WALLONIA SUSTAINABLE WASTEWATER TREATMENT II

The project will co-finance the investment programme 2023-2026 of Société Publique de Gestion de l'Eau (SPGE, Public Water Management Company) in the Walloon Region, in charge of wastewater sanitation (from sewerage to water treatment plant) and catchment protection.

The project will allow the promoter to reduce water bodies pollution and thus contribute to environmental protection. By improving water resources preservation, the project will also contribute to climate change resilience. It is therefore in line the EIB's water sector orientation. One of the five provinces of Wallonia (Luxembourg) is a less developed region while the three others (Hainaut, Namur and Liège) are transition regions for the period 2021-2027, under the EU Cohesion Policy. The project is therefore eligible under Article 309 point (a) projects for developing less-developed regions and point (c) common interest.

The project concerns the 2023-2026 investment programme of SPGE "Société Publique de Gestion de l'Eau", which is Wallonia Region's asset holding company for wastewater infrastructure and for the protection of water sources. The programme consists mainly of renewal and upgrading of sewage collectors, wastewater treatment plants and pumping stations. All 3.7 million inhabitants of this Region (most of which is an EIB Cohesion Area) will benefit from the investments. The project aims at compliance with the Water Framework Directive (improving the quality of water bodies) and the Urban Waste Water Treatment Directive (improving the quality of effluent) and at maintaining or enhancing service quality. The project will be implemented by a promoter with good capacity, as demonstrated in seven previous operations. The investments will also enable the promoter to reduce energy consumption and to better cope with drought periods and torrential rains. The project will contribute to mitigating market failures in the water sector by financing infrastructure, which generates positive environmental, public health and climate externalities that are not fully reflected in the applicable wastewater tariffs in Belgium.

The Bank's loan provides an important contribution to the Borrower's long-term funding base, fully matching the very long economic life of the underlying assets. The Borrower benefits from a draw down period of several years that reflects the lengthy implementation period of the project. The loan offers an advantageous very long-term fixed rate that contributes to keeping the water tariffs affordable.

The project will help the promoter comply with the Urban Wastewater directive (EC 91/271/EEC), the Water Framework Directive (2000/60/EC), and the Drinking Water Directive (2020/2184/EU). Several of the schemes included in the project might fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU (amending the EIA Directive 2011/92/EU). Environmental Impact Assessment procedures are carried out where required by the competent authorities and mitigating measures are applied as appropriate. The promoter must also comply with the requirements of the Water Framework Directive, including Art 4(7) where appropriate. Where and if applicable, the requirements of the Habitats and Birds Directives (92/43/EEC and 2009/147/EC) will be verified during appraisal. The EIB's appraisal will focus on the Promoter's environmental management capacity to properly apply these EU Directives. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation, climate adaptation, pollution prevention and control, sustainable use and protection of water and marine resources.

The promoter has to ensure that contracts for the implementation of the project have been and will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/25/EU and/or 2014/24/EU and/or 2014/23/EU, where applicable, as well as Directives 92/13/EEC and 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.