West, determined that JESSICA should be targeted at two specific ‘action areas’ within two Priorities of the NWOP. The NWUIF will receive contributions equally from these two Priorities of the NWOP, as follows: Priority Axis 3: “Creating the Conditions for Susta inable Growth” , and specifically Action Area 3.2 which seeks to develop high quality sites and premises of regional importance, supporting high value and knowledge-based sectors, by targeting investment at the 36 Strategic Regional Sites defined in the RES and agreed by the NWOP Programme Monitoring Committee as being eligible for ERDF support.
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Strategic Regional Sites Ashton Moss, Tameside
Birkenhead Docks, Wirral
Barton (Port Salford)
Freckleton Street Area, Blackburn
Basford, Crewe
Central Bolton
Central Park, Manchester
Carlisle City Centre
Daresbury, Runcorn
Central Chester
Ditton, Widnes
Dunningsbridge, Sefton (Port of Liverpool Economic Corridor)
Estuary, Liverpool
Lillyhall Business Park, near Workington
Bailrigg, Lancaster
Manchester Piccadilly Basin/Oxford Road Area
Kingmoor, Carlisle
Central Preston
Omega, Warrington
Salmesbury, Lancs
Parkside, St Helens
Salford Quays/Irwell Corridor Area
Kingsway, Rochdale
Central Warrington
Westlakes Science Park, West Cumbria
Wigan South Central Area
Wirral International Business Park, Bromborough
Liverpool North Docks
Liverpool Science Park (Edge Lane)
Liverpool Pall Mall, Liverpool City Centre
Liverpool University Edge (Liverpool Knowledge Quarter)
Alderley Park, Macclesfield
Cuerden, South Ribble
Sportcity
ROF Chorley
Whitebirk
Eligible investment activity includes: • The clearance of derelict land and treatment of contaminated land, provision of site servicing and
related site infrastructure; • Site-specific access into Strategic Regional Sites and site-specific public transport facilities where
this is part of a sustainable transport strategy for the site; • Activities that support the development of the high quality business environments, including
premises, landscaping, public realm and gateway features, energy / resource management and use, including green infrastructure, and site specific IT/broadband infrastructure.
Priority Axis 4: “Growing and Accessing Employment” and specifically Action Area 4.3 which seeks to support employment creation for areas of deprivation and regeneration need. Priority areas include some spatial areas: • Barrow, Halton, Knowsley • Urban Regeneration Companies (URC) areas: Liverpool, East Manchester, Central Salford,
Blackpool, West Cumbria. • Housing Market Renewal Areas: Liverpool/South Sefton/North Wirral; Oldham/Rochdale; East
Lancashire; Manchester/Salford.
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Eligible investment activities include: • Support for development of employment sites providing employment for residents of target areas,
including environmental improvements, energy and resource use management and site specific IT/broadband infrastructure which help to create an appropriate business environment and support the development of knowledge based industries at the local level.
• Brownfield land reclamation. • Integrated projects for urban and rural regeneration with a specific focus on support for
entrepreneurship, local employment generation and community economic development, including facilities which support social enterprise, managed workspace and common services for businesses in target areas.
It is a requirement of the EU Regulations governing JESSICA that supported projects are part of Integrated Plans for Sustainable Urban Development. This has been interpreted by the NWDA, in the context of the Northwest region, to mean projects that can clearly demonstrate to deliver benefits to Regional Strategic plans – such as the Regional Economic Strategy or NWOP (including areas listed as ‘Strategic Sites’) It is therefore expected that projects will also be aligned to key sub-regional or local regeneration programmes. Specific examples will include projects that: - form components of NWDA’s Strategic Sites; - are identified in Urban Regeneration Company economic development masterplans (or similar
programming documents) - are supported or endorsed by local authorities as being part of their economic development plans
for the authority area. - are governed by communities or multi-area agreements to develop an ‘economic area’ in line with
the above requirements An independent Investment Board has been established to oversee the NWUIF. The Investment Board will, broadly, be responsible for governing the implementation of the NWUIF which includes approving or rejecting recommendations made to it by EIB as fund manager. The Board comprises:
• Steven Broomhead (NWDA) • Ian Haythornthwaite (NWDA) • Sir Howard Bernstein (Manchester City Council) • Phil Davies (Wirral Council) • Keith Sedgewick (Preston City Council) • Tim Johnston (Independent member) • Steven Burnett (Independent member) • Tom Russell (Independent member) • Deborah McLaughlin (Homes and Communities Agency)
(Applicants should note that they are expressly prohibited from contacting any of the Board members in relation to this EoI and procurement process from the date that the Call for EoI has been issued) The EIB has been appointed as fund manager for the NWUIF by the NWDA. The NWDA and EIB have signed a Funding Agreement for this role which requires the EIB to:
• Hold the assets of the NWUIF and carry out temporary cash management of funds not yet invested in UDFs;
• Procure UDFs through a transparent and competitive call for expressions of interest process. This will include reviewing the appropriate UDF structure put forward by UDF managers (being either independent legal entities or separate blocks of finance within financial institutions) and the management thereof;
• Investing, on behalf of the NWUIF, in UDFs (via Operational Agreements). These Agreements will also specify how the UDFs will invest in Urban Projects; and
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• Monitor and report on the actions of the UDFs and their investments in underlying Urban Projects.
The next stage of the development of the NWUIF is the selection of and entering into Operational Agreements with two UDFs which will have responsibility for Urban Project investment decisions. To achieve economies of scale (including minimising administrative costs) and maximise impact across the region, the Investment Board of the NWUIF has decided that two UDFs will be initially awarded investment of £60 million from the NWUIF as follows:
• £30 million (£15 million ERDF from each of action areas 3-2 and 4-3) is ring fenced in the NWOP for the Merseyside sub-region to be invested by one of the selected UDFs (the ‘Merseyside UDF’).
• £30 million for the other UDF (the ‘Rest of the North West’ UDF) to invest in the rest of the Northwest outside Merseyside. This is comprised of £20 million ERDF sourced equally from action areas 3.2 and 4.3 and £10 million of other NWDA resources. Of the ERDF element, £10 million should be invested inside the Greater Manchester area (defined as the area covered by the Association of Greater Manchester Authorities) and £10 million invested in the Northwest outside Greater Manchester and Merseyside. The remaining £10 million will not be subject to ERDF rules but must be invested in any area of the Northwest outside Merseyside in line with the objectives set out in action areas 3.2 and 4.3.
