4 July 2022
Promoter – Financial Intermediary
CITY OF RZESZOW
The project is a multi-sector framework loan operation to finance the multi-year investment programme of the City of Rzeszow.
Additionality and Impact
The Project will improve the provision of public services for which demand increased due to unprecedented population increase. Provision of public services will result in positive economic, environmental and social externalities. With a significant share of climate-related investments, the project will also bring positive climate-related externalities. Investments are expected to require a relatively high up-front investment cost, which necessitates access to long-term funding which is not easily available in the financial market. In the absence of such long-term financing, investment decisions would be further delayed. The project supports the strengthening of the EU's economic, social and territorial cohesion and is supported by planned technical advisory activities by the EIB.
The Project is in accordance with the provisions of the 2016 EU Urban Agenda, the new 2020 Leipzig Charter for sustainable urban development, and the EU2020 Strategy for smart, sustainable and inclusive growth. The Project is eligible under Article 309 of the TFEU point (a) projects for developing less-developed regions and point (c) common interest. The investments to be supported are in line with the City's strategic planning and development policies.
The flexible, long-term and attractively priced EIB loan addresses the City's funding needs. It further allows the City to invest its own funds and available EU funding. The EIB loan will have significant value-added for Rzeszow due to: (i) its flexibility; (ii) a 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.
The proposed municipal framework loan will support eligible schemes coherent with the City of Rzeszow development strategy. It will contribute to modernisation of municipal public infrastructure and services that are under stress, due to the recent high influx of refugees from Ukraine.
Proposed EIB finance (Approximate amount)
PLN 400 million (EUR 85 million)
Total cost (Approximate amount)
PLN 900 million (EUR 192 million)
The Bank will undertake actions in order for the Promoter to ensure compliance with the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, as well as Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively) and as well with the respective applicable Polish law implementing the referred Directives.
The Bank will undertake actions in order for the Promoters to ensure that contracts for implementation of the projects will be tendered in accordance with the EU procurement legislation Directive 2014/24/EU, as well as Directive 89/665/EEC, as interpreted by the Court of Justice of the EU and with the respective applicable Polish law implementing the referred Directives, with publication of tender notices in the Polish Public Procurement Bulletin and in the Official Journal of the EU, as and where required.
Signed - 14/11/2022