BADEN-WUERTTEMBERG ELECTRIC TRAINS

The loan will finance the acquisition of new battery-powered trains by SFBW, the rolling stock provider of the German State of Baden-Württemberg, based in Stuttgart. The electric trains will operate regional railways in Baden-Württemberg and occasionally other neighbouring federal states, as well as its bordering states, France or Switzerland.

The project will increase the supply and quality of the passenger transport services provided in Baden-Württemberg. In line with the EU objectives, it will thereby promote sustainable transport.

The Project will replace life expired rolling stock on the regional railway network for Baden-Württemberg. The Project is expected to contribute to modal shift from road to rail (or at least maintain rail modal share). This will contribute to the reduction of CO2 emissions, traffic congestion, road accidents, air pollution and noise levels, operating and maintenance costs. The Project is 100% eligible under Climate Action.

The project fleet will help realise the objectives of specific studies for the optimal vehicle choice on non-electrified routes to replace diesel vehicles. They will also support the plans for improving the wider public transport offer in Baden-Württemberg as specified in its transport policy strategies and objectives.

The Bank's loans have been a cornerstone of the borrower's multi-billion investment programme into regional rolling stock ever since its establishment, providing a substantial contribution to the programme's financeability and affordability and attracting third-party financing.

The loan will offer key benefits such as a very long loan maturity and flexibility with respect to availability period, interest rate arrangements and grace periods as well as to drawdowns, which will enable the required alignment with the implementation and financial modalities of the Project.

Since the project involves the acquisition of new rolling stock, which is out of scope for the Environmental Impact Assessment (EIA) Directive (2014/52/EU amending 2011/92/EU), the Habitats Directive (92/43/EEC) and Birds Directive (2009/147/EC). The need of EIA and/or assessment according to the Habitats Directive for associated facilities (e.g. maintenance workshops or depots) and arrangements for the scrapping of dismissed rolling stock will be assessed during appraisal. By promoting the modal shift from road to rail, the project will generate environmental and safety benefits.

The promoter has to ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation, Directive 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 EU Official Journal, as and where required.