As a result applicants can apply for either (but not both) of the following Lots:
• Lot 1 – Merseyside UDF; or
• Lot 2 – Rest of North West UDF.
The Deployment of UDFs
In overview, the process by which the NWUIF will engage with UDFs begins with this Call for EoI and, therefore will follow through three deployment phases:
Deployment Phase 1 – Covering Stages 1 and 2 of the Call for Expressio ns of Interest
This deployment Phase commences with Stage 1 of the EoI. Stage 1 covers the Exclusion and Selection Criteria, which will exclude applicants who are unable to meet the minimum requirements set out in Annex 1 & 2. Stage 1 will commence 31st March 2010, with applicants providing responses by 23rd April 2010. The EIB, while reserving the right to amend the timetable, aims to notify applicants whether or not they have passed Stage 1 by 7th May 2010.
Stage 2 of the EoI will review the Offers (in the form of Business Plans) of applicants who passed Stage 1, based on the Award Criteria set out in Appendix A. All applicants passing Stage 1 will be invited to submit a response to Stage 2. The Award Criteria will assess the quality and credibility of the applicant’s plans to deliver the UDF Lot for which they have applied. Applicants can expect to receive approximately six weeks to submit their Offer (in the form of a Business Plan)s for Stage 2 once notified they have passed Stage 1.
After evaluating responses to Stage 2 the EIB will identify and recommend Preferred Bidders to act as UDFs to the NWUIF Investment Board for its approval. There will be two Preferred Bidders; one for each Lot. The Preferred Bidders should have the necessary governance, processes, skills, track record and deal sourcing/appraisal capabilities. Applicants seeking to become UDFs and who meet the Selection Criteria of this Call for EoI, will, as part of their Offer, be required to submit investment strategies and policies which cover urban areas within all of their respective geographical area.
Applicants will also be asked to support their investment strategies, to the extent possible, with details of specific Urban Projects. Applicants that are able to provide evidence of a pipeline of projects and specific details of “early win” projects will provide a greater degree of comfort to EIB, as NWUIF fund manager, that they are in a position to invest in Urban Projects within the relatively tight timescales envisaged for investment. It is recognised that some project details may be less well developed/indicative than others and that the project pipeline / financial plan will need to be subject to
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flexibility and further development/agreement going forward. Provision for this will be made in the Operational Agreement to be signed with the UDF.
Deployment Phase 2 – Covering the Conclusion of Ope rational Agreements
If the Preferred Bidders are approved by the NWUIF Investment Board, the EIB will proceed to finalise Operational Agreements with them. The Operational Agreement will contain the contractual terms and conditions governing the obligations of each party, including the investment strategy of the UDF. Selected Terms for the Operational Agreement will be provided to applicants at Stage 2 of this Call for EoI for agreement by applicants.
Given the complexities around state aid and issues relating to the balance sheet treatment for the NWDA of the NWUIF investments in UDFs, the NWUIF will invest by way of a “contingent loan” product (see Section [VII] below for a further description of this product) at arms length from the UDF. The shortage of bank financing in the current urban development/regeneration sector, which was highlighted in the investment strategy of the NWUIF and preliminary studies undertaken prior to the establishment of the NWUIF, means that, in the first instance, UDFs are also expected to invest NWUIF resources in Urban Projects by way of debt financing. Flexibility may be allowed in the Operational Agreements to allow, at the NWUIF’s discretion, evolution of Business Plans to include equity and/or guarantee investments into Urban Projects in response to potential changing market conditions or regulatory environments. Any such changes would be subject to adherence with applicable state aid and other EU Rules.
The Northwest’s urban areas are defined in the Investment Frameworks for action area 3‐2 Developing high quality sites and premises of regional importance and action area 4‐3 Supporting linkages to key employment areas, of the NWOP. The EU Structural Fund Regulations require that all ERDF and Match Funding must be invested by UDFs into Urban Projects by 31 December 2015. It is likely, however, that Operational Agreements signed with UDFs will impose a shorter period, expected to be 31 December 2014, for this investment to take place.
During the period before an Operational Agreement is concluded it is envisaged the Preferred Bidder(s) will continue to develop a number of proposals made in its Business Plan.
The Business Plan will continue to evolve throughout the operational period of the UDF as projects are developed in greater detail and move into delivery phase. It will be important that, while there may be some movement in individual projects, the UDF continues to deliver investment within the parameters of its investment strategy and policy. For this reason, any revisions to the initial Business Plans will be subject to review and approval by EIB and, where appropriate, the Investment Board.
Deployment Phase 3 – Covering the Operational Perio d of the UDFs
Following signature of the Operational Agreements, it is expected that UDFs will bring forward individual project approval papers, which will be based on a standard model. This will be done on a project by project basis as each proposed investment reaches the appropriate stage of readiness and a drawdown of funds under the Operational Agreement is anticipated/required.
The review and approval process here may require the UDF to, inter alia:
• assess whether the project is in line with the Business Plan and investment strategy of the UDF, including whether it fits within an Integrated Plan for Sustainable Urban Development, financial parameters and contributes to meeting Output Targets.
• demonstrate that the project has Managing Authority approval of sufficient Eligible Expenditure.
• demonstrate State Aid compliance, for example by copies of legal advice. This may also include confirmation of necessary credit rating/loss given default calculation of the investment in the Urban Project, pricing as well as other key terms and conditions of financing. For the avoidance of doubt, the EIB will not provide confirmation of State Aid compliance.
• demonstrate that it has the necessary Match funding in place to support the drawdown of funds from the NWUIF for the particular Urban Project.
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There will be a general presumption by the EIB that all required due diligence, including credit risk appraisal, will have been conducted by the UDF and an appropriate credit rating assigned prior to submission to the EIB for approval/drawdown of funds, on the basis of the procedures agreed by the UDF and codified in the Operational Agreement.
Upon approval by EIB and, where appropriate, the Investment Board, funds will be disbursed from the EIB to the UDF in accordance with an approved drawdown profile and the Operational Agreement. A number of standard terms and conditions will apply to drawdown. All investments by UDFs into projects must meet state aid requirements and UDFs will be expected to take appropriate legal advice as necessary in this regard.
