FIRENZE SMART URBAN REGENERATION FL

Framework loan (FL) to co-finance multi-sector schemes included in the current triennial Investment Programme (2022-2024) of the City of Florence and subsequent updates. The FL is aiming at supporting the implementation of the City Urban Development and Climate Strategies, including, among others, the Smart City Plan.

This FL is expected to contribute to the implementation of the City Climate Strategy - PAESC 2022 (Piano d'Azione per l'Energia ed il Clima,), as well as to the Urban Development Strategy and Smart City Plan. Furthermore, Florence is located in central Italy, a seismic active region where several earthquakes have struck the country in recent years, causing significant destruction of buildings. Florence is currently improving its resilience against earthquakes and this is reflected in its Investment Strategy, notably in historical buildings.

The Framework Loan (FL) is consistent with the EU Framework for Urban Development and Regeneration, with the EU Urban Mobility Framework and the EU Energy Performance of Building Directive. The FL is also consistent with the EIB strategies and guidelines related to eligible sectors, such as the Urban Lending Review, Energy Lending Policy, New Transport Lending Policy, and the Climate Bank Roadmap. This Project is deemed aligned to a low carbon and resilient pathway, consistent with the Paris Agreement goals and principles. Its contribution to the Bank's Climate Action & Environmental Sustainability objectives is estimated at approx. 22% of the total cost.

The Project addresses a number of market failures as selected schemes include public goods and quasi-public goods. The Project also addresses externalities linked to sub-optimal investment flows into resilient public infrastructure and energy efficient public transport.

In line with the above, the Project will contribute to sustainable growth, the improvement of citizens' living conditions and the global urban environment. This should foster economic development. This Project will bring also important social benefits by contributing to achieve a more integrated, sustainable and inclusive development, improving the living conditions of the direct beneficiaries but also the rest of the citizens.

In addition, the Project will contribute directly to promote progress towards multiple Sustainable Development Goals (SDGs).

Promoter (Municipality of Florence) has sound capacity to develop and implement the Project. Therefore, technical contribution and advice was not requested. Nevertheless, monitoring includes annual reports. 

Financially, EIB's advantageous conditions and long tenor will contribute to improving the sustainability of the Borrower's debt repayment capacity and optimise municipal resources.

The compliance with the relevant EU Directives will be verified during appraisal: EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. Furthermore, for schemes triggering art. 4.7 of the Water Framework Directive (WFD) 2000/60/EC, the Promoter has to provide evidence of the compliance with the WFD before the Bank funds are allocated. For new and refurbished buildings, the compliance with EU Directive 2010/31/EU on Energy Performance of Buildings will be further assessed during appraisal. The level of climate action (adaptation and mitigation) and environmental sustainability measures where relevant, will be assessed during appraisal.

The Bank will require the Promoter 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 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 Official Journal of the EU, as and where required.