Signature(s)
Summary sheet
The project concerns the roll-out of ground-based and rooftop solar photovoltaic (PV) investments located on-site and off-site across the promoter's manufacturing sites in Central and Eastern Europe (Poland, Czech Republic, Slovakia, Austria and in Ukraine).
The aim is to allow the promoter to decrease the carbon footprint of its manufacturing sites by increasing electricity generation from solar PV plants.
The framework loan operation concerns a portfolio of ground mounted and rooftop solar PV plants, battery energy storage as well as electric forklifts and electric lorries across the promoter's manufacturing sites in Central and Eastern Europe (Poland, Czech Republic, Slovakia).
The majority of the schemes located in the EU are expected to be located in Less Developed Regions.
The project contributes to national and EU 2030 climate objectives as set out in the National Energy and Climate Plans as well as the development of the electric automotive industry through the accelerated deployment of new electric vehicles and therefore the EU's Sustainable and Smart Mobility Strategy.
The schemes relating to renewable energy will be used for the manufacturing sites of the promoter, thereby addressing the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution. With regards to the mobility schemes, they address the same market failure and also noise emissions through the electrification of road transport in an urban context.
The level of promoter's governance and risk management capability is deemed fair. The promoter also has a recognised in-house project management capacity.
In terms of project results, the projects are expected to have a positive economic rate of return. Therefore, the projects are expected to generate a positive broader social benefit.
The proposed loan will diversify Kronospan's financing sources and extend the debt maturity profile of the group, which will improve the overall financing position of Kronospan. The long tenor of the EIB financing combined with flexible drawdown and repayment terms are valuable to the promoter and considered to be important elements that support rolling out the planned investments in renewable energy.
The Bank's technical contribution and advice is explained by the guidance provided to align the Project scope with policy objectives at Project origination and the monitoring requirements (yearly) during Project implementation given the associated risk level.
The programme schemes are expected to have limited environmental impacts. None of the investment schemes is expected to require an Environmental Impact Assessment (EIA) under Directive 2014/52/EU (amending Directive 2011/92/EU). The Promoter is expected to apply sound environmental and social management procedures.
The Promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement. The company applies private procurement procedures following good business practices.