Summary sheet
The loan will finance the rehabilitation of AENA's Palma de Mallorca passenger terminal building. This is identified as a strategic project to be implemented under the Spanish Airport Regulation Document (DORA II) for the 2022-2026 period. The related works consist of: i) rehabilitation of the existing terminal building and modules A and D, including the optimisation of existing passenger processing and commercial areas; ii) upgrade of the terminal utility networks (electric, HVAC, IT, etc); iii) regulatory safety and security investments; iv) upgrade of the baggage handling system; v) upgrade of rescue and fire fighting detection, response systems and equipment.
The aim of the investments concern the rehabilitation of the existing terminal building, upgrade of the terminal electric, HVAC and IT networks, optimisation of landside accessibilities, upgrade of passenger boarding bridges, and upgrade of rescue and fire fighting detection, response systems and equipment.
The Project aims at ensuring the operational resilience and maintaining the highest safety and security levels at Palma de Mallorca airport (PMI) in Spain. PMI is a core node of the TEN-T airport network.
Since PMI is the only airport serving the island of Mallorca and alternative airports are either small or are many hours away (by boat), allowing the airport to degrade would imply growing congestion, service disruption and forced diversion to alternative travel means, which a competitive market would not address, constituting a market failure. Alternative means of transport involve a substantial penalty to travellers in terms of both travel time and operating costs, implying that the socio-economic cost associated to the market failure addressed by the Project would be very high.
EIB's financing provides the client competitive pricing, longer tenor than commercial lenders and flexible loan conditions, such as long grace and disbursement periods, which are therefore better adapted to the implementation of the Project. EIB's financing also supports AENA to achieve diversification of funding sources and contributes to the stability of their financing needs.
A number of components included in this Project would normally be classified under Annex II of the Directive 2011/92/EU amended by the Environmental Impact Assessment (EIA) Directive 2014/52/EU, meaning that the Competent Authority makes the decision as to whether a formal EIA is required or not. Alignment to this and to other national and EU environmental legislation, including EU Directive on Energy Performance of Buildings, and the status of any pre-existing development consents will be reviewed and assessed during appraisal.
The EIB will require the promoter to ensure that contracts for implementation of the project have been tendered in accordance with the applicable EU procurement legislation: 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.