NAVARRA NILSA WASTEWATER CIRCULAR ECONOMY

The project will finance wastewater treatment schemes under NILSA's 2023-2030 investment plan.

The aim is to comply with the requirements of Navarra's Water Master Plan and to meet a full circular economy and zero carbon footprint target. The related investments will focus on three lines of action: i) centralized sludge treatment in Tudela and Arazuri wastewater treatment plants ii) upgrade and rehabilitation of existing wastewater treatment plants iii) wastewater treatment facilities in small agglomerations.

The project consists of an investment loan to finance NILSA´s 2023-2030 wastewater treatment investment program, to be implemented across the region of Navarra. These investments are aimed at improving existing infrastructure, the construction of wastewater treatment plants in small agglomerations, and a centralized sewage sludge treatment system in the wastewater treatment plants of Arazuri and Tudela. The investment plan will improve the quality of the rivers in the region and will allow NILSA to meet the zero-carbon emission target in wastewater treatment. The project has been prepared with special focus on circular economy, so that all sewage sludge produced will be treated to be reused in agriculture.

The project will ensure compliance with key European regulations in the water sector and falls under the EIB's vertical policy objective of Sustainable Energy and Natural Resources whilst also contributing to the horizontal policy objective of Climate Action and Environmental Sustainability. The project will address several market failures, through positive externalities in the form of environmental and health benefits, notably improved quality of water bodies through investments in wastewater treatment, reduced greenhouse gas emissions through investments in biogas production, and circular economy by the reuse of sewage sludge in agriculture. These benefits are not reflected in wastewater tariffs and would not be realised to the same extent without public intervention. The EIB provides an important financial contribution in the form of a financial advantage and longer tenor than the commonly available in the bank market, contributing therefore to greater diversification and stability of the borrower's financing.

The investment is geared toward upgrading wastewater treatment infrastructure bringing positive environmental impacts. The promoter will be required to comply with the EU Water Framework Directive (2000/60/EC), Urban Waste Water Treatment Directive (91/271/EEC), and EU and national environmental legislation (notably under environmental impact assessment (EIA) Directive 2011/92/EU (as amended by the Directive 2014/52/EU), Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC). This investment is expected to preserve the quality of water resources and to promote a clean and circular economy through the reutilisation of wastewater sludge in agriculture. It will, therefore, increase the quality of life in the project area. Social negative impacts are only temporary (e.g. safety hazards during construction, traffic, noise) and will be addressed as part of the planning for the implementation of each scheme. The promoter has demonstrated sound practices with respect to environmental, health and safety management and will be required to ensure compliance with the applicable legislation regarding social matters. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation, pollution prevention and control, sustainable use and protection of water and marine resources. Where and if applicable, the requirements of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC and the requirements of social standards will be verified during appraisal.

The promoter has to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/23/EU and/or 2014/24/EU and/or2014/25/EU, where applicable, as well as Directive 92/13/EEC and Directive89/665/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.