DEBRECEN WATER AND WASTEWATER SYSTEM UPGRADES

The project concerns the upgrade of the water supply, sewerage and stormwater management infrastructure in the Municipality of Debrecen.

The aim is to allow the Municipality of Debrecen to meet the increasing demand of the growing population of industrial, communal and retail customers.

The project encompasses an investment program focused on enhancing and expanding drinking water, wastewater, and storm water management infrastructure in the municipality of Debrecen. Debrecen is the second largest city in Hungary with a population of 200 000 inhabitants. The city is the economic, cultural and scientific center of Eastern Hungary. The development of water supply systems, sewerage, and storm infrastructure not only addresses basic infrastructure needs such as provision of clean and safe drinking water, effective treatment and disposal of wastewater but also aligns with EIB and EU policy objectives in environmental protection and climate action by promoting sustainable water management practices and enhancing community resilience to climate change. These benefits would not be realised to the same extent without public intervention. The project contributes to economic and social cohesion by overcoming barriers to private sector investment in a less developed region. Specific barriers are incomplete markets, where capital resources and opportunities are lacking and imperfect information for decision-making. By addressing these market failures, the project aims to encourage and facilitate private investment for the overall development of the region. The EIB financing is structured to adequately address the Borrower's financing needs for the project, and will accelerate its implementation.

The project will contribute to ensuring compliance with key EU directives in the water sector notably the Drinking Water Directive 2020/2184, Urban Waste Water Treatment Directive (91/271/EEC) and the Water Framework Directive (2000/60/EC). Where and if applicable, the requirements of the environmental impact assessment (EIA) Directive 2014/52/EU amending the EIA Directive 2011/92/EU and SEA Directive 2001/42/EC will be respected. None of the schemes will fall under Annex I of Directive 2014/52/EU, amending the EIA Directive 2011/92/EU. Some others may fall under Annex II of Directive 2014/52/EU, amending the EIA Directive 2011/92/EU, which requires the competent national authority to determine the need for an EIA. The relevant EIAs and screening decisions will be reviewed during appraisal. For any part of the project that may have an impact on a nature conservation site, Promoter will be required to provide to the Bank information on the mitigating measures required to comply with the Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively) during appraisal.

The promoter has to ensure that contracts for implementation of the project have been and will be tendered in accordance with the 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.