EFFICIENT UTILITY INFRASTRUCTURE KLAGENFURT

The project comprises the promoter’s investments from 2014 to 2018 in its existing district heat and water grids located in the city of Klagenfurt (Austria). Concerning the district heating component, investments are related to the refurbishment of the district heating system, its expansion to new clients, and a substantial change of heat supply. The latter comprises the following key measures and is expected to lead to a significant increase in renewable energy use (mainly cogeneration based): • Conversion of a large heavy fuel oil fired base load cogeneration plant in the city centre, that is at the end of its technical lifetime, into a 120 MWth natural gas fired plant and peak load boiler; • Installation of a new oil or gas fired reserve and peak load heating plant (presumably around 30 MWth) in the West of the city, including grid connection; and • Installation of a grid connection to a new biomass cogeneration plant (around 50 MWth) in the East of the city which will become the system’s base load heat supplier in future (the biomass cogeneration plant itself is outside the scope of this operation because it will be implemented by a third party based on a long term heat-offtake agreement with the promoter). The water related investments, mainly replacement of distribution pipes, will ensure the efficiency of the distribution system. Other investments in the water treatment system will ensure compliance with European Drinking water standards. The promoter also intends to undertake a cross-border project to reduce water losses in the transmission systems.

The water related investments, mainly replacement of distribution pipes, will ensure the efficiency of the distribution system. Other investments in the water treatment system will ensure compliance with European Drinking water standards. The promoter also intends to undertake a cross-border project to reduce water losses in the transmission systems.

Due to the predominantly urban characteristics of the project, environmental impacts are expected to be limited and sites of nature conservation are unlikely to be affected. Parts of the project fall under Annex II of the EIA Directive (2011/92/EU); therefore, the need for an EIA will be determined by the Competent Authority according to criteria established in Annex III of the Directive. Details will be verified during appraisal.

The promoter is a publicly-owned undertaking. The Bank will require the Promoter to ensure that contracts for the implementation of the project have been/shall be tendered in accordance with the relevant applicable EU procurement legislation (Dir 2004/18/EC and/or Dir 2004/17/EC and Dir. 2007/66/EC [amending Directives 1989/665/EEC and 1992/13/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