POLAND FLOOD RISK MGMT & SUSTAINABLE INFRA (SPL)

The Structural Programme Loan will co-finance the flood protection and prevention programme in Poland.

The operation supports the Polish national government in the implementing their flood prevention, climate change adaptation, risk management and disaster resilience schemes under Specific Objective 2.4 of the Polish Government's European Funds for Infrastructure Programme, Climate and Environment 2021-2027 (Program Fundusze Europejskie na Infrastrukture, Klimat, Srodowisko 2021-2027). These sectors are also fully in line with Policy Objective 2 of EU Regulation (EU) 2021/1058 on European Regional Development Fund (ERDF) and the Cohesion Fund (CF) for the 2021-2027 programming period.

The quantified economic benefits of the proposed project consist of avoided damages to physical assets in the project area and related losses. In addition, the project will provide enhanced river flood protection to a population at flood risk, who reside in settlements either directly exposed to river flood risk or in indirectly affected ones, and will mitigate disruptions to economic development caused by flood events. Moreover, improved flood protection is a potential catalyst to further stimulate economic development and may enhance the capacity of the region to retain its population base. Because the project does not generate incremental financial revenue, none of these benefits are captured by tariffs.

The project will contribute towards achieving compliance with the EU Floods Directive 2007/60/EC. It will also contribute to Climate Action and Environmental Sustainability. The project's contribution to EIB's Cohesion transversal objective is also significant, as it will make an essential contribution to the improvement of the quality of regional public infrastructure, safety and security of physical assets and services.

The EIB loan will enable the State to increase its financial flexibility and capacity to support flood protection investments.

The river restoration schemes are expected to contribute to the overall improvement of the biodiversity of the flora and fauna. The drought management schemes are also expected to have a long term positive impact in terms of improving water resources availability. In general, it is foreseen that there will be temporary and reversible negative impacts during the implementation (construction) of the schemes. In case there are long term negative impacts, mitigation measures, as required by the competent environmental authorities, will be implemented. The project is expected to improve the adaptive capacity of the flood protection system across Poland against physical risks arising from climate change, primarily in the form of flood risk reduction and avoided flood damage. The Promoter will be required to act according to the provisions of the relevant EU Directives including, but not limited to the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by the Directive 2014/52/EU. The Promoter will also be required to ensure compliance of the project with the Water Framework Directive (2000/60/EC).

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been or will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/24/EU where applicable and/or 2014/25/EU where applicable, as well as Directive 92/13/EEC and/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.