France: EIB and Lorraine Regional Council join forces to finance acquisition of new Régiolis trainsets for Métrolor-TER regional rail network

On Wednesday 23 April 2014 Lorraine Regional Council President Jean-Pierre Masseret and European Investment Bank (EIB) Vice-President Philippe de Fontaine Vive signed a €37.5m finance contract in Metz for the renovation and modernisation of the Métrolor-TER regional rail network.

The project consists of the acquisition by the Lorraine Regional Council of ten dual-voltage bi-mode trainsets, more commonly known as Régiolis trainsets. The total cost will be around €80m, i.e. around €8m per trainset. The acquisition of these new trains will make it possible to replace older rolling stock, which will lead to a significant improvement in the quality of the public service, generate savings in operating costs and meet the demand for Métrolor-TER services, which has been growing rapidly for a number of years.

Spacious, modern and comfortable, the Régiolis trainsets will provide 2 200 seats and will, where necessary, be able to accommodate standing passengers in complete safety during the rush hours and in the vicinity of the major conurbations. They will also offer users an optimal level of service, with information being provided by innovative visual and sound systems (Phytec equipment for the hard of hearing) and an integral low floor level with the platform for better accessibility, particularly for the disabled. Using the latest technologies (low electricity and thermal consumption), the project will also have very positive effects on the environment.

At the signing ceremony EIB Vice-President Philippe de Fontaine Vive declared:

"Supporting efficient and sustainable transport is a priority for the Bank. I am therefore very pleased that the EIB is helping to finance this project, which will offer those living in Lorraine an attractive, environmentally friendly alternative to private vehicles. Our commitment is thus reflected in the practical application of European economic policies to the daily lives of our citizens. Europe's activities are thus affecting the very heart of our towns and regions."

This project is the EIB's third major operation in the railway sector with the Lorraine Regional Council, which recently received direct loans to finance the LGV Est high-speed railway line. At a time when the EIB is stepping up its activities to support regional economic growth in France, this long-term loan on attractive terms thanks to the EIB's AAA rating is vital for the Alsace Region.

Jean-Pierre Masseret, President of the Lorraine Regional Council, expressed his satisfaction with this new agreement, saying:

"The EIB is a long-standing preferred partner for our region. Modernising the regional transport system is a top priority for Lorraine, whose network is one of the most heavily used in France. The EIB has provided us with highly competitive financing terms, enabling us to manage the project budget efficiently, to serve passengers."

The loan being provided to Lorraine today reflects the EIB’s commitment to modernising public transport and regional development in France, the aim of which is to improve energy efficiency and people's quality of life. In this connection, in July 2013 the Bank put in place a €750m investment programme to enable French regions to acquire new rolling stock.

This is the second project to be signed under this wide-ranging programme, following on from the financing operation in Alsace in 2013. It echoes the EIB’s unprecedented activity to support projects promoting growth and employment in France, for which the Bank already dedicated €7.8m in 2013 (80% more than in 2012).