KIELCE URBAN DEVELOPMENT II

The Framework Loan (FL) will support eligible investment schemes in line with the development strategy of the City of Kielce.

The aim is to finance the new construction, refurbishment and upgrade of urban infrastructure, comprising, among others, urban roads (including road safety and climate measures), sport and social facilities (e.g. schools, cultural and emergency services), sustainable mobility (e.g. bicycle and pedestrian paths, public transport), open spaces and green areas. The project will also cover investments in energy efficiency and renewable energy, as well as in cyber security.

This Project is presented under the Ukraine Solidarity Package (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 Kielce. The Project is structured as a Framework Loan to support the implementation of the multi-sector investment plan of the City during the period 2024-2029, as well as the implementation of its Climate Adaptation Strategy and Urban Development Strategy.   

The Project is aligned with the Bank's Urban Lending Review, the new Transport Lending Policy and the Energy Lending Policy. The underlying investments are within the scope of the EIB integrated territorial development primary objective and public policy goal. Additionally, the Project supports the European Commission and Member States in their response to the war in Ukraine and the ensuing refugee crisis.

The Project is aligned to the Climate Bank Roadmap, with the Climate Action and Environmental Sustainability contribution estimated at approx. 40% of the total cost. The Project includes sustainable mobility schemes and energy efficiency measures in public buildings, which contribute to climate mitigation. It also includes investments in public green areas and parks, which contribute to climate adaptation and environmental sustainability.

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

The Project addresses several market failures and will bring important economic and social benefits, resulting in a more integrated, sustainable, and inclusive development, as well as improvement of the living conditions of the citizens and other people visiting or living in the city, including Ukrainian refugees.

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.

The promoter is deemed as having the adequate capacity to verify the compliance with the relevant EU Directives: Directive 2014/52/EU amending the environmental impact assessment (EIA) Directive 2011/92/EU, EU Strategic environmental assessment (SEA), 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 is expected to contribute to the EIB's objectives linked to climate action and environmental sustainability (CA&ES).

The promoter 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.