IREN WATER SECTOR GREEN LOAN

The loan will finance the promoter's 2022-2026 water and wastewater investment programme.

The project will contribute to meet the customer service standards set by the in-house agreement and the Key Performance Indicators set by the regulator ARERA. The related investments also aim at complying with all environmental requirements set by the national and EU legislation, notably the Drinking Water Directive 98/83/EC, the EU Urban Wastewater Treatment Directive 91/271/EC (UWWTD), as amended by 98/15/EC, and the Water Framework Directive (2000/60/EC).

The project will support investments in water and wastewater infrastructure in the Liguria Region in Italy.

In doing so, it will ensure compliance with key European regulations in the water sector, and improve the quality and resilience of water and wastewater water services. The project will contribute to the Bank's policy objectives of Sustainable Energy and Natural Resources as well as Climate Action and Environmental Sustainability.

The project will address a number of market failures, including those associated with public goods, unaccounted for externalities and information failures, generating positive health and environmental benefits, which would not be realised to the same extent without public intervention. The project will also contribute to improving the efficiency of the potable water supply system while increasing its resilience against climate related risks. These benefits are not reflected in market prices and would not be realised to the same extent without public intervention.

EIB intervention will allow the Borrower to lengthen the tenor of its debt and to contain the cost of funding, attracting other potential lenders.

The investments are expected to have positive net environmental and social impacts, considering their focus on compliance with, amongst others, the Urban Waste Water Treatment Directive 91/271/EC and the Water Framework Directive 2000/60/EC, and their contributions to efficiency improvements. Where and if applicable, the requirements of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending the Directive 2011/92/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be verified during appraisal.

The Bank will require the Promoter to ensure that contracts for implementation of the project have been or will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/23/EU and/or 2014/24/EU and/or 2014/25/EU, where applicable, as well as Directive 92/13/EEC and Directive 89/665/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.