BADEN-WUERTTEMBERG WATER SECURITY CLIMATE ACTION

The project consists of the multi-annual investment programme of the regional water board Bodensee Wasserversorgung. The investments include water security and climate adaptation measures in order to ensure the security of water supply of more than 300 municipalities in the German federal state of Baden-Württemberg.

The project targets resilience to climate change and increase of water supply security for four million inhabitants, as well as upgrading and modernisation of assets.

This Project is in line with the EU and EIB policy objectives of environmental protection and climate action, and will generate environmental and health benefits and externalities. These benefits would not be realised to the same extent without public intervention.

This will be the borrower's first recent long-term promotional bank loan. It will increase the affordability of the borrower's substantial investment programme into water security and climate action by helping it to optimise its funding base and maturity profile. The Bank's financing will also offer further important benefits such as a long loan maturity and flexibility with respect to availability period, interest rate arrangements and drawdowns, which will enable an optimal alignment with the implementation modalities of the Project.

The project aims at maintaining compliance with the EU Drinking Water Directive 98/83/EC and the Water Framework Directive 2000/60/EC. Some of the construction schemes included in the project might fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending the EIA Directive 2011/92/EU. Environmental impact assessment procedures are carried out where required by the competent authorities and mitigating measures are applied as appropriate. Where appropriate, the requirements of the Habitats and Birds Directives (92/43/EEC and 2009/147/EC) are applied. The Bank's appraisal will focus on the Promoter's environmental management capacity to properly apply these EU Directives.

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.