III. The role of the UDF
a. Key Tasks
The key tasks envisaged for the UDF will broadly be to:
• Identify, invest in and lead the negotiation and structuring of financial investments in viable Urban Projects which fit within the agreed investment strategy of the UDF;
• Secure Match funding at UDF level and, to the extent possible, additional financing at project level in identified Urban Projects to ensure that NWUIF’s investment is sufficiently and appropriately leveraged and that sufficient Eligible Expenditure can be declared in those Urban Projects in accordance with EU Structural Fund Regulations.;
• Monitor compliance, risk and achievement of Output Targets in accordance with the NWOP; and
• Recommend and manage appropriate exit strategies from Urban Project investments.
b. Legal form
UDFs can be either independent legal entities governed by agreements between the co-financing partners or shareholders, or separate blocks of finance within a financial institution. It is a requirement of this EoI that applicants (or one of their consortium members) are authorised and regulated in the UK by the Financial Service Authority (FSA).
c. Match
Each UDF is required to identify a further £30 million of investment in Urban Projects, broken down as follows:
• Lot 1 (Merseyside UDF) - £30 million Match funding
• Lot 2 (Rest of the North West UDF) - £20 million Match funding and £10 million Complementary Financing
Match funding must be invested by UDFs into Urban Projects alongside the investment from the NWUIF. This Match funding can be sourced from public and/or private sector resources, and must be invested by way of repayable loans into Urban Projects by the UDF. Match funding may include contributions of land and buildings to the UDF, if their “value” can be turned into cash resources by the UDF or otherwise passed on to Urban Projects in exchange for loan investment in the UDFs. In all cases, Match funding must be channelled through the UDF and cannot be provided directly in Urban Projects.
Complementary Financing may be channelled through the UDF or provided directly into Urban Projects from other sources. Further guidance and details to applicants on Match funding is provided in Appendix B. This guidance has been agreed with the NWDA as the designated Managing Authority of the NWOP.
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IV. Potential Urban Projects 1. Criteria for Urban Projects The project portfolio of a UDF may consist of a number of projects that differ in terms of their economic value added, technical description, duration, size, risk and returns. All projects shall meet the criteria as described below:
1.1 General criteria
a) Compliance with EU Structural Fund and state aid Regulations;
b) soundness in terms of business model, cash flows, partners, etc.;
c) shall form part of Integrated Plans for Sustainable Urban Development;
d) shall be structured in such a way so that they generate revenue sufficient to repay any funding received from the UDF and satisfy EU Rules, including state aid requirements; and
e) experience of the applicant.
1.2 Criteria related to NWOP
a) Contain sufficient Eligible Expenditure (i.e. for both NWUIF and Match funding amounts) in line with the eligibility criteria as described in priorities 3.2 and 4.3 of NWOP;
b) Urban Projects shall contribute to the achievement of objectives (including the Output Targets), as stipulated in the relevant Priorities and action areas of the NWOP.
c) Capable of being invested into projects by the date to be specified in the Operational Agreement, likely to be the end of 2014.
1.3 Financial and economic criteria
a) Financial criteria will differ according to the projects and the form of investment into these projects by the UDFs and shall be established by a UDF on a case by case basis. These criteria shall include, but not be limited to: internal rate of return, net present value, pay-back period, cash flow profile, availability and form of collateral (if required), other financial indicators typically used in credit analysis, etc. There are no specific requirements imposed on Urban Projects with respect to financial criteria other than those described in the relevant JESSICA legislation. Each applicant shall present their views on what financial criteria shall be met by Urban Projects in order to achieve desired objectives, which shall be set out in the UDF’s investment strategy to be agreed with EIB. It is acknowledged that for some Urban Projects included in its Offer precise calculation of financial indicators may not be possible at the time of presenting the Offer. In such cases the Offer may still be acceptable.
b) The assessment of Urban Projects as regards their economic sustainability and impact should include the following aspects of the projects: cost/benefit analysis (where possible to prepare), contribution to meeting relevant Output Targets of the NWOP, potential to attract additional funding from other public and private sources, potential to attract investors in other projects, which would be complementary or which could create economic or social synergies. Where possible this information should be shown for projects in the Business Plan submitted as the Offer; if this is not possible due to the early stage of project development then this information should be shown at detailed project approval stage prior to disbursement of funds from the NWUIF to the UDF.
V. Output Targets
NWDA have set ambitious Output Targets for the NWOP to be achieved by UDFs receiving investment from the NWUIF and this Call for EoI is seeking similarly ambitious UDF bids that identify Urban Projects that will contribute to achieving these Output Targets. The NWDA would like all applicants to be aware that while these Output Targets are indicative and based on a scenario of potential projects reviewed at the feasibility stage of planning for JESSICA, NWDA wishes UDFs to remain committed to achieving these Output Targets as part of its wider responsibilities to manage the successful delivery of the NWOP.
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The following table summarises the Output Targets sought by the NWDA through the NWUIF, analysed on a 60:40 allocation between the Merseyside UDF and the rest of the North West Region UDF. The Output Targets are split equally across the two action areas 3.2 and 4.3.
Description of NWOP Target Indicator Output Targets
NWUIF Total Merseyside UDF
Rest of the Region UDF
Hectares of brownfield land reclaimed or redeveloped
246 148 98
Square meters of new or upgraded floorspace to “excellent” or “very good” standards under the “BREEAM” classification
245,000 147,000 98,000
Number of gross jobs created or safeguarded
7,300* 4,380 2,920
*the job creation / safeguarded indicator is based on calculations made in line with accepted UK Green Book principles and uses the English Partnerships accepted ratios of floor space to employment. The above figure is stated gross of any adjustments arising for employment deadweight, leakage, displacement or substitution.
VI. Management Fee
Management fees will be paid by the NWUIF to the UDF(s) on a basis to be set out in the Operational Agreement. In the event of non-performance by the UDF, for example, failure to invest in projects in line with the Business Plan and after a period to be defined in the Operational Agreement, the EIB will have the right to either reduce a portion of the UDF management fee or terminate the Operational Agreement
As part of the UDF selection process EIB will evaluate applicant proposals for how such costs will be structured in the UDF Business Plan and the applicant should present the level of the management fees required together with a narrative clearly explaining :-
• how the fund management fee (and any individual component parts of it such as set up costs, project appraisal, ERDF monitoring/reporting and loan administration) would be calculated and charged to the NWUIF, the provider of Match funding and/or Urban Projects (with example calculations);
• (if applicable) the inter-relationship between the component parts of the fee structure
• how the fee structure incentivises the fund manager to invest in Urban Projects in a timely and efficient manner;
• how the applicant will ensure that the management fee does not adversely impact on the ability of the UDF to raise additional investment funding (and indeed how it will encourage investment);
• how the fee structure demonstrates value for money for the NWUIF.
