A new and innovative £55million fund to regenerate towns and cities is open for business, the Deputy Minister for Housing and Regeneration Jocelyn Davies AM has announced.
In launching the Regeneration Investment Fund for Wales (RIFW) Wales has become one of the first regions in Europe to establish a fund under the European Union’s JESSICA (Joint European Scheme for Sustainable Investment in City Areas) initiative.
JESSICA is a new way of using European funding to accelerate sustainable investment and growth in urban areas.. In contrast to conventional grant-funding, these financial investments will be repaid, and can then be reinvested, therefore creating a recyclable Regeneration Fund.
The European Regional Development Fund has contributed £25 million to the fund with the Welsh Assembly Government contributing £30 million in cash and assets which can either be sold to generate funds or be used for development. The fund is managed by fund and investment managers who have also been tasked with levering in another £55m of private sector investment by 2015, meaning that the Fund will provide lasting investment and benefits for Wales beyond the current round of European funding in Wales.
The Deputy Minster said:
“I am delighted that Wales is leading the way in Europe with the Regeneration Investment Fund for Wales. This is an important step forward in ensuring that the long-term regeneration of our communities is a success.
“With the UK Government set to cut public spending, funding for projects like this will be increasingly difficult and so ensuring that this funding can go further is especially important.
“This innovative approach means that new investment opportunities will not only have a lasting legacy for the areas which are regenerated, but also the funding will be recycled so that more people and places can benefit in future.“
First Minister of Wales Carwyn Jones said:
“It is important that as Wales continues to recover from the recession the Welsh Assembly Government continues to invest in our communities. Our sustainable support for towns and cities across Wales will keep paying dividends for the people of Wales for generations to come. As we prepare to deal with the impact of public spending cuts this funding will provide a much-needed boost for areas of Wales, some of which are still recovering from the decline of once-traditional industries in the final decades of the 20th Century.”
Deputy First Minister, Ieuan Wyn Jones said:
“Investing in our communities and infrastructure is crucial for the long-term social and economic future of Wales.
“This innovative funding model will play a key role in driving forward our Economic Renewal policy. We have again shown that we will strive to find new ways of investing in our economy and our communities. By offering alternatives to grants, the Fund will help create the right conditions for businesses and communities to flourish. It is particularly important that during these difficult times we provide considerable investment opportunities for the regeneration of areas in Wales that will in turn result in a boost for the economy.”
