Release date: 10 June 2022
Promoter – Financial Intermediary
REGION OF WESTERN MACEDONIALocation
Description
The project is structured as a multisector framework loan in support of a Just Transition in Western Macedonia and is expected to fall under the Public Sector Loan Facility (PSLF, Pillar III of the Just Transition Mechanism). The project comprises the schemes under the investment programme of the Western Macedonia Region (Dytiki Makedonia) aiming to support the implementation of the Territorial Just Transition Plan of the region.
Additionality and Impact
The Project, under the Public Sector Loan Facility (Pillar III of Just Transition Mechanism), concerns the schemes implemented in line with the Just Transition Territorial Plan and the Regional Programme of Development 2021-2025 of the Western Macedonia Region (Dytiki Makedonia), that will support a Just Transition after the closure of the lignite industry and improve the regional infrastructure, in particular in the sectors of energy, transport, health, culture and tourism. The project is in line with the priorities of the new Territorial Agenda 2030 and strengthens the EU's socio-economic cohesion.
EIB financing will allow the Region to address a sub-optimal investment situation and is expected to generate positive externalities in terms of delivery of public services in health, culture and tourism through construction or rehabilitation of public buildings with an impact on the quality of life. Further improvements are expected in intra-regional connectivity with an impact on road safety. Additional environmental (e.g. climate change mitigation/adaptation), and economic benefits (economic diversification, tourism) are anticipated with the provision of public infrastructure.
The EIB loan is provided in rather competitive terms as compared to the prevailing conditions in the capital markets thereby complementing and diversifying the borrower's funding sources. Moreover, the EIB participation in the project is expected to attract additional funding, in the form of grants, in the context of Pillar III of the Just Transition Mechanism. The EIB's involvement would therefore send a positive signal to the markets regarding the Region's ability to stimulate economic recovery and transition. Finally, the EIB will further facilitate the implementation of the Project through the provision of technical assistance aiming to advance sub-schemes implementation as well as the preparation of the grants envelope.
Objectives
The proposed operation aims to address some of the social, economic, environmental and climate transition challenges of Western Macedonia, a region traditionally dependent on coal and lignite mining, heavy industry and fossil-fuel power generation. This is a multisector operation expected to address some of the development needs of the region in the sectors of energy efficiency, transport, tourism, culture and health.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
- Urban development - Construction
- Transport - Transportation and storage
- Health - Human health and social work activities
Proposed EIB finance (Approximate amount)
EUR 58 million
Total cost (Approximate amount)
EUR 81 million
Environmental aspects
Some of the schemes may eventually fall under Annex I or Annex II of the EIA Directive 2014/52/EU. Should any such scheme have a negative impact on an area forming part of the Natura 2000 network (falling under the Habitats Directive 92/43/EEC or Birds Directive 2009/147/EC), the Bank would require the Promoter to act according to the provisions of the aforementioned Directives as transposed into the national law. It is a requirement that all schemes must be implemented in compliance with the EU environmental legislation. Environmental and efficiency improvements in public buildings will be required to comply with the provisions of the EU Directive on Energy Performance of Buildings 2010/31/EU.
Procurement
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, Directive 2014/23/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 publication of tender notices in the Official Journal of the EU, as and where required.
Status
Signed - 10/02/2023
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).