AFFORDABLE HOUSING ERSTE BANK

The "Framework Loan" will finance the construction of social housing (gemeinnütziger/geförderter Wohnraum) in Austria, in the period 2018-2023. Final beneficiaries under this operation - intermediated by Erste Bank - will be municipalities, not for profit and commercial companies/private entities.

The objective is to meet the high-demand of an increasing number of people that cannot afford adequate housing, expecially in the cities. The operation will also improve living conditions of the local population and the attractiveness of urban spaces and related architecture.

Compliance with the relevant EU Directives will be verified during appraisal: EU Environmental Impact Assessment (EIA) Directive 2014/52/EU amending the EIA Directive 2011/92/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. Applicable energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed during appraisal.

The promoter is a private company not operating in the utilities sector and not having a status of a contracting authority. Thus, it is not covered by the EU Public Procurement Directives. However, the housing projects will be developed by final beneficiaries (non-profit housing development companies, commercial property companies, local authorities) some of which (i.e. local authorities) will fall under public procurement rules. The Bank will require the promoter to ensure that final beneficiaries falling under the EU Public Procurement Directives comply with the EU Public Procurement Directives.