PORTUGAL SOLID WASTE INVESTMENT PLAN II

Promoter – Financial Intermediary

EMPRESA GERAL DO FOMENTO SA

Location

• Portugal

Description

The project concerns the 2022-2024 investment programme of the promoter focussing on the implementation of various components in the solid waste sector in Portugal. It consists of a number of geographically dispersed investments throughout the service areas covered by the promoter and its 11 subsidiaries respectively.

Additionality and Impact

Municipal waste management service is considered a "public good". The fact that the service is not provided through a network limits the promoter's ability to exclude someone enjoying the service. The project addresses a number of additional market failures by contributing to generate positive externalities and to mitigate existing negative externalities, notably by reducing greenhouse gases; by protecting the environment, public health, and saving energy as well as costs related to environmental protection. With this project, the EIB financing will help to reduce negative externalities while strengthening the positive externalities for the targeted regions. The project will also address a sub-optimal investment situation in the Portuguese solid waste sector. The EIB long-term financing will be addressing a market failure in relation to the provision of finance in the size and tenors needed to carry out the investment backlog of projects to provide solid waste-essential services at affordable prices for the population.

Objectives

The project will contribute to achieving compliance with the national and EU regulations on waste management and circular economy. The project is also a stepping stone in implementing the National Strategic Plan on Urban Waste Management.

Sector(s)

• Solid waste - Water supply; sewerage, waste management and remediation activities

Proposed EIB finance (Approximate amount)

EUR 100 million

Total cost (Approximate amount)

EUR 202 million

Environmental aspects

Due to their technical characteristics, some facilities are likely to fall under Annex II of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU. Compliance with the said Directive as well as with SEA Directive (2001/42/EC), Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC) will be examined by the EIB during appraisal.

Procurement

Contracts for the implementation of the project shall be tendered in accordance with the relevant applicable EU procurement legislation. EIB preliminary assessment of the promoter, its subsidiaries holding concessions, and the concessions contracts has led to the conclusion that the concessionaires are private bodies not subject to EU directives on public procurement (2014/24/EU), concessions (2014/23/EU) or water, energy, transport and postal service sectors (2014/25/EU).

Status

Signed - 23/12/2022