NAPOLI SUSTAINABLE CITY FRAMEWORK LOAN

Framework Loan to co-finance multi-sector schemes supporting Urban Development and Climate Strategies.

The Project is structured as a multi-sector municipal Framework Loan (FL) to support selected, eligible investments, or schemes, from the multi-annual and multi-scheme investment plan of Naples, supporting the city in the implementation of its urban development and climate strategies. The Project will include, among others, the construction, upgrade or refurbishment of public infrastructure, comprising, among others, the following eligible sectors: open spaces and green areas, climate adaptation, sustainable mobility, energy efficiency (EE), cultural facilities, as well as investments in social facilities (e.g., shelters, etc.).

The Project includes, among others, investments in urban renewal and regeneration, green areas and open spaces, the construction and renovation of public buildings including social infrastructure (e.g. schools, social housing), as well as sports and cultural facilities.

The Project is consistent with the EU Framework for Urban Development and Regeneration. Furthermore, it is also consistent with the EU Energy Performance of Building Directive, the Energy Efficiency Directive as well as other EU Directives applicable to relevant sectors covered under this Project. Moreover, the Project is aligned with the EIBG strategies and guidelines related to eligible sectors, including the Bank's Urban Lending Review, the Action plan for Affordable and Sustainable Housing, the Energy Lending Policy and the Transport Lending Policy.

The Project is fully consistent with the European Green Deal target of ensuring no net emissions of greenhouse gases by 2050. It is also aligned to the existing European Commission proposals set to reduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. The Project is also aligned to the Climate Bank Roadmap. In this regard, the Project's contribution to the Bank's climate action and environmental sustainability objectives is estimated at approx. 35% of the total cost.

Given the above, the Project contributes to two of the EIBG core strategic priorities: Social Infrastructure and Climate Action and Environmental Sustainability.

The Project tackles key market failures and will generate significant economic and social benefits, supporting a more integrated, sustainable, mixed and inclusive urban development. It will improve living conditions for residents and visitors, while advancing progress towards several Sustainable Development Goals, especially sustainable cities and communities.

This is the first municipal multi-sector Framework Loan with the city of Naples, whose implementation and monitoring capacity is considered good. However, monitoring will still require targeted input from the Services during project allocation and disbursement.

The Project will be implemented in line with the requirements of the applicable environmental legislation, mainly: EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC, Birds Directive 2009/147/EC. Furthermore, for new and refurbished buildings, the Promoter will ensure that the Project is implemented in line with EU Directive on Energy Performance of Buildings. In case of being applicable, the Project will have to comply with the requirement of the EU Water Framework Directive. Finally, the Project is expected to contribute to the Bank's Climate Action and Environmental Sustainability (CA&ES) objectives, in particular to climate mitigation, climate adaptation, pollution prevention, and protection and restoration of biodiversity & ecosystems.

The Bank will require the Promoter to ensure that contracts for implementation of the Project have been or 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.