A2A ELECTRICITY NETWORKS

The project will finance the extension and renovation of the promoter's electricity distribution networks. A2A serves mainly the cities of Milan, Brescia, Cremona and their outskirts during the period 2023-2027.

The investment is expected to allow the promoter to connect new users, to improve the quality of the electricity supply, and cater for demand growth.

The Promoter's investment programme (or the Project) contributes to achieving EU and national targets, as set out in the National Energy and Climate Plan of Italy.

The planned investments aim at maintaining security of supply and efficiency and reliability of the service. Moreover, by enabling the connection of new distribution-connected RES generation capacity over the 2023-2027 period, they will reduce environmental impacts such as carbon and air pollution emissions.

The investments will deliver economic benefits to society, in the form of avoiding economic costs associated with GHG emissions through the connection of RES generation capacity and by improving the quality and the security of electricity supply.

With this loan, the counterpart receives significant added value from the Bank, in the context of the scarcity of attractively priced loans, with similar long maturities, available on the Italian markets. Simultaneously, the long tenor of the EIB loan is in line with the expected economic life of the underlying asset and the forecasted cash flows of the realised investment.

Some investment schemes may fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU, thus requiring a review by the competent authorities at the planning/consent stage with due regard to the necessity for environmental and biodiversity impact and appropriate assessments. The environmental and social due diligence will follow the programme lending approach according to the EIB's procedures and standards, i.e., the due diligence focusses on the promoter's capacity and capability to implement the investments in line with EIB's environmental and social standards and requirements.

The promoter has to ensure that contracts for the implementation of the project are tendered in accordance with the applicable EU procurement legislation, for contracts above the threshold established by Directive 2014/25/EU as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

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