BOLOGNA CLIMATE ACTION & URBAN REGENERATION FL

Promoter – Financial Intermediary

COMUNE DI BOLOGNA

Location

• Italy

Description

Framework loan to co-finance multi-sector schemes included in the Investment Programme of the City of Bologna and supporting the implementation of its General Urban Plan and its Climate Strategy. Investments comprise the upgrade and construction of public buildings, including notably schools. It also includes social housing, public lighting, sustainable urban mobility schemes, parks and open spaces as well as rehabilitation of urban roads.

Additionality and Impact

Project to co-finance multi-sector schemes included in the Investment Programme of the City of Bologna, and aligned with EIB lending policies in the Urban Development, Education and Energy Sectors. The Project is deemed aligned to a low carbon and resilient pathway, consistent with the Paris Agreement goals and principles. Its contribution to the Bank's Climate Action & Environmental Sustainability objectives is estimated at approx. 56% of the total cost, which is very high for a multi-sector Framework Loan.

The Project generates numerous positive externalities: the improved urban environment will translate into higher quality services supporting businesses and economic activities, and higher quality of life of residents; the upgraded social infrastructure and housing will benefit society and the broader economy, mainly in terms of skills development, enhanced productivity and improved human well-being. The shift to more sustainable modes of transport will reduce related negative externalities; and the investments targeting climate change will contribute to the construction of a more sustainable and resilient future. Additionally, this operation promotes gender equality.

The EIB's technical advice has helped the Promoter to better structure and prepare the operation to align it to the EIB Climate Bank Roadmap goals, and to ensure its investments contribute to sustainable finance per the EU taxonomy. Going forward, the City is exploring possibilities to work with the EIB to further refine and standardize its municipal gender survey and impact measurement tools. Financially, the Bank's participation will bolster the borrower's debt service capacity at a critical time and will include flexible drawdown terms to ensure that sufficient resources are available in a timely manner for the city to implement the urban regeneration schemes.

Objectives

The project supports the implementation of the 2021-2023 Investment Programme of the City of Bologna and its subsequent updates. It also supports the implementation of the City General Urban Plan and its Climate Strategy (PAESC).

Sector(s)

• Urban development - Construction
• Transport - Transportation and storage
• Education - Education

Proposed EIB finance (Approximate amount)

EUR 50 million

Total cost (Approximate amount)

EUR 120 million

Environmental aspects

The compliance with the relevant EU Directives will be verified during appraisal: Directive 2014/52/EU amending the 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, compliance with EU Directive 2010/31/EU on Energy Performance of Buildings will be further examined during appraisal. The level of climate action (adaptation and mitigation) measures, where relevant, will be assessed during 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 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 - 17/12/2021