RIGA WATER AND SANITATION

Financing of a multi-annual investment programme in water and sanitation in the City of Riga.

The proposed operation concerns the 2021-2024 investment plan of the Borrower, and aims at enhancing the quality and security of water supply and wastewater collection and treatment. Investments are supposed to include rehabilitation of networks, replacement of meters, water treatment and storage facilities, and information and communications technology (ICT) process improvement and automation items.

The Project is in line with EU and EIB policy objectives of environmental protection and climate action, and will help mitigate market failures by financing infrastructure that generates positive externalities in the form of environmental and health benefits. These benefits would not be realised to the same extent without public intervention. This Project supports the strengthening of the EU's economic, social and territorial cohesion.

EIB provides significant financial contribution by offering longer maturity and flexible customised terms compared to the conditions currently available on the market. EIB financing will help the Borrower to diversify funding sources and will provide a direct loan from an international finance institution for the first time. Thus, EIB's involvement will have an impact on mobilising other financiers and signalling that the Project is sound and worth supporting, thereby facilitating the full financing and implementation of the Project.

The project will contribute to ensure compliance with key EU directives in the water sector, notably the Drinking Water Directive (2020/2184/EU), the Urban Waste Water Treatment Directive (91/271/EEC) and the Water Framework Directive (2000/60/EC). Where and if applicable, the requirements of the EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU and SEA Directive 2001/42/EC will be respected. The Promoter will in such case, prior to utilising any EIB funds, be responsible for transmitting to the Bank the environmental impact assessment (EIA) for publication on its website. For any part of the project that may impact on a nature conservation site, the Promoter will be required to provide to the Bank information on the mitigating measures required to comply with the Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively).

The Bank will require the Borrower to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC, as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.