HKM STEEL MANUFACTURING MODERNISATION

The project will finance a new hot stove for the existing integrated steel plant's blast furnace A, as well as the integration of a heating station in the steel shop.

The project comprises the promoter's capital expenditures related to the installation of new key equipment. This will lead to a significant increase in energy efficiency, entail a considerable reduction of CO2 emissions and increase the consumption of secondary instead of primary raw material. Both investments will lead to more efficient iron and steelmaking and will help to strengthen the promoter's competitiveness.

The installation of such new key equipment represents a change inside an integrated steelworks and thus may fall under Annexe II of the EIA directive. In such a case the local competent authorities will have to establish if a new EIA is required. The Bank's services will establish during the due diligence of the project whether a new EIA is required, as well as appraise any other environmental details.

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 after the project appraisal, the EIB were to conclude that the promoter is after all subject to EU public procurement legislation (i.e. Directive 2014/24/EU), then the Bank would require the promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation (2014/24/EU, where applicable, as well as Directive 92/13/EEC), as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the European Union, as and where required.