17 November 2020
Promoter – Financial Intermediary
ORSZAGOS VIZUGYI FOIGAZGATOSAG
The proposed project focuses on providing flood protection from Tisza river and its tributary the Tur in the upper section of the Tisza. Flood protection is mainly enhanced through the construction of a 42 million m3 retention reservoir to be formed by the construction of some 24.7 km of dykes.
Additionality and Impact
The quantified economic benefits of the proposed project consist of avoided damages to physical assets in the project area. In addition, the project will provide enhanced river flood protection to a population at flood risk of almost 132,000 inhabitants, 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 proposed project will increase flood water retention capacity of the Tisza river in order to increase flood safety and reduce potential flood damage by reduction of the height of extreme flood waves. In addition to enhancing flood protection, the project also has a water management function in promoting wetland management and better management of groundwater resources during periods of drought. It also provides improved protection against floods to an estimated 132 000 inhabitants.
- Water supply; sewerage, waste management and remediation activities
Proposed EIB finance (Approximate amount)
EUR 12 million
Total cost (Approximate amount)
EUR 113 million
Where and if applicable, the requirements of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending Directive 2011/92/EC, the Habitats Directive (92/43/EC) and the Birds Directive (79/409/EEC) will be respected and the Bank will publish the full text of the relevant EIAs on its website. The Bank will assess the Promoter's capacity and procedures to ensure compliance with national and European environmental and biodiversity regulations.
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 2014/24/EU where applicable, and/or 2014/25/EU where applicable, and/or 2014/23/EU where applicable, as well as Directives 89/665/EEC and 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.
Approved - 10/11/2021