ITALIAN URBAN DEVELOPMENT FUNDS PROGRAMME

The project consists of a loan for the Urban Development Funds to support new investments in the area of sustainable urban development, energy efficiency and renewable energy in the cohesion regions of Campania, Sardinia and Sicily in Italy. This loan is backed by the European Fund for Strategic Investments (EFSI) and linked to returns from financial instruments financed by the European Structural and Investment Funds (ESIF).

The project is expected to bring important economic and social benefits from investments in sustainable urban development, supporting the overarching objective of regions to be better places for citizens to work and live. Investments in energy efficiency and renewable energy may also contribute to climate action objectives as well as to reduce energy bills for households, companies and public bodies.

This operation intends to bring environmental benefits by supporting projects that reduce energy consumption and contribute to climate change mitigation. The projects to be financed by the Urban Development Funds will be compliant with the relevant EU Directives, including the Strategic Environmental Assessment (SEA) Directive 2001/42/EC, the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending 2011/92/EU, the Habitats Directive 92/43/EEC as well as the Birds Directive 2009/147/EC as transposed into national law. Compliance with the relevant EU Directives will be verified during the appraisal/allocation stage. The status of any environmental studies and public consultations related to the urban renewal, upgrading and construction investments will be reviewed during the project's appraisal. Energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed.

Some projects may be subject to public procurement procedures and regulations and others may not be. In case where the EU Public Procurement Directives apply to the project, it will be ensured that the procurement of the related works, goods and services by the investee company is compliant with the applicable EU Directives. In case of projects where the EU Public Procurement Directives do not apply, it will be ensured that the procurement of goods and services should follow suitable procedures satisfying the criteria of economy and efficiency. Finally, in case of a project developed under a concession or a public-private partnership (PPP) scheme, it will be ensured that the procurement of the concession/PPP by the relevant public contracting authority is compliant with applicable EU regulations.