ROLAND GARROS AIRPORT REUNION - PHASE 2

The project is a major scheme under the framework loan "Roland Garros Airport-Reunion" and consists of Phase 2 of the airport Development Plan 2011-2023. It includes the construction of new runway end safety areas (RESAs) at both ends of the two runways, the reinforcement of the protection dike of one of the runways, the reconfiguration and renewal of the existing passenger terminal facilities, new car parks and other minor upgrades.

The project has the objective of improving safety performance, increasing climate resilience and alleviating current operational constraints and bottlenecks in order to maintain target levels of service.

The scheme has the objective of improving safety performance, increasing climate resilience and alleviating operational constraints at Roland Garros airport. It will help maintaining levels of service and preserving the existing capacity of 2.5 million passengers per year. It is the only airport in the island capable of operating long-haul services and is, therefore, an essential facility for efficient air transport links, most critically with continental France. Reunion is one of the French Outermost Regions and the airport is part of the comprehensive TEN-T network, making the scheme eligible under Articles 309(a) and 309(c).

The natural monopoly condition of the airport and the safety and climate elements in the scheme are sources of market failure. Without it, there would be a continuous degradation of service and eventual closure of the facility. The economic returns of the scheme are very strong.

Further, the financing provided by the Bank offers features that cannot be found in the market for such corporate-status entities, including long maturity, five years availability, four years grace period, plus technical contribution and advice through: - the technical assistance from JASPERS for the preparation of an application for an ERDF grant and - the project's monitoring and implementation follow-up.

The investments included in this allocation would normally be classified under Annex II of the Directive 2014/52/EU amending the EIA Directive 2011/92/EU, meaning that the competent authority makes the decision as to whether a formal environmental impact assessment (EIA) is required or not. Alignment to this and to other National and EU environmental legislation, including the Habitats Directive 92/43/EEC and the Birds Directive 2009/147/EC, the EU Directive on Energy Performance of Buildings, the Water Framework Directive (WFD) 2000/60/EC and the status of any pre-existing development consents will be reviewed and assessed during appraisal.

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU, where applicable, 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.