Release date: 22 August 2022
Promoter – Financial Intermediary
STADTWERKE AUGSBURG HOLDING GMBHLocation
Description
Investment programme of the local utility over several years in the sectors of energy, public transport and water.
Additionality and Impact
The project contributes to natural resource efficiency and environmental protection, as well as to climate action throughout investments in the energy, transport and water sector. It is in line with the Bank's lending policies/orientation for these sectors and the European policy for the protection of the environment, in particular the objectives defined in the relevant Directives (Energy Efficiency, Renewable Energy, Water Framework, Urban Wastewater Treatment, etc.). The energy component contributes to maintaining or increasing security of supply and reduces carbon and air pollution externalities by enabling the integration of clean energy supply and increasing efficiency. The transport components contribute to climate action and reduce the externalities such local air pollution, noise, land take, congestion, greenhouse gases and accidents. The water component contributes to mitigating market failures in the sector by financing infrastructure which generates positive environmental and health externalities that are not fully internalised in water tariffs.
The Bank's loan contributes to the stability and diversification of the Borrower's funding base. It allows the Borrower to draw down funds over a long period, matching the long implementation period of the project, and offers flexible repayment and interest rate options. The Bank's loan offers the Borrower an advantageous interest rate, reducing its funding costs and allowing it to dedicate more resources to the public services it provides.
Objectives
The objective of the operation is to support the renewal and continued development of key public infrastructure in the city of Augsburg.
Sector(s)
- Water, sewerage - Water supply; sewerage, waste management and remediation activities
- Transport - Transportation and storage
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 180 million
Total cost (Approximate amount)
EUR 370 million
Environmental aspects
The environmental and social due diligence will focus on the Promoters' capacity to implement the investment programme in line with EIB's environmental and social standards and requirements, as well as national and EU legislation. The energy part of the programme comprises the implementation of district heating network infrastructure, as well as a number of electricity distribution schemes from low voltage up to 110 kV and renewable energy generation plants. These programme schemes are likely to fall under Annex II of the Directive 2011/92/EU as amended by Directive 2014/52/EU, which requires the competent national authority to determine the need for an environmental impact assessment (EIA). It is not expected that an EIA will be required for the transport components in the proposed programme. The water part of the programme mainly consists of the construction and rehabilitation of the water distribution network with house connections as well as the extension and rehabilitation of groundwater sources and a drinking water treatment plant. All components are expected to comply with the relevant EU directives (Drinking Water Directive 2020/2184 and Water Framework Directive 2000/60/EC). Some of the water schemes are likely to require an environmental impact assessment. Therefore, the Promoter will be required to comply with Directive 2014/52/EU amending the EIA Directive 2011/92/EU. The Promoter must also comply with the requirements of the Water Framework Directive, including Art 4(7) where appropriate. According to the available information, the sub-projects are not within or in the vicinity of any Natura 2000 zones. This will be further analysed during appraisal.
Procurement
The Bank will require the Promoter to ensure that contracts for implementation of the programme have been and will be tendered in accordance with the applicable EU procurement legislation, (Directive 2014/23/EU / 2014/24/EU / 2014/25/EU 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 - 15/12/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).