MADRID REGIONAL INVESTMENT PROGRAMME (PIR)

The project consists of a multi-scheme operation classified as a Framework Loan to co-finance the Regional Investment Programme (PIR) 2022-2026 of the Autonomous Community of Madrid.

The aim is to finance small municipal infrastructure and equipment to guarantee solidarity and inter-municipal balance within the framework of social and economic policy, ensuring provision of mandatory municipal services.

The Project includes co-funding for the Community of Madrid's (CAM) Regional Investment Programme (PIR) for 2022-2026, which encompasses pending investments from the 2021-2025 PIR that have not yet initiated. This initiative supports infrastructure and equipment upgrades across various municipalities, aimed at improving public services. The focus areas include primary and secondary education facilities, cultural and sports centres, administrative buildings, and basic urban infrastructure. Investments prioritize areas with populations under 20,000, promoting equity and improving living standards, especially in smaller municipalities with limited financial and administrative capacities.

Criteria to allocate financing are based on socio economic characteristics such as unemployment, population, and local income, as well as environmental and cultural considerations. The Project targets market failures and rectifies sub-optimal investment situations across various sectors, which often arise from constrained financial resources and locational disadvantages-such as peripheral positioning or lack of integration with major metropolitan public transport networks. These strategic investments yield substantial environmental and public health benefits.

The Project contributes to the Bank's goals on Climate Action and Environmental Sustainability (CAES) by enhancing energy efficiency, upgrading the sustainable urban transport network, and improving green spaces. This initiative not only supports the provision of essential services but also reduces CO2 emissions and other pollutants, thereby improving the overall quality of life in the CAM.

The EIB provides an important financial contribution in the form of a financial advantage and longer tenor than the commonly available in the bank market, contributing therefore to greater diversification and stability of the borrower's financing.

Some of the schemes may fall under Annex I or Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU. Should any 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 promoter will have to comply 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. The EIB's appraisal will focus on the promoter's environmental management capacity in applying the EU Strategic Environmental Assessment (SEA) Directive 2001/42/EC and Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU, as relevant and transposed to the national legislation. Some schemes might concern the new construction or refurbishment of buildings. The EIB will assess the promoter's compliance with the energy performance of buildings directive (Directive EU/2018/844) at appraisal and during the allocation phase. The Promoter will be required to act in compliance with the relevant EU environmental legislation.

The promoter has to ensure that contracts for implementation of the project 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 EU Official Journal, as and where required. The applicability of Directive 2011/92/EU amended by the EIA Directive 2014/52/EU, the Habitats Directive 92/43/EEC and the Birds Directive 2009/147/EC will be reviewed at appraisal and during the allocation phase.