France: EIB and Métropole Nice Côte d’Azur sign a EUR 250m contract to finance Métropole Nice Côte d’Azur's west-east tramway line

The European Investment Bank (EIB) and Métropole Nice Côte d’Azur today (Friday 21 November 2014) signed a EUR 250m finance contract for a new Métropole Nice Côte d’Azur tramway line, which will provide those living in the area with a more efficient, accessible and comfortable means of transport on the major west-east route across Nice. The project's EUR 500m funding requirement will be shared equally by the EIB and Caisse des Dépôts.

The signing ceremony took place in the town hall in Nice in the presence of Christian Estrosi, Nice's Deputy Mayor and President of Métropole Nice Côte d'Azur, and EIB Vice-President Philippe de Fontaine Vive.

At a time when local authorities are suffering from a credit squeeze and tight budgetary constraints, this is a key financing operation for Métropole Nice Côte d'Azur. It is a major project that is crucial for the area's inhabitants and the region's economic vitality. The construction of this new west-east tramway line will provide those living in the area with a fast, comfortable and more reliable alternative. With a total length of 11.3 km and 20 stations, it will link the major economic hubs (the port, airport, Palais des Congrès and Palais des Expositions), the historic town centre, with its traditional activities (shops and tourism), but also districts that are growing such as the Eco-Valléy (Grand Arénas, Les Moulins and Nice Méridia). It will thus improve public transport facilities on this route, enabling the number of people being carried daily to be increased from 70 000 to 140 000 shortly after the new service opens and to 200 000 eventually.

This operation will also help finance the purchase of 19 new-generation trams, each 44 metres-long and with a capacity of 300 passengers, and the construction of a new maintenance site. Five park-and-ride facilities, with a total capacity of 1 550 parking spaces, will also be built, to encourage the modal shift from private cars to the tramway.

This new line is due to enter into service in 2018.

At a time when the EIB is stepping up its activities to support regional economic growth in France, this EUR 250m long-term loan on attractive terms thanks to the Bank's AAA rating is vital for Métropole Nice Côte d’Azur. This financing operation reflects the EIB's commitment to supporting the economic development of this region. At a more general level, for the PACA Region, nearly EUR 700m was invested by the Bank in 2014 alone, in key sectors such as transport, health, energy efficiency, training for young people and even innovation. This new loan echoes the EIB’s unprecedented activity to support projects promoting growth and employment in France, for which the Bank has already dedicated EUR 7.8bn in 2013 (80% more than in 2012).

"I am delighted that the EIB, which has made support for more environmentally-friendly and efficient transport one of its priorities, is helping to finance this project with the aim of improving the daily lives of our citizens. The signing of this contract also illustrates the combined firepower of the EIB and Caisse des Dépôts for supporting local authorities in their economic and social development projects. It is by acting in the heart of the regions that we will be more effective in supporting the revival of growth and employment," said EIB Vice-President Philippe de Fontaine Vive at the signing ceremony.

"Today we are finalising the financing of the west-east tramway line. Two major financial institutions, the EIB and CDC, are involved alongside Métropole Nice Côte d'Azur, aware of what is at stake for the region in terms of economic development, employment and environmental quality. By each providing an equal contribution to the EUR 500m total, the EIB and CDC are placing their trust in France's first metropolitan area. This reflects two things: first, the importance of this major infrastructure project, which has been studied and validated by the financial analysts and technical teams of the two institutions; and, second, the strength of our metropolitan area and quality of its management, which can be seen in the trust placed in them by the lending institutions," stated Christian Estrosi, Nice's Deputy Mayor and President of Métropole Nice Côte d’Azur.