HAMBURG SUSTAINABLE WASTEWATER SYSTEMS

The EIB will co-finance part of the 2024-2027 investment programme of Hamburger Stadtentwässerung, the public wastewater utility for Hamburg City and surrounding communities. The operation mainly concerns the replacements and expansion of sewer networks, pumping stations and treatment facilities.

The aim of the project is to improve the wastewater services efficiency and sustainability as well as increase the generation of renewable energy. In particular, the rehabilitation of sewers will reduce combined sewer overflows while improving the wastewater treatment plant will increase the quality of receiving waters. Investments will also make the wastewater infrastructure more climate resilient and help mitigate the effects of global warming. In addition, by improving quality and efficiency, the project will have a positive impact on the life of around 2.2 million people in the serviced area.

The operation co-finances the 2024-2027 investment programme of Hamburger Stadtentwässerung, the public utility responsible for wastewater collection and treatment in Hamburg City and surrounding communities. It aims to ensure compliance with European and German environmental standards and to improve service efficiency. The investment programme mainly consists of the extension, upgrading and rehabilitation of the wastewater collection and treatment facilities. The project aims to: (i) maximise sewage collection, reduce stormwater overflows to surface water and minimise infiltration from sewage in the groundwater through the extension and rehabilitation of sewers and the construction of stormwater retention basins, thus protecting the ground- and surface water quality, (ii) adapt to climate change to ensure sufficient capacity of the network to accommodate heavy rainfall events; (iii) reduce energy consumption and increase the generation of renewable energy to mitigate climate change (iv) keep the high level of wastewater treatment to improve the quality of the receiving surface water body. The project is thus enhancing the quality of life of the about 2 million people in the service area. The project also supports cohesion. The project will contribute to mitigating market failures in the wastewater sector by financing infrastructure that generates positive environmental, public health and climate externalities that are not fully reflected in the applicable wastewater tariffs.

The Bank's loans have been a cornerstone of the borrower's substantial long-term investment programme into Hamburg's wastewater systems, providing a substantial contribution to the programme's financeability and affordability. The loan will offer key benefits such as a very long loan maturity and flexibility with respect to drawdowns, interest rate arrangements and grace periods, which will enable the required alignment with the implementation and financial modalities of the project. The Bank will co-finance the project alongside commercial banks and borrower own funds, adding to the borrower's funding diversification. This financing combination will be highly beneficial not only for the project itself but also indirectly for the borrower's overall investment programme.

The investments will contribute to the sustainable management of wastewater infrastructure with overall positive environmental impacts. Compliance with the EU Water Framework Directive (2000/60/EC), the Urban Wastewater Directive (91/271/EEC), EU and national environmental legislation will be verified during appraisal. The project will contribute to climate action and environmental sustainability (CA&ES) objectives. Most of the components to be financed under the investment loan are expected to have limited environmental and social impacts. However, some of the investments may fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU (amended by Directive2014/52/EU), requiring the competent authorities to determine whether an EIA is required. Where a formal EIA is required, a copy of the Environmental & Social Impact Study or the Non-Technical Summary (NTS) or equivalent document will be provided to the Bank, and published on its website. The promoter will also be required to verify that all of the schemes submitted for financing by the Bank follow the Birds Directive2009/147/EC and Habitats Directive 92/43/EEC. 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 Directive.

The promoter has to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant EU procurement legislation, 2014/25/EU, where applicable, 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 European Union, as and where required.