Summary sheet
The loan will finance the purchase of 30 new trams sets by the promoter MPK Krakow, more specifically: - 14 trams each 24-27m long minimum capacity of 145 passengers, air-conditioned and minimum 80% low floor - 6 bidirectional trams each 32-34m long, minimum capacity of 180 passengers, air-conditioned and minimum 80% low floor - 10 trams each 40-45m long, minimum capacity of 260 passengers, air-conditioned and minimum 80% low floor.
The aim is to replace existing trams that are at the end of their technical and economic life.
The project consists of the acquisition of 30 new tram sets by the public urban transport provider of the city of Krakow, the largest city of the Malopolska Voivodeship in Poland. The proposed investments will ensure that public transport maintains its' market share and thus contribute to achieving sustainable transport objectives as well as to climate action objectives of the EU and the city.
The renewal of the fleet will make public transport more competitive and potentially reduce the use of private cars in the city, and therewith reduce the adverse impacts of transport on the urban environment, in particular excessive land take, local pollution and transport safety. The Bank's loan plays an important role in securing the overall funding of the operation.
The project is 100% eligible under Climate Action.
EIB provides a significant financial contribution by offering longer maturity and flexible customised terms (such as disbursement conditions or periods adapted to project implementation schedule) compared to the conditions normally available on the local market.
The EIB financing is expected to adequately address the Borrower's financing needs for the project. It will accelerate its implementation, mobilization of funding and enable the Borrower and the City of Krakow to effectively spread their financial obligations over a relatively long period of time. The financing structure is repeated and well known to the Borrower and the City which should enable efficient financial close and minimize efforts to effectively receive financing.
The EIB's support should also have an impact on mobilising other financiers by providing a continued stability of the Borrower's balance sheet structure and signalling that the project is sound and worth supporting, thereby facilitating financing of other Borrower's needs.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.