Summary sheet
The promoter operates under a public service agreement with the City of Graz, which was recently extended for an additional ten years, covering the period from 2025 to 2035.
The project will finance the purchase of up to 49 trams (approximately 34m long) and the extension of an existing tramway maintenance depot at Steyrergasse. It will also include a storage area at Auer Welsbach Gasse, adding capacity to accommodate additional 40 trams and expand the repair and maintenance workshop.
The project supports the purchase of up to 49 trams (approx. 34m long) and associated infrastructure including the extension of an existing tramway maintenance depot at Steyrergasse as well as a storage area at Auer Welsbach Gasse.
The project is consistent with the Sustainable Urban Mobility Plan Graz 2040 which aim to reduce the modal share of cars by increasing the attractiveness of public transport. In doing so, the project complies with the objectives set in the EIB's Transport Lending Policy and is aligned with the Paris Agreement, according to Annex 2 of the EIB's Climate Bank Roadmap. The project also provides a substantial contribution to Climate Mitigation according to Annex 4 of the EIB's Climate Bank Roadmap and a substantial contribution to Environmental Sustainability.
There are no major negative social impacts, while the investments are expected to bring in a number of benefits including increased reliability of the tramway system while improving comfort and accessibility for tram passengers in Graz.
The Bank offers unique features rarely provided by other lenders, such as loan tranching and flexible disbursement terms to complement rigid public funding flows. Its extended availability period accommodates the Project's long implementation timeline and aligns with the economic life of financed assets. A stable fixed interest rate throughout the entire loan ensures predictability and matches the financing cost with the infrastructure's economic calculation period. Collectively, these elements help keep tariffs charged by the Promoter affordable.
Manufacturing of vehicles does not fall within the scope of the environmental impact assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU therefore no EIA is required for this component. Arrangements for the scrapping of the replaced rolling stock will be further assessed during appraisal. The extension of the depot is taking place on the existing footprint of the depot Steyrergasse, and the Competent Authority has issued a screening-out decision on March 2025 confirming that no EIA is required. The site is a registered contaminated site, and the Project includes removal of contaminated soil. The project is expected to have a positive environmental impact by helping the public transport to increase and or maintain modal share in. Furthermore, the Project should contribute to reducing the greenhouse gas emissions and noise.
The promoter shall ensure that contracts for the project implementation will be tendered in accordance with the applicable EU procurement legislation, Directive 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 EU Official Journal, as and where required. The tender for the trams was awarded to Alstom in May 2023. The main construction contracts for the depot are expected to be tendered by the end of 2026.