PKP INTERCITY FLEET RENEWAL AND EXPANSION

The project consists of the acquisition of new electric locomotives and passenger coaches, as well as modernisation of electric multiple units and coaches. The trainsets will be used to provide long distance services throughout Poland and in neighbouring countries, mainly under a Public Service Contract.

The project is expected to increase the quality of rail services provided in Poland as well as promote travel by rail, reducing the use of private vehicles and the associated negative impacts on the local environment, road safety and greenhouse gas (GHG) emissions and, thereby, contribute to sustainable transport in line with EU objectives. The project is largely located in a convergence zone and, by facilitating access, promotes regional development.

The project consists of the acquisition and modernisation of rolling stock to be used under a Public Service Contract.

The project is expected increase comfort of travel, allow for new and more frequent connections and thus for time savings for passengers and improve accessibility to persons with reduced mobility. By enabling modal shift from road to rail, the project will be enhancing sustainable transport in line with EU objectives and reducing negative transport externalities, such the harm to humans in terms of accidents and loss of life, or environmental externalities like noise, pollution and CO2 emissions.

The rolling stock will be used predominantly in less developed regions and by improving their accessibility and reducing negative transport externalities in these regions, the project will support the strengthening of the EU's economic, social and territorial cohesion.

The EIB will provide significant financing amount at affordable terms and with flexible conditions, matching the Borrower's funding needs throughout the implementation, and the expected cash generation capacity during its operation phase.

The investments proposed under the project do not fall under either Annex I or Annex II of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU as manufacturing and use of rail rolling stock is not included in either list. The need for an environmental impact assessment (EIA) and/or assessment according to the Habitats Directive for associated facilities (e.g. maintenance workshops or depots) will be analysed during the appraisal. All else equal, the project is expected to have a positive environmental impact by helping the railways to maintain modal share in key sections of the passenger market that are most appropriately met by rail. In addition, the arrangements for the scrapping of the replaced stock will be checked during appraisal.

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation, Directive 2014/25/EU as well as 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.