16 July 2021
Promoter – Financial Intermediary
The project comprises schemes for the reinforcement and modernisation of the electricity transmission network in the Czech Republic, over the period 2021-2025.
Additionality and Impact
The project supports the reinforcement and modernization of the electricity transmission network in the Czech Republic. EIB's financing will enable the promoter to implement its investment programme and to support the efficient operation of the network in a context of increasing transit and loop flows. The project will support improved quality of service, reliability and security of supply that have public good attributes and will enable the integration of RES generation, in line with national and EU policies and targets. In line with the EU Taxonomy, electricity grid infrastructure in Europe is considered eligible for climate change mitigation. The financing of this project is in line with the Bank's lending priority objectives on Energy as well as the transversal objectives on Climate Action, Environmental Sustainability and Social and Economic Cohesion. The project is expected to deliver fair economic benefits and good social benefits. The promoter is experienced in works of this nature and has a sound project management system in place. The Client will benefit from the flexibility of the EIB financing enabling the optimization of their cash flow needs. The pricing, availability period as well as longer grace period add to attractiveness of the mutual co-operation.
The project is expected to support the efficient operation of the electricity transmission network in the Czech Republic, to increase the capacity of the electricity transmission network and to enable the Promoter to maintain the reliability and quality of electricity supply.
- Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
CZK 3600 million (EUR 142 million)
Total cost (Approximate amount)
CZK 4817 million (EUR 190 million)
The project comprises electricity transmission schemes (overhead lines and works in existing substations), some of which will fall under Annex I of the Environmental Impact Assessment (EIA) Directive and will have to undergo an obligatory environmental impact assessment, while most of the schemes will fall under Annex II, thus requiring the competent national authority to determine the need for an EIA. The main impacts that can typically be expected for a project of this nature relate to visual impact, vegetation clearance, electromagnetic fields, noise nuisance, impact on flying vertebrates and disturbance during construction.
The Bank will require that the Promoter ensure that contracts for the implementation of the Programme schemes have been tendered in accordance with the relevant applicable EU procurement legislation, Directives 2014/25/EU, where applicable, as well as Directive 92/13/EEC and Directive 89/665/EEC, as interpreted by the Court of Justice of the EU, with the publication of tender notices in the Official Journal of the European Union, as and where required.
Signed - 14/12/2021