FRANKFURT SUSTAINABLE AIRPORT INVESTMENTS

The scope of the project consists of the renovation of the Terminal 1 complex, electrification of airport ground handling operations and other decarbonisation measures. Works consist of: i) renovation of Terminal 1 services building; ii) renovation of the utilities' equipment and plants in Terminal 1, in operation since 1972, iii) installation of electric vehicle charging points in the airside area; iv) acquisition of a fleet of electric ground handling equipment and (airside) vehicles; and v) replacement of existing lighting systems by LED lighting in buildings and on the aircraft parking apron, and vi) installation of photovoltaic panels.

Upgrade of existing infrastructure and utility networks and contribution to the company's decarbonisation plan, aiming to decrease carbon emissions to reach the "Net Zero" Emissions by the end of 2045.

The Project aims at ensuring the operational resilience, the greening of airport ground handling operations and maintaining the highest safety and security levels at Frankfurt-Main airport (FRA) in Germany. FRA is a core node of the TEN-T airport network.

Since FRA is the main aviation gateway to the region of Hesse, to the country and one of Europe's busiest hubs and alternative airports are either small or are hours away, allowing the airport to degrade would imply growing congestion, service disruption and forced diversion to alternative airports or travel means, which a competitive market would not address, constituting a market failure. Alternative means of transport involve a substantial penalty to travellers in terms of both travel time and operating costs, implying that the socio-economic cost associated to the market failure addressed by the Project would be very high.

The proposed EIB loan enhances the financial feasibility of the investments and contributes to the development of resilient airports. The EIB's contribution is particularly noteworthy, providing substantial financial benefits (e.g. flexible drawdowns), and contributing to further diversifying and to the stability of the Borrower's credit portfolio. Also, the loan should serve as a signal for investments in low-carbon investments in the aviation sector. With these investments, both parties underscore their commitment to environmental sustainability and the global effort to combat climate change.

A number of components included in this project might fall under Annex II of Directive 2011/92/EU amended by the Directive 2014/52/EU (EIA Directive), meaning that the Competent Authority makes the decision as to whether a formal environmental impact assessment (EIA) is required or not. This, and the status of any existing development consents, will be reviewed and assessed during project appraisal.

The Bank will require the promoter to ensure that contracts for implementation of the project have been tendered in accordance with the applicable EU procurement legislation: Directive 2014/25/EU as well as Directive 92/13/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.