BUCHAREST S2 ENERGY EFFICIENCY II

The project consists of the financing of the 4th phase of Bucharest Sector 2's thermal rehabilitation programme to improve energy efficiency in residential buildings located in Bucharest Sector 2.

The project will improve the energy efficiency of 428 buildings (16 688 apartments) located in Bucharest Sector 2 and focus on thermal energy efficiency improvements of the building envelope (wall, roofs and cellar insulation), window replacement, improvements in the heating and domestic hot water systems and replacement of indoor lighting located in common spaces.

The operation finances the renovation of multi-apartment buildings in Sector 2 municipality of Bucharest. The operation addresses the investment gap in the energy efficient renovation of multi-apartment buildings in Romania, a sector that is suffering from sub-optimal investment flows due to the presence of persistent market failures (asymmetric information and split incentives). Residential buildings represent about 33% of the final energy consumption in Romania, being the biggest consumer. The EIB involvement, including at origination stage through financing and technical advice, will provide to Sector 2 the necessary budgetary resources to finance energy efficiency measures in multi-apartment buildings and will contribute to the acceleration of the Project.

The projects to be included in this operation are expected to generate about 40% of savings in heating consumption (with equivalent CO2 savings), will stimulate job creation during the renovation of buildings and contribute to tackle energy poverty. The EIB financing through long loan tenors and advantageous financial conditions will have a significant positive impact on the budgetary resources of Sector 2 also benefitting the citizens living in the municipality.

This operation is expected to produce environmental benefits by supporting measures which reduce energy consumption and help mitigate climate change. The buildings to be rehabilitated are expected to have limited negative environmental impact during construction. Given the scale, location and nature of the sub-projects, an environmental impact assessment (EIA), as defined under the EIA Directive 2014/52/EU amending the 2011/92/EU, is normally not required. The operation will comply with the requirements of the Energy Performance of Buildings Directive 2010/31/EU.

The Promoter is a public entity and therefore public procurement rules will apply. The Bank will require the Promoter to ensure that contracts for the implementation of the project have been/shall be tendered in accordance with the relevant applicable national and EU procurement legislation (Directive 2014/24/EU and Directive 2007/66/EC), which may include publication in the Official Journal of the EU where appropriate.

First sub-project under the ROMANIA MUNICIPAL EE PROGRAMME LOAN (2022-0181).