European Investment Bank signs EUR 115m loan in support of RET’s investment programme for the coming years.
RET to buy over 200 cleaner buses for public transport in Rotterdam and surrounding municipalities. Metro and tram tracks to be renewed in dozens of locations.
EIB loan made possible with support of Connecting Europe Facility and Juncker Plan.
The European Investment Bank (EIB) has signed a loan agreement worth EUR 115 million with public transport provider RET of Rotterdam and the Metropole-region Rotterdam-The Hague (MRDH). RET will use the financing to acquire new electric and diesel-hybrid buses and install related charging infrastructure. It will also renew tram and metro tracks in various points around the city. Earlier, the EIB already financed the new metros running on the recently opened “Hoekse Lijn” from Rotterdam centre to Hoek van Holland.
European Commissioner for Transport, Violeta Bulc, said: “We are happy to support Rotterdam’s efforts in making its public transport more sustainable through the Investment Plan for Europe. The city sets an example for the transition to low-emission mobility across Europe.”
RET is currently implementing a strategy, meaning that Rotterdam will comply with the Dutch goal of having only emission-free buses far earlier that the national goal of 2030. Specifically, the EIB loan will be used to acquire 105 electric buses and 103 diesel-hybrid buses. Investments will also be made towards the installation of charging infrastructure in the depots (32 charging points) as well as along the bus routes (17 charging points). Finally, RET will also renew the metro and tram tracks in nearly 70 locations around the city.
EIB Vice-President Vazil Hudak stated: “With its strategy to switch over to completely emission-free vehicles, Rotterdam is a front-runner, and this loan is an important step in that process. The EIB is happy to support modern, comfortable transport for all citizens of Rotterdam, which will also contribute to better air quality in the city.”
The EIB is directly owned and guaranteed by the EU’s 28 Member States, which means it can borrow money very cheaply on the capital market. The banks forwards this interest rate advantage to its clients, since the EIB does not need to make a profit, but only cover its costs. This means RET will spend less in interest payments as well as receiving a 15 year tenor on the loan.
“This loan allows us to keep the cost of capital very low, since we benefit from the low interest rate that the EIB offers. Over the coming years, we will gradually pay back the loan through our revenues, such as ticket sales and operating subsidies. This will also allow us to stay true to our goal of keeping the costs for the traveller as low as possible”, Frank Hoevenaars, CFO of RET, added.
The RET is the public transport company for the Rotterdam region. Every day, the RET brings 600,000 people to their destination. Although trams and subways already run on electricity, the company is fully committed to making its operations more sustainable. The transition to zero-emission bus transport plays an important role in this. Other sustainability initiatives are the purchase of regionally generated electricity and the installation of solar panels on the RET’s own buildings.
The Connecting Europe Facility (CEF) is the EU funding instrument for strategic investment in transport, energy and digital infrastructure. In total, the programme has supported transport projects for a total amount of EUR 22.3 billion, mobilising a total investment of EUR 47.1 billion in the transport sector.
The EIB and Dutch water utility Vitens have signed a EUR 150 million loan agreement. The financing will be used to carry out parts of Vitens’ 2020-2024 investment programme, covering the renewal and upgrading of water treatment plants, reservoirs and pumping stations, as well as distribution networks and water meters. Increasing the water reserves would act as a buffer to extreme weather events.
The EIB signed a second tranche worth €40 million for the rehabilitation of 180 kilometres of road along the five main routes in Montenegro. The loan from the EU bank is complemented by a €1.5 million technical assistance grant awarded under the Economic Resilience Initiative (ERI). It is the first ERI grant to be awarded to a project in the Western Balkans. The total EIB investment worth €80 million is expected to increase road safety and efficiency and facilitate faster economic recovery and regional trade.
The Italian healthcare system is also being reinforced to tackle the emergency situation caused by the COVID-19 pandemic. This is being conducted with the backing of the EU bank, the EIB, which is providing the Italian government with a €2 billion loan covering around two-thirds of the resources needed for the operations contained in the Decree for revival of the healthcare system