LOURES URBAN RENEWAL AND CLIMATE ADAPTATION FL

The framework loan (FL) will co-finance selected schemes from the strategic multi-annual investment plan (2022-2026) of the City of Loures (Portugal). These include, among others, construction and renewal of social housing, climate adaptation schemes, energy efficiency and renewable energy measures in public buildings, upgrade and construction of education facilities, as well as waste management improvements.

The aim is to contribute to further develop the city and improve both its living and business conditions. The project will also foster economic development, considering the changes in demographic and economic conditions, as well as improve urban mobility.

This Framework Loan (FL) is consistent with the EU Framework for Urban Development and Regeneration, including the objectives of the New Leipzig Charter, the EU 2020 Strategy for Smart, Sustainable and Inclusive Growth, the Urban Agenda for the EU, the EU Urban Mobility Framework, and the EU Energy Performance of Building Directive. It 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, the EU Education Area by 2025 and Digital and Human Capital policy as well as with the EIB Guidelines for Lending in the Solid Waste Management Sector. 

This Project is deemed aligned to 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 54.06% of the total Project cost.

The Project addresses a number of market failures. The selected schemes included public goods and quasi-public goods. The Project also generates externalities, by providing greater quality services, hence supporting local businesses and economic activities as well as the improvement of the residents' life quality.

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.

The Project will bring important social benefits by contributing to achieving a more integrated, sustainable, and inclusive development, improving living conditions. It will create 793 new social housing units and will renovate 1,171 units from the existing stock. Hence, totalising a housing operation of 1,964 units. It will have a significant positive impact on the vulnerable population and the housing stock or Loures.

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

The Municipality of Loures has a sound capacity to develop and implement the Project. Therefore, technical assistance and advice were not requested. Nevertheless, the monitoring will include annual reports. 

Financially, EIB's advantageous conditions, long tenor and substantial volume 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: Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC, EU Birds Directive 2009/147/EC, and the Urban Waste Water Treatment Directive (91/271/EEC). Furthermore, for schemes triggering Art. 4.7 of the Water Framework Directive (WFD) 2000/60/EC, the Promoter has to provide evidence of compliance with the WFD before the EIB funds are allocated. For new and refurbished buildings, compliance with EU Directive 2010/31/EU on Energy Performance of Buildings will be further assessed during appraisal.

The promoter has to ensure that contracts for the 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 the publication of tender notices in the EU Official Journal, as and where required.