TRAMTRAINS KARLSRUHE

Promoter – Financial Intermediary

VBK - VERKEHRSBETRIEBE KARLSRUHE GMBH

Location

• Germany

Description

Acquisition of tramtrain rolling stock by Verkehrsbetriebe Karlsruhe.

Additionality and Impact

The project supports the shift of traffic to more sustainable transport modes and reduces related negative transport externalities.

The Bank's loans will be a cornerstone of the financing for the borrower's investment programme in municipal rolling stock, providing a substantial contribution to the programme's financeability and affordability. The loan will offer key benefits such as a very long loan maturity and flexibility with respect to availability period, interest rate arrangements and grace periods as well as to drawdowns, which will enable the required alignment with the implementation and financial modalities of the Project.

Objectives

The project consists of the acquisition of 73 new electric trainsets by VBK. The VBK tram system serves the city of Karlsruhe. Operations are tendered out by the City. The project will contribute to maintaining the supply and quality of passenger rail services. The new rolling stock is expected to allow more efficient operation, reduce maintenance costs, lower energy consumption and increase the level of comfort for passengers. Indirectly, by improving services, rolling stock renewal will help railways compete with other modes of transport, particularly private vehicles, so as to maintain or improve its modal share. Shifting passenger flows from other modes to rail may result in reduced vehicle operation costs, safety and environmental benefits.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 150 million

Total cost (Approximate amount)

EUR 326 million

Environmental aspects

The project consists of the acquisition of new 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 need of an EIA and/or assessment according to the Habitats Directive for associated facilities (e.g. maintenance workshops, new tracks, depots or other directly related new infrastructure) and arrangements for the scrapping of dismissed rolling stock will be assessed during appraisal. The project will promote a modal shift from road to rail and, therefore, generate environmental and safety benefits.

Procurement

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.

Status

Signed - 15/12/2022