KEOLIS - PACA ELECTRIC BUS FLEET

Promoter – Financial Intermediary

SOCIETE GENERALE

Location

• France

Description

The project includes: (i) the acquisition of 112 full-electric vehicles (96 buses and 16 double-decker coaches) to replace end-of-life diesel buses fleet and provide interurban public bus transport services in the French region Sud Provence Alpes Côte d'Azur and (ii) the construction of associated infrastructure needs, namely electric charging stations and depot adaptations. The later will not be financed under this allocation but are considered as associated facilities.

Additionality and Impact

The investments foreseen will support the renewal of end-of-life public transport vehicles and the market take-up for the deployment of zero-emission vehicles and associated infrastructure.

They will also contribute to improving the quality of public transport services providing a cleaner and more affordable alternative for urban and inter-urban mobility needs (accessible transport), thus helping to reduce reliance on private cars, contributing to a reduction of noise, pollution and greenhouse gas emissions . 

The project supports the decarbonisation of the land transport fleets which is part of the actions foreseen under the regional climate mitigation and adaptation plan (plan Climat) and the Contrat de plan Etat-Région 2021-2027 strategic documents. It is also in line with the Clean Vehicle Directive ("CVD"), the EC Smart & Sustainable Mobility Strategy and the overall EU ambition to reduce transport related CO2 emissions developed in the 'fit for 55' package in line with the Paris Agreement.

The project therefore contributes to sustainable transport and climate change mitigation, in line with the new EIB's Transport Lending Policy and the provisions of Annex 4 of the EIB's Group Roadmap in its role of the Climate Bank. Moreover, as a transition region, the region Sud Provence Alpes Côte d'Azur qualifies as a Cohesion region. A certain proportion of the buses acquired through this project will run on the TEN-T Mediterranean corridor.

The investments covered under this allocation are expected to deliver benefits in terms of lower operational and maintenance costs as well as environmental and social benefits (safety, reduced local pollution, noise and global warming).

These investments are expected to contribute to the following objectives that address market

failures, amongst others: (i) the reduction of the related negative road transport externalities, (ii) the generation of positive externalities through improved accessibility to services and employment by providing a cleaner, more efficient and affordable alternative for urban and inter-urban mobility needs and (iii) the improvement of the efficiency of the transport network and the optimisation of the use of public goods, thus bringing benefits in terms of time and cost savings, and less traffic congestion.

Objectives

The project supports the decarbonisation of the land transport fleets which is part of the actions foreseen under the regional climate mitigation and adaptation plan (plan Climat) and the Contrat de plan Etat-Région 2021-2027 strategic documents. It is also in line with the Clean Vehicle Directive ("CVD"), the EC Smart & Sustainable Mobility Strategy and the overall EU ambition to reduce transport related CO2 emissions developed in the 'fit for 55' package in line with the Paris Agreement.

Sector(s)

• Transport - Transportation and storage

Proposed EIB finance (Approximate amount)

EUR 31 million

Total cost (Approximate amount)

EUR 62 million

Environmental aspects

The acquisition of electric buses, depot adaptations as well as instalment of charging infrastructure do not fall within the scope of the Environmental Impact Assessment (EIA) Directive 2011/92/EC amended by Directive 2014/52/EU. Therefore, no EIA will be required for these components. Given the nature of the project components, no impacts on Natura 2000 or other protected sites are expected. In any case, during appraisal, the Bank's services will check the compliance with the requirements of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU. Additionally, and as applicable, the Bank's services will review compliance with the SEA Directive 2001/42/EC, the relevant Habitats and Birds Directives (92/43/EEC and 2009/147/EC, respectively) and the Water Framework Directive (2000/60/EC).

Procurement

The final beneficiary, Keolis, was awarded a Public Service Contract (PSC), through a competitive public procurement procedure in line with Regulation 1370/2007 which was tendered in accordance with the relevant applicable EU procurement legislation. The final beneficiary is responsible for the tender processes of the investments to be financed under this allocation. It has been assessed by the EIB as being a private company and not being subject for these investments to EU rules on public procurement. It has chosen the manufacturer and contractors on the basis of the best quality/price balance whilst meeting the PSC's requirements.

Status

Approved - 28/09/2022