France: EUR 300 million for urban regeneration in Greater Lyon

European support for urban renewal and the development of soft transport modes lies at the heart of the finance contract between Greater Lyon and the European Investment Bank.

On Monday 19 March 2012, Gérard Collomb, President of the Urban Community of Lyon, and Philippe de Fontaine Vive, Vice-President of the European Investment Bank (EIB) signed the second tranche of the contract, amounting to EUR 150 million.

The aggregate amount of the contract is EUR 300 million, of which EUR 100 million was already provided last year. The remaining EUR 50 million will be the subject of a new contract to be signed in 2013.

This financial undertaking will make it possible to finance urban transport infrastructure projects and “soft transport modes” (walking, cycling) in the Urban Community of Lyon: improvements to the banks of the Jonage Canal, creation of 30 km/h zones, improvements to Rue Garibaldi, Pont Schuman (bridge), improvements to Avenue Mermoz, etc.

The EU financing has a twofold objective: it is expected not only to improve transport management and road safety but also to reduce traffic and develop the region’s built and natural heritage. Key projects financed include the renovation of the Croix-Rousse tunnel to bring it into compliance with European standards and the creation of a soft transport modes tube, the bridge for pedestrians and cyclists linking the Cité Internationale to the Saint-Clair district, and improvements to the banks of the river Saône.

“We are aware of the current difficulties being experienced by local authorities in attracting loans and the fluctuating rates that can be applied to their borrowings. The signing of this second tranche of EUR 150 million reflects the EIB’s trust in the Urban Community of Lyon’s financial management”, stated Gérard Collomb, President of the Urban Community of Lyon. He also wished to point out that the EIB’s commitment enabled the Urban Community of Lyon to carry on developing the region’s economy, especially via major projects aimed at both improving the quality of life of its citizens and making the region more competitive.

“This loan is of symbolic importance and can be attributed to a partnership of more than 25 years”, remarked EIB Vice-President Philippe de Fontaine Vive at the signing ceremony. “I am proud that the EIB is associated with such development and urban renewal projects as each inhabitant of the Lyon region is affected in terms of mobility, safety and accessibility. That is what Europe is all about – a tangible commitment to its regions to achieve economic growth and improve the daily lives of its citizens.”

This loan reflects the long-standing quality partnership that has formed between the EIB and the Greater Lyon region’s various authorities (HCL, SYTRAL, Urban Community of Lyon, etc.) over the last 25 years, totalling nearly EUR 2.2 billion in financing for development projects* (of which around EUR 800 million has gone to the Urban Community of Lyon). In difficult economic conditions marked by the increasing scarcity of public financing, this serves to further demonstrate the key role played by the Bank in support of local authorities in France – a tangible commitment targeting projects for the future that have a direct impact on improving the daily and professional lives of people in France. By choosing to support the social and economic development priorities of local authorities, the EIB places its technical and financial experience along with long-term funding particularly adapted to their needs at their disposal. In 2011 alone, the EIB invested EUR 1.7 billion in French local authorities in key sectors such as transport, energy efficiency and urban renewal. This commitment accounted for 35% of EIB activity in France.

*Examples of projects financed by the EIB in Lyon: electrification of the Lyon-Chambéry line (EUR 60 million to SNCF); Incineration and district heating (EUR 25 million); Roads and urban environment (EUR 185 million); Lyon’s northern ring road (EUR 180 million); Lyon Metro (EUR 180 million); Lyon tramway (EUR 150 million); Lyon hospitals (EUR 335 million); Urban transport (EUR 550 million); Lyon Confluence –headquarters of the Rhône-Alpes Region (EUR 80 million).