The European Investment Bank (EIB) is providing a total of EUR 1 billion for ÖBB’s (Austrian Railways’) high speed rail line project in the Lower Inn Valley. The EIB and the project promoter, ÖBB-Infrastruktur AG, signed the contract for a new EUR 200 million instalment today, bringing the EIB’s contribution so far to this trans-European network (TEN) project to EUR 800 million. This is one of the EIB’s 20 largest financing operations and its biggest ever financing commitment in Austria.
With this loan the EU’s bank is financing the upgrading to high speed line of the 41 km section between Kundl-Radfeld and Baumkirchen in the Lower Inn Valley in the Tyrol. This will form part of the approach to the future Brenner base tunnel and be a key component of the Berlin-Palermo TEN axis 1. By 2012, a new two-track high speed line will be added to the existing two-track line, which is reaching saturation point. The upgrading of the Lower Inn Valley section will substantially increase capacity on Europe’s most important North-South rail corridor and enable the separation of passenger and goods traffic. It will cut journey times for users and reduce environmental and noise pollution for the local population.
In the words of EIB Vice-President Wilhelm Molterer: “The scale of today’s loan demonstrates the key importance of this rail section to the future Brenner base tunnel. The state-of-the-art high speed trains that will be used on the line will make rail travel far more rapid and therefore significantly more attractive than other means of transport. That will bring environmental and energy use benefits and markedly improve the quality of life of the inhabitants of the Lower Inn Valley”.
Andreas Matthä, CEO of ÖBB-Infrastruktur AG, thanked the EIB for its support for the realisation of this major European project: “ÖBB is investing more than ever in the expansion of high speed rail in order to tie Austria into the European rail network of the future. This EIB loan is an impressive testament to our upgrading strategy and to the high quality of ÖBB’s infrastructure projects.”
Like numerous previous projects, the finance contract signed today clearly shows that in its operations in Austria the EIB is promoting rail over other means of transport. In the past five years alone, the Bank has provided loans worth over EUR 1.5 billion for projects in Austria’s rail sector.
Background information:
The EIB is the European Union’s bank. Its purpose is to promote EU objectives by providing long-term loans for viable projects.
ÖBB: Austria’s biggest transport service provider
As a comprehensive service provider, the ÖBB group is responsible for the Austria-wide environmentally friendly transport of people and goods. With a total workforce of some 42 500 and a turnover of around EUR 6.1 billion, it is a national economic powerhouse. In 2010, ÖBB transported 460 million customers and 132.9 million tonnes of goods. The group’s strategic management is ensured by ÖBB-Holding AG.
ÖBB: www.oebb.at