GDANSK SUSTAINABLE INFRASTRUCTURE

Promoter – Financial Intermediary

CITY OF GDANSK

Location

• Poland

Description

The project consists in a sub-operation under UKRAINE SOLIDARITY PACKAGE - PROGRAMME EU MS (2022-0249) to co-finance municipal infrastructure in the City of Gdansk.

Additionality and Impact

The Project will improve the provision of public services for which demand increased due to unprecedented population increase. Provision of public services will result in positive economic, environmental and social externalities. With a significant share of climate-related investments, the project will also bring positive climate-related externalities. Investments are expected to require a relatively high up-front investment cost, which necessitates access to long-term funding which is not easily available in the financial market. In the absence of such long-term financing, investment decisions would be further delayed. Located in the convergence area, the project supports strengthening of the EU's economic, social and territorial cohesion.

The Project is in accordance with the provisions of the 2016 EU Urban Agenda, the new 2020 Leipzig Charter for sustainable urban development, and the EU2020 Strategy for smart, sustainable and inclusive growth. The Project is eligible under Article 309 of the TFEU point (a) projects for developing less-developed regions and point (c) common interest. The investments to be supported are in line with the City's strategic planning and development policies.

The flexible, long-term and attractively priced EIB loan addresses the City's funding needs. It further allows the City to invest its own funds and available EU funding. The EIB loan will have significant value added for the City due to: (i) its flexibility; (ii) a tenor that matches the economic life of the assets financed; (iii) grace and availability periods that fit the City's expectations and needs; and (iv) attractive pricing. The financing will also strengthen the funding base of the City.

Objectives

The aim is to meet the increased demand for municipal services and infrastructure due to the high number of Ukrainian refugees.

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

PLN 500 million (EUR 112 million)

Total cost (Approximate amount)

PLN 500 million (EUR 112 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 Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by 2014/52/EU, EU Strategic environmental assessment (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 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.

Procurement

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.

Status

Signed - 7/12/2023