Summary sheet
The project concerns the promoter's investments in Research, Development and Innovation (RDI) in the field of motorbikes electrification and safety. The related activities will be carried out primarily at KTM's headquarters and main RDI location in Austria.
The project aims at developing (i) new fully electric drivetrain platforms and electrical energy storage units for various types of zero-emission vehicles as well (ii) active and passive safety functionalities and systems for motorcycles to reduce significantly the high proportion of technically avoidable accidents.
The Project will contribute to developing innovative technologies for application in battery electric motorcycles and improved safety. It will contribute to lower the barriers to the adoption of such vehicles in the market and will develop innovative technologies with the goal to make motorcycling as safe as possible, by developing new, active and passive safety functionalities and systems for motorcycles.
It will also contribute to further knowledge creation and diffusion, and support the relevant upskilling and retraining of the Promoter's workforce to operate in the evolving technology and market context.
The Project is eligible for the EIB financing under "Innovation, Digital and Human Capital" Public Priority Goal and a significant part of it qualifies under the EIB Climate Action and Environmental Sustainability policy objective.
The Promoter's investments address the market failures and gaps associated with (i) imperfect competition and incomplete markets for innovative and still market-entry-stage motorcycles electrification, safety and connectivity technologies, and those addressed by (ii) projects with positive knowledge, safety and environmental externalities generation.
The Promoter's experienced management and proven R&D capabilities, its focus on R&D, innovation and sustainability, its technology edge and industrialisation capability will help implement a sound and sustainable Project, integrating positive environmental and social dimensions, contribute to address and mitigate market failures, and through its additionality, contribute to the Bank's policy objectives.
The Bank's contribution to the project is underpinned by a combination of advantageous terms, a meaningful loan amount, flexible drawdown terms as well as catalysing effect on crowding-in other financiers, thereby facilitating the project's financing and full implementation and diversifying the company`s financing sources.
The Bank's technical contribution and advice is explained by the guidance provided to align the project scope with policy objectives at project origination, the monitoring requirements during project implementation given the associated risk level, the technical assistance with regard to the promoter's decarbonisation plan.
As the project's activities are not listed in the annexes of the Environmental Impact Assessment (EIA) Directive 2011/92/EU (amended by the Directive 2014/52/EU), the EIA Directive is not applicable. Environmental aspects will be reviewed during the due diligence process.
KTM has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the promoter is subject to the EU public procurement legislation then the European Commission will be duly informed and KTM will be required to apply those rules.