Release date: 10 July 2023
Promoter – Financial Intermediary
RHEIN-NECKAR-VERKEHR GMBHLocation
Description
The project will finance the purchase of new and better tram rolling stock, replacing old trams in the Rhine-Neckar region, more specifically around the cities of Mannheim and Heidelberg.
Additionality and Impact
The project will enhance the performance and capacity for a large urbanized area on the Rhein-Neckar rivers' crossing. The project aims at reducing private car use in three important cities, supporting the shift of traffic to more sustainable transport modes and reduces related negative transport externalities, in particular the emission of GHG and pollutants of the transport sector.
The Bank's loan will be a cornerstone of the financing for the Borrower's investment programme in urban rolling stock, providing a substantial contribution to the programme's affordability.
The loan will have a maturity that stretches longer than the duration of the borrower's Public Service Contracts and will offer multiple disbursements with the possibility to fix them on a forward basis during the availability period. This will enable the borrower to match the schedule of any instalments to be paid by the borrower to the tram manufacturer.
The availability period as well as the grace period will be in line with the long implementation period of the project. This will also allow the borrower to match-fund future cash flows under the project. By locking in the interest rate conditions at the time of pricing up to the maximum tenor of the loan, the borrower achieves high predictability of financing cashflows.
The EIB loan will complement loans from the banks KFW-Ipex and NordLB, as well as a portion of regional authorities' grants.
Objectives
The aim is to increase the tram capacity, comfort and service level, enable sustainable resource-efficient transport, as well as reduce noise emissions.
Sector(s)
- Transport - Transportation and storage
Proposed EIB finance (Approximate amount)
EUR 95 million
Total cost (Approximate amount)
EUR 216 million
Environmental aspects
The construction of the new tram rolling stock does not fall within the scope of the Environmental Impact Assessment (EIA) Directive since it will take place in the manufacturer's plants. If the project includes the construction of depots, then compliance with the EIA Directive will be assessed and, if needed, the EIB's loan will be conditional to obtaining the necessary environmental screening decisions, approvals or permits. The project is expected to deliver positive environmental benefits thanks to the new trams' improved energy efficiency.
Procurement
The promoter has to ensure that contracts for the implementation of the project have been/shall be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/24/EU, as well as Directives 89/665/EEC and 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 - 22/05/2025