Rules on the eligibility of project expenditure, using JESSICA, are the same as those on the use of Structural Funds as a whole and also need to take account of any specific national constraints. Apart from specific non-eligible items listed in the relevant Regulations12 , JESSICA may allow for more flexible management of projects, respecting at the same time eligibility rules, provided always that the projects that are so supported form part of "integrated and sustainable" urban development plans13. Therefore, investments by UDFs in the commercial projects, such as shops, offices, entertainment, cultural and sport facilities, may be eligible for contributions from OPs co-financed by the ERDF, provided that such commercial projects: (a) are part of an integrated urban strategy as described in the Article 8 of the Regulation (EC) No 1080/2006, (b) comply with the Structural Funds legislation, and (c) comply with national eligibility rules within the meaning of the Article 56(4) of Regulation (EC) No 1083/2006 (this Regulation is sometimes referred to as the General Regulation).14 Concerning the specific provisions on the "integrated urban development", it was explained by the Commission that the ERDF eligibility criteria for what can constitute an integrated urban development plan or project should be interpreted flexibly and be defined by Member States and Managing Authorities, taking account of the Article 8 of Regulation (EC) No 1080/2006 and the specific urban, administrative and legal context of each region15. It should also be noted that due to recent amendments to the EU Structural Funds regulations, projects related to energy efficiency and renewable energy in buildings do not necessarily have to be a part of an integrated plan for sustainable urban development. However, where an UDF supports, together with other projects, projects related to energy efficiency and use of renewable energy in buildings, such projects should be included in integrated plans for sustainable urban development. An integrated approach to urban project development is therefore encouraged.
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12 The most relevant legislative provisions include: Council Regulation (EC) No 1083/2006 of 11 July, 2006, laying down general provisions on the European Regional Development Fund, European Social Fund and the Cohesion Fund (the General Regulation); Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund of 5 July, 2006 and 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.
13 EIB. JESSICA: A New Way of Using EU Funding to Promote Sustainable Investments and Growth in Urban Areas, 2007.
14 COCOF 08/0002/01-EN.
15 COCOF 08/0002/02-EN.