Regional Growth Fund

What is the RGF?Alistair Reekie : 

What is the RGF?Alistair Reekie

Regional Growth Fund : 

Regional Growth Fund Regional Growth Fund was launched by publication of the Local Growth White Paper on 28 October.

RGF’s Objectives : 

RGF’s Objectives To encourage private sector enterprise by providing support for projects with significant potential for economic growth and create additional sustainable private sector employment; To support in particular those areas and communities that are currently dependent on the public sector make the transition to sustainable private sector led growth and prosperity.

RGF Parameters : 

RGF Parameters £1.4 billion It will be allocated over three years (2011-2014) Applies to England only It’s a Challenge fund, to be held over several rounds

RGF Parameters : 

RGF Parameters Bids must meet at least one of the objectives Minimum bid threshold of £1m Is available to bids from the private sector and private/public partnerships (LEP can play a role in co-ordinating bids in the areas they cover but will not have preferred bidding status)

First round of bidding : 

First round of bidding The first Round will open with the launch of the fund, it closes on the 21st January 2011 This will be a one stage process With two bidding models: Projects and Packages of Projects Successful bids notified in the Spring 2011 Funds will be released on completion of pre agreed milestones

Bidding Models : 

Bidding Models Projects: Bids that will comprise individual projects that make a specific and significant contribution to the core aims of the RGF. These bids will individually need to meet the minimum bidding threshold. Project packages: Bids that will be presented as a coherent package, bringing together a number of projects that make a specific and significant contribution to the core aims of the RGF. Collectively, each package must meet the minimum bidding threshold.

Bidding Models : 

Bidding Models Programmes: Bids from individual bodies or partnerships for strategic capital investment, whose collective aim meets the criteria of the RGF. This form of proposal is likely to be most workable for partnerships involving social enterprises, such as groups of Community Development Finance Institutions. Collectively, each package must meet the minimum bidding threshold

Independent Advisory Panel : 

Independent Advisory Panel Chaired by Lord Heseltine, Sir Ian Wrigglesworth Deputy Chair Receives a two page summary of each bid, and a matrix of all the bids Reviews the fund against the two objectives Recommend to Ministers which bids should receive funding

Ministerial Committee : 

Ministerial Committee Chaired by the DPM, First Secretary to the Treasury, SoS’s: BIS, CLG, DfT, DEFRA. They make the final decision on which bids are successful Make provisional offer that sets out basic terms and conditions

Due Diligence : 

Due Diligence Will vary according to the nature of the bidder Detailed analysis of financial model Detailed check of Business Plan Confirmatory due diligence will be commissioned by the applicant from a third party

Further sources of information : 

Further sources of information Web: http://www.bis.gov.uk/policies/regional-economic-development/regional-growth-fund Email: growthfund@bis.gsi.gov.uk