RADOM MUNICIPAL INFRASTRUCTURE III

Promoter – Financial Intermediary

CITY OF RADOM

Location

• Poland

Description

The Framework Loan (FL) will support the multi-sector investment plan 2024-2028 of the City of Radom, as well as the implementation of its climate adaptation strategy and urban development programme "Radom 2030".

Additionality and Impact

This Project is a sub-operation under the UKRAINE SOLIDARITY PACKAGE - PROGRAMME EU MS (2022-0249). It provides co-financing to the urban infrastructure linked, among others, to an increased demand for municipal services related to an inflow of Ukrainian refugees in Radom (mostly women and children). This Project is structured as a Framework Loan (FL) to support the implementation of the multi-sector investment plan of the City of Radom during the period 2024-2029, as well as the implementation of its climate adaptation strategy and urban development programme "Radom 2030". 

The Project is in line with the Bank's Urban Lending Review in accordance with the provisions of the EU Urban Agenda, the 2020 Leipzig Charter for sustainable urban development, the EU2020 Strategy for smart, sustainable and inclusive growth, and the EU Green Deal. The investments will be complementary to the EU and national policies within the scope of EIB integrated territorial development primary objective and public policy goal. The Project is also consistent with the new Transport Lending Policy and the Energy Lending Policy of the EIB. In addition, the Project supports the efforts from the European Commission and Member States in response to the war in Ukraine and the current refugee crisis.

The Project is aligned to the Climate Bank Roadmap. In this regard, the Project's contribution to the Bank's Climate Action and Environmental Sustainability (CA&ES) objectives is estimated at approx. 58.30% of the total cost.

This is the fourth multi-sector FL with the City of Radom and the previous monitoring experience has been satisfactory.

The Project will contribute to promoting progress toward multiple Sustainable Development Goals, the contribution to sustainable cities and communities (SGD 11) being the most significant one.

The Project addresses a number of market failures and will bring important economic and social benefits, contributing to achieving a more integrated, sustainable, and inclusive development, improving the living conditions of the citizens and other people visiting or living in the city, as is currently the case of many Ukrainian refugees. Moreover, the Project will help alleviate the need for financing in Radom in the context of an increased demand for municipal services related to an inflow of Ukrainian refugees.

The Bank's advice provided to this Project has contributed to the structuring of the operation to align it better with policy objectives and the eligibilities approved under the UKRAINE SOLIDARITY PACKAGE - PROGRAMME EU MS (2022-0249). Furthermore, it has contributed to the structuring of the operation to be better aligned to the goals of the EIB CBR and to maximize the Project's contribution to the EIB CA&ES objectives.

The EIB loan with the flexible conditions (long tenor matching the economic life of assets financed, flexible drawdowns conditions, grace and availability periods) addresses the City's funding needs and contributes to the stability of the City's financing sources.

Objectives

The aim is to finance sub-projects that concern the construction, refurbishment and upgrade of urban infrastructure, comprising, among others, municipal housing, schools, kindergartens, cultural and sport facilities, open spaces and green areas, renewable energy and energy efficiency investments, as well as sustainable mobility (e.g. soft mobility, public transport, etc.).

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

PLN 241 million (EUR 56 million)

Total cost (Approximate amount)

PLN 646 million (EUR 150 million)

Environmental aspects

The City of Radom is deemed as having the adequate capacity to verify the compliance with the relevant EU Directives: Directive 2014/52/EU amending the environment impact assessment (EIA) Directive 2011/92/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. Furthermore, for new and refurbished buildings, the Promoter is also deemed capable of ensuring the compliance with EU Directive 2010/31/EU on Energy Performance of Buildings. The project will contribute to the EIB's climate action and environmental sustainability (CA&ES) objectives.

Procurement

The City of Radom is deemed to have adequate capacity 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.

Status

Signed - 22/11/2024