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    Reference: 20210513
    Release date: 17 September 2021

    Promoter – Financial Intermediary

    ZWECKVERBAND VERKEHRSVERBUND MITTELSACHSEN

    Location

    Description

    Acquisition of 19 tram-trains to be used in the City area and the surroundings of Chemnitz and construction of a depot for up to 60 trains.

    Additionality and Impact

    The project consists of the acquisition of 19 new TramTrain vehicles and the construction of a maintenance depot by the Verkehrsverbund Mittelsachsen GmbH, a subsidiary of Zweckverband Verkehrsverbund Mittelsachsen (Germany), a first time Borrower from EIB. The project will increase the current urban and suburban public transport capacity and significantly improve the modal share of rail based transport in Chemnitz and its surrounding area. This will result in reduction of road congestion, as well as vehicle operating cost savings, transport safety benefits, and environmental benefits in terms of reduction of greenhouse gases and pollutants. The Bank's loan plays an important role in securing the overall funding of the operation, sending a positive signal to commercial co-funders and contributing to the robustness of the business case. It lowers the Borrower's funding costs and provides a stable long-term funding base by way of fixed rate loans (as opposed to floating rate loans by the Co-Funders). The majority of the project is eligible under Climate Action. The project will also contribute to development of a "transition" region within the Cohesion policy architecture.

    Objectives

    The project will increase the quality of the rail-based public transport services provided by the Promoter. It will thereby promote sustainable transport by improving the modal competitiveness of rail transport against road and contribute to the reduction of noise, accidents, pollution and CO2 emissions.

    Sector(s)

    Proposed EIB finance (Approximate amount)

    EUR 89 million

    Total cost (Approximate amount)

    EUR 178 million

    Environmental aspects

    The rolling stock component does not fall under either Annex I or Annex II of the Environmental Impact Assessment Directive 2011/92/EU (as amended by Directive 2014/52/EU) as manufacturing and use of rail rolling stock is not included in either list. The need of an environmental impact assessment (EIA) and/or assessment according to the Habitats Directive 92/43/EEC for the maintenance depots, as well as for any associated facilities not included in the investment proposed but needed for the correct operation of the new rolling stock will be analysed during the appraisal. The project is expected to have a positive environmental impact by contributing to the modal shift from road to railways.

    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, 2014/24/EU as well as Directive 89/665/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 - 29/03/2022

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

    Related tags

    Germany Transport