RENFE HIGH SPEED TRAINS UPGRADE PLAN

The project will finance the acquisition of 26 traction heads and upgrade to 330 km/h. It will also turn 156 existing sleeping coaches into a seat configuration. The new traction heads and upgraded coaches will constitute 13 high-speed trainsets.

The aim is to upgrade the rolling stock, which will be used for commercial services.

The project consists of the acquisition and modernisation of rolling stock for high speed rail services. It is expected to result in modal share from air and road and generate good economic and social benefits, improving safety, comfort and better access for persons with reduced mobility. The shift of passenger traffic to rail addresses market failures by reducing negative transport externalities, such as the harm to humans in terms of accidents and loss of life, noise, pollution and CO2 emissions. The rolling stock will be equipped with the European Railway Traffic Management System, thus addressing a coordination failure.

The Bank's participation secures access to long-term financing at affordable terms, including interest rates. This helps the Borrower diversify its funding mix by crowding in other financiers and extend its average debt life, aligning it to the economic life of the asset being financed. A key contribution considering the very long-term nature of the financed assets and its positive impact on the overall project cost. The flexible drawdown terms and conditions of the EIB loan adjusted to the long delivery periods of the rolling stock, are highly valued by the public operator and are considered a key differentiating feature of EIB financing.

The investment proposed under the project does not fall under the Environmental Impact Assessment (EIA) Directive 2011/92/EU (as amended by Directive 2014/52/EU). The need of EIA and/or assessment according to the Habitants Directive for associated facilities (e.g. maintenance workshops or depots) will be analysed during the appraisal. Arrangements for the replacement or decommissioning of old rolling stock will be reviewed during appraisal. All else equal, the project is expected to have a positive environmental impact by contributing to modal shift from road and air transport to railways.

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been 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 EU Official Journal, as and where required.