ENERGA ELECTRICITY DISTRIBUTION

Promoter – Financial Intermediary

ENERGA SA

Location

• Poland

Description

The programme concerns investment schemes in the electricity distribution network of northern and central Poland over the period 2021-2023. The programme includes the construction of new distribution assets, modernisation of the existing network, and installation of smart meters and other smart grid components.

Additionality and Impact

The program comprises the reinforcement and modernisation of the electricity distribution network in Poland, consistently with the country's National Energy and Climate Plan and in alignment with EIB public policy goals.

The programme schemes are located in eight regions in the country, all comprising Cohesion Priority Regions. The programme helps addressing market failures linked to negative climate and environmental externalities (by enabling the future integration of renewable generation, while also contributing to the electrification of the economy) as well as improving security of supply, a public good. The project's results and quality are deemed good in terms of economic welfare by virtue of the benefits it generates, as well as from a governance perspective. It is also deemed to created additional employment.

With this loan, the Counterpart receives significant added value from the Bank, in the context of the scarcity of attractively priced, PLN-denominated funding with similar long maturities available on the Polish market.

Objectives

The programme will allow the Promoter to connect new users, including renewable generation, as well as to maintain or improve the reliability and quality standards of electricity supply.

Comments

N/A

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 150 million

Total cost (Approximate amount)

EUR 906 million

Environmental aspects

Some programme schemes may fall under Annex II of Directive 2014/52/EU, amending the EIA Directive 2011/92/EU thus requiring a review by the competent authorities at the planning/consent stage with due regard to the necessity for environmental and biodiversity impact and appropriate assessments.

Procurement

The Bank will require the Promoter to ensure that contracts for implementation of the project have been and shall be tendered in accordance with the 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.

Status

Signed - 16/12/2021