MUNICH UNDERGROUND ROLLING STOCK

The project concerns the purchase, management and supervision of underground train sets, including initial stock of spare parts and specific maintenance equipment. The promoter is the local public transport provider Stadtwerke München.

The objective is to maintain the competitiveness and attractiveness of public transport in the City of Munich and to reduce reliance on private cars.

The project concerns the purchase, management and supervision of underground train sets, including initial stock of spare parts and specific maintenance equipment. The promoter is Stadtwerke München, operating the Munich public transport system via its subsidiary, Münchner Verkehrsgesellschaft. The proposed investments in maintaining and improving public transport services contribute to achieving sustainable transport objectives as well as to climate action objectives of the EU and the city. The timely renewal of the fleet will make public transport more competitive and potentially reduce the use of private cars in the city, and therewith reduce the adverse impacts of motorized individual transport on the urban environment, in particular greenhouse gas emissions, excessive land take, local pollution and transport safety.

The Bank's unsecured loan will have a long loan maturity which will extend beyond the expiry of the borrower's existing Public Service Contract for public transport. The loan would thus enable the financing of important sustainable investments, whose economic life extends beyond this expiry date. It will also offer the possibility to fix interest rates over the whole loan life and will thus contribute to the stability of the borrower's funding base and to the predictability of financing cost. The Bank's loan will complement expected co-financing from the German national promotional bank Kreditanstalt fuer Wiederaufbau (KfW) and expected grant funding from the federal state of Bavaria.

The manufacturing of the new subway rolling stock does not fall within the scope of Directive 2014/52/EU amending the environmental impact assessment (EIA) Directive 2011/92/EU, since it will take place in the existing manufacturer's plants. Therefore, no EIA is required for the subway rolling stock. Compliance with scrapping of the replaced stock will be further assessed during appraisal. Contributing to increasing the modal share of public transport, the project is expected to have a positive environmental impact and will contribute to reducing greenhouse gas emissions.

The promoter has to ensure that contracts for implementation of the project have been tendered in accordance with the applicable EU procurement legislation 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 EU Official Journal (EUOJ), as and where required. A contract notice for the purchase of the subway trainsets was published on 24 September 2021 in the EUOJ. The contract was awarded to the successful bidder in March 2022.