WALLONIA SOC HOUSING ENER EFF & FLOOD RESILIENCE

Financing the Walloon Region's 2021-26 energy efficiency investment plan across the entire regional social housing sector, and the reconstruction of river banks and flood prevention infrastructure destroyed during the July 2021 floods.

This operation will support the rehabilitation of about 25 000 social housing units located in Wallonia, which is a key component of the "Déclaration de Politique Régionale 2019-2024."

The operation's EE investment component will support the EU's and Bank's priority in the energy sector and the EIB's climate action objectives.

EE investments in buildings suffer from a chronic lack of investments due to their fragmented nature. Through energy savings, energy efficiency projects reduce carbon emissions and air pollution, increase comfort, air quality in the buildings, and reduce dependency on energy imports, but social and public benefits that are not fully internalised by private investors.

The project's flood reconstruction components are part of the Walloon region's reconstruction plan further to the catastrophic floods of July 2021. In line with EU and EIB policy objectives of environmental protection and climate action, these components contribute to correcting market failures by providing pure public goods that would not be provided by the private sector (improved flood protection). These benefits would not be realised to the same extent without public intervention.

The Promoter is deemed capable of implementing the project considering its overall experience, including in past operations with the Bank.

In addition, the operation supports the Bank's contribution to the EU's regional policy as 95% of the investment will take place in transition regions.

The project will be implemented in existing residential buildings without changing the already authorised scope and would therefore not require an environmental impact assessment (EIA). The renovation works to be carried out in built-up urban areas are deemed to have minor negative environmental and social impacts during the renovation process and these impacts are expected to be mitigated by proper works management. The project will contribute to the implementation of the Energy Performance of Buildings Directive and will generate significant energy and greenhouse gas (GHG) savings.

The final beneficiaries, social housing providers, fall under public procurement and will be required by the Bank to ensure that contracts for the implementation of the projects have been/shall be tendered in accordance with the relevant applicable EU procurement legislation.