TALLINN SUSTAINABLE INFRASTRUCTURE

Promoter – Financial Intermediary

CITY OF TALLINN

Location

• Estonia

Description

The project is a multi-sector framework loan operation to finance the multi-year investment programme of the City of Tallin.

Additionality and Impact

The Operation contributes to several Sustainable Development Goals and to EU and EIB policies objectives. The Operation contributes 100% to the Cohesion objective and to the objectives of the Regional Operational Programme for Tallinn (2021-2027). It supports the implementation of the City's Tallinn 2035 Development Strategy, as well as the implementation of several sector plans and strategies. The project addresses market failures and economic, energy and mobility externalities, as well as social inclusion, environment and climate externalities. All investments under this framework loan are collectively expected to provide good socio-economic benefits. The Municipality is known to the Bank and is experienced in the preparation and delivery of such investments. Their capacity to implement the proposed investment programme is considered good. EIB's advice and financial contribution has a positive impact on the technical quality and implementation of the project.

 

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.

Objectives

The proposed municipal framework loan will support eligible schemes coherent with the City of Tallinn development strategy. It will contribute to the modernisation of municipal public infrastructure and services.

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

EUR 100 million

Total cost (Approximate amount)

EUR 210 million

Environmental aspects

The Bank will generally allocate its funds only to eligible schemes which are environmentally sound. All schemes must comply with EU environmental legislation as well as comply with the principles and standards of the Bank's Environmental Policy Statement.

Procurement

The Promoter is subject to the public procurement regime. 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 2014/23/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 Official Journal of the EU, as and where required.

Status

Signed - 23/12/2021