The European Investment Bank is providing EUR 50 million to Metro de Malaga, a special purpose vehicle set up to build the first part of a metro network in Malaga, one of the main coastal cities in Southern Spain.
This is the first tranche of an EIB EUR 260 million financing scheme. Metro de Malaga won a 35-year concession, innovatively promoted by the Autonomous Region of Andalusia, to design, build, finance and operate an 11.6 km light metro system. The concession comprises two lines, depot and maintenance facilities, a fleet of vehicles and intermodal facilities.
The EIB contributes to this project with a significant and advantageous loan, featuring a long maturity. The Junta de Andalusia involved the EIB early in this transaction, building on the long-standing and successful cooperation that had previously allowed building the Metro of Seville, Andalusia's capital. The Bank provided its expertise, technical and financial advice, to optimize the project structure. The project will bring substantial economic and environmental benefits to this rapidly growing city. Malaga has undergone a major urban transformation as result of economic and demographic changes.
The metro lines will improve mobility along the East-West direction of the city, stretching between the Mediterranean Sea and the background mountains. The numerous benefits of the project include: time gains for users, cost saving for car users shifted to the metro, cost savings from reduced bus service operations and decongestion effects in the city center. This will help Malaga to improve its urban economy while maintaining the role of a major tourist center.