SPAIN URBAN INFRASTRUCTURE PROGRAMME LOAN

The Programme Loan aimed at financing urban infrastructure investments in Spain.

The project will support the implementation of multi-annual investment programmes framed within a defined municipal policy framework, demonstrating a planning-led approach and in support of integrated urban development strategies. The underlying operations are expected to support urban regeneration and renewal and infrastructure modernisation. This will be achieved through investments in urban development, energy efficiency, climate adaptation, sustainable urban transport, culture, sport facilities, green open spaces and other urban infrastructures. The investments will be implemented across Spain, including less developed regions. The expected pipeline of projects include the cities of Sevilla, Malaga, Logroño, Fuenlabrada and Barcelona.

The Project concerns a Programme Loan aimed to finance municipal urban infrastructures across Spain in support of urban regeneration and renewal. The Project supports the achievement of a number of SDGs and is in line with the provisions of the 2020 New Leipzig Charter, the EU Urban Agenda, and the EIB Urban Lending Review. Furthermore, it is aligned with the EU Energy Performance of Building Directive and is consistent with the Renovation Wave, which emphasises the importance of the energy-efficient modernisation of ageing urban infrastructure, and so is in line with the EU Green Deal. The Programme Loan also is also in line with the EIB's Transport Lending Policy and the Energy lending policy. Some of the investments support the Spanish national and the EU energy efficiency targets and contribute to CO2 emissions reduction.

The Project addresses a number of market failures related to the development of infrastructure and sub-optimal investment flows into highly energy efficient and resilient new buildings and other productive and social infrastructure. The Project also addresses market failures related to road externalities in terms of air and noise pollution, road safety and GHG emissions in urban environments.

The Project will contribute to addressing the increasing gap in the provision of modern urban infrastructure, which is facing a number of uncertainties linked to the Covid-19 pandemic and its economic impact. By providing long maturity loan terms, the Bank enables for a greater number urban infrastructure to be planned, designed and built more rapidly, as well as providing resources which enable an ambitious approach to be taken in terms of offsetting the additional costs of higher energy efficiency (beyond legal requirements), thus helping to support solving the pressure faced by this sector in these difficult times.

The Project is also expected to contribute to climate action through mitigation and adaptation measures. Related investments are expected to have a positive impact on the environment (decrease local air pollution, noise and GHG emissions) as well as to deliver economic benefits in terms of lower operational and maintenance costs. Also, sub-projects supported by this PL might deploy Green Procurement procedures incentivising the purchase of services that are less harmful to the environment.

The EIB financial contribution will entail a financial benefit, long tenors, commensurate with the economic life of the infrastructure being financed and the flexibility to sign in tranches, in line with project implementation.  

During the appraisal, the EIB will assess the compliance with the environmental impact assessment (EIA) Directive 2014/52/EU (amending the EIA Directive 2011/92/EU), the Strategic Environmental Assessment (SEA) Directive 2001/42/EC, the Water Framework Directive (WFD) 2000/60/EC, the EU Habitats Directive 92/43/EEC and the EU Birds Directive 2009/147/EC). An EIA may be required for some of the underlying sub-operations or some of the individual schemes; this will be verified during the appraisal of the sub-operations. The status of any environmental studies and public consultations related to the investments as well as the alignment of energy efficiency requirements with the EU Directive on the Energy Performance of Buildings (EPBD, 2018/844/EU) will also be further assessed during project appraisal. In case the Bank finances the purchase of new rolling stock (e.g. buses, tramways, etc.) to replace old rolling stock units, the promoters will have to ensure compliance with the applicable standards when dismantling or scrapping the rolling stock being removed from service.

The Promoters of the individual sub-operations under the programme are not known yet, but are expected to be Sub Sovereign Public Authorities (SSPAs) and Public Sector Entities (PSEs). Corporate promoters, although unlikely, are not excluded. It is foreseen that the majority of the promoters will be municipal authorities and public utilities falling under the EU Public Procurement legislation. For the promoters falling under such legal framework, the Bank will require them to ensure that contracts for the implementation of the sub-operations have been and will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/25/EU, 2014/24/EU, Directive 2014/23/EU as well as Directive 89/665/EEC and 92/13/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.