Experience and perspectives of using EU funds and other funding for the implementation of district renovation projects

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1 Experience and perspectives of using EU funds and other funding for the implementation of district renovation projects Ministry of the Interior of Lithuania Regional policy department

2 Administration, coordination, monitoring Policy making Implementation Regional policy (and EU SF regional dimesion) implemetation scheme Government National regional development council Managing authority and ministries (intermediate bodies) Agencies (implementing institutions) Implemetation at the regional level Regional and local projects Design of support measures Ministry of the Interior Regional development department under MoI (territorial divisions) Regional development council (1, 2, ) Regional projects list Regional development plan Initiatives (policy making) Municipalities (beneficiaries)

3 Vertical of national regional policy Vertical measures are implemented in target territories/sectors : Regional centers (7 cities); Problem territories (14 municipalities); Target sector rural development, diversification of rural economy.

4 Target territories

5 Direct (vertical) measures of EU support: Regional centers: Development of urban infrastructure and living envinronment, investment attraction (120,3 MEUR until 2013); Problem territories Development of urban infrastructure and living envinronment, investment attraction (31 MEUR until 2013); Renovation of multiflat housing (47 MEUR until 2013); Development of social housing (11,8 MEUR until 2013). Rural areas: Development of public spaces and social infrastructure, diversification of economic activity (100,4 MEUR until 2013)

6 REGIONAL GROWTH CENTRES All 7 have their development investment programmes approved by the Minister of Interior Projects target to improve business and living environment are being implemented.

7 PROBLEM TERRITORIES Selected by the criteria approved by the Government List of municipalities which are named as a problem territories is approved by the Government All 14 municipalities problem territories have their development programmes approved by the Government

8 Problem territory model. complex urban measure+sectoral measures Urban, suburban mobility Public spaces Housing, social housing Public spaces Social infrastructure

9 INTEGRATED TERRITORIAL DEVELOPMENT

10 Administration, coordination, monitoring Policy making Implementation Regional policy (and EU SF regional dimesion) implemetation scheme Government National regional development council Managing authority and ministries (intermediate bodies) Agencies (implementing institutions) Implemetation at the regional level Targeted national interventions CLLD ITI Regional development council (1, 2, ) Urban authority Regional development plan Ministry of the Interior Regional development department under MoI (territorial divisions) Initiatives (policy making) beneficiaries

11 Integrated territorial investments (ITI)

12 URBAN challenges: o Larger urban centres of Lithuania in past 10 years attracted significant flows of internal migration, which led to increasing social problems (including alcohol, drug abuse and crime rates) within deprived neighbourhoods, also emigration to the foreign countries and spread of cities into suburban territories, which leads to unsustainable and costly use of urban infrastructure. o Smaller cities suffer from severe depopulation (decrease of population during percent), ageing, insufficient share of services in economic structure and low economic activity (which limits youth employment possibilities and deepens demographic challenges).

13 URBAN challenges: o Interventions in the period will primarily seek to increase territorial cohesion within regions, maximizing labour force potential of subregional territories (deprived territories within bigger cities and medium-small cities, facing specific challenges) o One of key conditions to achieve this goal is to utilize cross-sectoral approach for integrated investments in the urban infrastructure.

14 Territorial scope of ITI in LT (I) The territorial scope of ITI and CLLD implementation in urban areas: 5 biggest cities, concentrating on: socially, economically isolated, confronting environmental problems and material deprivation areas (neighbourhoods) (30-40 thus. inhabitants) Small and medium sized towns (over 6000 inh. and centres of municipalities, except 5 biggest) facing lower economic activity, employment diversity and demographic challenges Specific target areas are selected according set of criteria, specific to each group.

