OASEN SUSTAINABLE WATER SUPPLY

The project concerns the 2022-2026 investment programme in the production and distribution facilities of OASEN, one of the Netherlands' smaller water supply companies. The programme consists mainly of renewal and extension of water treatment plants, reservoirs, pumping stations and distribution networks.

The project consists of a 5-year (2022-2026) investment programme aimed at upgrading drinking water supply and distribution networks in the service area of the Promoter (an area in the province of South Holland with a population of about 790,000). The project consists mainly of the replacement and upgrading of water production infrastructure, transmission mains and distribution network.

The project concerns the 2022-2026 investment programme in the production and distribution facilities of OASEN, one of the Netherlands' smallest water supply companies. The programme consists mainly of renewal and extension of water treatment plants, distribution and supplementary pumping stations and distribution networks. The project aims to maintain supply security in the context of climate change and maintain service quality at current high standards. The project will contribute to mitigating market failures in the water supply sector by financing infrastructure which generates positive environmental and health externalities that are not fully internalised in the water tariffs in the Netherlands. The project will be to the benefit of around 800,000 population in the service area of OASEN.

EIB is a cornerstone lender to OASEN. The new EIB financing will fund a project that is part of a substantial capital expenditure program. The Bank's customizable loan terms and long tenors accommodate the long implementation horizon and align with the economic life of the asset financed. In addition to a modest financial advantage, the Banks's lending provides added flexibility and diversification of OASEN's lending pool.

The investment is geared toward securing a sustainable management of water supply and distribution, bringing about positive environmental impacts. The upgrading of the water distribution pipelines, pumping stations, and production infrastructure are examples of components with environmental/resource efficiency impacts. The project is expected to contribute to environmental protection and natural resources efficiency as well as to climate action. It is in line with the Bank's lending orientation for water sector and with the European policy for the protection of the environment. Compliance with the EU Water Framework Directive (2000/60/EC), Drinking Water Directive (98/83/EC), and EU and national environmental legislation will be verified during appraisal.

The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/25/EU or 2004/17/EC, where applicable, as well as Directive 92/13/EEC) as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU (OJEU), as and where required.