The following selection criteria shall be applicable to each Project assessment:
- Compliance with OPRD objectives. Since the financial resources allocated to the Fund are provided by OPRD, it is crucial that all Projects comply with the objectives of its Priority Axis 1 “Sustainable and Integrated Urban Development”.
- Contribution to OPRD quantitative outputs. Taking notice of the outputs under OPRD, the Fund will focus on projects that will facilitate the achievement of the target values of OPRD’s Priority Axis 1 – number of projects improving the physical environment, attractiveness of the Cities and risk prevention, number of improved health, educational, cultural and social services facilities, and number of renewed, rehabilitated, renovated industrial zones.
- Compliance with the Fund’s objectives and other strategic documents. It is a key prerequisite that the supported Urban Projects contribute also to the achievement of the specific and overall Fund’s objectives and are in line with the Fund priorities.
- Being part of Integrated Plan / Municipal Plan for Development and other local strategies. According to the provisions laid down in the OPRD and taking into account that this is one of the key requirements of JESSICA instrument, it is essential the interventions implemented in the project to be included in spatial planning, namely Master Plans, Municipal Development Plans and / or District Development Plan.
- Maturity of the Urban Projects. The Fund will prioritise Projects with completed feasibility studies and work design, economic analysis and financial model. This approach is based on the timing requirement with respect to the preparation of the entire set of documents needed for Project submission and implementation.
- Revenue generating. All selected Projects need to be revenue generating in order to recover the investments provided. In addition, these shall have the capacity to raise financing for future Projects.
- Financial covenants. In the process of analyzing the Projects the following basic financial parameters shall be used – normal equity IRR, normal debt IRR, debt service coverage ratio, debt equity ratio, debt / EBITDA ratio, etc.
- Profitability. The projected profitability of Projects without Fund’s support is expected to be lower than normally required by the market so that with typical forms of financing the Projects could not have been realized.