STA ALTO ADIGE RAILWAY ROLLING STOCK

The project consists of the acquisition of 7 trainsets (with an option for the acquisition of an additional trainset). The trainsets are all Electric Multiple Units (EMUs) and will be used on the regional railway network in Alto Adige/South Tyrol (Italy), including connections with neighbouring stations in Austria, as well as the northern part of the Province of Trento.

The project is expected to increase the quality of rail services provided in Alto Adige/South Tyrol as well as promote travel by rail, reducing the use of private vehicles and the associated negative impacts on the local environment, road safety and greenhouse gas (GHG) emissions and, thereby, contribute to sustainable transport in line with EU objectives. The project is therefore eligible under Article 309 point (c) common interest. The project will also contribute to meeting the Bank's targets for support to climate action and environmental sustainability.

The Project consists in the acquisition of 7 electric trainsets (with an option for an additional trainset). The trainsets are all Electric Multiple Units (EMUs) and will be used for regional railway services in Alto Adige/Südtirol, including connections with neighbouring stations in Austria, as well as the northern part of the Province of Trento.

The project is expected to increase passengers demand compared with the current level and, consequently, the market share of public transport. The more efficient use of the existing rail capacity and the anticipated shift from road to rail is expected to result in reduced vehicle operating costs, time savings, improved transport safety and environmental benefits including reduction of GHG emissions. Therefore, the project will contribute to EU's objectives in sustainable transport and to the Bank's climate action and environmental sustainability objectives.

The bespoke financial structure will help the Promoter to maximise the use of public funds to co-finance the Project.

The investment proposed under the project does not fall under either Annex I or Annex II of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU. For associated facilities (e.g. maintenance workshops or depots) the requirements of Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC will be verified during appraisal. Moreover, arrangements for the scrapping of dismissed rolling stock will be analysed during appraisal. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation and pollution prevention and control.

The Bank will require the promoter to ensure that contracts for implementation of the project have been tendered in accordance with the 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.