PWN - SUSTAINABLE DRINKING WATER SUPPLY II

The project will co-finance part of the 2026-2029 investment programme of PWN, the fourth-largest water supply company in the Netherlands. The investments will extend and rehabilitate the drinking water distribution networks.

The project aims to:(i) adapt to climate change to ensure sufficient quantity and quality of water supply to PWN's customers, (ii) reduce water losses to increase water and energy efficiency and thus mitigate climate change, (iii) meet the demands for water supply in the service area, thereby enhancing the quality of life for the population. The Bank aims to mitigate market failures in the water sector by financing infrastructure that will make a positive impact on the environment, public health and climate, which are not fully reflected in the current water tariffs.

The Project is aligned to the InvestEU eligible area of Environment and Resources, in line with the Annex II of the InvestEU Regulation. The Project concerns the co-financing of part of the 2026-2029 investment programme of the Provincial Water Company for North Holland (PWN) in the Netherlands, servicing a population of about 1.8 million. The operation comprises the extension and rehabilitation of the drinking water distribution network. The investments will increase the population receiving clean water and support the water utility to increase its water efficiency and support innovations in the circular economy. The Project contributes to the EU and EIB policy objectives of environmental protection and climate action, and will help mitigate market failures by financing infrastructure that generates positive environmental public health and climate externalities that are not fully reflected in the applicable water tariff in the service area.

The Bank's financing stands out for its extended maturity and deferred repayment schedule, which suit the lengthy rollout of the project and match the asset's lifespan. It also provides adaptable disbursement options, allowing borrowers to choose between fixed or variable interest rates and tailor payment timing to project needs. The Project would not have been carried out (to the same extent) by the EIB without the InvestEU support.

The investments will contribute to the sustainable operation and management of water supply infrastructure with overall positive environmental impacts. The project supports compliance with the EU Water Framework Directive (2000/60/EC), the Drinking Water Directive (2020/2184/EU 98/83/EC) and EU and national environmental legislation. It will contribute to climate action and environmental sustainability (CA&ES) objectives. The investments are expected to have limited environmental and social impacts. Whenever a formal Environmental Impact Assessment (EIA) is required, which is not expected at the time of this publication, a copy of the Environmental (and Social) Impact Study or the Non-Technical Summary (NTS) or equivalent document will be provided to the Bank and published on its website. The Promoter will also be required to verify that all investments financed by the Bank follow the Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC. For any part of the project that may impact on a nature conservation site, the promoter will be required to provide to the Bank information on the mitigating measures required to comply with the Habitats and Birds Directive.

The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant 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 Official Journal of the EU, as and where required.