ROLAND GARROS AIRPORT REUNION - PHASE 3

The project is a major scheme under the framework loan "Roland Garros Airport-Reunion" and consists of Phase 3 of the airport Development Plan 2011-2023. It includes the creation of a new energy efficient Arrivals terminal designed around a system of natural ventilation located to the west of the existing building, the reconfiguration of the existing terminal into the Departures hall and the extension and reconfiguration of the Handling Baggage System.

The project has the objective of increasing the capacity of the facilities, from 2.5 to 3.5 million passengers per year, through a climate resilient and environmentally sustainable design. It will also improve the security performance of the Baggage Handling System in compliance with the latest EU Security regulation.

The scheme has the objective of expanding capacity at Roland Garros airport to accommodate future traffic growth up to 3.5 million passengers per year. It is the only airport in the island capable of operating long-haul services and is, therefore, an essential facility for efficient air transport links, most critically with continental France. Reunion is one of the French Outermost Regions and the airport is part of the comprehensive TEN-T network, making the scheme eligible under Articles 309(a) and 309(c).

The natural monopoly condition of the airport and the safety and climate elements in the scheme are sources of market failure. Without it, there would be a continuous degradation of service and eventual closure of the facility. The project has a strong economic justification.

Further, the financing provided by the Bank offers features that cannot be found in the market for such corporate-status entities, including long maturity, five years availability, four years grace period, plus technical contribution and advice through: - the technical assistance from JASPERS for the preparation of an application for an ERDF grant and - the project's monitoring and implementation follow-up.

The investments included in this allocation would normally be classified under Annex II of the Directive 2014/52/EU amending the EIA Directive 2011/92/EU, meaning that the competent authority makes the decision as to whether a formal environmental impact assessment (EIA) is required or not. Alignment to this and to other National and EU environmental legislation, including the Habitats Directive 92/43/EEC and the Birds Directive 2009/147/EC, the EU Directive on Energy Performance of Buildings and the status of any pre-existing development consents will be reviewed and assessed during appraisal.

The Bank will require the Promoter to ensure that contracts for the implementation of the project have and will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU, 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, as and where required.