EU bank lends Madrid Region EUR 49 million to build 612 affordable rental flats
Energy efficiency: half of new units will be low consumption homes and a further 1,337 will be renovated to reduce energy costs
Support for upgrading Madrid Metro: EIB provides EUR 50 million for improving Madrid’s suburban rail services
The European Investment Bank (EIB) is providing the Madrid Region with a EUR 49 million loan to finance the construction of new affordable rental housing and improvement of the energy efficiency and accessibility of the existing social housing stock. The loan agreement was signed today in Madrid by EIB Vice-President Emma Navarro and the Madrid Region’s Transport, Housing and Infrastructure Minister, Rosalía Gonzalo, and Economy, Employment and Finance Minister, Engracia Hidalgo.
The EU bank is providing a loan on favourable interest rate and maturity terms for increasing the availability of rented social housing in Madrid through the construction of 612 flats. Half will be “near zero energy homes”, with very low energy consumption, below 40KWH per m², thanks to their design and the materials used in their construction.
The EIB will also support the urban regeneration of more than 153,000 square metres of the city by financing investment in improving the energy efficiency and accessibility of 1,337 flats forming part of the Region’s social housing stock. These improvements will reduce these units’ energy costs by around 30%.
The project will benefit parts of the city with bigger demand for social housing, like Fuencarral, Hortaleza, Carabanchel and Vallecas. It will also reach as far as municipalities in the Sierra Norte region with the aim of attracting people and stopping the rural exodus.
Upon signing the agreement, EIB Vice-President Emma Navarro said: “This project is a good example of one of the EIB’s top priorities: fostering urban regeneration to improve people’s lives and contribute to the fight against climate change by upgrading the energy efficiency of buildings. We are therefore pleased to join forces with the Madrid Region to support a project with a twofold impact – social and environmental – that will help families on low incomes to obtain housing while at the same time lowering the energy costs faced by residents and reducing pollutant gas emissions”.
The EIB is financing this project under the Smart Finance for Smart Buildings initiative, which it is promoting alongside the European Commission to provide the necessary financing to support investments in improving the energy efficiency of buildings. More than 700 jobs will be created during the project’s implementation phase up to 2023.
Upgrading of Madrid Metro
The EU bank also signed a EUR 50 million loan agreement with Metro de Madrid to finance investment in the upgrading and refurbishment of Madrid’s suburban rail network.
This is the second instalment of a total loan of EUR 200 million granted by the EIB under the Investment Plan for Europe that will finance 23 schemes to upgrade stations, trains and tracks with the aim of improving the services, energy efficiency and safety of Madrid’s metro system.
Climate action and support for public transport
The European Investment Bank is the multilateral institution that provides most finance to combat climate change worldwide, last year devoting more than 29% of its total lending, or EUR 16.1 billion, to this priority. Part of this amount focused on promoting cleaner modes of transport and particularly on supporting improvement of the metro networks of various cities around the world.
The European Investment Bank (EIB), the EU bank, will provide a €2 million technical assistance grant for the preparation of an affordable housing project in Tirana. The grant will strengthen the municipality’s capacities and develop the necessary documentation in line with EU standards and EIB climate and environmental targets. The Bank will support the municipality in its effort to provide improved and energy efficient accommodation for the most vulnerable residents of Tirana. The project concerns the construction of new buildings and ancillary infrastructure over an area of 86 600 m2 to host nearly 6 500 people and about 1 600 low and middle-income households.
The European Investment Bank (EIB) and Iberdrola have agreed to increase the green loan signed in 2021 to support the development, modernisation and digitisation of the company's electricity distribution networks, a project with an impact on twelve Spanish regions. The €220 million top-up signed today brings the total EIB financing to around €820 million, allocated to strengthen smart grids in Spain and contribute to the further electrification of the economy. The project linked to the loan will improve the efficiency of the distribution network, characterised by automation and control.
The European Investment Bank (EIB) and the Bank of Slovenia today discussed the investment dynamics and impact of the climate transition on Slovenian enterprises at a conference at the Bank of Slovenia’s headquarters in Ljubljana.