COLOGNE SUSTAINABLE WASTEWATER NETWORK PROGRAM

Promoter – Financial Intermediary

STADTENTWAESSERUNGSBETRIEBE KOELN AOER

Location

• Germany

Description

The framework loan will co-finance a specific part of the investment program of Cologne's wastewater utility (Stadtentwässerungsbetriebe Köln) for the period 2023-2029. The pipeline includes the construction of a new culvert under the River Rhine, a new sludge transport pipe, a sludge dewatering facility as well as a sludge incineration facility.

Additionality and Impact

The project targets at improving the efficiency and sustainability of Cologne's wastewater services through the new combined sewer culvert under the River Rhine. The new culvert with increased capacity can better cope with the increased precipitation because of climate change. The investments in a new sludge transport pipe, replacing transportation by truck, and a more efficient sludge dewatering facility will reduce the greenhouse gas emissions. The heat from the new sludge incinerator will be used for district heating in nearby houses. The new sludge incinerator will allow the promoter to meet the German requirements on sludge disposal after the energy transition discontinues the current co-incineration in a brown coal power plant. All investments aim to ensure compliance with European and German environmental standards. Wastewater collection and treatment projects generate positive externalities, including avoided public health costs, environmental benefits of improved water quality and reduced greenhouse gas emissions. Overall, these environmental, climate and social benefits would not be achieved to the same extent without public intervention.

The Bank's loans have been a cornerstone of the borrower's substantial long-term investment programme into its wastewater systems, providing a substantial contribution to the programme's financeability and affordability. The loan will offer key benefits such as a very long loan maturity and flexibility with respect to drawdowns, interest rate arrangements and grace periods, which will enable the required alignment with the implementation and financial modalities of the project.

Objectives

The aim is to improve the efficiency and sustainability of Cologne's wastewater services. The new combined sewer culvert under the River Rhine will reduce the risk of sewage spills in the river and enable sufficient capacity for the growing population and the increased intensity in precipitation from climate change. The investments in a new sludge transport pipe and a sludge dewatering facility linked to the new sludge incinerator comply with the German requirements on sludge disposal after the energy transition discontinues the current co-incineration in a brown coal power plant. All investments comply with European and German environmental standards. The project will reduce the impact on climate change from wastewater and sludge collection and treatment. Wastewater collection and treatment projects generate positive externalities, including avoided public health costs, environmental benefits of improved water quality and reduced greenhouse gas emissions. Overall, these environmental, climate and social benefits would not be achieved to the same extent without public intervention.

Sector(s)

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

Proposed EIB finance (Approximate amount)

EUR 158 million

Total cost (Approximate amount)

EUR 315 million

Environmental aspects

The investments will contribute to the sustainable management of wastewater infrastructure with overall positive environmental impacts. The project supports compliance with the EU Water Framework Directive (2000/60/EC), the Urban Wastewater Directive (91/271/EEC), EU and national environmental legislation. It will contribute to climate action and environmental sustainability (CA&ES) objectives. Most of the schemes to be financed under the framework loan are expected to have limited environmental and social impacts. However, some may fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU (amended by Directive 2014/52/EU), requiring the competent authorities to determine whether an EIA is required. Where a formal EIA is required, a copy of the Environmental & Social Impact Study or the Non-Technical Summary (NTS) or equivalent document will be provided to the EIB and published on its website. The promoter will also be required to verify that all of the schemes submitted for EIB financing comply with the Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC. For any part of the project that may impact on a nature conservation site, the promoter will be required to provide information on the required mitigating measures to comply with the Habitats and Birds Directive.

Procurement

The promoter has to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 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 Official Journal of the EU, as and where required.

Status

Signed - 31/07/2024