Summary sheet
The project will finance the purchase of 145 electric buses and related infrastructure, such as charging stations, firefighting installations, power supply, IT systems and new additional parking spaces in the existing depots.
By supporting the electrification of the bus fleet, the aim is not only to improve the reliability and availability of public transport but also to potentially reduce the use of private cars and associated externalities (noise, pollution and CO2 emissions). As such, the project will generate positive socio-economic and environmental benefits.
The Project is in line with the European Union's strategy outlined in the European Green Deal and the EIB strategies for Sustainable cities and regions, climate action and environmental protection; and it complies with the Bank's Paris Alignment criteria as defined in the CBR (Climate Bank Roadmap) and is fully consistent with the EIB Transport Lending Policy. The Project's contribution to the Bank's climate action (CA) and environmental sustainability (ES) objective is 100% of the total cost. The Project is expected to increase accessibility to the public transport network, which in turn, is expected to reduce negative externalities of road traffic, improve air quality and reduce GHG emissions from transport in the city of Valencia. In addition, the Project is fully located within a transition region of the EU. Therefore, the Project supports the strengthening of the EU's economic, social and territorial cohesion. It will address sector specific market failures and will result in significant economic, social and environmental benefits. These benefits would not be realised to the same extent without public intervention.
The Bank's loan plays an important role in securing the overall funding of the operation. It lowers the Borrower's funding costs, provides a diversified and stable longer-term funding base and offers flexibility in terms of loan drawdowns.
The manufacturing of electric buses, software, and IT systems for e-buses operations as well as charging infrastructure do not fall within the scope of the Environmental Impact Assessment (EIA) Directive 2011/92/EC (amended by Directive 2014/52/EU). Therefore, no EIA will be required for these components. Similarly, no EIA is required for the interventions in the existing depots or in the bus stops, as they are mainly refurbishing works or minor works to install the charging points for the electric buses or create new parking spaces for the buses. The new buses will allow the replacement of existing buses reaching the end of service life. No negative impact is expected from this component. The interventions concerning charging infrastructure are expected to be limited and inside the footprint of the existing infrastructures, thus with minor and temporary environmental impacts.
As a public entity, the Promoter (EMPRESA MUNICIPAL DE TRANSPORTES DE VALENCIA - EMT Valencia) must comply with public procurement procedures under the Spanish law transposing the EU directives. The EIB will therefore require EMT Valencia to ensure that contracts for the project implementation have been and will be tendered in accordance with EU procurement legislation, 2014/25/EU or 2014/24/EU where applicable as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.