SELECTIVE EUROPEAN TRANSPORTATION EQUIPMENT FUND

The project consists in an innovative infrastructure equity fund targeting exclusively the acquisition of freight railcars and river barges to be leased predominantly in Europe.

The fund will acquire small to medium-sized railcars or river barges assets to be leased to private and public companies in EU. The project will support decarbonization of the EU economic flows by developing the cleanest way of transportation and contribute to the renewal of the European freight railcars and river barges fleet.

The manufacturing of wagons and barges will take place at the manufacturer's plants and does not fall within the scope of the Environmental Impact Assessment (EIA) Directive; therefore no EIA is required. The provision of improved rail and river barges freight services is expected to attract freight transport away from the roads. This would be environmentally beneficial as it reduces energy consumption, road congestion, noise and pollution and increases transport safety. Compliance with EU environmental regulations is to be assessed during appraisal, together with the application of correct environmental policies and procedures for the scrapping of old vehicles. If any of the fund's underlying infrastructure investments (associated facilities) falls under Annex I or II of the EIA Directive 2011/92/EU, the Fund and/or its co-investors companies will be required to perform for these specific infrastructure investments a full environmental impact assessment or a screening by the national competent authority on the basis of Annex III to determine the need for further assessment. The Fund will be required to develop an environmental and social policy and establish the appropriate management systems so as to comply with the EIB's environmental and social requirements. The assessment of the environmental and social impacts and risks will be part of the standard due diligence process that the Fund and its co-investors will have to carry out for each underlying investment, thereby ensuring that the portfolio and these investments are in compliance with national law, EU environmental legislation as well as the EIB Environmental and Social Standards.

The promoter has been assessed by the EIB as being a private company not operating in the utilities sector and not having the status of a contracting entity, thus not subject to EU rules on public procurement. However, if after the project appraisal, the EIB were to conclude that the promoter is after all subject to EU public procurement legislation, then the promoter would be required to ensure that contracts for the project have been/will be tendered in accordance with the relevant applicable EU procurement legislation.