Signature(s)
Summary sheet
- Water, sewerage - Agriculture, forestry and fishing
- Agriculture, fisheries, forestry - Agriculture, forestry and fishing
- Industry - Manufacturing
- Services - Public administration and defence; compulsory social security
The project will co-finance investment schemes supported by the European Agricultural Fund for Rural Development (EAFRD) in Extremadura under the Spanish Partnership Agreement 2023-2027.
The aim is to accelerate the implementation of the Common Agricultural Policy (CAP) Strategic Plan, boost long-term competitiveness and employment, while ensuring the sustainability of the local agricultural sector and rural economy.
By supporting the region of Extremadura's co-financing obligations for investments under the European Agricultural Fund for Rural Development, the Project contributes to three of the EIB's primary policy objectives and to the horizontal objectives of Economic and Social Cohesion as well as to Climate Action and Environmental Sustainability. The Project supports rural development through a broad range of investments, including in basic rural infrastructure, disaster recovery and prevention measures and natural-resource protection and sustainable use. Among the main impacts of the Project are the use of more energy-efficient machinery and equipment used in agriculture, stronger resilience and better protection of forest eco-systems, as well as knowledge spillovers from the transmission of best practice in agriculture.
EIB financing provides the client with attractive financial conditions, including long tenor and grace periods, especially when compared to alternative funding sources. EIB financing also provides flexible loan terms, which are better suited for the implementation of the Project. Finally, EIB financing supports the Promoter to achieve diversification of funding sources and a stable capital structure.
The promoter will be required to act in compliance with the relevant EU environmental legislation. The EIB's appraisal will focus on the promoter's environmental management capacity in applying the EU Strategic Environmental Assessment (SEA) Directive 2001/42/EC and Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU, as relevant, and with national legislation. In particular, the Spanish Strategic Plan of the CAP is subject to a SEA. Furthermore, some of the schemes thereunder to be implemented in Extremadura may fall under Annex I or Annex II of the EIA Directive. The applicability of Directive 2011/92/EU amended by the EIA Directive 2014/52/EU, the Habitats Directive 92/43/EEC and the Birds Directive 2009/147/EC will be reviewed at appraisal and during the allocation phase. Some schemes might concern the construction or upgrade of small water and wastewater treatment infrastructure. The promoter's compliance with the Water Framework Directive (WFD) 2000/60/EC and the Urban Waste Water Council Directive 91/271/EEC will be reviewed during the project appraisal and allocation phase. The project will contribute to climate action and environmental sustainability objectives, in particular to climate mitigation and climate adaptation. It will also bring social benefits by contributing to the EAFRD objective of strengthening of the socio-economic fabric of rural areas, as per Article 5(c) of Regulation EU/2021/2115, among others by fostering female farm employment, local development in rural areas as well as the sustainable production of high-quality, safe and nutritious food.
The EIB will require the promoter to ensure that contracts for the project implementation are tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/24/EU and 2014/25/EU, where applicable, as well as Directive 92/13/EEC or Directive 89/665/EEC, as interpreted by the EU Court of Justice, with the publication of tender notices in the EU Official Journal, as and where required.