Applicants' proposals here must comply with the requirements set out below:-
1. The management fee shall include all fees and expenses incurred by the UDF in relation to
administration services and other auxiliary activities. 2. The management fee proposed by the UDF shall be clearly indicated/detailed in the Offer
submitted by each applicant for the entire period of the NWUIF’s investment. EU Structural Fund Regulations indicate that management fees are not expected to exceed, on an annual average up to 31 December 2015, 3% p.a. of the capital contributed by the NWUIF to the UDF. However, the EIB is expecting management fees to be below this, as defined by the outcome of the competitive process, especially for the period post initial identification and investment in Urban Projects.
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The detailed provisions concerning the management fee shall be established in the Operational Agreement based on the Offer submitted by the successful applicant.
VII. FORM OF FINANCING FROM THE NWUIF AND OTHER KEY FINANCIAL
PRINCIPLES 1. In accordance with the overall principals of JESSICA, UDFs should be active partners of local
delivery bodies and public sector partners in stimulating urban development by investing in Urban Projects in an integrated and sustainable manner.
2. EU Rules stipulate that UDFs shall not re-finance acquisitions or participations in projects that
have already been completed. 3. Urban Projects receiving investment from UDFs may also receive grant assistance from the EU
Structural Funds or other sources, in line with the relevant regulations.
4. In accordance with Article 46 of the Implementing Regulation, UDFs must invest in public-private partnerships or other projects included in Integrated Plans for Sustainable Urban Development.
5. UDFs will receive investment from the NWUIF in the form of a “contingent loan”. The key
parameters of this financial product are:
a) Repayment of both interest and capital of the loan provided from the NWUIF to the UDF will be contingent upon the repayment of underlying loan investments made by that UDF in Urban Projects.
b) Repayments and returns on investments made by the NWUIF in the UDF will be treated as follows:
i. All interest payments generated on the NWUIF element of the investment will be passed back to the NWUIF whenever they arise in line with the terms of the Operational Agreement. These interest payments may be remitted to the NWUIF net of management fees if this is part of the fee structure proposed by the applicant.
ii. If arising prior to 10 years from the date the UDF enters into an Operational Agreement with the NWUIF, the UDF can retain and reinvest repayments of NWUIF capital (but not interest payments) into other projects that are part of an Integrated Plan for Sustainable Urban Development. The UDF will be requested to present information and evidence to the NWUIF that projects comply with this requirement.
iii. If arising after 10 years from the date the UDF enters into an Operational Agreement with the NWUIF, all repayments of capital and interest on NWUIF investment in Urban Projects will be passed back to the NWUIF.
c) The origination, due diligence, credit rating, loss given default calculations, documentation,
taking of security, and ongoing monitoring of investments made in Urban Projects will remain the responsibility of the UDF which will be required to act with an appropriate level of independence and due care and skill in undertaking such investments. As a result, UDF managers will be required to demonstrate an appropriate level of governance, investment processes and procedures (including risk management procedures) to EIB’s satisfaction. It is also for this reason that UDF applicants are required to be FSA regulated.
d) In order to align the interests of the NWUIF with other investors in the UDF, all of the Match funding, and the £10 million of Complementary Funding in respect of Lot 2, must be invested in Urban Projects on pari passu terms and conditions to the funding received from the NWUIF. Where there are private sector investors in the UDF, applicants are reminded that such investment will need to be made in compliance with applicable state aid rules.
e) Funds committed to the UDFs in order to invest in Urban Projects will be drawn down in
tranches. Detailed terms and conditions for financing to be provided by a UDF must be determined prior to making an investment for each Urban Project on the basis of financial forecasts prepared for this Urban Project and verified by the UDF. All other key principles and
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conditions precedent to drawdown will be as agreed in the Operational Agreement.
f) The maximum drawdown period of the contingent loan from the NWUIF is expected to be set in Operational Agreements so as to ensure that UDFs fully invest those funds in Urban Projects by 31 December 2014. Business Plan submissions, and particularly financial forecasts of funding for Urban Projects, should provide for a drawdown profile that meets this deadline. Material deviation from this drawdown profile may result in a cancellation of any undrawn amounts and/or an appropriate reduction in the UDF management fee.
g) Any funds drawn down by the UDF, but not yet disbursed to Urban Projects, shall be kept as
bank deposits unless otherwise indicated by EIB and agreed between the EIB and the UDF in the Operational Agreement. Interest on these deposits shall be used to meet UDF management costs or increase the amount of funds available for investment in Urban Projects.
h) In order to achieve a minimum level of risk diversification, not more than 20% of funds
allocated to the UDF shall be invested in a single Urban Project. In addition, no Urban Projects receiving investment from a UDF should meet the European Commission’s definition of a Major Project (see Appendix C for definition of Major Project).
i) Loans made by a UDF to Urban Projects must comply with EC state aid requirements,
including the reference rate framework where appropriate (see http://ec.europa.eu/competition/state_aid/legislation/reference.html for further details). Applicants should take their own advice in this regard.
VIII. AMOUNT ALLOCATED FOR THE CALL FOR EOI
1. The initial amount that the NWUIF is allocated to this Call for EoI for investment in UDFs is:
Lot 1: Merseyside UDF – GBP 30,000,000 Lot 2: Rest of Northwest UDF – GBP 30,000,000 The amounts invested in the selected UDFs may be increased at a later stage by any returns on investment in UDFs, the NWUIF’s cash management activities or by any other funding that might be held by or become available to the NWUIF.
2. The applicant will bid for one Lot only and the amount of funds the applicant shall apply for in relation to that Lot is equal to the amount indicated in point 1 above.
IX. SUBMISSION OF EXPRESSIONS OF INTEREST
Each EoI submitted by an applicant shall be prepared in accordance with the template attached as Annex 1 and shall be accompanied by the following annexes:
• A declaration to be made by the applicant in the form attached as Annex 2; • Supporting documents.
