SYDVATTEN DRINKING WATER SUPPLY III

The project concerns the 2022-2028 investment programme in the production and distribution facilities of Sydvatten AB, one of Sweden's largest producers of drinking water. The programme consists mainly of renewal and extension of the existing water treatment facilities and reinforcement and extension of bulk water supply networks in the region of Skåne, at the southeastern part of Sweden.

The project consists of a 6-year (2022-2028) investment programme that aims at improving substantially the redundancy over the whole drinking water supply system in the service area of the promoter. The project consists mainly of the rehabilitation and upgrading of water production infrastructure, and extension of transmission mains network.

The project will finance part of the 2022-2028 investment programme of Sydvatten, one of Sweden's largest drinking water producers that provides bulk water to the 17 municipalities by whom it is currently owned. The project concerns mainly the upgrade of the two existing water treatment plants and the rehabilitation of the bulk water supply network so as to ensure water supply security in the context of climate change and maintain service quality at current high standards.

The project is in line with EU and EIB standards of environmental protection and climate action, and will contribute to mitigating market failures in the water sector by financing infrastructure that results in positive externalities in the form of avoided public health costs, environmental benefits from protection of surface water abstraction areas and the benefits of enabling socio-economic development in the areas served by such projects, including society-wide benefits from being better able to mitigate and adapt to the adverse impacts of climate change. The borrower could, with some difficulty, raise funds at similar maturities. EIB's involvement has some impact on mobilising other financiers and signalling that the project is sound and worth supporting.

The project will contribute to ensure continued compliance with key EU directives in the water sector notably the new Drinking Water Directive 2020/2184/EU and the Water Framework Directive (2000/60/EC). Where and if applicable, the requirements of the EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU and SEA Directive 2001/42/EC will be respected. For any part of the project, that may impact on a nature conservation site, the promoter will be required to provide to the Bank information on the mitigating measures required to comply with the Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively). The compliance of the project with the relevant EU legislation will be reviewed during appraisal.

The Bank will 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: Directive 2014/25/EU 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 EU, as and where required.