ORADEA SUSTAINABLE URBAN INFRASTRUCTURE III

Promoter – Financial Intermediary

MUNICIPALITY OF ORADEA

Location

• Romania

Description

Municipal framework loan for sustainable urban infrastructure investments in the City of Oradea.

Additionality and Impact

The Operation concerns a municipal framework loan for urban infrastructure investments in the City of Oradea (Romania) mainly focusing on energy efficiency; urban transport, including improvement of selected urban road sections; and urban development, including open public spaces and green areas. The Operation contributes to several Sustainable Development Goals and to EU and EIB policies objectives, including EU cohesion objectives and to the objectives of the Operational Programme for the West Region in Romania (2021-2027). It supports the implementation of the City's General Urban Plan, the Integrated Urban Development Strategies (SIDU), as well as the implementation of several sector plans and strategies. The project addresses market failures and economic, energy and mobility externalities, as well as social inclusion, environment and climate externalities. All investments under this framework loan are collectively expected to provide good socio-economic benefits. The EIB's contribution to the project in addition to leveraging EU funds will help accelerate these investments also by offering long-term financing at favourable conditions in comparison to the market, thus providing substantial value added.

Objectives

This operation consist of urban infrastructure investments in the City of Oradea, mainly focusing on energy efficiency improvements in educational facilities, street lighting, geothermal energy infrastructure, urban transport (including improvements of urban streets), and urban regeneration schemes focusing on the improvement of green open spaces. The operation aims to support the implementation of the City's multi-annual investment programme 2021-2024 in line with the City's Integrated Urban Development Strategy, Sustainable Urban Mobility Plan and Energy Action Plan.

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

EUR 40 million

Total cost (Approximate amount)

EUR 145 million

Environmental aspects

The Promoter's environmental management capacity to properly apply the relevant EU Directives will be verified during appraisal, particularly with regard to EU EIA Directive 2011/92/EU amended by 2014/52/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The status of any environmental studies and public consultations related to the construction and refurbishment investments as well as the alignment of energy efficiency requirements with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed during project appraisal. The schemes under the framework loan should have an overall positive impact on the environment by promoting sustainable urban development and reducing energy consumption. However, some of the schemes may fall under Annex I or Annex II of the Directive 2014/52/EU amending the EIA Directive 2011/92/EU, which will be assessed during project appraisal.

Procurement

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 Official Journal of the EU, as and where required.

Status

Signed - 22/03/2022