EPM CLIMATE ACTION - WATER & ENERGY

Promoter – Financial Intermediary

EMPRESAS PUBLICAS DE MEDELLIN ESP

Location

• Colombia

Description

Loan to the public sector entity EPM (Empresas Publicas de Medellin) to finance their pipeline of water and sanitation, and energy generation projects in Colombia.

Objectives

The project supports the development of important social and economic infrastructure. It supports water supply, improved sanitation and energy access beyond the borders of the European Union. It is in line with the latest Water Sector Orientation. This operation is in line with EU priorities for Colombia and eligible under the EIB Global Financial Facility (GGF), as it contributes to climate change adaptation and mitigation, as well as to the development of social and economic infrastructure, specifically water and sanitation and energy, by promoting water management, as well as renewable energy generation infrastructure. The proposal contributes to the Team Europe Initiative (TEI) "Green Alliance". The operation is also aligned with the energy objectives of the Global Gateway Investment Agenda in Colombia.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply
• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Proposed EIB finance (Approximate amount)

USD 450 million (EUR 403 million)

Total cost (Approximate amount)

USD 900 million (EUR 807 million)

Environmental aspects

The Promoter will be required to implement and operate the investments in conformity with national laws, as well as EIB's Environmental and Social Standards. The project intends to bring environmental benefits by pollution abatement in water bodies and mitigate climate change through the reduction in emissions due to more efficient wastewater treatment. Most of the schemes to be financed under the framework loan are expected to have limited environmental and social impacts. If located in the EU, some of the schemes would fall under Annex II of the EIA Directive 2011/92/EU (amended by the EIA Directive 2014/52/EU), requiring the competent authorities to determine whether an environmental impact assessment (EIA) is required. Where a formal EIA is required (or would be required, were the scheme located in the EU), a copy of the Environmental & Social Impact Study and the Non-Technical Summary (NTS) will be provided to the Bank. The Promoter will also be required to verify that none of the schemes submitted for financing by the Bank have a significant negative impact on any site of nature conservation importance. The Promoter has experience regarding compliance with standards and procedures from other international financial institutions, more specifically with World Bank and Inter American Development Bank. However, this is the first direct EIB operation with EPM. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation, climate adaptation and sustainable use and protection of water and marine resources.

Procurement

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement

Status

Under appraisal - 1/02/2024