X. EVALUATION OF EXPRESSIONS OF INTEREST
1. EXCLUSION CRITERIA (STAGE 1)
Applicants will be excluded from participating in this Call for EoI if any of the following Exclusion Criteria apply to them:
a) they are bankrupt or are being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for under national laws or regulations;
b) they have been convicted of an offence concerning their professional conduct by a judgment
which has the force of res judicata;
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c) they have been guilty of grave professional misconduct proven by any means which the
contracting authority can justify;
d) they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the contracting authority or those of the country where the contract is performed;
e) they have been the subject of a judgment which has the force of res judicata for fraud,
corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities’ financial interests;
f) they are guilty of misrepresentation in supplying the information required by the contracting
authority as a condition for participation in this Call for EoI or fail to provide such information; Applicants must show that they are not in one or more of the situations listed above by providing the following evidence in relation to the items mentioned above:
• in relation to items (a), (b), and (e) above, a recent extract from the judicial record or, failing that, an equivalent document recently issued by a judicial or administrative authority in the country of origin or provenance showing that those requirements are satisfied. Depending on the national legislation of the country in which they are established, these documents must relate to legal persons and/or natural persons, including, any person with powers of representation, decision-making or control in relation to the applicant;
• in relation to item (d) above, the most recent certificates issued by the competent social security and tax authorities of the country where they are established. Where no such certificate is issued in that country, this can be replaced by a declaration on oath or solemn statement made before a competent judicial or administrative authority, a notary or a competent professional or trade body in that country. The declaration or statement provided must be dated less than 4 months before the final date for submission of applications. Depending on the national legislation of the country in which they are established, these documents must relate to entities with legal personality and/or natural persons; in the latter case, they shall relate to the person(s) empowered to represent the applicant and sign the contract if the tender is successful.
In relation to items (c), and (f) above, a solemn declaration stating that the applicant is not guilty of professional misconduct, and is supplying all the information required under this Call for EoI in good faith and without misrepresentation. This solemn declaration should be signed by the person(s) empowered to represent the applicant and sign the contract if the applicant is selected and dated less than 4 months before the final date for submission of applications.
2. SELECTION CRITERIA (STAGE 1)
Applications not excluded in accordance with the Exclusion Criteria, will be assessed on the basis of the following Selection Criteria.
• The EoI is prepared in accordance with Annex 1 and all supporting documents are provided; • Declarations indicated in Annex 2 are completed to the satisfaction of the EIB. XI. SUBMISSION OF OFFERS (STAGE 2)
Applicants which meet the Selection Criteria will be invited to submit their Offers, in the form of Business Plans. The Offers will be evaluated on the basis of the Award Criteria, as described in Appendix A. Appendix A also gives guidance on the evaluation criteria which will be applied to assess each section of the Offer (in the form of a business plan).
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XII. OPERATIONAL AGREEMENTS
1. The applicants whose Offers for each Lot are evaluated as the most favourable and have been
approved by the Investment Board of the NWUIF shall be invited to conclude Operational Agreements with the EIB. If the EIB, in its discretion, is of the opinion that the finalisation process with any such applicant will not be successful, the EIB may cancel these discussions and proceed to the finalisation process with the applicant whose Offer is evaluated as the next most favourable.
2. The EIB may, at its discretion, undertake due diligence of Preferred Bidders.
3. Based on the results of the process of finalising Operational Agreements, the EIB shall make proposals to the Investment Board prior to the execution of contracts. Such proposals shall include the key terms and conditions of the Operational Agreements that have been agreed as part of the finalisation process.
4. It is anticipated that selected terms for the Operational Agreement will be provided during Stage 2 to applicants who meet the Selection Criteria.
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APPENDIX A AWARD CRITERIA The Offer (in the form of a business plan)s for use of resources received from the NWUIF shall be completed and assessed on the basis set out below.
Award criteria
Criterion Description and assessment rules Weighting
for criterion
1. INVESTMENT STRATEGY
The applicant shall prove its understanding of the objectives to be achieved through the implementation of the JESSICA mechanism in the Northwest region. The applicant shall define the goals of the UDF and objectives of its Investment Strategy. The applicant shall explain how the Investment Strategy will support delivery of NWOP priorities 3.2 and 4.3.
The applicant shall describe the targeted market of the Investment Strategy and geographical coverage of the UDF. The applicant shall explain which Lot (1 or 2) it intends to address and explain how it will seek to deliver an appropriately diversified portfolio of investments in the key target areas identified in the Terms of Reference. The applicant’s approach to geographical and sectoral diversification should also be explained.
The portfolio of projects provided by the applicant in part 2 of the Business Plan shall not be interpreted as an exhaustive list. It is expected that the UDF will continue to seek Urban Projects to be supported with the JESSICA mechanism and the Business Plan may evolve through time, as projects within the project portfolio prove unlikely to be realised. The applicant should describe the methodology for identifying and evaluating both indicated and potential new Urban Projects. The methodology should contain provisions ensuring that the Urban Projects will be part of Integrated Plans for Sustainable Urban Development.
Based on the applicant’s knowledge of the local market and local needs the applicant shall outline its approach to engagement with local stakeholders and project delivery bodies as regards identification and financing of Urban Projects.
The applicant shall present the terms and conditions for lending to Urban Projects. This should include description of the type of loans envisaged by the UDF and the criteria that will be used by the applicant to select Urban Project investments. Assessment rule:
• level of understanding of JESSICA concept and relevant NWOP action area priorities and objectives, including Output Targets and manifestation of this comprehension in the Investment Strategy;
• compliance of the targeted market with the Investment Strategy and a balance of geographical and sectoral diversification across the Lot being applied for;
• appropriateness of the methodology for identifying and ensuring an appropriate ongoing pipeline of Urban Projects (including provisions
ensuring that Urban Projects will comply with the priorities and objectives of the relevant action areas of the NWOP);
• the robustness of the applicant’s proposals to engage with local stakeholders and delivery bodies, both public and private.
• evidence that the proposed terms and conditions for financing urban projects will meet EU rules including state aid and Structural Funds
20%
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Award criteria
Criterion Description and assessment rules Weighting
for criterion
requirements and that the approach to provision of such financing will enhance delivery of Urban Projects in line with the relevant NWOP objectives
2. FINANCIAL FORECASTS OF THE UDF
In this part the applicant shall indicate the amount of JESSICA finance it is requesting and present, to the extent possible at the applicant’s current stage of planning, the planned cash flow forecast / budget of the UDF.
