Improved, greener infrastructure for Kraków

The project consists in a multi-sector framework loan supporting the investment programme 2022-2028 of the City of Kraków, as well as its Urban Development Strategy 2030-2050 and Climate Strategy. In this regard, Kraków has set the ambitious goal to become climate neutral by 2030 and forms part of the 100 Climate-Neutral and Smart Cities EU Mission.

The project covers new construction, refurbishment, and upgrade of urban infrastructure, comprising public buildings (schools, health centres, sport facilities, etc.), open spaces and green areas, flood protection, RE and EE investments, sustainable mobility schemes, and modernisation of urban roads including road safety and climate measures. It is envisaged that mainly small and medium sized schemes (cost below EUR 50 m) will be included in this operation. The Project is presented under Ukraine Solidarity Package Programme EU Member States (2022- 0277) Operation and as such, follows the expanded eligibilities and other requirements defined in the Programme Loan (PL). In this regard, the Project considers the long-term increased need for public services and infrastructure in Kraków resulting from the approximately 19% population increase due to presence of displaced persons from Ukraine.

The Project supports the implementation of the Kraków Development Strategy and related Sectoral Strategies, as well as the city Climate Strategies, including the most recent one targeting Climate Adaptation. This Project covers urban development, regeneration and renewal helping Kraków to build, refurbish, and upgrade urban infrastructure and public buildings. This is the fourth municipal multi-sector Framework Loan done with the Municipality of Kraków and the previous monitoring experience has been very good.

The Project is consistent with the EU Framework for Urban Development and Regeneration. In addition, the Project supports the efforts from the European Commission and Member States in respond to the Ukrainian conflict and the current refugee crisis. The Project is also consistent with the EIB strategies and guidelines related to eligible sectors, including the Bank's Urban Lending Review, the Energy Lending Policy, and the Transport Lending Policy.

The Project is aligned to the Climate Bank Roadmap and the EIB Gender Equality Strategy and Action Plan. 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. The Project complies with a Significant Gender Tag, enabling women's access to economic opportunities.

The Project considers the long-term increased need for public services and infrastructure resulting from the approximately 19% population increase due to presence of displaced persons from Ukraine (mostly women and children).

The Project will contribute to promoting progress toward multiple Sustainable Development Goals, being the most significant one the contribution to sustainable cities and communities.

The Project addresses a number of market failures and will bring important economic and social benefits, contributing to achieving a more integrated, sustainable, and inclusive development, improving the living conditions of the citizens and other people visiting or living the city, as is currently the case of many Ukrainian refugees. Moreover, the Project will help alleviate the need for financing in Kraków, contributing to increase infrastructure capacity, providing quality services, and continuing meeting temporary expenditures while transitioning to a more long-term situation regarding the war in Ukraine and the number of Refugees hosted in the City.

The Technical Assistance and Advice provided to this Project is deemed as very good, contributing notably to structure the operation. In addition, Technical Assistance from EMBRACE Advisory Platform has been proposed to the Promoter who has received very positively and is expected to soon define its scope.  

The compliance with the relevant EU Directives will be verified during appraisal: Directive 2014/52/EU amending the Environmental Impact Assessment (EIA) Directive 2011/92/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. For new and refurbished buildings, the compliance with EU Directive 2010/31/EU on Energy Performance of Buildings will be further examined during appraisal. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate adaptation, and pollution prevention and control.

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