CHORZOW SUSTAINABLE DEVELOPMENT

Promoter – Financial Intermediary

CITY OF CHORZOW

Location

• Poland

Description

The project will support investment programme implemented by the City of Chorzow (Poland). It will focus on urban development and infrastructure modernisation. The loan will be signed under the Programme Loan SILESIA SUSTAINABLE DEVELOPMENT PROGRAMME (2021-0206).

Additionality and Impact

The Project will support a multi-sector investment programme of the City of Chorzow (Silesia region, Poland) within the period 2023-2028. The Project will focus on sustainable urban infrastructure development and will address several market failures. In particular, the Project contributes to provision of public goods and services (e.g. infrastructure dedicated to public services, transport and energy efficiency) and is expected to generate positive externalities (including energy savings and climate action) improving quality of services for the citizens. The proposed investment programme is well embedded in the City's Development Strategy until 2030, Environmental Programme for 2022- 2026, Adaptation Plan to Climate Change 2030 and the Metropolitan Mobility Policy. The City of Chorzow is located in Silesia (region), classified as a less developed region. Thus, the Project contributes to the EIB Cohesion Priority Regions objective. It is also expected to contribute to the EIB Climate Action and Environmental Sustainability objectives.

The EIB loan with the flexible conditions (long tenor matching the economic life of assets financed, flexible drawdowns conditions, grace and availability periods) addresses the City's funding needs and contributes to the stability of the City's financing sources.

It further allows the City to invest its own funds, use the available EU funding and may play a pivotal role in enabling access to funds under the Just Transition Mechanism.

Objectives

The proposed municipal framework loan will support eligible schemes coherent with the City of Chorzow development strategy. It will contribute to the modernisation of municipal public infrastructure and services.

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

PLN 250 million (EUR 58 million)

Total cost (Approximate amount)

PLN 550 million (EUR 127 million)

Environmental aspects

The EIB will generally allocate its funds only to eligible schemes, which are environmentally sound. All schemes must comply with EU environmental legislation, as well as comply with the principles and standards of the EIB's Environmental Policy Statement.

Procurement

The promoter is subject to the public procurement regime, hence it is required to ensure that the contracts for the project implementation will be tendered in accordance with the relevant applicable EU procurement legislation: Directive 2014/24/EU, Directive 2014/25/EU, as well as Directive 92/13/EEC and 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 (OJEU), as and where required.

Status

Signed - 30/12/2024