- EIB has agreed to lend €43.5 million to APS Holding, of which €34 million to finance the construction of the SIR3 tram line and €9.5 million, which is optional for APS Holding and can be used within two years, for revamping of the SIR1 tram line.
- The project involves the extension of 5.5 km of the route that will connect the south-east of the city of Padua (Voltabarozzo) to the railway station.
- The funding provided by the EIB will also contribute to the creation of 13 stops, the construction of a new depot in Voltabarozzo and the construction of a park-and-ride facility with 383 parking spaces.
With a €34 million loan, assisted by SACE’s Green Guarantee, the European Investment Bank (EIB) will make a significant contribution to the construction of the new SIR3 tram line in the city of Padua. The financing operation signed is the first tranche of the total amount of €43.5 million approved by the EIB’s Board of Directors.
Thanks to ministerial financing and EIB funding APS Holding, an in-house company of the Municipality of Padua, the contracting authority and implementing entity of the entire infrastructure, will soon open the construction sites along the route that will be extended by 5.5 km and will from 2025 connect the south-east of the city of Padua (Voltabarozzo) to the railway station and also serve the city's main hospitals. The new section will not only link up with the existing North/South line (SIR1), but will be part of the wider SMART project (Tram Network Mobility System) involving the construction of a third suburban line in the city running east to west, which will also serve the neighbouring municipalities of Vigonza and Rubano.
The project includes the creation of 13 stops and the construction of a new warehouse in Voltabarozzo to be used for the ordinary maintenance activities of the South/East line (SIR3). In the same location, a park-and-ride facility with 383 parking spaces will be built with an area dedicated to interchange services.
The funding is not intended just for implementation of the new line. The second tranche of €9.5 million is in fact intended for APS's project to gradually upgrade the rolling stock of the North/South line, which will be completed in 2026, including through the implementation of next generation batteries, improving performance and durability and ensuring greater autonomy for routes without overhead lines. The line upgrading process will also include the extension of the Guizza depot.
In addition, in December 2021 the EIB and APS Holding S.p.A signed an agreement included in the ELENA (European Local Energy Assistance) Programme in the form of non-repayable technical assistance, covering the costs of developing innovative integrated mobility solutions up to a maximum of €1.6 million. Both for the €43.5 million financing (of which €9.5 million is optional) and for the ELENA contribution, APS Holding used the consulting services of Sinloc S.p.A., which provided technical assistance throughout the application, configuration and negotiation procedure for the relevant contracts both with the EIB and with the guarantor until the financing operation was signed.
Meeting the objectives is expected to bring multiple benefits to people living in the city, reducing urban traffic, noise and air pollution, road accidents and greenhouse gas emissions. The introduction of a new tram line will offer more economic mobility solutions in the city and provide easier access to educational, medical and work services. Over 500 workers are expected to be employed during the construction phase.
The project is an integral part of the long-term environmental sustainability strategy of the city of Padua, within the framework of the Urban Plan for Sustainable Mobility approved in 2020, and the EIB’s Climate Bank Roadmap, which promotes sustainable mobility with zero emissions. Thanks to the climate goals of the investment, the project will benefit from the Green Guarantee of the SACE Group, which has a leading role to play in the Italian environmental transition and can issue green guarantees that facilitate the transition towards an economy with less environmental impact.
EIB Vice-President Gelsomina Vigliotti said: “Decarbonisation of the transport sector is key to achieving the target of reducing CO2 emissions by 55% by 2030. Thanks to the support of the EU climate bank, Padua will benefit from new, modern tram lines that connect the city quickly, offering people an efficient service and, at the same time, helping to combat climate change.”
CEO of APS Holding Riccardo Bentsik expressed his satisfaction: “This articulated and complex path will enable APS to look with serenity towards its economic commitments for the creation of the new tram networks and the technological development of the existing fleet. Obtaining such a sizeable loan, following the strict and meticulous appraisal conducted by a prestigious institution like the EIB, is an important recognition for us: such an agreement represents an ideal seal of approval for the project.”
SACE’s CEO Alessandra Ricci said: “The acceleration of sustainable business evolution is a strategic objective of our INSIEME2025 industrial plan. This operation in support of the Municipality of Padua and APS Holding S.p.A. — in such a strategic sector as infrastructure — is very much on the path that we are taking to improve the well-being of the community.”
Sinloc's Deputy Managing Director Andrea Martinez said: “Sinloc’s expertise and experience in activating national and EU financial instruments have helped to support this key infrastructure project. Sinloc’s professional contribution confirms us as a driver of local development.”
Padua's Mayor Sergio Giordani remarked: “Today we have laid a cornerstone for the construction of the SIR3 line to Voltabarozzo. Such important and complex works involve a long and articulated process, with important components and this is one of those. It also demonstrates the concreteness and capacity we have in continuing with conviction in a project that has since been expanded with an additional line from Vigonza to Rubano. We believe in this project not as an act of faith but because all the transport studies tell us that it will significantly improve mobility not just in the city but also in the neighbouring municipalities concerned. This is what we must do as an administration wishing to leave a positive legacy for future generations to whom we will deliver a more liveable and modern city.”
Background information
The European Investment Bank (EIB) finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2021, the EIB Group provided €36 billion in financing for projects in Italy.
APS Holding S.p.A., a company managed and coordinated by the Municipality of Padua, which is its sole shareholder, is engaged through its operating divisions in the management of public street level parking and indoor parking lots, a car sharing service, advertising and billboard services and a crematorium with a mourning room attached. It also manages some photovoltaic plants and owns 21.10% of BusItalia Veneto S.p.A., the integrated public transport company into which the urban transport service previously operated by APS Holding merged. APS Holding's services are provided for the benefit of the city’s inhabitants and the environment. When designing services, APS Holding never overlooks the environmental dimension, paying attention to how its services integrate into the urban fabric. In accordance with City Council resolution No. 2018/0099 of 22 December 2018, the company was appointed as the implementing entity of the SIR3 line by the Municipality of Padua.
SACE is the Italian insurance/financial company owned by the Ministry of Economy and Finance, specialised in supporting businesses and the country’s economy through a wide range of tools and solutions to foster competitiveness both in Italy and globally. For over 40 years, SACE has been the key partner for Italian companies that export and grow in foreign markets. It also helps the banking system to facilitate access to credit for companies with its financial guarantees, with a role bolstered by the extraordinary measures provided for by the Liquidity Decree and the Simplifications Decree. Recent measures have extended SACE’s mandate beyond traditional support for exports and internationalisation, adding important facets such as support for investments by companies on the domestic market and guarantees for green projects in the implementation of Italy’s Green New Deal. This is a new mandate that makes SACE an institution committed to promoting the development of the national economic system. With a portfolio of insured operations and guaranteed investments worth €165 billion, SACE serves more than 32 000 companies, mainly small and medium businesses, supporting their growth in Italy and in about 200 foreign markets.
Sinloc Spa — Sistema Iniziative Locali — is a consulting and investment company that operates nationwide and is active in Europe on community projects. It promotes development, especially through the construction of local infrastructure, provides consulting services and conducts feasibility studies, makes direct investments in public-private partnership projects and fosters access to and effective use of EU funds. Eleven of Italy’s major Banking Foundations are present in the shareholding structure.