15 Territorial scope of ITI in LT (II) 5 biggest cities 1 ITI programme per city (1 or 2 target territories+adjacend territories) Small and medium sized towns 1 ITI programme per region (10 programmes)

16 Selection of target territories Specific target territories are selected according set of criteria or principals, specific to each group. Bigger cities (URBAN/SUD/ITI) 5 biggest cities selected their target areas (30-40 thus. inhabitants) according principals set in PA (deprived neighbourhoods / sustainable development / employment / quality of life issues+potentials); Small and medium cities (ITI) 23 target territories (small and medium towns) were selected by Ministry of Interior according to criteria: low economic activity; imbalanced economic structure (high dependence on raw materials or manufacturing) and low economic diversity (which does not allow for sufficient employment in the city or regional territory); significant depopulation due to migration or insufficient demographical change. 20 transition (phasing out) territories.

17 Shrinking cities

18 target territories

19 Participation of Urban authorities Integrated territorial development programmes (urban strategies) are drafted by municipalities in cooperation with national, regional authorities and local institutions (incl. ministries, universities, territorial labour exchanges, other public subjects), social and economic partners and local community. Programme sets out list of operations and provisional guidelines for community led local development strategies.

20 Urban authorities role in ITI according ERDF regulation, Article 7 City (municipality) role: selects target area(s), which the ITI program will be designed for (in 5 bigger cities); drafts the ITI program according to ITI guidelines (adopted by Ministry of Interior ); Involves national, regional, local authorities and social/economic partners position while drafting the ITI program; Involves local communities to set the list of operations and provisional guidelines for CLLD strategies in the program (bottom-up approach) implements ITI program and submits the reports about results

21 Financial allocations 1. Not less than 5 percent of ERDF shall be allocated for integrated sustainable urban development actions dealing with problems of economic, social, environmental, climate change ande demographic character (implementation model ITI, territory 5 bigger cities); 2. ITI shall be financed from at least 2 priority axes URBAN type actions promoting employment and supporting labour mobility; (ERDF) CLLD promoting social inclusion and combating poverty (ESF); Fund Indicative breakdown of ERDF support for ITI in accordance with Article 7(2) of the ERDF Regulation by priorities and indicative breakdown of ESF support for integrated actions Percentage of Fund s total allocations to Operational programme Total ERDF 204,700, Total ESF 6,001, Total (ERDF+ESF) 210,701,

22 OP priorities, contributing to ITI (all target towns and cities) Priority Fund Indicative amount (Community support) Strengthening competitiveness of SMEs ERDF 25,000,000 Promoting energy efficiency, and production and consumption of RES ERDF, CF ERDF: 85,000,000 CF: 5,000,000 Environment, sustainable use of natural resources and adaptation to climate change ERDF, CF ERDF: 25,000,000 CF: 50,000,000 Developing sustainable transport and key network infrastructures Promoting quality employment and participation in the labour market Promoting social inclusion and combating poverty Education of the society and strengthening of the potential of human resources ERDF, CF ERDF: 30,000,000 CF: 30,000,000 ERDF ERDF: 116,427,000* ERDF ESF ERDF ESF ERPF: 30,000,000 ESF: 8,480,000** ERPF: 35,000,000 ESF: 5,000,000

23 ITI model Integrated territorial development programme (strategy) (using ITI) City/cities Integrated projects (specific objective of priority 7) ITI territory Target territory Demographics Economics Links with suburban/rural territories Social development Environment CLLD (specific objective of the Priority 8) Climate change CLLD beyond target territory (optional) Urban/rural cooperation CLLD of rural areas Other operational priorites contribution: transport, environment, energy, social services, etc. (to tackle specific problems)

24 THEMATIC OBJECTIVE 8/PRIORITY AXIS 7 8. Promoting employment and supporting labour mobility INVESTMENT PRIORITY: b. (7.1) supporting employment friendly growth through the development of endogenous potential as part of a territorial strategy for specific areas, including the conversion of declining industrial regions and enhancement of accessibility to and development of specific natural and cultural resources. Specific objective 7.1.1: To diversify economic activities and improve conditions for attracting investment in support of job creation in target territories (urban areas) FUND: European Regional Development Fund

25 Investments under investment priority 7.1 Are allocated to target territories Cover a range of investments to be made in a particular area, with the aim - to promote employment friendly urban regeneration and growth. Investments attributable to urban development must be: Concentrated in the area; Focused on the essential problems of the area; Integrated with other investments (incl. private) made (and/or) soft measures implemented in that area; Having a strong territorial integration dimension within a single action.

