VGP PV GREEN LOAN

Roll-out of photovoltaic installations on the roofs of the promoter's logistic centers in Central and Eastern EU (Czech Republic, Hungary, Romania, Slovakia) and other EU countries.

The roll-out of photovoltaic installations across the Promoter's logistic centres will allow for the production of electricity from low-carbon sources and thus contribute to the reduction of carbon emissions. The project will increase the renewable energy generation capacity across the Czech Republic, Hungary, Romania, Slovakia as well as other EU markets, hence contribute to national and EU climate objectives.

The project produces electricity from low carbon sources through the roll-out of solar panels on the roofs of the Promoter's logistic and semi-industrial centres located across fourteen EU countries as well as Serbia. The project addresses a number of market failures of negative climate and environmental externalities, from contributing to the reduction in carbon and air pollution, to improving energy markets efficiency and integration through participation in the wholesale markets.

This operation supports national targets related to renewable energy (RE) generation and it will hence contribute to EU energy objectives, notably security of energy supply and tackling climate change. It also supports the Bank's priority lending objectives concerning renewable energy and it will contribute 100% to climate action. The operation is therefore eligible under Article 309 (c) common interest in energy (energy efficiency, renewable energy) and environment (tackling climate change). The operation is expected to yield good economic rate of return and a positive broader social benefit. The Promoter is deemed capable of implementing the project considering its overall experience. The EIBs financial contribution to the project is high, as it provides longer term finance at competitive terms, not readily available in the market.

The appraisal will focus on the project impacts and the related mitigants, as well as on the promoter's capacity to implement the programme in line with the EIB's socio-environmental standards and requirements. The programme schemes are expected to have limited environmental consequences and environmental impact studies will be carried out as and where applicable and mitigating and/or compensation measures will be applied as necessary.

The Promoter has to ensure that contracts for the project implementation will be tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU, as well as Directive 92/13/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