AFFORDABLE HOUSING PROGRAMME PT

The project will finance the construction and refurbishment of about 12.000 affordable housing units (mostly new construction) across Portugal.

This operation is part of the Affordable Programme (PAA), a national public programme designed to finance affordable housing and establish a long-term housing stock at below-market rents. Through this programme, the Government aims to address the housing needs of families whose income levels do not permit them to access market-rate.

The Project consists of the construction and refurbishment of affordable housing units across Portugal. It will also contribute to urban regeneration and transformation of neighbourhoods to make them more sustainable.

The Project fosters social inclusion as well as a more equitable access to housing. It will generate positive externalities through improved provision of housing facilities and attractiveness of the built environment.

The Project is in line with the Bank's Urban Lending Review in accordance with the provisions of the EU Urban Agenda, the 2020 Leipzig Charter for sustainable urban development, the EU2020 Strategy for smart, sustainable and inclusive growth, and the EU Green Deal. The operation is aligned with the EU Energy Performance of Building Directive ("EPBD") and the Energy Efficiency Directive ("EED").

The Project is expected to contribute to Climate Action and Environmental Sustainability. The investments will also support the strengthening of the EU's economic, social and territorial cohesion. Therefore, the Project is eligible under Article 309 of the TFEU point (a) projects for developing less-developed regions and point (c) common interest.

The Project addresses a number of market failures in particular the lack of available housing supply as the market does not sufficiently cater for the demand of low-income and middle-income people. By providing long maturity loan terms, the Bank enables for a greater number of housing units to be built more rapidly, thus helping relieve the pressure faced by this sector in these difficult times.

The Project also addresses sub-optimal investment flows into energy efficient and resilient new buildings, as a result of non-internalized positive externalities from energy savings and greenhouse gas ("GHG") emission reductions.

The Bank's financial contribution to the Project is very good thanks to conditions more favourable than market alternatives (lower pricing, longer tenor and disbursement periods, etc.). The value added provided by the EIB is even more tangible under the current market volatility, impacted by the ongoing geopolitical issues.

The promoter is deemed as having the adequate capacity to ensure that the project is implemented in line with the relevant EU Directives: Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, Strategic Environmental Assessment (SEA) Directive 2001/42/EC, EU Habitats Directive 92/43/EEC, Birds Directive 2009/147/EC, and Water Framework Directive (WFD) 2000/60/EC. Furthermore, for new and refurbished buildings, the Promoter is also deemed capable of ensuring the project is implemented in line with EU Directive on Energy Performance of Buildings.

The promoter shall ensure that contracts for implementation of the Project will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU as well as 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.