Summary sheet
The project consists of i) purchase of new rolling stock, ii) renewal and modernisation of existing rolling stock and rail infrastructure, and iii) small construction works to improve the capacity of the rail network, all part of the investment programme of Stuttgarter Strassenbahnen AG.
The project will contribute to improving the quality of public transport service in terms of comfort and reliability and to preserving and increasing the attractiveness of public transport in the City of Stuttgart. Thus, the project will contribute to maintaining and raising the share of sustainable transport modes in the City of Stuttgart, and besides environmental and social objectives of the City and the EU in terms of transport safety and traffic pollution, the project will also contribute to achieving the EU's and the Bank's climate change objectives.
The project will enhance the performance and capacity of Stuttgart's 'Stadtbahn', a track based electrified public transport system. The project improves the efficiency, quality and transport capacity of public transport services, and contributes to maintaining and enhancing ridership, aiming to reduce private car use in the city and the adverse impacts of the transport sector. Besides environmental and social objectives of the City of Stuttgart and the EU in terms of transport safety and traffic pollution, the project will also contribute to achieving the EU's and the Bank's climate change objectives.
The Bank's unsecured loan will be a major cornerstone of the financing for the borrower's substantial overall investment programme over the next 5 to 10 years, which goes beyond the current project and will require a substantial amount of debt financing. The maturity of the Bank's loan is expected to extend beyond the borrower's current Public Service Contract and will thus provide a much-needed basis for the stability of the financing model. The Bank will co-finance the project alongside the Council of Europe Development Bank (CEB) in Paris and national, regional and municipal grants. This financing combination will be highly beneficial not only for the project itself but also indirectly for the borrower's overall investment programme. Furthermore, the loan will be the borrower's first Green Loan under its new dedicated framework.
The project consists of the modernisation and acquisition of rolling stock, which is out of the scope of the Environmental Impact Assessment (EIA) Directive (2014/52/EU amending 2011/92/EU), the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC). The project also includes modernisation of parts of the electrical systems and upgrades of some stations. While it is not expected that these investments fall under the EIA directive, this will be assessed during appraisal. Also arrangements for the scrapping of dismissed rolling stock if any will be assessed during appraisal. The project will promote a modal shift from road to rail and, therefore, generate environmental and safety benefits.
The Bank will require the Promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation (Directive 2014/24/EU, 2014/25/EU, as well as Directive 89/665/EEC and Directive 92/13/EEC) as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.