The applicant shall present the strategy for sourcing/providing the required Match funding into/through the UDF, as well as achieving additional co-financing at project level. In this section, the applicant should set out specifically:
• What the budget for the UDF will be including the sources and intended applications of the Match funding and co-financing: o Whether the Match and Complemntary Financing is intended to come from private or public sources, together with any restrictions that
might apply to the use of the funds. o An indication/evidence of the level to which Match funding (including those potentially provided by the applicant itself) are committed at
this stage, and if they are not committed when this will happen o Applicants should assume no further public Match funding is available from the NWDA for this proposal, with the exception of any
arrangements made regarding the NWDA’s £28m of land asset contributions to the NWUIF.
• Financial projections for the investment activities of the UDF, to the extent these can be provided at this stage, covering costs and returns to include: o Investment costs including examples of investment cost profiles, including amounts of Eligible Expenditures o Expected repayment periods Applicants that provide evidence of realistic financial projections for deliverable projects, and within spend timetable constraints, will score more highly than those that do not
• Timescale for the life of the UDF to include both the investment window and investment repayment timescales and within the constraints set in
the Terms of Reference
• Project management fees and when these would be charged to the NWUIF and/or Urban Projects
• The anticipated rates of return for each Urban Project investment, as well as overall for the portfolio.
Assessment rule:
• the level of development and credibility of the financial forecasts and its compliance with the Investment Strategy and project portfolio;
• the potential amount of co-financing that can be levered and the probability of delivering the required Match funding indicated in the Business Plan.
25%
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Award criteria
Criterion Description and assessment rules Weighting
for criterion
3. MANAGEMENT FEES
The applicant should present the level of the management fees required, in line with the methodology presented in the Terms of Reference, broken down by component.
Specifically, the applicant should present the level of the management fees required together with a narrative clearly explaining :-
• how the fund management fee (and any individual component parts of it such as set up costs, project appraisal, ERDF monitoring/reporting and loan administration) would be calculated and charged to the NWUIF, the provider of Match funding and/or Urban Projects (with example calculations);
• (if applicable) the inter-relationship between the component parts of the fee structure
• how the fee structure incentivises the fund manager to invest in Urban Projects in a timely and efficient manner;
• how the applicant will ensure that the management fee does not adversely impact on the ability of the UDF to raise additional investment funding (and indeed how it will encourage investment);
• how the fee structure demonstrates value for money for the NWUIF.
Assessment rule: the lower the level of management fees indicated by the applicant, the higher the number of points awarded (an applicant requesting the lowest management fee shall receive the maximum number of points available for this criterion)
10%
30
Award criteria
Criterion Description and assessment rules Weighting
for criterion
4. PROJECTPORTFOLIO AND MANGEMENT TEAM
The applicant shall prove the conformity of the projects’ objectives with the general objectives set out in the JESSICA initiative as well as in the NWOP. This part of the Business Plan should demonstrate the justification for using NWUIF contributions and how selected Urban Projects shall contribute to the achievement of NWOP objectives. For each project in the proposed portfolio, an indication should be given of Output Targets and how the project will contain sufficient Eligible Expenditures equal to the amount of investment from both the NWUIF and Match funding.
Urban Projects shall be part of Integrated Plans for Sustainable Urban Development and evidence to this effect should be presented. The applicant shall also describe its policy concerning achieving repayment from its investment in Urban Projects, including exit provisions where applicable.
The applicant shall describe/demonstrate the level of preparation of selected Urban Projects. Evidence of “quick win” projects at an advanced stage of development and ready for delivery using NWUIF funding is an important element of establishing the robustness of the projects portfolio.
The applicant should identify the risks for particular projects or types of project. The applicant should also describe possible ways of mitigating identified risks.
The applicant shall indicate a team of experts with experience in relevant fields, which shall be established and is available in order to complete the UDF’s objectives and project identification / implementation proposals. A structure diagram for key roles and responsibilities should be provided, together with CVs which outline relevant experience and competence. The key points of contact and relationship management approach between the applicant and NWUIF should be identified.
Assessment rule:
• contribution of the projects to NWOP action area objectives and Output Targets, including sufficiency of Eligible Expenditures,
• robustness of the projects pipeline, stage of the preparation of indicated Urban Projects and the probability of their execution,
• evidence of projects at an advanced stage of development and ready for early implementation using NWUIF support;
• compliance of the projects with the requirement to form part of an Integrated Plan for Sustainable Urban Development;
• evidence of suitable level of in principle support from the NWDA and other public bodies for the use of assets or resources.
• the relevant experience and structure of proposed team of key experts shall be assessed.
25%
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Award criteria
Criterion Description and assessment rules Weighting
for criterion
5. OWNERSHIP AND GOVERNANCE STRUCTURE, RISK MANAGEMENT AND CONTROL PROCEDURES
The applicant shall present information on the ownership structure and constitution of the UDF. The applicant shall demonstrate the robustness and credibility of the ownership structure of the UDF, including co-financing partners and/or shareholders.
The applicant should describe the winding-up or other provisions which will apply upon the ceasing of operations by the UDF, including the reutilisation of resources returned to the UDF from Investments in Urban Projects.
The applicant shall describe management and administrative procedures which will be applied in the exercise of the function of an UDF. The applicant shall explain how it will deliver the UDF with professional, competent and independent management. Independence is a key element of the assessment, and relates to the applicant’s ability to demonstrate how it will select projects which best deliver NWOP outputs with an appropriate balance of risk and return, free from any conflict of interest or political / geographical bias.
The applicant shall describe the accounting and control procedures which will be applied in the exercise of the function of a UDF. The applicant should also present the corporate governance provisions for the UDF, including internal control procedures.
The applicant shall explain its approach to monitoring, reporting and controlling the process of project execution. This should include how the fund meets any requirements of the FSA.
The applicant shall describe the risk management procedures that will be applied to the operations of the UDF.
