ENEA ELECTRICITY DISTRIBUTION II

The programme will finance investment schemes in the electricity distribution network in Western Poland over the period 2023-2025.

The aim is to enable the promoter to maintain high quality of services and lower losses across their electricity distribution network, as well as to connect new users. The programme will also contribute to the integration of renewable energy generation increasing renewable capacity connected to the distribution network.

The programme comprises investments in the electricity distribution network in Western Poland over the period 2023-2025. It addresses the needs for the renewal of assets and development, including automation and tele-control. The programme contributes to maintaining or increasing security of supply and to the integration of low-carbon generation. 100% of the programme will benefit Cohesion regions.

The programme addresses market failures linked to negative environmental externalities (reducing GHG emissions) and the supply of public goods (security of power supply). It contributes to Bank's ELP, lending priority objectives on CA&ES and it aligns with the REPowerEU. In line with the EU Taxonomy, electricity grid in Europe contributes to climate change mitigation.

The project is expected to deliver very good economic and social benefits.

The promoter is experienced in works of this nature and has a sound project management system in place.

The long tenor of the EIB loan (18) is in line with the economic life of the underlying assets. The funding of similar maturities is not available on the Polish market. Customised terms such as flexible drawdown are of value to the Promoter because of the multiannual Project's implementation period. Moreover, the EIB involvement should have a crowding-in effect.

All of the programme schemes to be co-financed by the EIB are medium and low voltage investments, they are expected to have limited environmental impact thus not requiring an Environmental Impact Assessment (IEA) Directive 2014/52/EU (amending 2011/92/EU). The environmental and social due diligence will focus on the Promoter's capacity to implement the programme in line with the EIB environmental and social standards and requirements.

The promoter is a DSO operating in Poland and, therefore, procurement for the implementation of the programme has to be carried out in accordance with the relevant applicable national public procurement legislation, in line with Directive 2014/25/EU (Utilities Directive).