Summary sheet
PF4EE collateral agreement for energy efficiency projects promoted by ALTUM in Latvia
Guarantee to the national promotional institution of Latvia for the financing of energy efficiency projects promoted primarily by small and medium-sized enterprises located in Latvia. The operation falls within the scope of the Private Finance for Energy Efficiency (PF4EE) financial instrument, a joint financial instrument with the European Commission to promote energy efficiency lending by financial institutions.
This operation intends to bring environmental benefits by supporting projects that reduce energy consumption and help mitigate climate change. The individual schemes to be financed are small and are expected to have very limited negative environmental impacts. Given the scale, location and nature of the sub-projects an environmental impact assessment (EIA), as defined under the EIA Directive 2011/92/EU, is normally not required. The Bank has assessed the capacity and procedures of the Financial Intermediary to ensure compliance with national and European environmental and biodiversity regulations of the individual schemes as well as its capacity to support the Bank's Public Disclosure Policy, which aims at facilitating access by the public to environmentally relevant information.
The specific project pipelines proposed by the Financial Intermediary will be assessed by the EIB; if the final beneficiaries are private companies not operating in the utilities sector and not having a status of a contracting entity, the projects will be considered as not being subject to EU rules on public procurement. However, if some of the underlying projects are after all subject to EU public procurement legislation (i.e. Directive 2004/17/EC), then the Bank would require the Financial Intermediary to ensure that contracts for the implementation of the project have been/will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2004/17/EC and Directive 92/13/EEC), with publication of tender notices in the Official Journal of the EU, as and where required.