LAUSITZ ECONOMIC TRANSITION FL

The operation consists of a framework loan (FL) financing investments carried out by public promoters that support the economic transition away from coal mining of Lusatia (Lausitz) region.

To achieve the region's decarbonisation, investments will be made into various multi-purpose socio-economic, environmental infrastructure and activities. In particular, eligible sectors will be: basic economic infrastructure, innovation research and science, including health services, urban and regional development measures, sustainable transport and mobility, green energy and digitalisation, education and technical training, culture and arts, sports, climate protection, nature and landscape.

The Project aims to address the challenges and opportunities arising from the transition to a climate neutral economy from lignite based activities. It is comprised of mainly small multi-sector investments under the "Lausitzprogramm 2038 of the Land Brandenburg".

The Project supports a Just Transition and fosters a balanced socioeconomic and territorial development of the region, in line with the Territorial Agenda 2030. It will therefore contribute to the EU's policy objective of economic and social cohesion. The project addresses sub-optimal investment situations in many sectors, increasing endowment with vital infrastructure essential to social and economic cohesion.

The Project is envisaged to mainly support integrated urban and regional development which will improve provision of business infrastructure, facilities, amenities and services, which will result in positive economic and social externalities, in the form of a higher quality of enabling services for businesses and economic activities as well as improvement of the quality of life of residents and attractiveness to tourists. The Project will also support health and training, lifelong learning and skills development, which will increase the economy's stock of human and social capital, reduce shortages of skilled labour, protect persons from sliding into long-term unemployment. Energy projects will reduce carbon and air pollution externalities while mobility projects will shift traffic to more sustainable transport modes and reduce related negative transport externalities.

In financial terms the EIB's advantageous and flexible loan contributes to the diversification and stability of the financing sources of ILB. The maturity of the tranches combined with a possibility of using currency and/or interest rates conversion are of value to the Borrower.

The promoter will be required to act according to the provisions of the relevant EU Directives including, but not limited to the following EU Directives: Strategic environmental assessment (SEA-2001/42/EC), Environmental impact assessment (EIA- 2011/92/EU, amended by2014/52/EU), Habitats (92/43/EEC), Birds (2009/147/EC), Water Framework Directive (2000/60/EC), as transposed into national law.

The promoter has to ensure that contracts for implementation of the project will be/have been tendered in accordance with the applicable EU procurement legislation (Directive 2014/23/EU, 2014/24/EU, 2014/25/EU, as well as Directive 92/13/EEC or Directive 89/665/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.