Assessment rule:
• credibility and robustness of the ownership structure and its suitability for delivering the objectives set for the UDF;
• level and evidence of support from public sector partners and other relevant market participants, including URCs, etc
• the reliability and credibility of the winding-up or other provisions which will apply at the end of the UDF’s life;
• the professionalism, independence, reliability and credibility of the proposed management process, administrative procedures and organisational capacity of the UDF to undertaken loan investments, including policies and procedures for appraisal, approval, credit scoring/rating, taking of security, etc. This should address the applicant’s policy on addressing investments where problems occur such as poor performance and approach to write-offs where these are required;
• the strength, reliability and credibility of the governance, accounting and internal control procedures;
• the strength, reliability and credibility of the monitoring, reporting and controlling procedures including compliance with FSA requirements;
• the strength, reliability and credibility of the risk management procedures (including early warning mechanisms and loan workout processes and procedures).
20%
TOTAL 100%
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APPENDIX B MATCH FUNDING GUIDANCE Introduction
Under the NWOP, ERDF can fund up to a maximum of 50% of Eligible Expenditure (the “co-intervention” rate) with the balance required to be ‘match funded’ by contributions from public and/or private resources (“Match Funding”).
For the purposes of “financial engineering instruments” of Structural Funds (including JESSICA), the EU Structural Funds Regulations provide for this Match Funding to be contributed to the financial engineering instrument at the constitution (or creation) of either a holding fund (where the financial engineering instrument includes a holding fund such as the NWUIF) or Urban Development Fund Any additional funding/investment directly into Urban Projects or subsequently brought into either the holding fund or a UDF the Project once created would normally be treated as “Complementary Financing”. However, the Commission and the Managing Authority have agreed that it is possible to also “substitute” Match Funding at either the holding fund or UDF level after constitution of a holding fund (such as the NWUIF).
As part of setting up the NWUIF and drawing down the £50m ERDF funding in to it, the NWDA therefore needed to provide £50m of Match Funding (which it did through a combination of £22m of cash and £28m of land asset contributions). The co-intervention rate for NWUIF is therefore the maximum 50%. This Match Funding provided by the NWDA was considered “temporary” finance, which would be substituted at the UDF level. Therefore the investment strategy for the NWUIF, agreed between EIB and the NWDA required that substitute Match Funding be sourced at the level of the UDF, as part of the UDF procurement process. It has always been the NWDA’s intention to utilise its own cash contributions, once substituted, for other purposes, including as additional finance at the UDF level and “complementary financing” at Urban Project level. The NWDA is also willing to consider utilising some of its land asset contributions, once substituted, in viable Urban Projects.
General Principles of Match Funding
Article 78(6) of Reg. 1083 sets out that, at the partial or final closure of the NWOP, eligible expenditure shall be the total of:
• any payments from Urban Development Funds for investment in public private partnerships or other projects included in an integrated plan for urban development; or
• any guarantees provided including amounts committed as guarantees by guarantee funds; and
• eligible management costs.
In the North West, two forms of Match Funding are envisaged:
• Cash: monies invested/contributed into UDFs by public or private entities for investment, by way, initially, of repayable loans into Urban Projects; or
• Land contributions: expected to be development sites that relate to Urban Projects that the UDFs wish to invest in.
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As the NWUIF invests the ERDF funds an equivalent amount of Match Funding will also be required to be invested, i.e. the 50% match and 50% ERDF must be invested into UDFs and into Urban Projects at the same time (or alternatively the 50% ERDF may be invested after the Match Funding has been invested). For the purposes of sound financial management, at all times any ERDF money within the JESSICA structure should have an equivalent amount of Match Funding invested – which will become a key metric of the performance of the NWUIF generally. If at closure of the NWOP the requisite levels of Match Funding have not been invested and therefore the full amount of the NWUIF declared at its constitution (£100 million) has not been invested in Eligible Expenditure, then, when the Commission applies the co-intervention rate at closure this may lead to a clawback of the ERDF.
EIB, the Managing Authority and other regional development agencies in England have sought guidance from the Commission on specific interpretations of the EU Structural Fund Regulations relating to Match Funding. These are shared here with applicants for information and guidance.
As part of these discussions, the Commission has stated that “it is only payments from UDFs for investment in public private partnerships and other projects that will considered eligible [as Match Funding] at closure”. There is a recognition from the Commission that the EU Structural Fund Regulations “do not specify how land or premises contributed to an urban development fund, for example, can be “turned into” investments by means of equity, loans or guarantees [in Urban Projects] and this is a matter for managing authorities and urban development fund to decide (e.g., by use land as collateral to raise cash to give in loans or to exchange land for shares)”. This suggests that the UDFs should be able to channel either cash or land assets into Urban Projects, as investment, in order to achieve a sufficient level of Match Funding. It is currently proposed by the NWDA that to avoid double taxation issues on land transfers, investors in a UDF, that wish to contribute land as Match Funding, could place a restriction on title over that land in favour of the UDF (as defined in the Land Registry Act 2002) and that formal transfer of title would only take place when an Urban Project is approved. One way of achieving this would be for the former land owner to receive a ‘loan note’ from the UDF in return for granting title of the land to the Urban Project company/PPP. The UDF and Urban Project company/PPP would then enter into an appropriate agreement (as part of the wider financing package provided by the UDF) to reflect the loan note obligation assumed by the UDF. These steps may avoid a ‘double payment’ of Stamp Duty Land Tax.
This mechanism is a suggestion only and has not been fully investigated by the EIB or the NWDA. Applicants are advised that they should seek independent legal advice on this mechanism and more generally on the principles applying to Match Funding before making an Offer where the contribution of land as Match Funding is being contemplated. EIB reserves the right to seek further clarifications from legal advisors, the Managing Authority or the Commission on whether any such proposal on the contribution of land as Match Funding indeed constitutes valid Match Funding.
Finally, and for the avoidance of doubt, land contributions, grants or other forms of funding invested directly in Urban Projects, other than by the UDF itself, will NOT qualify as Match Funding. Such funding, however, could be regarded as “Complementary Financing”.
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APPENDIX C DEFINITIONS AND ABBREVIATIONS USED FOR THE PURPOSE OF THIS CALL FOR EXPRESSIONS OF INTEREST
“AGMA” or “Association of Greater Manchester Authorities”
means the Association of Greater Manchester Authorities, namely Bolton Council, Bury Council, Manchester City Council, Oldham Metropolitan Borough Council, Rochdale Metropolitan Borough Council, Salford City Council, Stockport Metropolitan Borough Council, Tameside Metropolitan Borough Council, Trafford Council and Wigan Council.
