SEVILLA WATER INFRASTRUCTURE

The project concerns the financing of water schemes forming part of Empresa Metropolitana De Abastecimiento Y Saneamiento De Aguas De Sevilla (EMASESA's) investment programme over the period 2020-2024.

The proposed operation aims at supporting EMASESA's 2020-2024 investment programme in Sevilla's metropolitan area. It includes investments in water, rainwater collection and wastewater infrastructure to improve the efficiency, efficacy and reliability of water and wastewater services and ensure compliance with key EU directives, notably the Drinking Water Directive 98/83/EC, the Urban Waste Water Treatment Directive 91/271/EEC and the Water Framework Directive 2000/60/EC (i.e. WFD).

The project consists of an investment loan that will finance EMASESA's 2020-2024 investment plan in the metropolitan area of Seville, Spain. These investments are aimed at improving existing water infrastructure as well as improving environmental performance.
The project will ensure compliance with key European regulations in the water sector, and falls under the EIB's vertical policy objective of Sustainable Energy and Natural Resources whilst also contributing to the horizontal policy objective of Climate Action and Environmental Sustainability. The project will address a number of market failures, through positive externalities in the form of environmental and health benefits, notably increased resilience against climate risks and improved quality of water bodies through investments in stormwater management, and reduced greenhouse gas emissions through investments in renewable energy and energy efficiency improvements. These benefits are not reflected in market prices and would not be realised to the same extent without public intervention. Being located in Andalusia, a priority cohesion region in Spain, the project will contribute to the EU's economic social and territorial cohesion.The EIB provides an important financial contribution in the form of a financial advantage and longer tenor than the commonly available in the bank market, contributing therefore to greater diversification and stability of the borrower's financing. It is also additional as the EIB financing will represent a signalling effect to the banking system with regards to financing investments in the water sector at advantageous terms.

In terms of economic benefits, the investment programme will deliver substantial environmental quality improvements and climate related benefits. The overall impact of the PL will be higher ecological quality of surface and groundwater resources, and increased service coverage quality and resilience to climate change. Where and if applicable, the requirements of the Environmental Impact Assessment (EIA) Directive 2014/52/EU, amending Directive 2011/92/EU, the Habitats Directive (92/43/EC) and the Birds Directive (2009/147/EC) will be respected.

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 and 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.