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Signature(s)

Amount
€ 200,000,000
Countries
Sector(s)
Portugal : € 200,000,000
Energy : € 200,000,000
Signature date(s)
19/12/2024 : € 200,000,000
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Summary sheet

Release date
27 December 2024
Status
Reference
Signed | 19/12/2024
20240321
Project name
Promoter - financial intermediary
EDP DISTRIBUTION NETWORKS
EDP SA
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 800 million
EUR 1600 million
Location
Sector(s)
  • Energy - Electricity, gas, steam and air conditioning supply
Description
Objectives

The project comprises the expansion and modernisation of electricity distribution networks in Portugal and Spain over the period 2024-2026.

The operation will support the upgrade and modernisation of various distribution system elements in medium and low voltage levels, such as substations, power transformers, smart meters, automation, underground cables and overhead lines.

Additionality and Impact

The investment programme concerns the extension and refurbishment of electricity distribution networks in Portugal and Spain. The Project is eligible under the EIB Energy Lending Policy and is consistent with the EIB Climate Bank Roadmap. It supports the Bank's Sustainable Energy public policy goal, in particular by contributing to secure the necessary enabling infrastructure. It will provide a significant contribution to Climate Action (climate change mitigation and adaptation) in line with the applicable EU Taxonomy requirements and to the EU Economic, Social and Territorial Cohesion by investing in EIB Cohesion Priority regions.


EIB financing to the Project will contribute to addressing market failures. This is expected to result in greater efficiency of investments promoted by the client. Market failures include negative environmental externalities and the need to ensure security of electricity supply, which has valuable public-good attributes. The investment programme will enable the connection of new users, improve the reliability of supply and support further decarbonisation of the power mix.


The Project's overall economic viability is rated as good with a positive broader social benefit. The promoter is an experienced utility operator of electricity distribution networks and has the necessary capacity to manage the implementation of the Project and operate the assets over the term of the loan. Overall, the Project quality and results is expected to be Very Good.


The Bank's financial contribution is considered valuable to the client, as the EIB's offering provides more flexible conditions compared to market alternatives (e.g. longer tenor and grace period). The Bank's financing shows the alignment of the investments and the Promoter's growth strategy with the EU policies on climate change, with the "EIB Green Loan" label deemed as a stamp of quality on the Promoter's investments and environmental-related procedures.

Environmental aspects
Procurement

The project includes components that may fall under Annex II of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, which requires the competent national authority to determine the need for an environmental impact assessment (EIA). Some of the typically expected impacts relate to visual impact, vegetation clearance, collision and electrocution of flying vertebrates, electromagnetic fields, noise nuisance and disturbances during construction.

The Bank will require the Promoter to ensure that contracts for implementation of the project have been or will be 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.

Milestone
Under appraisal
Approved
Signed
11 December 2024
19 December 2024
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Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

General enquiries and comments

The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.

Media enquiries

Media-related enquiries can be addressed to the EIB Press Office. Please also visit our Media information section.

Complaints mechanism

Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.

Zero tolerance against fraud and corruption

The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.

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