“Annex” means an annex to this Call for Expressions of Interest which shall form an integral part hereof;
“Appendix” means an appendix to this Call for Expressions of Interest which shall form an integral part hereof;
“Award Criteria” means the criteria used to select Preferred Bidders for each Lot;
“Business Plan” means each business plan, relating to any UDF, prepared in accordance with the requirements of this Call for EoI;
“Call for Expressions of Interest” or “Call for EoI” means this Call for Expression of Interest;
“Commission” means the Commission of the European Communities;
“Complementary Financing” means any funding/investment in addition to NWUIF investment and which is made directly into Urban Projects or subsequently brought into either the NWUIF or a UDF;
“Eligible Expenditure” means expenditure applied in compliance with the Eligibility Rules;
“Eligibility Rules” means the rules on eligible expenditure contained in articles 48 to 53 of the Implementing Regulation, which apply in accordance with article 13 of Reg. 1080 (subject to the list of ineligible expenditure in article 7 of Reg. 1080) and those contained in articles 56 and 78 of Reg. 1083;
“ERDF” Means the European Regional Development Fund;
“EU Rules” means the EU Structural Funds Regulations and any other applicable EU Regulations, Directives or Guidelines;
“EU Structural Funds Regulations”
means Reg. 1080, Reg. 1081, Reg. 1083 and the Implementing Regulation, as well as any other EU legislation from time to time applicable to the EU Structural Funds;
“EU” means European Union;
“Exclusion Criteria” means the criteria used in Stage 1 of this Call for Expressions of Interest to exclude applicants;
“Exempt Professional Firm” means a professional firm authorised by the Financial Services Authority to undertake limited regulated financial activities as incidental services in addition to their normal professional services;
“Financial Services Firm” means an organisation regulated by the Financial Services Authority in the UK under the Financial Services and Markets Act 2000;
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“Funding Agreement” means an Agreement establishing the JESSICA Holding Fund for Northwest England, signed by the Northwest England Managing Authority and the EIB signed on 12 November 2009;
“Implementing Regulation”
means Commission Regulation (EC) No. 1828/2006 of 8 December 2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund, as amended, supplemented or modified from time to time;
“Information
means any information (irrespective of form or medium on which it is recorded) relating to the UDF selection process (including but not limited to this Call for EoI) made available to or received by applicants (whether prior to this Call for EoI or at any point during the UDF selection process)
“Investment Board” means the board, established in accordance with the Funding Agreement, entrusted with responsibilities regarding the JESSICA Holding Fund in accordance with Article 6 of the Funding Agreement;
“Integrated Plans for Sustainable Urban Development”
Plans defined by the Northwest Managing Authority, taking
account of Article 8 of Regulation (EC) No 1080/2006 and the specific urban, administrative and legal context of Northwest England.
“Northwest Urban Investment Fund” or “NWUIF”
means the JESSICA holding fund for Northwest region of England, established pursuant to a funding agreement, and in accordance with Council Regulation (EC) No. 1083/2006, as amended by Council Regulation (EC) No. 284/2009 and Commission Regulation (EC) No. 1828/2006;
“JESSICA”
means the initiative “Joint European Support for Sustainable Investment in City Areas” launched by the Commission and EIB in collaboration with the Council of Europe Development Bank, in order to promote sustainable investment, growth and jobs in urban areas;
“Major Project” means a series of works, activities or services intended in itself to accomplish an indivisible task of a precise economic or technical nature, which has clearly identified goals and whose total cost exceeds €25 million in the case of the environment and €50 million in other fields as set out in Article 39 of Reg. 1083;
“Managing Authority” means the NWDA acting in its capacity as the national public authority designated by the European Regional Development Fund (North West Operational Programme) (Implementation) Regulations 2007 (SI No 2007/3622) to act as the ‘intermediate body’ pursuant to Article 59.2 of Reg. 1083, and to carry out the functions of the Department of Communities and Local Government (as set out in Article 60 of Reg. 1083) in relation to the management and implementation of the NWOP;
“Match Funding” or “Match” means contributions at either NWUIF or UDF level to meet the balance of Eligible Expenditure not supported by the ERDF Contribution;
“Merseyside” means the administrative area covered by Knowsley Metropolitan Borough Council, Liverpool City Council, Sefton Council, St Helens Metropolitan Borough Council and Wirral Metropolitan Borough Council;
“NWOP” means the North West Competitiveness Operational Programme 2007-2013
“Objectives” means specific objectives to be achieved by Urban Projects according to the Northwest Operational Programme;
“Offer” means the Business Plan to be submitted by applicants in Stage 2 of this Call for
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Expressions of Interest;
“Operational Agreement” means an agreement providing for an investment by the NWUIF into a UDF;
“Output Targets” means the targets relating to the NWOP and the Northwest Regional Economic Strategy set out in the Investment Strategy and Planning Document to be met by the UDF(s) in complying with the obligations placed on them, in respect of investments in Urban Projects
“Preferred Bidder” means an applicant whose Offer is selected under this Call for EoI and with whom the EIB will proceed to negotiate an Operational Agreement
“Priority” means a category of policy priority under the North West ERDF Operating Programme 2007-13;
“Reg. 1080”
means Regulation (EC) No. 1080/2006 of the European Parliament and of the Council of 05 July 2006 on the European Regional Development Fund and repealing Regulation 1783/1999/EC, as amended, supplemented or modified from time to time;
“Reg. 1081” means Regulation (EC) No. 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund and repealing Regulation (EC). 1784/1999 as amended, supplemented or modified from time to time;
“Reg. 1083”
means Council Regulation (EC) No. 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999 as amended, supplemented or modified from time to time;
“Selection Criteria” means the criteria used in Stage 1 of this Call for Expressions of Interest to select those applicants who will be invited to submit an Offer under Stage 2;
“Strategic Regional Sites” means the list of 17 sites identified in the North West Regional Economic Strategy together with 16 Supplementary Significant Strategic Sites agreed by the NWOP Programme Monitoring Committee as being eligible for ERDF support;
“Terms of Reference” means terms of reference for the selection of the UDFs;
“Urban Development Fund” or “UDF”
means a vehicle investing in one or more Urban Projects as defined in Article 44 Reg. 1083;
“Urban Project” means a public private partnership or other project included in an Integrated Plan for Sustainable Urban Development as described in Article 44 Reg. 1083.