26 Investments under investment priority 7.1 (315 MEUR): Conversion of under-used or abandoned infrastructures and territories, creating conditions to attract new commercial activities, adapting them social and cultural infrastructure, community activities. Modernisation of public spaces by forming additional or new, or strengthening the existing, urban attraction centres by making use of the elements of the nature frame, cultural heritage, urban structures and landscape that shape local identity Improvement of the living environment in residential districts, by setting up or renovating small-scale community infrastructure, cleaning the environment, investing in green infrastructure and accessibility of these territories (e.g. walking and cycling paths).

27 Improvement of the living environment in residential districts, by setting up or renovating small-scale community infrastructure, cleaning the environment, investing in green infrastructure and accessibility of these territories (e.g. walking and cycling paths) + district heating sytems; + district lighting sytems; + multiflat housing renovation; + social infrastructure; + actions for employment and social inclusion = sustainable and energy efficient living district. Challenge different rules, different shedulles, different actors.

28 Integration of actions in ITI programs Sectorial integration (horizontal): is about joining up different policy sectors and their associated actors within a selected areas. Two dimensions can be distinguished: 1) cross-sectoral integration between different policy areas, which can operate at a territorial scale; 2) stakeholder integration between public, private and voluntary sector. Territorial integration (vertical): some developments of territorial structures or systems which are planned under ITI program due to their positive or negative externalities, internal territorial relations and complexity of their nature cannot be easily split up into different parts and attributed to the sectorial institution and investment priority. As horizontal integration is not always sufficient to tackle cross cutting issues, it should also include vertical integration the instrument for that is ITI program

29 Suplementing actions via ITI: Formal and informal education Social services (community services) Employment and business, R & D, creative industries, green technologies, social business Multiflat housing renovation (financial instruments) Basic infrastructures, transport, sustainable mobility Modernization of social infrastructures Actualization of herritage Envinronmental engineerig Commumity led local development (CLLD)

30 Example: ITI program of Klaipėda city

31 Target territory selected in Klaipėda target territory 512 ha related territory 60 ha Core part of the selected target territory deprived residential district (construction year average ~1960.)

32 Projected new bridge Football school II watering station Dane waterfront public space at former Vaidila cinema public spaces in residential areas Dane square

33 Program target - Creating favourable living envinronment Coherent projects, which helps to reach the target: 1) Culture factory (already operational)+ 2) Construction of a new drawbridge through Dane and access arrangements in the northern coast of the Dane river (priority axis 7), Dane square reconstruction+ 3) Dane river waterfront reconstruction inducing small scale businesses (priority axis 7)+ 4) Renovation of residential quarter (lighting system and building renovation via financial instruments) and public spaces (target territory) (priority axis 5,7)+ 5) Construction of Bastions st. section, reconstruction of the junction of the Old market (priority axis 6)+ 6) Cultural connections program (national financing)+ 7) target business support (creative and cultural industries) selfemployment (individual training and advice on new business development and management) (priority axis 3, 8 (CLLD), national financing)

34 Impact of the set of projects to integrated urban development Provides a link between 2 key core parts of a city historical centre and the new commercial centre, joins up potentials Increases attraction of a territory for private investments, creates a honey-pot for local residents (new opportunities for SMEs) Increases desirability and improves living conditions in the target area, creates preconditions to increase the density of population in the city kernel Removes transport bottleneck in the historical city centre (noise, pollution, CO2) Improves accessibility to the target area

35 THANK YOU FOR YOUR ATTENTION

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