ELECTRIC BUSES VHH HAMBURG

The project consists of (i) the reconstruction and expansion of the existing depot Schenefeld including instalment of charging equipment for electric vehicles, and (ii) the acquisition of 120 standard electric buses (12m length), 52 articulated electric buses (18m length) and 16 small electric buses (6.8m length).

The project is expected to have a positive environmental impact and reduce greenhouse gas, as it will improve public transport services and therewith maintain or increase the modal share of public transport. Moreover, it is expected to improve the quality and attractiveness of public transport services which facilitate access to employment, education and urban services, and enhance an already affordable mobility solution.

The Project is in line with EU's strategy outlined in the European Green Deal and in the Sustainable and Smart Mobility Strategy . It contributes significantly to the EIB's policy objectives of sustainable cities and regions, climate action and environmental protection and is aligned with the EIB's Climate Bank Roadmap 2021-2025 and Transport Lending Policy. It will address sector specific market failures and will result in economic, social and environmental benefits. The Project is aligned with the Paris Agreement, according to Annex 2 of the EIB's Climate Bank Roadmap and it provides a substantial contribution to Climate Mitigation according to Annex 4 of the EIB's Climate Bank Roadmap.

In financial terms, the EIB loan is expected to allow the Borrower to diversify its funding sources at attractive financial conditions, with a long term and grace period in line the construction and delivery time of the buses. The EIB loan also allows for a high flexibility in using the line, with limited commitment fees over part of the availability period. In non-financial terms, the granting of the EIB loan is considered to have a positive signalling effect for other potential lenders.

The manufacturing of the new electric buses does not fall within the scope of Directive 2011/92/EU amended by the EIA Directive 2014/52/EU as it is not listed in the Annexes of the EIA Directive. Therefore, no environmental impact assessment (EIA) is required for rolling stock. Arrangements for the scrapping of the replaced rolling stock will be further assessed during appraisal. For the Depot works, based on a risk-based approach as defined in the EIB Group Environmental and Social Policy, the requirements of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be checked during appraisal. The project is expected to have a positive environmental impact and reduce greenhouse gas (GHG) emissions because it will improve public transport services and therewith maintain or increase the modal share of public transport.

The Bank will require the Promoter to ensure that contracts for implementation of the project have been 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 EU Official Journal, as and where required.