TALLINN SUSTAINABLE INFRASTRUCTURE II

The multi-sector Framework Loan (FL) operation will finance Tallin's multi-year investment programme, in line with the Development Strategy of the City of Tallinn (2035 Tallinn Arengustrateegia) and its sustainable development goals.

This FL includes schemes that will support the implementation of the Promoter's Tallinn Sustainable Energy and Climate Change Adaptation Plan. The FL will focus on rehabilitation and upgrades in public buildings, notably schools and social housing, including Energy Efficiency measures, the rehabilitation of parks and other public spaces, urban streets, new pedestrian and biking pathways. The schemes included in this FL - in line with those addressed in the development and climate strategies of the City of Tallin - show the potential to deliver high environmental and social benefits to residents.

The Project is consistent with the EU Framework for Urban Development and Regeneration including the New Leipzig Charter, the EU 2020 Strategy for Smart, Sustainable and Inclusive Growth and the EU Urban Agenda. Furthermore, it is aligned with the EU Energy Performance of Buildings Directive.

The Project is also consistent with the EIB strategies and guidelines related to eligible sectors, including the EIB Urban Lending Review (CA/496/16), which includes public building construction, restoration, and renewal.

The Project is deemed aligned with the Climate Bank Roadmap to a low carbon and resilient pathway, consistent with the Paris Agreement goals and principles. Its contribution to the Bank's Climate Action and Environmental Sustainability objectives (CA&ES) is estimated at at approximately 58% of the total Project cost.

The Project will generate positive economic and social externalities through an improved provision of public facilities and services, resulting also in a higher quality of enabling services for businesses and economic activities, as well as the improvement of the urban environment in a deprived areas.

Finally, the Project will contribute to promoting progress toward multiple Sustainable Development Goals (SDGs), the most significant one the contribution to Sustainable Cities and Communities (SGD 11).

The EIB loan will have significant value-added for Tallinn due to: (i) its flexibility, (ii) tenor that matches the economic life of the assets financed, (iii) grace and availability periods that fit the City's expectations and needs, and (iv) attractive pricing. The financing will also strengthen the funding base of the City.

Compliance with the relevant EU Directives will be verified during appraisal stage: environmental impact assessment (EIA) Directive 2011/92/EU amended by the EIA Directive 2014/52/EU, SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The status of any environmental studies and public consultations related to the investments will be reviewed during project appraisal. Energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed. It is envisaged that the project will contribute to urban regeneration and sustainable urban development in local neighbourhoods, generating significant positive social and economic benefits, including better health and living conditions for lower income groups, job creation during implementation and the promotion of social mix. All these elements will be evaluated during the appraisal of the project. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation and climate adaptation.

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 2014/23/EU / 2014/24/EU or 2014/25/EU, where applicable, as well as Directive 92/13/EEC 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.