GRAZ STRASSENBAHN 2023PLUS

Acquisition and refurbishment of rolling stock (trams and electric buses) and further development of infrastructure for soft modes of mobility (bicycling and walking) in the City of Graz.

The project is expected to improve public transport reliability, safety and efficiency, and help maintain the share of public transport. It will contribute to reducing the use of private vehicles and the associated negative impacts on the local environment, as well as reducing greenhouse gas (GHG) emissions and noise. It will thereby contribute to sustainable transport in line with EU objectives. The project is therefore eligible under Article 309 point (c) projects of common interest.

This urban mobility project in the City of Graz forms the first part of their new Transition Zero Strategy for the development of the public transport over the coming decade. The investments  aim to enhance the historic city center and modernize and expand the cycling networks as well as public transport services, both the tram and the bus system with new, more environmentally friendly vehicles and related infrastructure. 
Concerning market failures, this urban public transport project contributes to developing the market for the deployment of alternative fueled vehicles (electric trams and buses), which is subject to network economies. The project is expected to have a positive impact on the environment (decrease in local air pollution, noise, GHG emissions, as well as to deliver economic benefits (lower maintenance and energy costs) and social benefits (improve accessibility, particularly for vulnerable and/or marginal groups).
The EIB's financing will offer a long maturity at flexible terms with an extended availability period and tailor-made repayment options, thus optimizing the drawdown profile for various project components. The Bank's contribution will enable the borrower to diversify its sources of funding and offer financing stability. With its support the EIB signals the high quality of the project and hereby complements regional public grants dedicated to the decarbonization of public transport, as well as other commercial loans.

Manufacturing of vehicles does not fall within the scope of the EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU, therefore no environmental impact assessment (EIA) is required for this component. Also, the track renewals and smaller scale track extensions are not expected to fall under the EIA Directives and this will be confirmed during the appraisal. The old rolling stock will be scrapped at an environmentally certified plant in compliance with EU regulation and national law, which will be appraised during the mission. The project is expected to have a positive environmental impact by helping public transport to increase and/or maintain modal share. Furthermore the project should contribute to reducing GHG emissions and noise. During the appraisal, the Bank will review and discuss with the Promoter the chosen design options for the new vehicles and confirm that best available technologies are being applied.

The Bank will require the Promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation, 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.

The project will improve and enhance the tram infrastructure and partly renew the bus- and tram-fleet in the City of Graz, thereby enhancing both the quality and the service level of public transport in Graz.