The European Investment Bank (EIB) is supporting the Italian Government's efforts to improve the safety of and modernise the domestic rail network managed by RFI (FS Group). The EUR 1bn finance contract was signed today between Italy’s Ministry of Economy and Finance (MEF) and the EIB. The loan will help finance works on the entire rail network of Rete Ferroviaria Italiana (RFI), a company that at the same time has signed with the EIB the project agreement requiring RFI to draw up a detailed list of the planned operations.
The projects specifically concern:
- technological upgrading of 508 level crossings to make them safer;
- mitigation of the hydrogeological risk along 461 km of railway lines;
- increased safety of 79 tunnels or groups of consecutive tunnels totalling 326 km in length;
- construction of noise reduction barriers along 152 km of railway lines;
- improved accessibility for 165 railway stations;
- improved safety of 73 railway stations and 46 other facilities; technological upgrading of 200 existing facilities; installation of CCTV systems throughout the entire network;
- seismic studies regarding 31 railway lines and junctions and works to mitigate the seismic risk on 14 lines.
As regards financial advantages, with this operation the Italian Republic can benefit from the favourable lending terms of the EIB, which – thanks to the strength of its capital base – issues bonds on the international markets that are rated AAA by the leading rating agencies. This financing operation will therefore enable the Treasury to make savings in terms of interest payments. The Treasury will in turn onlend the funds to RFI for the investment programme that the company is undertaking to implement through the planned operations contained in the “Investment Programme Contract” signed between the Transport Ministry and RFI for the period 2012-2016.
This loan comes at the end of an EIB appraisal process designed to check the projects’ compliance with specific technical and environmental criteria. The whole process is an additional guarantee of the entire programme's quality.
“The new agreement with the EIB for financing works to make the rail network safer”, said Minister of Economy and Finance Pier Carlo Padoan, “is a further demonstration of the key role that the European institutions can play to support the growth and development of EU Member States. The possibility for a State to finance investments at interest rates lower than those on the national debt illustrates how the European institutions can produce concrete benefits for citizens. The works that Rete Ferroviaria Italiana is undertaking to carry out using these funds”, concluded the Minister, “will enable substantial technological upgrading of the rail network's infrastructure to take place, thereby improving the service for citizens in terms of accessibility and safety.”
“For many years we have been working with Italy to support all its major investment programmes in the rail sector, from the country’s high-speed network to the acquisition of locomotives and trains for local commuter routes. With this new operation, we are standing with the MEF in supporting RFI in this crucial sector of rail network safety and this financing arrangement will have a positive impact on Italy’s public finances“, noted EIB Vice-President Dario Scannapieco.
Photographer: EIB ©To be defined
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