EU FUNDS VALENCIA CO-FINANCING 2021-2027 FL

The project consists in a framework loan to support the Spanish Autonomous Community of Valencia (CV) in the implementation of selected investments under European Regional Development Fund (ERDF) and European Social Fund plus (ESF+) during the 2021-2027 programming period within the Spanish Partnership Agreement 2021-2027 ("the Project")."

The project supports the Spanish Autonomous Community of Comunidad Valenciana in the implementation of selected investments under the European Regional Development Fund (ERDF) and the European Social Fund (ESF) during the 2021-2027 programming period

The Project finances investments supported by the ERDF OP and ESF+ OP which are well-integrated into the planning process and the objectives of national, regional, and sector strategies. By addressing several market failures, the Project will improve the living standards and well-being of the inhabitants of the Autonomous Community of Valencia, as well as the economic and social cohesion within the region.

Specifically, under the ERDF the Project will support scientific and technological infrastructure, public and private RDI activities and public procurement of innovative solutions. This is expected to generate positive spill-overs throughout the regional economy and beyond. It should also help address the failure of financial markets in supporting RDI in SMEs. Furthermore, strengthening of e-government and e-services will drive efficiency gains and improve access to public services.

The Project will also support energy efficiency in public buildings and provide incentives for households and business to improve insulation and use more efficient heating and cooling systems, thereby lowering the negative externalities from CO2 emissions. Furthermore, the planned investments in urban public transport will improve the alternatives to the use of private vehicles and is expected to generate positive externalities.

Finally, under the ERDF, the Project will support nature-based flood prevention measures, improvements in capacity and quality of wastewater treatment and restoration and protection of forest masses and biodiversity, which will reduce the negative impacts related to natural disasters. 

Under the ESF+ the Project will support the creation of local employment opportunities through education, vocational training, and lifelong learning programmes. In particular, the vocational training measures provided through the ESF+ will provide young people and vulnerable population with the necessary skills to match market demand and support SMEs. Support for on-line education, flexible curricula and measures to improve access to services are expected to foster the socio-economic inclusion of residents, especially those living in rural municipalities facing population decline.

Finally, EIB's financing provides the client longer tenor than commercial lenders and flexible loan conditions, such as long grace and disbursement periods, which are therefore better adapted to the implementation of the Project. EIB's financing also supports Valencia to achieve diversification of funding sources and contributes to the stability of their financing needs.

As an autonomous community of Spain, Comunidad Valenciana has to comply with national legislation that transposed Directive 2014/52/EU amending the EIA Directive 2011/92/EU into the national environmental legislation. The Bank's appraisal will focus on the Promoter's environmental management capacity in applying the EU Strategic Environmental Assessment (SEA) Directive 2001/42/EC and Directive 2014/52/EU amending the EIA Directive 2011/92/EU, as relevant. All relevant key documents for the project will be published in line with the Bank's disclosure policy. The Operational Programmes co-financed by the ERDF are subject to an SEA. Some schemes in the Operational Programmes shall fall under Annex I or Annex II of the Environmental Impact Assessment (EIA) Directive. All schemes must be implemented in compliance with the EU environmental legislation. The applicability of Directive 2014/52/EU amending the EIA Directive 2011/92/EU, the Habitats Directive 92/43/EEC and the Birds Directive 2009/147/EC will be reviewed at appraisal and during the allocation phase. Some schemes in the Operational Programmes concern the construction of new, or refurbishment of existing public buildings. The Bank will assess the Promoter's compliance with the Energy Performance of Buildings Directive (2010/31/EU) at appraisal and during the allocation phase. Some schemes in the Operational Programmes concern the construction or upgrade of water and wastewater treatment infrastructure or the construction or upgrade of water distribution infrastructure. The Bank will assess the Promoter's compliance with the Water Framework Directive (WFD) 2000/60/EC at appraisal and during the allocation phase.

The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation, mainly Directive 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 EU Official Journal, as and where required.