LUBLIN URBAN DEVELOPMENT

This new multi-sector Framework Loan (FL), following up on the existing ones with the City of Lublin, will finance investment programmes/plans under the City's Multiannual Financial Framework and support the Urban Development and City Climate Strategies goals. Investments include the construction and renovation of social facilities (e.g. schools), cultural and sports facilities, sustainable urban mobility, green areas and open spaces, as well as IT systems. It will also address social and affordable housing. All these schemes are anticipated to have an individual cost below ?40 million and are therefore considered small under a FL.

This FL encompasses urban development schemes that are part of the ongoing Lublin Investment Plan. These schemes support the implementation of the City's Urban Development Strategy and Climate Strategy, including the 2030 Lublin Adaptation Plan to Climate Change and the existing Air Quality Programme. The objective is to continue supporting the City of Lublin to implement its Urban Development Strategy and related Plans aimed at achieving a development based on the promotion of natural resources and ecology, by reducing CO2 emissions and smog. In 2019, the City adopted its new 2030 Climate Adaptation Plan, updating the previous document from 2015, to enhance its capacity to adapt to climate change. The plan focuses particularly on water management, especially concerning the Bystrzyca River, improving biodiversity, and mitigating the effects heat waves.

This Project comprises a multi-sector Framework Loan (FL) supporting the implementation of the investment programmes of Lublin during the period 2025-2031 under the City's Multiannual Financial Framework (MFF). 

It is supporting the ambitious goals included in the Urban Development Strategies, including among others, the Lublin 2030 Strategy, the Municipal Revitalization Program for the City of Lublin for the years 2024-2033, the Strategy for the Development of the Lublin Metropolitan Area by 2030, the Sustainable Urban Mobility Plan of the Lublin Metropolitan Area, and the Climate Change Adaptation Plan of the City of Lublin.

The Project is consistent with the EU Framework for Urban Development and Regeneration. It is also aligned with the EU Energy Performance of Building Directive, the Energy Efficiency Directive as well as other EU Directives applicable to relevant sectors covered under this Project. Furthermore, the Project is consistent with the EIB strategies and guidelines related to eligible sectors, including the Bank's Urban Lending Review, the Energy Lending Policy, and the Transport Lending Policy.

The Project is aligned to the Climate Bank Roadmap. In this regard, the Project's contribution to the Bank's climate action and environmental sustainability objectives is estimated at approx. 40% of the total project investment cost.

The Project addresses a number of market failures and will bring important economic and social benefits, contributing to achieving a more integrated, sustainable, mixed and inclusive development, improving the living conditions of the citizens and other people visiting or living in the city. The Project will contribute to promoting progress toward multiple Sustainable Development Goals, the most significant one being the contribution to sustainable cities and communities.

The EIB loan with the flexible conditions (long tenor matching the economic life of assets financed, flexible drawdowns conditions, grace and availability periods) addresses the City's funding needs and contributes to the stability of the City's financing sources.

This is the third municipal FL with the Municipality of Lublin, whose previous monitoring experience is deemed as very good.

Finally, the Bank's advice provided to this Project has contributed to the structuring of the operation to be better aligned to the goals of the EIB CBR and to maximize the Project's contribution to the EIB Climate Action & Environmental Sustainability ("CA&ES") objective. 

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 level of climate action (adaptation and mitigation) and environmental sustainability measures where relevant, will be assessed during appraisal.

The promoter shall 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. Information on awarded main suppliers/contractors for the implementation of the envisaged operation is not available.