FLANDERS SOCIAL HOUSING

The project will support the social housing units for rent as part of the programme of social housing development in Flanders.

The aim is to finance the replacement, construction, and renovation of approximately 16,500 social housing units across Flanders, including around 6,350 new buildings and 10,100 for renovation. Beyond improving housing conditions, the project will enhance energy efficiency and sustainability, support social inclusion, promote urban regeneration, and stimulate economic activity during the implementation phase.

The Project supports the region of Flanders in its efforts to alleviate current shortages in the social housing supply and fosters the overall social integration and urban regeneration of designated areas, benefiting notably low-income households and vulnerable people. It will generate positive externalities through improved provision of housing facilities and attractiveness of the built environment.

The Project is supported by a sound regional policy and regulatory social housing framework. In addition, the Project is aligned to the EIB Framework for affordable and sustainable housing, including the EIBG Action Plan for Affordable and Sustainable Housing, the EIB's Urban Lending Review, and the Bank's Energy Lending Policy. Furthermore, this Project is eligible under the criteria for the Bank's Sustainable Awareness Bonds. Moreover, it is compliant to a low carbon and resilient pathway, consistent with the Paris Agreement goals and principles and with the Climate Bank Roadmap. Therefore, the Project counts towards the Bank's Climate Action and Environmental Sustainability targets. Finally, the Project is eligible under Article 309 of the Treaty on the Functioning of the European Union point (a) projects for developing less-developed regions and point (c) common interest.

Given the above, the Project contributes to three of the EIBG core strategic priorities: Social Infrastructure, Climate Action and Environmental Sustainability, and Modern Cohesion Policy.

The Project addresses a number of market failures in particular the lack of available social housing supply as the market does not sufficiently cater for the demand of low-income people. The Project also addresses sub-optimal investment flows into highly energy efficient and resilient new buildings. By providing long maturity loan terms, the Bank enables for a greater number of housing units to be built more rapidly, thus helping relieve the pressure faced by this sector in these difficult times.

The Bank's financial contribution to the Project is very good thanks to conditions more favourable than market alternatives. The value added provided by the EIB is even more tangible under the current market volatility, impacted by the ongoing geopolitical issues.

Where and if applicable, and based on a risk-based approach as defined in the EIB Group Environmental & Social Policy, the requirements of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be checked during appraisal

The Promoter shall ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/24/EU, as well as Directives 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. Information on awarded main suppliers/contractors for the implementation of the envisaged operation is not available.