Summary sheet
The promoter, EAM GmbH & Co. KG, is a public undertaking operating in electricity distribution sector. The project will finance the promoter's investments in the electricity distribution network. These include substations, overhead lines, underground cables and automation fostering connection of renewable generation and e-mobility.
Stretched over a four-year period, as a part of the promoter's investment plan, the investments will help to reduce energy losses and improve system reliability.
The project helps fill the growing investment gap in European electricity grid infrastructure. Investments are needed to support the "European Energy Transition", as identified, among others, in the "EU Clean Industrial Deal", the "EU Affordable Energy Action Plan", and the "EU Grid Action Plan".
The project consists in electricity network investments in a regulated natural monopoly and is expected to contribute to EIB's lending priority objectives on Climate Action and Environmental Sustainability and it aligns with the REPowerEU objectives. Its financing will contribute to the Energy Lending Policy priority of the EIB on Securing the Enabling Infrastructure (energy networks).
The project tackles market failures by enhancing energy security and integrating low-carbon power, contributing to emissions reduction and public health benefits. It offers a strong economic return and high social value, led by an experienced promoter with robust project management.
The EIB loan, the Borrower's first, offers long-term, flexible financing with favourable terms and a 25-year maturity. Beyond financial benefits, it also sends a positive market signal.
The project includes components that may fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU), which requires the competent national authority to determine the need for an EIA. Some of the typically expected impacts relate to visual impact, vegetation clearance, collision and electrocution of flying vertebrates, electromagnetic fields, noise nuisance, and disturbances during construction. Project appraisal will focus on impacts of the investment programme and the related mitigants, as well as on the promoter's capacity to implement the programme in line with EIB environmental and social standards. Where relevant, requirements related to screening and appropriate assessment in accordance with the EU Habitats and Birds Directives will be taken into consideration.
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 / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required. No information available for selected suppliers/contractors for the implementation of the envisaged operation.