An agreement for financing Rete Ferroviaria Italiana (RFI)'s investment programme was signed today between the European Investment Bank (EIB) and the Italian Economics and Finance Ministry in the presence of Minister Pier Carlo Padoan at the Ministry's offices. The loan agreement totalling almost EUR 1bn (EUR 950m to be exact) to finance the upgrading of conventional railway lines and regional and local routes in northern and southern Italy was signed by EIB Vice-President Dario Scannapieco and the Director General of the Italian Treasury Vincenzo La Via. Also present at the signing ceremony were the CEO of FS Italiane Michele Mario Elia, the CEO of RFI Maurizio Gentile, and representatives of the Infrastructure and Transport Ministry.
With this operation, the Italian Republic can benefit from the favourable lending terms of the EIB, which – thanks to the strength of its capital base – issues bonds on the international markets that are rated AAA by the leading rating agencies. This financing operation will enable the Treasury to make savings in terms of interest payments. The Treasury will in turn onlend the funds to Rete Ferroviaria Italiana for its investment programme. Via a project contract, RFI undertakes to upgrade, adjust and maintain the entire Italian conventional rail network, which is used daily by millions of Italians. A large proportion of the work will be carried out in the south of Italy (Mezzogiorno).
This loan comes at the end of an EIB appraisal process designed to check the project's compliance with specific criteria (e.g. procurement rules, environmental protection). The whole process is an additional guarantee of the project's quality.
The Minister Padoan stressed that this operation is consistent with the strategy to revive investment to which the Government is strongly committed. Mr Padoan specified: "Two objectives are being pursued: (i) to improve the infrastructure and services available to the Italian people; (ii) to kick-start a period of investment to foster economic growth and job creation. We will work to enable the EIB to fund projects starting with those already identified by the national task force and conveyed to the European institutions."
EIB Vice-President Scannapieco highlighted the importance of the financing operation. "Having been the main funder of Italy's high-speed rail network, the EIB is now supporting local routes used daily by millions of Italians. Furthermore", continued Scannapieco, "I wish to stress the importance of our direct contact with the Treasury. This arrangement will have a positive impact on the public finances and I hope that it can be replicated in other sectors."
FS Italiane's CEO Mr Elia stated that the agreement signed today "is a further step to bolster the EIB's already considerable support for Italian rail projects. One of the Group's strategic priorities is to launch new projects to modernise the infrastructure and technology used on the conventional network – investments made possible by recent government measures such as the 'Sblocca Italia' (Unblock Italy) Decree and the 2015 Stability Law. These new financial resources will speed up the launch of projects and remove obstacles to important works already planned to help contribute to the recovery of growth and employment. Moreover, providing the country with more functional railway lines for regional, metropolitan and freight traffic is key and crucial to the efficiency of the Italian transport system by improving quality standards and punctuality."
Photographer: EIB ©Ministero dell'Economia e delle Finanze
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