Release date: 18 March 2024
Promoter – Financial Intermediary
COMUNIDAD AUTONOMA DE CASTILLA Y LELocation
Description
The project will co-finance investment schemes supported by the European Agricultural Fund for Rural Development (EAFRD) in Castilla y Leon.
Additionality and Impact
By supporting the Autonomous Community of Castilla y León (CACL) in its co-financing obligations for investments under the European Agricultural Fund for Rural Development (EAFRD), the Project contributes to three of the EIB's primary policy objectives and to both horizontal objectives, that is, Economic and social cohesion as well as Climate action and environmental sustainability. The Project supports rural development through a broad range of investments, including in basic rural infrastructure, natural-resource protection and sustainable use. Among the positive externalities that contribute to the good economic rate of return (qualitative estimate), stronger resilience and better protection of forest eco-systems, the replacement of conventional energy sources with renewable energy sources in agriculture and more sustainable agricultural practices from the knowledge transmitted by the project. Finally, EIB's financing provides financial value added, mostly in the form of longer tenor, and flexible loan conditions. It also helps CACL diversify its financing sources and provides funding stability.
Objectives
The aim is to contribute to the EIB's primary objectives of : (i) sustainable cities and regions by fostering balanced rural development; (ii) sustainable energy and natural resource use; (iii) support to small and medium sized enterprises (SMEs) and mid-caps. Being exclusively located in Castilla y León, the project also supports the horizontal policy objective Economic and Social Cohesion. In addition, it also contributes to Climate Action and Environmental Sustainability.
Sector(s)
- Services - Public administration and defence; compulsory social security
- Agriculture, fisheries, forestry - Agriculture, forestry and fishing
- Water, sewerage - Agriculture, forestry and fishing
- Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 245 million
Total cost (Approximate amount)
EUR 727 million
Environmental aspects
The promoter will be required to act in compliance with the relevant EU environmental legislation. 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 with national legislation. In particular, the Spanish Strategic Plan of the CAP is subject to a SEA. Furthermore, some of the schemes thereunder to be implemented in Castilla y León may fall under Annex I or Annex II of the EIA Directive. 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. Some schemes might concern the construction or upgrade of small water and wastewater treatment infrastructure. The Bank will assess the Promoter's compliance with the Water Framework Directive (WFD) 2000/60/EC and the Urban Waste Water Council Directive 91/271/EEC at appraisal and during the allocation phase. Where needed, EIAs must take into account the possible cumulative effects with other investment schemes. In particular, for those schemes likely to affect Natura 2000 sites, the EIA has to include the appropriate assessment under Article 6(3) of the Habitats Directive, which has to be made on the basis of the site-specific conservation objectives as defined by the competent authority and reflected in their decision. The project is expected to yield social benefits by contributing to the EAFRD objective of strengthening of the socio-economic fabric of rural areas (as per Article 5(c) of Regulation EU/2021/2115), inter alia by fostering female farm employment, local development in rural areas, and the sustainable production of high-quality, safe and nutritious food.
Procurement
The promoter has to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation: 2014/24/EU and 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.
Status
Signed - 4/07/2025