TAURON ELECTRICITY DISTRIBUTION III

The programme concerns investment schemes in the electricity distribution network in South and South-Western Poland over the period 2022-2026. The programme includes network reinforcements and refurbishments in high and medium-voltage networks and the connection of new customers in medium and low-voltage networks. The programme also includes components for the digitalisation and automation of the network.

The programme will allow the Promoter to connect new users, including renewable generation, as well as to maintain or improve the reliability and quality standards of electricity supply.

The program comprises the reinforcement and modernisation of the electricity distribution network in Poland, consistently with the country's National Energy and Climate Plan and in alignment with EIB public policy goals.

The programme schemes are located in seven regions in the country, all comprising Cohesion Priority Regions. The programme helps addressing market failures linked to negative climate and environmental externalities (by enabling the future integration of renewable generation, while also contributing to the electrification of the economy) as well as improving security of supply, a public good.

The project's results are deemed good in terms of economic welfare by virtue of the benefits it generates, as well as from a governance perspective.

The financial value added provided by the EIB loan is very much appreciated by the Promoter. The availability of attractively priced, PLN-denominated funding with similar long maturities is not available on the Polish bank and bond market. The long tenor of the EIB loan (18) is well in line with the economic life of the underlying asset (25 years) and the expected cash flow of the investment. 

Some Programme schemes may fall under Annex II of Directive 2014/52/EU, amending the EIA Directive 2011/92/EU thus requiring a review by the competent authorities at the planning/consent stage with due regard to the necessity for environmental and biodiversity impact and appropriate assessments.

The Bank will require the Promoter to ensure that contracts for implementation of the project have been and shall 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.