STUTTGART ROLLING STOCK ERTMS RETROFIT

Promoter – Financial Intermediary

DB REGIO AG

Location

• Germany

Description

The project consists of retrofitting around 215 trainsets used for suburban rail services (S-Bahn) in the Stuttgart Region with European Railway Traffic Management System (ERTMS) and Automatic Train Operation (ATO) equipment.

Additionality and Impact

The project consists of the retrofitting of 215 trainsets used for the Stuttgart suburban rail service (S-Bahn) with European Rail Traffic Management System (ERTMS) and Automatic Train Operation (ATO) equipment. This will allow shorter train headway and by this means an increase in the infrastructure capacity and supply for rail services, facilitating access to jobs, education and public services. The project will also contribute to modal shift from road to rail bringing the associated benefits in terms of transport safety, energy savings, reduction of air pollution and CO2 emissions. 142 million passengers per year (2027) are expected to directly benefit from the project. The Bank's loan approval is expected to allow DB Regio to apply for grant funds for the project under the European Commission's CEF Transport Blending Facility. Through its role as an Implementing Partner under this grant facility, the Bank plays an important role in mobilizing additional public funding for the investment. Furthermore, the loan provides some Financial Value Added as well as flexible drawdown options.

Objectives

The objective of the project is to improve urban rail services in Stuttgart through the installation of ERTMS equipment.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 60 million

Total cost (Approximate amount)

EUR 190 million

Environmental aspects

The project consists of the retrofitting of rolling stock, an activity that is out of the scope of the Environmental Impact Assessment Directive (2014/52/EU amending 2011/92/EU), the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC). The need for an EIA and/or assessment according to the Habitats Directive for associated facilities (e.g. maintenance workshops or depots) 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 the implementation of the project will be tendered in accordance with the relevant 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 Official Journal of the EU, as and where required.

Status

Signed - 24/09/2021