RBS URBAN RENEWAL II

Medium to large sized urban renewal projects. The Promoter will use the proposed EIB funding structure to provide benefit to eligible UK-based capital expenditure projects undertaken by Registered Social Landlords ("RSLs"), including those which involve substantial renewal/refurbishment programmes of social housing stock in designated urban renewal areas, following the transfer of such stock to RSLs from local council ownership. ("Large Scale Voluntary Transfers" or "LSVTs").

The sub-projects fall under Annex II of Directive 97/11/EC, where the decision on the applicability of an Environmental Impact Assessment is left to national environmental authorities. The renewal/regeneration sub-projects are, in most cases, subject to the environmental requirements of prevailing public planning regulations. The sub-projects' impact on the environment should be substantially positive, since it is likely to result in better thermal insulation and correction of non-traditional construction techniques, as a result of more stringent housing standard requirements of the Housing Corporation (the sector's regulator). The sub-projects are also most likely to lead to more rationally planned use of inner city areas.

Contracts for the implementation of the sub-projects are tendered in accordance with the relevant EU procurement legislation (Dir 2004/18/EC and/or 2004/17/EC), with parallel publication of tender notices in the EU Official Journal, as and where appropriate.

Urban renewal/regeneration.