BRUSSELS REGION SUSTAINABLE MOBILITY II

The project will support the implementation of Phase I of the metro line 3 (M3) which consists of upgrading the existing tram infrastructure (pre-metro) into a fully-fledged metro line in the central underground transport corridor between Albert and Gare du Nord (6km), in Brussels. This is part of a wider programme of strategic transport investments carried out by the 'Région de Bruxelles Capitale (RBC)' to modernise the existing public transport infrastructure and fleets, as well as to extend the network.

The loan will support the implementation of the Sustainable Mobility Plan for Brussels Region and will contribute to improving quality, reliability, capacity, safety and accessibility of the public transport services, thus favouring the use of public transport and promoting intermodality and modal transfer away from private cars as well as improving energy efficiency.

The project will increase the quality and appeal of public transport services to bring about the modal shift targeted in the Brussels region's strategic documents.

The investments to be financed will carry benefits by improving the quality of service provided in terms of comfort, availability and reliability on the core section of the public transport network between Brussels-North and Albert, especially during peak hours, through an increase in capacity. This contributes to a modal shift towards the public transport network.

Other benefits of the project include lower overall transport costs for passengers, lower operating costs and a reduction in the main negative externalities of transport, particularly in terms of greenhouse gas emissions, noise and atmospheric pollution, and road accidents.

In addition to the economic benefits mentioned above, the project will have a social impact by improving access to employment, education and facilities, and will contribute substantially to making public transport more affordable, accessible and sustainable in the Brussels region.

The promoter has the necessary expertise to implement the components of the project. There will be annual follow-ups on project progress.

Financially, the operation will ensure that RBC has access to sufficient and stable financial resources for the timely implementation of the project. The Bank provides flexibility in terms of availability and grace periods, allowing RBC to spread out its investments over the planned construction period. The Bank´s provision of a 25-year-financing increases the stability of the management of the Borrower´s long-term obligations. In addition, EIB´s financing contribution will underpin the investment grade profile of the region, acting as a catalyst for crowding in other possible financiers.

The promoter's environmental and social management capacity to apply the relevant EU Directives will be verified during appraisal, particularly with regard to the EU Environmental Impact Assessment (EIA) Directive 2011/92/EU (amended by 2014/52/EU), EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC as well as public consultation.

The promoter has to ensure that contracts for the implementation of the project have been and will be tendered in accordance with EU procurement legislation, 2014/25/EU or 2014/24/EU where applicable as well as Directive 92/13/EEC or 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.