WASSER BURGENLAND

Promoter – Financial Intermediary

WASSERLEITUNGSVERBAND NOERDLICHES BURGENLAND

Location

• Austria

Description

The project concerns the 2024-2030 investment programme of Wasserleitungsverband Nördliches Burgenland (WLF), a water association of local authorities composed of 65 municipalities located in three districts (Eisenstadt, Mattersburg and Neusiedl) in the federal state of Burgenland. More specifically, it will finance the rehabilitation and extension of water supply infrastructure for water production and distribution.

Additionality and Impact

The project concerns the 2024-2030 investment programme in the production and distribution facilities of Wasserleitungsverband Nördliches Burgenland (WLV), which counts among the larger drinking water utilities in Austria. The programme consists mainly of renewal and extension of water treatment plants, supply systems and distribution networks and it will be to the benefit of about 190,000 inhabitants in the Northern part of the federal state of Burgenland (an EIB Cohesion Priority Region and a Transition Region under ESIF). The project aims at maintaining supply security in the context of climate change and maintaining service quality at current high standards, and will be implemented by a promoter with good capacity. In particular, the investments will enable the promoter to reduce energy consumption and increase water efficiency over the overall supply system and to better cope with more frequent and prolonged drought periods, a foreseen climate change impact within the service area. The project will contribute to mitigating market failures in the water supply sector by financing infrastructure, which generates positive environmental, public health and climate benefits that are not fully reflected in the applicable water tariffs in Austria.

The Bank's loan provides an important contribution to the Borrower's long-term funding base, fully matching the very long economic life of the underlying assets. The Borrower benefits from a draw down period of several years that reflects the lengthy implementation period of the project. The loan offers an advantageous very long-term fixed rate that contributes to keeping the water fees affordable. Moreover, the EIB supported WLV with the preparation of their first climate strategy and initiated an Advisory Services assignment.

Objectives

The programme, which will benefit about 200,000 inhabitants, mainly concerns the extension and renewal of water treatment plants and distribution networks to maintain water supply security in the context of climate change.

Comments

This is the second operation with this Promoter and it shall specifically target adaptation to climate change.

Sector(s)

• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Proposed EIB finance (Approximate amount)

EUR 50 million

Total cost (Approximate amount)

EUR 274 million

Environmental aspects

The project aims at maintaining compliance with the Drinking Water Directive (2020/2184/EU) and the Water Framework Directive (2000/60/EC). Several of the schemes included in the project might fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending the EIA Directive 2011/92/EU. Environmental Impact Assessment procedures are carried out where required by the competent authorities and mitigating measures are applied as appropriate. Where and if applicable, the requirements of the Habitats and Birds Directives (92/43/EEC and 2009/147/EC) will be verified during appraisal. The EIB's appraisal will focus on the Promoter's environmental management capacity to properly apply these EU Directives. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation, climate adaptation, sustainable use and protection of water and marine resources, protection and restoration of biodiversity & ecosystems.

Procurement

The promoter has to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation, Directive 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 - 11/12/2023