ITALIAN ENVIRONMENTAL PROTECTION AND DUAL-USE

The project consists of an investment loan targeting several dual-use investments promoted by the Italian Ministry of Defence to improve effectiveness for disaster prevention, environmental protection, hydrographic research capabilities and to increase performance, safety and security of the military airspace that is also opened to civilian flights.

The project includes a selection of dual-use investments promoted by the Italian Ministry of Defence and managed and operated by the Italian Armed Forces (FFAA, Forze Armate Italiane) that are aligned with the principles set in the Bank's "Protect, Secure, Defend: European Security Initiative" and deployed or implemented throughout the country. In particular, the project includes the following components: renovation of the Light Utility Helicopter (LUH) fleet, acquisition of a new fleet of Unmanned Aerial Vehicles (UAVs) and Smart Tech and Upgrade of Air Traffic Management (ATM) and Meteorological equipment.

The project includes a selection of dual-use investments promoted by the Italian Ministry of Defence that are aligned with the principles set in the Bank´s "Strategic European Security Initiative", approved by the BoD in 2022. It includes investments aimed at upgrading the Italian Armed Forces intervention effectiveness for disaster response and environmental protection; improving hydrographic research capabilities; and increasing the performance, safety and security of the joint civilian-military airspace controlled by the military.

Services aimed at disaster response, environmental protection, civilian security, hydrographic research, and performance, safety and security of airspace are either public goods (by being non-excludable) or display positive externalities, both of which are sources of market failure.

These all constitute either public goods by being non-excludable or display positive externalities, both of which are sources of market failure, thereby leading to insufficient provision or non-provision of the services by the private sector.

The project comprises a number of components that are expected to be outside of the scope of the EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU. Nevertheless, all environmental aspects, including compliance with the EIA directives, potential negative impacts on areas forming part of the Natura 2000 network (falling under the Habitats Directive 92/43/EEC or Birds Directive 2009/147/EC) or alignment with the Energy Performance for Buildings Directive, in the case of the New Data Center, will be assessed at appraisal. The project will have a positive overall environmental impact, since the assets to be purchased will improve the Italian State capabilities of intervention effectiveness for disaster prevention, environmental protection and weather forecasting nation-wide.

The Bank will require the promoter to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/23/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.