ZAGREB SUSTAINABLE URBAN INFRASTRUCTURE FL

Promoter – Financial Intermediary

CITY OF ZAGREB

Location

• Croatia

Description

The operation is structured as a municipal framework loan (FL) supporting the development strategy of the City of Zagreb and its public infrastructure investments.

Additionality and Impact

The Project will contribute to the implementation of the City´s Development Strategy. Majority of the of the schemes are expected to benefit from EU grant support through Operational Programmes. The Project is expected to contribute to climate action and environmental sustainability (CAES) through sustainable urban transport and energy efficiency measures in public buildings. The Project will contribute to economic and social cohesion objective of the Bank. The City is under Grad Zagreb NUTS II region, which is considered as less developed region for the 2021-2027 Programming Period. The operation is expected to be eligible under Article 309 point (a) projects for less developed regions and point (c) common interest. In terms of addressing market failures, the project will generate positive externalities through an improved provision of facilities, amenities and services, which will result in positive economic and social externalities, in the form of a higher quality of enabling services for businesses and economic activities as well as improvement of the quality of life of residents.

Finally, the EIB would be providing financial added value, through its competitive and long term financing terms aligned with the economic life of the Project assets, flexible disbursement schedule and free of charge technical assistance/ advisory.

Objectives

The related investment schemes will primarily focus on the: i) (re)construction/rehabilitation of public buildings for education, administration, health care, sports and culture; ii) sustainable urban public transport, including improvement of tramway and public bus network, as well as of cycle and pedestrian paths; iii) upgrading small-scale municipal infrastructure, including urban roads/streets and related sewage and water network; iv) regeneration/revitalization of brownfield areas, open public spaces, green areas and parks; v) improvement of Information and Communication Technologies.

Sector(s)

• Urban development - Construction

Proposed EIB finance (Approximate amount)

EUR 395 million

Total cost (Approximate amount)

EUR 850 million

Environmental aspects

Compliance with the relevant EU Directives will be verified during appraisal stage: Environmental Impact Assessment (EIA) Directive 2011/92/EU (amended by EIA Directive 2014/52/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 investments will be reviewed during project appraisal. Energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed upon appraisal.

Procurement

The promoter has to ensure that contracts for implementation of the project have been 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 - 1/07/2024