NORTHERN GAS NETWORKS (PHASE I )

The operation is part of NGN’s investment program in its gas distribution network covering the period 2008-2010. The investment is in phase with the gas distribution price control period set out by the UK regulator, starting first of April 2008 for a period of 5 years.

The proposed programme aims at supporting sustainable safety, environmental and customer service standards set by EU and national legislation. The project will therefore contribute to improving the quality of life of the population in the Northern part of England.

Based on current information, the investment program falls under Annex II of the Environmental Impact Assessment directive (85/337/EEC as amended by 97/11/EC), leaving it to the competent authority to decide on the need for an EIA. During appraisal, the Bank will review the results of possible EIAs, mitigation and compensation measures and any effect on conservation sites (Natura 2000). In line with the Bank's guidelines, the promoter's capacity and procedures to ensure compliance with environmental and biodiversity regulations will be assessed during appraisal.

The promoter is required to tender works, supplies and services contracts following procurement rules of relevant national and EU legislation, as defined by procurement Directive 2004/17/EC, including the publication in Official Journal of EC where appropriate. Detailed procedures applied by the promoter will be reviewed during the appraisal.