Bucharest Metro Line 5

Promoter – Financial Intermediary

S.C. METROREX S.A. (a commercial company under the control of the Romanian government)

Location

• Romania

Description

Development and modernisation of the underground transport in Bucharest.

Objectives

The Bucharest metro transport system has been serving the city since 1979. Investment has been stepped up in the last ten years with an expansion of the network and improved service. The new investment programme (the Project) to be financed by the Bank consists of two main components:

1. the construction of a new metro line (Line 5, length 9 km) connecting a populous area of the city with its educational and administrative centre, and
2. the purchase of rolling stock to operate Line 5 (21 trains) and to replace 16 obsolete units running on the existing network.

Sector(s)

• Transport

Proposed EIB finance (Approximate amount)

EUR 370 million.

Total cost (Approximate amount)

The overall cost of the investment is evaluated at EUR 743 million, with Metrorex and the State budget also supporting the project.

Environmental aspects

The investments to be carried out will allow either significant savings in terms of reduction of energy consumption or will help to increase the potential demand for underground transport. Metro projects are characterised by substantial environmental benefits and should also result in a reduction in greenhouse gasses when compared with the do-nothing scenario. It will therefore contribute to mitigating climate change. Globally, the project will contribute to the overall amelioration of the urban environment.

• Non Technical Summary (NTS) of the Environmental Impact Assessment (EIA)

Procurement

The Bank will require the Promoter to ensure that contracts for the implementation of the project have been/shall be tendered in accordance with the relevant applicable EU procurement legislation with parallel publication of tender notices in the EU Official Journal, as and where appropriate.

Status

Signed - 12/11/2009