NEW MOBILITY CHARGING NETWORK SPAIN AND PORTUGAL

Promoter – Financial Intermediary

COMPANIA ESPANOLA DE PETROLEOS SA

Location

• Spain
• Portugal

Description

The project concerns the deployment of electric vehicles charging stations across a network serving both Spain and Portugal. The infrastructure will consist mostly of ultra fast charging service stations.

Additionality and Impact

The project concerns the deployment of a high power charging network across Portugal and Spain. The main goal of the project is to contribute to accelerating the transition towards road transport electrification. It fits within a wide range of European policy measures aimed at achieving a more sustainable and lower carbon emissions transport sector such as the EU Green Deal and the Sustainable and Smart Mobility Strategy.

The project contributes to mitigate transport negative externalities in the form of the reduction of GHG and air pollutants emissions (Nitrogen Oxides, Particulate Matter) through the electrification of road transport. In so doing, the project produces a sound economic return.

The project contributes to the EIB's objectives of sustainable and decarbonised road transport and is consistent with the Bank's Climate Bank Roadmap and Transport Lending Policy.

EIB will provide an adequate financing to the borrower, allowing it to further diversify its financing sources. The Bank will provide the company with a longer maturity than available on the market and more aligned with the expected lifetime of the project.

The EIB's contribution to this investment is expected to materially contribute to the Promoter's effort to meet its ESG targets and crowd-in investors. EIB's financing would also provide a signalling effect on the soundness and quality of the project, facilitating funding from commercial banks.

Objectives

The aim is to contribute to accelerate the electrification of road transport in Spain, providing high power charging infrastructure on the country's main roads. By significantly contributing to a cleaner and lower-carbon road transport, the project will achieve a wide range of municipal, national and EU policies. In detail, it will support the overall EU ambition to reduce transport related CO2 emissions by 90% by 2050 compared to 1990, in line with the Paris Agreement, the EU Low-Emission Mobility Strategy (2016) and European Green Deal (2019) objectives. In addition, the project contributes to the EIB's objectives of sustainable transport, decarbonisation, development of TEN-T infrastructure, as well as the EIB's cross-cutting policy objectives of Climate Action and Cohesion.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 150 million

Total cost (Approximate amount)

EUR 334 million

Environmental aspects

Electric Vehicle Charging infrastructure is not subject to environmental impact assessment under the environmental impact assessment (EIA) Directive (Directive 2014/52/EU amending the Directive 2011/92/EU on the assessment of the effects of certain public and private projects on environment). However, the construction of greenfield parking locations where the EVC infrastructure is installed and/or the connections to the grid may be screened under Annex II of the said Directive. In such cases, the Bank requires to be informed of the screening decisions issued by the competent authorities. The project is expected to have a positive effect on the environment. The infrastructure will power electric vehicles with no emissions of pollutants and hence will contribute to meet air quality standards. Finally, the project is expected to have a significant impact on CO2 emissions reduction that will result from the replacement of conventional cars operating on fossil fuels with electric cars powered by less carbon intensive electricity.

Procurement

The promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the European Commission will be duly informed, which will require the promoter to apply those rules.

Status

Signed - 27/09/2023