POZNAN MUNICIPAL INFRASTRUCTURE IV

Promoter – Financial Intermediary

CITY OF POZNAN

Location

• Poland

Description

The Framework Loan (FL) will support eligible schemes under the multi-sector investment plan of the City of Poznan, as well as the urban development and climate adaptation strategy until 2030.

Additionality and Impact

This project is structured as a Framework Loan (FL) to support the implementation of the multi-sector investment plan of the City of Poznan during the period 2024-2029, as well as the implementation of City's climate adaptation plan, urban development strategy until 2030 and its Sustainable Urban Mobility Plan (SUMP). 

The project is aligned with the Bank's Urban Lending Review, Transport Lending Policy and the Energy Lending Policy. 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 aligned to the Climate Bank Roadmap (CBR), and its contribution to the Bank's Climate Action and Environmental Sustainability (CA&ES) objectives is estimated at approx. 34% of the total cost.

This is the seventh direct operation with the City of Poznan acting as Borrower and the previous monitoring experience has been satisfactory.

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.

The Bank's advice 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's advantageous financing conditions (such as: ticket size, grace and availability periods, financing term and disbursement flexibility) will contribute to improving the Poznan's debt repayment capacity and optimization of municipal resources. The EIB loan will be complimentary to own funds by the City while also allowing the City to effectively use available EU grants. 

Objectives

The project covers new construction, refurbishment and upgrade of urban infrastructure, comprising, among others, public infrastructure (e.g. cultural, educational and sport facilities etc.), as well as sustainable mobility schemes (e.g. bicycle and pedestrian paths, public transport infrastructure and modernisation of urban roads, including road safety and climate measures). All schemes will be implemented within the City of Poznan boundaries.

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

PLN 669 million (EUR 154 million)

Total cost (Approximate amount)

PLN 1338 million (EUR 308 million)

Environmental aspects

The promoter is deemed to have adequate capacity to ensure compliance with the relevant EU legislation, mainly SEA Directive (2001/42/EC), environmental impact assessment (EIA) Directive (2011/92/EU, as amended by 2014/52/EU), Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC). Similarly, for new and refurbished buildings, the Promoter is deemed capable of ensuring compliance with EU Directive 2010/31/EU on Energy Performance of Buildings. The project is expected to contribute to the EIB's objectives linked to climate action and environmental sustainability (CA&ES).

Procurement

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.

Status

Signed - 15/11/2024