NS RAIL ROLLING STOCK EXPANSION

Purchase of new rolling stock for the operation of commuter, regional and main railway services within the Netherlands and Belgium.

The project is expected to improve the quality and offer of passenger rail services in the Netherlands. By supporting efficient public transport, the investment will also bring environmental benefits (reduction of emissions and noise levels), and improve transport safety.

The Dutch rail network is Europe's busiest. The project is part of a 10 year long program to significantly upgrade NS Rail fleet and will allow to strengthen and accommodate mid-term growth and operational needs essential to a post-COVID sustainable mobility in the Netherlands.

The project generates good economic and social benefits, e.g. by reducing travel times and by offering improved quality (higher comfort, improved reliability), higher frequency, safety and better access for persons with reduced mobility.

The shift of passenger and freight traffic to rail addresses market failures by minimizing a number of transport externalities, such the harm to humans in terms of accidents and loss of life, or environmental externalities like noise, pollution and CO2 emissions.

The project will hence contribute to sustainable transport in line with EU objectives and to the Bank's Climate Action objective and supports a number of the 17 Sustainable Development Goals (SDGs) and in particular SDG 11 "Sustainable cities and communities", SDG 3 "Good health and well-being" and SDG 12 "SDG 12 "Responsible consumption and production".

The specific benefits provided by EIB's contribution to the Borrower entail a limited financial benefit as well as fully customized terms/loan profile with long tenors. This is valuable as the assets necessary for railway operations have long life and the benefits from these assets materialize over long time.

The investments proposed under the project do not fall under either Annex I or Annex II of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU as manufacturing and use of rail rolling stock is not included in either list. The need for an environmental impact assessment (EIA) and/or assessment according to the Habitats Directive for associated facilities (e.g. maintenance workshops or depots) will be analysed during the appraisal. However, it is not expected that additional maintenance workshops or depots are needed for these trains. The project is expected to have a positive environmental impact by helping the railways to maintain and improve its modal share in key sections of the passenger market that are most appropriately met by rail. In addition, the arrangements for scrapping of replaced stock, if any, will be checked during appraisal.

The Promoter is a contracting authority regulated by public procurement law, and follows EU Directive 2014/25/EU. The trains to be financed under this project will be procured by making use of options that were included in two supply contracts that the promoter signed in 2014 and 2016 with European manufacturers. The original contracts were both procured through a negotiated procedure, with publication of tender notices in the Official Journal of the EU in 2012 and 2014, as and where required.